PERNOD RICARD SA (RI.PA)
FR0000120693 - Common Stock
We assign a fundamental rating of 5 out of 10 to RI. RI was compared to 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
RI had positive earnings in the past year.
In the past year RI had a positive cash flow from operations.
Each year in the past 5 years RI has been profitable.
In the past 5 years RI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.77%, RI is in line with its industry, outperforming 59.09% of the companies in the same industry.
RI has a Return On Equity of 9.37%. This is in the better half of the industry: RI outperforms 63.64% of its industry peers.
With a Return On Invested Capital value of 6.95%, RI perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RI is in line with the industry average of 8.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 9.37% | ||
| ROIC | 6.95% |
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 (12.73%) is better than 77.27% of its industry peers.
RI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 26.80%, RI belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Operating Margin of RI has remained more or less at the same level.
The Gross Margin of RI (60.14%) is better than 77.27% of its industry peers.
In the last couple of years the Gross Margin of RI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.8% | ||
| PM (TTM) | 12.73% | ||
| GM | 60.14% |
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.
RI has less shares outstanding than it did 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
RI has an Altman-Z score of 1.99. This is not the best score and indicates that RI is in the grey zone with still only limited risk for bankruptcy at the moment.
RI's Altman-Z score of 1.99 is in line compared to the rest of the industry. RI outperforms 50.00% of its industry peers.
RI has a debt to FCF ratio of 14.27. This is a negative value and a sign of low solvency as RI would need 14.27 years to pay back of all of its debts.
RI has a Debt to FCF ratio of 14.27. This is comparable to the rest of the industry: RI outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that RI is somewhat dependend on debt financing.
The Debt to Equity ratio of RI (0.74) is better than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.27 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.18
WACC5.88%
2.3 Liquidity
RI has a Current Ratio of 1.84. This is a normal value and indicates that RI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RI (1.84) is better than 72.73% of its industry peers.
RI has a Quick Ratio of 1.84. This is a bad value and indicates that RI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.68, RI is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
RI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.77%.
RI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.24% yearly.
RI shows a decrease in Revenue. In the last year, the revenue decreased by -4.44%.
Measured over the past years, RI shows a small growth in Revenue. The Revenue has been growing by 4.78% on average per year.
EPS 1Y (TTM)-33.77%
EPS 3Y5.32%
EPS 5Y1.24%
EPS Q2Q%-5.13%
Revenue 1Y (TTM)-4.44%
Revenue growth 3Y9.54%
Revenue growth 5Y4.78%
Sales Q2Q%-0.26%
3.2 Future
The Earnings Per Share is expected to grow by 9.39% on average over the next years. This is quite good.
RI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.33% yearly.
EPS Next Y2.73%
EPS Next 2Y5.17%
EPS Next 3Y9.32%
EPS Next 5Y9.39%
Revenue Next Year-1.48%
Revenue Next 2Y0.88%
Revenue Next 3Y2.39%
Revenue Next 5Y4.33%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.21 indicates a rather expensive valuation of RI.
Compared to the rest of the industry, the Price/Earnings ratio of RI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of RI to the average of the S&P500 Index (30.69), we can say RI is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.80, the valuation of RI can be described as correct.
Based on the Price/Forward Earnings ratio, RI is valued a bit cheaper than 68.18% of the companies in the same industry.
RI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.21 | ||
| Fwd PE | 13.8 |
4.2 Price Multiples
RI's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as RI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.99 | ||
| EV/EBITDA | 11.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)7.4
PEG (5Y)16.24
EPS Next 2Y5.17%
EPS Next 3Y9.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.77%, RI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.59, RI pays a better dividend. On top of this RI pays more dividend than 90.91% 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 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
5.2 History
On average, the dividend of RI grows each year by 14.30%, which is quite nice.
Dividend Growth(5Y)14.3%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
RI pays out 81.84% of its income as dividend. This is not a sustainable payout ratio.
The dividend of RI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP81.84%
EPS Next 2Y5.17%
EPS Next 3Y9.32%
PERNOD RICARD SA
EPA:RI (10/30/2024, 7:00:00 PM)
117.65
-5.35 (-4.35%)
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 Cap29.57B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 20.21 | ||
| Fwd PE | 13.8 | ||
| 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)7.4
PEG (5Y)16.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 9.37% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.8% | ||
| PM (TTM) | 12.73% | ||
| GM | 60.14% | ||
| 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 Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.84 | ||
| Quick Ratio | 0.68 | ||
| 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)-33.77%
EPS 3Y5.32%
EPS 5Y
EPS Q2Q%
EPS Next Y2.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.44%
Revenue growth 3Y9.54%
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