PERNOD RICARD SA (RI.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:RI - FR0000120693 - Common Stock
73.1 EUR
+0.04 (+0.05%)
Overall RI gets a fundamental rating of 5 out of 10. We evaluated RI against 26 industry peers in the Beverages industry. While RI belongs to the best of the industry regarding profitability, there are concerns on its financial health. RI is valued correctly, but it does not seem to be growing. RI also has an excellent dividend rating.
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.
RI had positive earnings in each of the past 5 years.
In the past 5 years RI always reported a positive cash flow from operatings.
1.2 Ratios
RI has a better Return On Assets (4.39%) than 61.54% of its industry peers.
Looking at the Return On Equity, with a value of 10.69%, RI is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
RI's Return On Invested Capital of 6.69% is in line compared to the rest of the industry. RI outperforms 42.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RI is in line with the industry average of 7.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.39% | ||
| ROE | 10.69% | ||
| ROIC | 6.69% |
ROA(3y)4.72%
ROA(5y)4.75%
ROE(3y)11.48%
ROE(5y)11.15%
ROIC(3y)6.96%
ROIC(5y)6.8%
1.3 Margins
RI's Profit Margin of 14.84% is amongst the best of the industry. RI outperforms 84.62% of its industry peers.
RI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.84%, RI belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
RI's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 59.46%, RI belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
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 | 26.84% | ||
| PM (TTM) | 14.84% | ||
| GM | 59.46% |
OM growth 3Y-1.67%
OM growth 5Y0.61%
PM growth 3Y-7.34%
PM growth 5Y30.67%
GM growth 3Y-0.57%
GM growth 5Y-0.25%
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 about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for RI has been reduced compared to 5 years ago.
RI has a better debt/assets ratio than last year.
2.2 Solvency
RI has an Altman-Z score of 1.75. This is a bad value and indicates that RI is not financially healthy and even has some risk of bankruptcy.
RI has a worse Altman-Z score (1.75) than 61.54% of its industry peers.
RI has a debt to FCF ratio of 11.23. This is a negative value and a sign of low solvency as RI would need 11.23 years to pay back of all of its debts.
RI's Debt to FCF ratio of 11.23 is on the low side compared to the rest of the industry. RI is outperformed by 73.08% of its industry peers.
RI has a Debt/Equity ratio of 0.73. This is a neutral value indicating RI is somewhat dependend on debt financing.
The Debt to Equity ratio of RI (0.73) is better than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 11.23 | ||
| Altman-Z | 1.75 |
ROIC/WACC1.17
WACC5.71%
2.3 Liquidity
RI has a Current Ratio of 1.91. 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 (1.91) is better than 73.08% of its industry peers.
A Quick Ratio of 0.60 indicates that RI may have some problems paying its short term obligations.
RI has a Quick ratio (0.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for RI have decreased by -8.10% in the last year.
Measured over the past years, RI shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.69% on average per year.
The Revenue has decreased by -5.51% in the past year.
RI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.34% yearly.
EPS 1Y (TTM)-8.1%
EPS 3Y-5.62%
EPS 5Y38.69%
EPS Q2Q%0%
Revenue 1Y (TTM)-5.51%
Revenue growth 3Y0.8%
Revenue growth 5Y5.34%
Sales Q2Q%-4.49%
3.2 Future
The Earnings Per Share is expected to grow by 5.40% 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 2.65% on average per year.
EPS Next Y-13.68%
EPS Next 2Y-5.7%
EPS Next 3Y-2.22%
EPS Next 5Y5.4%
Revenue Next Year-10.43%
Revenue Next 2Y-4.85%
Revenue Next 3Y-2.19%
Revenue Next 5Y2.65%
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
A Price/Earnings ratio of 10.07 indicates a reasonable valuation of RI.
88.46% of the companies in the same industry are more expensive than RI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.51. RI is valued rather cheaply when compared to this.
RI is valuated reasonably with a Price/Forward Earnings ratio of 11.66.
RI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RI is cheaper than 73.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. RI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.07 | ||
| Fwd PE | 11.66 |
4.2 Price Multiples
RI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RI is cheaper than 65.38% of the companies in the same industry.
RI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.45 | ||
| EV/EBITDA | 8.57 |
4.3 Compensation for Growth
The decent profitability rating of RI may justify a higher PE ratio.
A cheap valuation may be justified as RI's earnings are expected to decrease with -2.22% in the coming years.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-5.7%
EPS Next 3Y-2.22%
5. Dividend
5.1 Amount
RI has a Yearly Dividend Yield of 6.42%, which is a nice return.
Compared to an average industry Dividend Yield of 2.92, RI pays a better dividend. On top of this RI pays more dividend than 96.15% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, RI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
5.2 History
The dividend of RI is nicely growing with an annual growth rate of 8.09%!
Dividend Growth(5Y)8.09%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
73.86% of the earnings are spent on dividend by RI. This is not a sustainable payout ratio.
RI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP73.86%
EPS Next 2Y-5.7%
EPS Next 3Y-2.22%
EPA:RI (12/31/2025, 7:00:00 PM)
73.1
+0.04 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners54.99%
Inst Owner ChangeN/A
Ins Owners0.69%
Ins Owner ChangeN/A
Market Cap18.44B
Revenue(TTM)10.96B
Net Income(TTM)1.63B
Analysts73.33
Price Target98.89 (35.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
Yearly Dividend4.78
Dividend Growth(5Y)8.09%
DP73.86%
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)-4.51%
PT rev (3m)-11.24%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.89%
EPS NY rev (3m)-4.83%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.2%
Revenue NY rev (3m)-3.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.07 | ||
| Fwd PE | 11.66 | ||
| P/S | 1.68 | ||
| P/FCF | 16.45 | ||
| P/OCF | 10.31 | ||
| P/B | 1.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.57 |
EPS(TTM)7.26
EY9.93%
EPS(NY)6.27
Fwd EY8.57%
FCF(TTM)4.44
FCFY6.08%
OCF(TTM)7.09
OCFY9.7%
SpS43.44
BVpS60.3
TBVpS-10.74
PEG (NY)N/A
PEG (5Y)0.26
Graham Number99.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.39% | ||
| ROE | 10.69% | ||
| ROCE | 9.6% | ||
| ROIC | 6.69% | ||
| ROICexc | 7.1% | ||
| ROICexgc | 18.4% | ||
| OM | 26.84% | ||
| PM (TTM) | 14.84% | ||
| GM | 59.46% | ||
| FCFM | 10.23% |
ROA(3y)4.72%
ROA(5y)4.75%
ROE(3y)11.48%
ROE(5y)11.15%
ROIC(3y)6.96%
ROIC(5y)6.8%
ROICexc(3y)7.44%
ROICexc(5y)7.32%
ROICexgc(3y)20.2%
ROICexgc(5y)19.93%
ROCE(3y)10.03%
ROCE(5y)9.75%
ROICexgc growth 3Y-5.02%
ROICexgc growth 5Y0.79%
ROICexc growth 3Y-2.75%
ROICexc growth 5Y3.03%
OM growth 3Y-1.67%
OM growth 5Y0.61%
PM growth 3Y-7.34%
PM growth 5Y30.67%
GM growth 3Y-0.57%
GM growth 5Y-0.25%
F-Score7
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 11.23 | ||
| Debt/EBITDA | 3.32 | ||
| Cap/Depr | 158.06% | ||
| Cap/Sales | 6.09% | ||
| Interest Coverage | 6.64 | ||
| Cash Conversion | 53.17% | ||
| Profit Quality | 68.94% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 1.75 |
F-Score7
WACC5.71%
ROIC/WACC1.17
Cap/Depr(3y)167.23%
Cap/Depr(5y)150.5%
Cap/Sales(3y)6.18%
Cap/Sales(5y)5.63%
Profit Quality(3y)64.14%
Profit Quality(5y)80.37%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.1%
EPS 3Y-5.62%
EPS 5Y38.69%
EPS Q2Q%0%
EPS Next Y-13.68%
EPS Next 2Y-5.7%
EPS Next 3Y-2.22%
EPS Next 5Y5.4%
Revenue 1Y (TTM)-5.51%
Revenue growth 3Y0.8%
Revenue growth 5Y5.34%
Sales Q2Q%-4.49%
Revenue Next Year-10.43%
Revenue Next 2Y-4.85%
Revenue Next 3Y-2.19%
Revenue Next 5Y2.65%
EBIT growth 1Y-5.37%
EBIT growth 3Y-0.89%
EBIT growth 5Y5.99%
EBIT Next Year2.64%
EBIT Next 3Y3.06%
EBIT Next 5Y8.18%
FCF growth 1Y17.51%
FCF growth 3Y-14.4%
FCF growth 5Y6.61%
OCF growth 1Y3.53%
OCF growth 3Y-7.96%
OCF growth 5Y8.69%
PERNOD RICARD SA / RI.PA FAQ
Can you provide the ChartMill fundamental rating for PERNOD RICARD SA?
ChartMill assigns a fundamental rating of 5 / 10 to RI.PA.
What is the valuation status of PERNOD RICARD SA (RI.PA) stock?
ChartMill assigns a valuation rating of 5 / 10 to PERNOD RICARD SA (RI.PA). This can be considered as Fairly Valued.
What is the profitability of RI stock?
PERNOD RICARD SA (RI.PA) has a profitability rating of 7 / 10.
What is the financial health of PERNOD RICARD SA (RI.PA) stock?
The financial health rating of PERNOD RICARD SA (RI.PA) is 3 / 10.
How sustainable is the dividend of PERNOD RICARD SA (RI.PA) stock?
The dividend rating of PERNOD RICARD SA (RI.PA) is 7 / 10 and the dividend payout ratio is 73.86%.