PERNOD RICARD SA (RI.PA) Stock Fundamental Analysis
EPA:RI - Euronext Paris - Matif - FR0000120693 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to RI. RI was compared to 24 industry peers in the Beverages industry. RI has only an average score on both its financial health and profitability. 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.
RI had a positive operating cash flow in the past year.
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's Return On Assets of 3.77% is in line compared to the rest of the industry. RI outperforms 52.38% of its industry peers.
RI's Return On Equity of 9.37% is fine compared to the rest of the industry. RI outperforms 61.90% of its industry peers.
RI has a Return On Invested Capital (6.95%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RI is in line with the industry average of 8.61%.
| 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
Looking at the Profit Margin, with a value of 12.73%, RI is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of RI has declined.
RI has a Operating Margin of 26.80%. This is in the better half of the industry: RI outperforms 76.19% of its industry peers.
RI's Operating Margin has been stable in the last couple of years.
RI has a better Gross Margin (60.14%) than 71.43% of its industry peers.
RI's Gross Margin has been stable in the last couple of years.
| 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
RI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
RI has less shares outstanding than it did 1 year ago.
RI has less shares outstanding than it did 5 years ago.
RI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.89 indicates that RI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.89, RI perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
The Debt to FCF ratio of RI is 14.27, which is on the high side as it means it would take RI, 14.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.27, RI is doing worse than 61.90% of the companies in the same industry.
A Debt/Equity ratio of 0.74 indicates that RI is somewhat dependend on debt financing.
RI has a better Debt to Equity ratio (0.74) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.27 | ||
| Altman-Z | 1.89 |
ROIC/WACC1.19
WACC5.84%
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 71.43% 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 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The earnings per share for RI have decreased strongly by -33.77% in the last year.
RI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.24% yearly.
The Revenue has decreased by -4.44% in the past year.
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
Based on estimates for the next years, RI will show a small growth in Earnings Per Share. The EPS will grow by 4.85% on average per year.
RI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.92% yearly.
EPS Next Y-7.44%
EPS Next 2Y-1.41%
EPS Next 3Y1.07%
EPS Next 5Y4.85%
Revenue Next Year-3.04%
Revenue Next 2Y-0.11%
Revenue Next 3Y1.34%
Revenue Next 5Y2.92%
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.
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 17.88, the valuation of RI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RI is on the same level as its industry peers.
RI is valuated rather cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.65 indicates a correct valuation of RI.
The rest of the industry has a similar Price/Forward Earnings ratio as RI.
RI is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 13.65 |
4.2 Price Multiples
RI's Enterprise Value to EBITDA ratio is in line with the industry average.
RI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.63 | ||
| EV/EBITDA | 10.6 |
4.3 Compensation for Growth
The decent profitability rating of RI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)14.36
EPS Next 2Y-1.41%
EPS Next 3Y1.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.27%, RI is a good candidate for dividend investing.
RI's Dividend Yield is rather good when compared to the industry average which is at 2.86. RI pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, RI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
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 Years4
5.3 Sustainability
RI pays out 81.84% 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.
DP81.84%
EPS Next 2Y-1.41%
EPS Next 3Y1.07%
PERNOD RICARD SA
EPA:RI (2/5/2025, 11:32:04 AM)
104.05
-2.1 (-1.98%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners49.78%
Inst Owner ChangeN/A
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap26.36B
Analysts71.33
Price Target134.43 (29.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
Yearly Dividend4.77
Dividend Growth(5Y)14.3%
DP81.84%
Div Incr Years3
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)-1.61%
PT rev (3m)-5.29%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.29%
EPS NY rev (3m)-2.29%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 13.65 | ||
| P/S | 2.27 | ||
| P/FCF | 27.63 | ||
| P/OCF | 15.26 | ||
| P/B | 1.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.6 |
EPS(TTM)5.82
EY5.59%
EPS(NY)7.63
Fwd EY7.33%
FCF(TTM)3.77
FCFY3.62%
OCF(TTM)6.82
OCFY6.55%
SpS45.78
BVpS62.17
TBVpS-12.99
PEG (NY)N/A
PEG (5Y)14.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 9.37% | ||
| ROCE | 9.68% | ||
| ROIC | 6.95% | ||
| ROICexc | 7.58% | ||
| ROICexgc | 21.24% | ||
| OM | 26.8% | ||
| PM (TTM) | 12.73% | ||
| GM | 60.14% | ||
| FCFM | 8.23% |
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-Score6
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.27 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 175.28% | ||
| Cap/Sales | 6.66% | ||
| Interest Coverage | 8.75 | ||
| Cash Conversion | 48.66% | ||
| Profit Quality | 64.63% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 1.89 |
F-Score6
WACC5.84%
ROIC/WACC1.19
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)-33.77%
EPS 3Y5.32%
EPS 5Y1.24%
EPS Q2Q%-5.13%
EPS Next Y-7.44%
EPS Next 2Y-1.41%
EPS Next 3Y1.07%
EPS Next 5Y4.85%
Revenue 1Y (TTM)-4.44%
Revenue growth 3Y9.54%
Revenue growth 5Y4.78%
Sales Q2Q%-0.26%
Revenue Next Year-3.04%
Revenue Next 2Y-0.11%
Revenue Next 3Y1.34%
Revenue Next 5Y2.92%
EBIT growth 1Y-6.39%
EBIT growth 3Y9.06%
EBIT growth 5Y4.06%
EBIT Next Year10.48%
EBIT Next 3Y6.38%
EBIT Next 5Y5.39%
FCF growth 1Y-28.32%
FCF growth 3Y-15.21%
FCF growth 5Y-6.43%
OCF growth 1Y-15.05%
OCF growth 3Y-4.74%
OCF growth 5Y0.1%