REMY COINTREAU (RCO.PA) Stock Fundamental Analysis
EPA:RCO - Euronext Paris - Matif - FR0000130395 - Common Stock - Currency: EUR
Overall RCO gets a fundamental rating of 5 out of 10. We evaluated RCO against 25 industry peers in the Beverages industry. RCO scores excellent on profitability, but there are some minor concerns on its financial health. RCO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RCO had positive earnings in the past year.
RCO had a positive operating cash flow in the past year.
RCO had positive earnings in each of the past 5 years.
Each year in the past 5 years RCO had a positive operating cash flow.
1.2 Ratios
RCO has a Return On Assets of 4.86%. This is in the better half of the industry: RCO outperforms 73.08% of its industry peers.
RCO has a Return On Equity of 8.63%. This is comparable to the rest of the industry: RCO outperforms 57.69% of its industry peers.
RCO has a better Return On Invested Capital (7.94%) than 73.08% of its industry peers.
RCO had an Average Return On Invested Capital over the past 3 years of 11.39%. This is above the industry average of 7.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 8.63% | ||
| ROIC | 7.94% |
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
RCO's Profit Margin of 15.03% is amongst the best of the industry. RCO outperforms 84.62% of its industry peers.
RCO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 25.90%, RCO belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
RCO's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 71.22%, RCO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of RCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.9% | ||
| PM (TTM) | 15.03% | ||
| GM | 71.22% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RCO is still creating some value.
RCO has more shares outstanding than it did 1 year ago.
RCO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RCO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.55 indicates that RCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RCO (2.55) is better than 69.23% of its industry peers.
The Debt to FCF ratio of RCO is 6.53, which is on the high side as it means it would take RCO, 6.53 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.53, RCO is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that RCO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.31, RCO belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 6.53 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.12
WACC7.09%
2.3 Liquidity
RCO has a Current Ratio of 2.64. This indicates that RCO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RCO (2.64) is better than 96.15% of its industry peers.
A Quick Ratio of 0.42 indicates that RCO may have some problems paying its short term obligations.
The Quick ratio of RCO (0.42) is worse than 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
RCO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.26%.
The Earnings Per Share has been growing slightly by 3.02% on average over the past years.
RCO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.22%.
The Revenue has been growing slightly by 1.18% on average over the past years.
EPS 1Y (TTM)-5.26%
EPS 3Y9.06%
EPS 5Y3.02%
EPS Q2Q%-18.92%
Revenue 1Y (TTM)-17.22%
Revenue growth 3Y5.73%
Revenue growth 5Y1.18%
Sales Q2Q%-16.18%
3.2 Future
Based on estimates for the next years, RCO will show a small growth in Earnings Per Share. The EPS will grow by 1.29% on average per year.
The Revenue is expected to grow by 0.81% on average over the next years.
EPS Next Y-35.41%
EPS Next 2Y-16.88%
EPS Next 3Y-7.46%
EPS Next 5Y1.29%
Revenue Next Year-17.24%
Revenue Next 2Y-6.15%
Revenue Next 3Y-2.23%
Revenue Next 5Y0.81%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.32, RCO is valued correctly.
Based on the Price/Earnings ratio, RCO is valued cheaper than 80.77% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, RCO is valued rather cheaply.
The Price/Forward Earnings ratio is 18.45, which indicates a rather expensive current valuation of RCO.
61.54% of the companies in the same industry are cheaper than RCO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, RCO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 18.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCO is valued a bit cheaper than 65.38% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as RCO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.34 | ||
| EV/EBITDA | 9.45 |
4.3 Compensation for Growth
The excellent profitability rating of RCO may justify a higher PE ratio.
A cheap valuation may be justified as RCO's earnings are expected to decrease with -7.46% in the coming years.
PEG (NY)N/A
PEG (5Y)4.75
EPS Next 2Y-16.88%
EPS Next 3Y-7.46%
5. Dividend
5.1 Amount
RCO has a Yearly Dividend Yield of 3.97%.
Compared to an average industry Dividend Yield of 2.64, RCO pays a better dividend. On top of this RCO pays more dividend than 84.62% of the companies listed in the same industry.
RCO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
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 Years4
5.3 Sustainability
93.11% of the earnings are spent on dividend by RCO. This is not a sustainable payout ratio.
RCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP93.11%
EPS Next 2Y-16.88%
EPS Next 3Y-7.46%
EPA:RCO (3/7/2025, 7:00:00 PM)
48.96
-1.44 (-2.86%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners38.42%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap2.55B
Analysts68.33
Price Target68.16 (39.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Yearly Dividend3.01
Dividend Growth(5Y)75.24%
DP93.11%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.65%
PT rev (3m)-13.42%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-4.32%
EPS NY rev (3m)-21.49%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-8.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 18.45 | ||
| P/S | 2.34 | ||
| P/FCF | 24.34 | ||
| P/OCF | 15.31 | ||
| P/B | 1.34 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 9.45 |
EPS(TTM)3.42
EY6.99%
EPS(NY)2.65
Fwd EY5.42%
FCF(TTM)2.01
FCFY4.11%
OCF(TTM)3.2
OCFY6.53%
SpS20.92
BVpS36.42
TBVpS26.76
PEG (NY)N/A
PEG (5Y)4.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 8.63% | ||
| ROCE | 11.37% | ||
| ROIC | 7.94% | ||
| ROICexc | 8.09% | ||
| ROICexgc | 10.12% | ||
| OM | 25.9% | ||
| PM (TTM) | 15.03% | ||
| GM | 71.22% | ||
| FCFM | 9.61% |
ROA(3y)7.28%
ROA(5y)6.22%
ROE(3y)13.19%
ROE(5y)11.39%
ROIC(3y)11.39%
ROIC(5y)9.96%
ROICexc(3y)11.89%
ROICexc(5y)10.65%
ROICexgc(3y)15.56%
ROICexgc(5y)14.18%
ROCE(3y)16.1%
ROCE(5y)14.15%
ROICexcg growth 3Y0.08%
ROICexcg growth 5Y-3.32%
ROICexc growth 3Y2.15%
ROICexc growth 5Y-1.73%
OM growth 3Y2.92%
OM growth 5Y1.71%
PM growth 3Y2.66%
PM growth 5Y1.82%
GM growth 3Y1.88%
GM growth 5Y2.43%
F-Score5
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 6.53 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 133.41% | ||
| Cap/Sales | 5.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.7% | ||
| Profit Quality | 63.96% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 2.55 |
F-Score5
WACC7.09%
ROIC/WACC1.12
Cap/Depr(3y)166.67%
Cap/Depr(5y)170.57%
Cap/Sales(3y)5.27%
Cap/Sales(5y)5.5%
Profit Quality(3y)22.12%
Profit Quality(5y)33.09%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.26%
EPS 3Y9.06%
EPS 5Y3.02%
EPS Q2Q%-18.92%
EPS Next Y-35.41%
EPS Next 2Y-16.88%
EPS Next 3Y-7.46%
EPS Next 5Y1.29%
Revenue 1Y (TTM)-17.22%
Revenue growth 3Y5.73%
Revenue growth 5Y1.18%
Sales Q2Q%-16.18%
Revenue Next Year-17.24%
Revenue Next 2Y-6.15%
Revenue Next 3Y-2.23%
Revenue Next 5Y0.81%
EBIT growth 1Y1.18%
EBIT growth 3Y8.82%
EBIT growth 5Y2.91%
EBIT Next Year2.86%
EBIT Next 3Y5.08%
EBIT Next 5Y10.68%
FCF growth 1Y35.53%
FCF growth 3Y-51.89%
FCF growth 5Y10.02%
OCF growth 1Y19.23%
OCF growth 3Y-18.85%
OCF growth 5Y12.24%