PERNOD RICARD SA (RI.PA) Stock Fundamental Analysis
EPA:RI - Euronext Paris - Matif - FR0000120693 - Common Stock - Currency: EUR
RI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 23 industry peers in the Beverages industry. Both the profitability and the financial health of RI get a neutral evaluation. Nothing too spectacular is happening here. RI has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RI was profitable.
In the past year RI had a positive cash flow from operations.
RI had positive earnings in each of the past 5 years.
RI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RI has a Return On Assets (2.76%) which is comparable to the rest of the industry.
With a Return On Equity value of 6.63%, RI perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
The Return On Invested Capital of RI (6.20%) is worse than 60.87% of its industry peers.
RI had an Average Return On Invested Capital over the past 3 years of 7.26%. This is in line with the industry average of 7.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 6.63% | ||
| ROIC | 6.2% |
ROA(3y)5.1%
ROA(5y)4.08%
ROE(3y)12.09%
ROE(5y)9.49%
ROIC(3y)7.26%
ROIC(5y)6.76%
1.3 Margins
The Profit Margin of RI (9.81%) is better than 65.22% of its industry peers.
RI's Profit Margin has declined in the last couple of years.
RI's Operating Margin of 26.27% is amongst the best of the industry. RI outperforms 91.30% of its industry peers.
In the last couple of years the Operating Margin of RI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 59.61%, RI is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
RI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.27% | ||
| PM (TTM) | 9.81% | ||
| GM | 59.61% |
OM growth 3Y-0.44%
OM growth 5Y-0.69%
PM growth 3Y-4.88%
PM growth 5Y-4.29%
GM growth 3Y0.09%
GM growth 5Y-0.45%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RI is still creating some value.
The number of shares outstanding for RI has been reduced compared to 1 year ago.
The number of shares outstanding for RI has been reduced compared to 5 years ago.
The debt/assets ratio for RI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that RI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RI (1.74) is worse than 69.57% of its industry peers.
The Debt to FCF ratio of RI is 12.80, which is on the high side as it means it would take RI, 12.80 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 12.80, RI perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
A Debt/Equity ratio of 0.76 indicates that RI is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.76, RI is doing good in the industry, outperforming 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 12.8 | ||
| Altman-Z | 1.74 |
ROIC/WACC1.08
WACC5.72%
2.3 Liquidity
A Current Ratio of 1.97 indicates that RI should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.97, RI is doing good in the industry, outperforming 73.91% of the companies in the same industry.
A Quick Ratio of 0.70 indicates that RI may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.70, RI is doing good in the industry, outperforming 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for RI have decreased strongly by -45.69% in the last year.
Measured over the past 5 years, RI shows a small growth in Earnings Per Share. The EPS has been growing by 1.24% on average per year.
The Revenue has decreased by -3.68% in the past year.
The Revenue has been growing slightly by 4.78% on average over the past years.
EPS 1Y (TTM)-45.69%
EPS 3Y5.32%
EPS 5Y1.24%
EPS Q2Q%-11.27%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y9.54%
Revenue growth 5Y4.78%
Sales Q2Q%-6.28%
3.2 Future
The Earnings Per Share is expected to grow by 2.24% on average over the next years.
Based on estimates for the next years, RI will show a small growth in Revenue. The Revenue will grow by 1.32% on average per year.
EPS Next Y-11.31%
EPS Next 2Y-5.91%
EPS Next 3Y-2.25%
EPS Next 5Y2.24%
Revenue Next Year-5.57%
Revenue Next 2Y-4.01%
Revenue Next 3Y-1.65%
Revenue Next 5Y1.32%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.40, the valuation of RI can be described as rather expensive.
RI's Price/Earnings ratio is in line with the industry average.
RI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.60, the valuation of RI can be described as reasonable.
78.26% of the companies in the same industry are more expensive than RI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RI to the average of the S&P500 Index (21.60), we can say RI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 11.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RI is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, RI is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.6 | ||
| EV/EBITDA | 9.69 |
4.3 Compensation for Growth
A cheap valuation may be justified as RI's earnings are expected to decrease with -2.25% in the coming years.
PEG (NY)N/A
PEG (5Y)15.59
EPS Next 2Y-5.91%
EPS Next 3Y-2.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.48%, RI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.04, RI pays a better dividend. On top of this RI pays more dividend than 91.30% of the companies listed in the same industry.
RI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
5.2 History
The dividend of RI is nicely growing with an annual growth rate of 14.30%!
Dividend Growth(5Y)14.3%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
RI pays out 109.66% of its income as dividend. This is not a sustainable payout ratio.
RI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP109.66%
EPS Next 2Y-5.91%
EPS Next 3Y-2.25%
EPA:RI (6/30/2025, 7:00:00 PM)
84.6
-1.42 (-1.65%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners47.97%
Inst Owner ChangeN/A
Ins Owners0.68%
Ins Owner ChangeN/A
Market Cap21.34B
Analysts73.33
Price Target114.04 (34.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
Yearly Dividend4.77
Dividend Growth(5Y)14.3%
DP109.66%
Div Incr Years0
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)-0.22%
PT rev (3m)-9.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.88%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 11.6 | ||
| P/S | 1.91 | ||
| P/FCF | 19.6 | ||
| P/OCF | 11.61 | ||
| P/B | 1.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.69 |
EPS(TTM)4.36
EY5.15%
EPS(NY)7.29
Fwd EY8.62%
FCF(TTM)4.32
FCFY5.1%
OCF(TTM)7.29
OCFY8.62%
SpS44.33
BVpS65.58
TBVpS-11.05
PEG (NY)N/A
PEG (5Y)15.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 6.63% | ||
| ROCE | 8.86% | ||
| ROIC | 6.2% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 16.35% | ||
| OM | 26.27% | ||
| PM (TTM) | 9.81% | ||
| GM | 59.61% | ||
| FCFM | 9.74% |
ROA(3y)5.1%
ROA(5y)4.08%
ROE(3y)12.09%
ROE(5y)9.49%
ROIC(3y)7.26%
ROIC(5y)6.76%
ROICexc(3y)7.83%
ROICexc(5y)7.29%
ROICexgc(3y)21.73%
ROICexgc(5y)20.26%
ROCE(3y)10.2%
ROCE(5y)9.46%
ROICexcg growth 3Y5.76%
ROICexcg growth 5Y-0.66%
ROICexc growth 3Y4.26%
ROICexc growth 5Y0.96%
OM growth 3Y-0.44%
OM growth 5Y-0.69%
PM growth 3Y-4.88%
PM growth 5Y-4.29%
GM growth 3Y0.09%
GM growth 5Y-0.45%
F-Score5
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 12.8 | ||
| Debt/EBITDA | 3.73 | ||
| Cap/Depr | 172.41% | ||
| Cap/Sales | 6.71% | ||
| Interest Coverage | 6.43 | ||
| Cash Conversion | 54.52% | ||
| Profit Quality | 99.27% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.74 |
F-Score5
WACC5.72%
ROIC/WACC1.08
Cap/Depr(3y)158.81%
Cap/Depr(5y)139.74%
Cap/Sales(3y)5.73%
Cap/Sales(5y)5.28%
Profit Quality(3y)71%
Profit Quality(5y)116.07%
High Growth Momentum
Growth
EPS 1Y (TTM)-45.69%
EPS 3Y5.32%
EPS 5Y1.24%
EPS Q2Q%-11.27%
EPS Next Y-11.31%
EPS Next 2Y-5.91%
EPS Next 3Y-2.25%
EPS Next 5Y2.24%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y9.54%
Revenue growth 5Y4.78%
Sales Q2Q%-6.28%
Revenue Next Year-5.57%
Revenue Next 2Y-4.01%
Revenue Next 3Y-1.65%
Revenue Next 5Y1.32%
EBIT growth 1Y-3.32%
EBIT growth 3Y9.06%
EBIT growth 5Y4.06%
EBIT Next Year6.37%
EBIT Next 3Y2.31%
EBIT Next 5Y4.03%
FCF growth 1Y-18.85%
FCF growth 3Y-15.21%
FCF growth 5Y-6.43%
OCF growth 1Y-5.16%
OCF growth 3Y-4.74%
OCF growth 5Y0.1%