REMY COINTREAU (RCO.PA)
FR0000130395 - Common Stock
We assign a fundamental rating of 5 out of 10 to RCO. RCO was compared to 25 industry peers in the Beverages industry. RCO has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, RCO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year RCO was profitable.
RCO had a positive operating cash flow in the past year.
Each year in the past 5 years RCO has been profitable.
In the past 5 years RCO always reported a positive cash flow from operatings.
1.2 Ratios
RCO has a Return On Assets of 5.48%. This is in the better half of the industry: RCO outperforms 62.50% of its industry peers.
RCO has a Return On Equity of 10.01%. This is comparable to the rest of the industry: RCO outperforms 54.17% of its industry peers.
RCO's Return On Invested Capital of 9.01% is fine compared to the rest of the industry. RCO outperforms 70.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RCO is above the industry average of 8.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 10.01% | ||
| ROIC | 9.01% |
ROA(3y)7.28%
ROA(5y)6.22%
ROE(3y)13.19%
ROE(5y)11.39%
ROIC(3y)11.39%
ROIC(5y)9.96%
1.3 Margins
The Profit Margin of RCO (15.48%) is better than 75.00% of its industry peers.
In the last couple of years the Profit Margin of RCO has grown nicely.
RCO's Operating Margin of 25.49% is fine compared to the rest of the industry. RCO outperforms 75.00% of its industry peers.
RCO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 71.19%, RCO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
RCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.49% | ||
| PM (TTM) | 15.48% | ||
| GM | 71.19% |
OM growth 3Y2.92%
OM growth 5Y1.71%
PM growth 3Y2.66%
PM growth 5Y1.82%
GM growth 3Y1.88%
GM growth 5Y2.43%
2. Health
2.1 Basic Checks
RCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RCO has been increased compared to 1 year ago.
The number of shares outstanding for RCO has been increased compared to 5 years ago.
RCO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.79 indicates that RCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.79, RCO is doing good in the industry, outperforming 70.83% of the companies in the same industry.
RCO has a debt to FCF ratio of 52.88. This is a negative value and a sign of low solvency as RCO would need 52.88 years to pay back of all of its debts.
RCO's Debt to FCF ratio of 52.88 is on the low side compared to the rest of the industry. RCO is outperformed by 66.67% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that RCO is not too dependend on debt financing.
RCO has a better Debt to Equity ratio (0.28) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 52.88 | ||
| Altman-Z | 2.79 |
ROIC/WACC1.27
WACC7.07%
2.3 Liquidity
A Current Ratio of 2.50 indicates that RCO has no problem at all paying its short term obligations.
RCO's Current ratio of 2.50 is amongst the best of the industry. RCO outperforms 87.50% of its industry peers.
RCO has a Quick Ratio of 2.50. This is a bad value and indicates that RCO is not financially healthy enough and could expect problems in meeting its short term obligations.
RCO has a Quick ratio of 0.40. This is in the lower half of the industry: RCO underperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The earnings per share for RCO have decreased strongly by -34.36% in the last year.
Measured over the past 5 years, RCO shows a small growth in Earnings Per Share. The EPS has been growing by 3.02% on average per year.
The Revenue for RCO has decreased by -22.89% in the past year. This is quite bad
RCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.18% yearly.
EPS 1Y (TTM)-34.36%
EPS 3Y9.06%
EPS 5Y3.02%
EPS Q2Q%16.55%
Revenue 1Y (TTM)-22.89%
Revenue growth 3Y5.73%
Revenue growth 5Y1.18%
Sales Q2Q%-18.2%
3.2 Future
Based on estimates for the next years, RCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.86% on average per year.
The Revenue is expected to grow by 7.45% on average over the next years.
EPS Next Y-4.92%
EPS Next 2Y3.79%
EPS Next 3Y6.74%
EPS Next 5Y12.86%
Revenue Next Year-1.82%
Revenue Next 2Y2.45%
Revenue Next 3Y3.9%
Revenue Next 5Y7.45%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.89, which indicates a correct valuation of RCO.
70.83% of the companies in the same industry are more expensive than RCO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 30.45. RCO is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.71 indicates a correct valuation of RCO.
RCO's Price/Forward Earnings ratio is in line with the industry average.
RCO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 16.71 |
4.2 Price Multiples
RCO's Enterprise Value to EBITDA is on the same level as the industry average.
RCO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. RCO is more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 226.83 | ||
| EV/EBITDA | 10.87 |
4.3 Compensation for Growth
The decent profitability rating of RCO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.27
EPS Next 2Y3.79%
EPS Next 3Y6.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.14%, RCO has a reasonable but not impressive dividend return.
In the last 3 months the price of RCO has falen by -20.92%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
RCO's Dividend Yield is a higher than the industry average which is at 2.42.
RCO's Dividend Yield is a higher than the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
5.2 History
On average, the dividend of RCO grows each year by 75.24%, which is quite nice.
Dividend Growth(5Y)75.24%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
RCO pays out 82.63% of its income as dividend. This is not a sustainable payout ratio.
RCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP82.63%
EPS Next 2Y3.79%
EPS Next 3Y6.74%
REMY COINTREAU
EPA:RCO (9/18/2024, 7:00:00 PM)
61
-1.15 (-1.85%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 16.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)5.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 10.01% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.49% | ||
| PM (TTM) | 15.48% | ||
| GM | 71.19% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.5 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-34.36%
EPS 3Y9.06%
EPS 5Y
EPS Q2Q%
EPS Next Y-4.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-22.89%
Revenue growth 3Y5.73%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y