PERNOD RICARD SA (RI.PA)
FR0000120693 - Common Stock
We assign a fundamental rating of 5 out of 10 to RI. RI was compared to 24 industry peers in the Beverages industry. RI scores excellent on profitability, but there are some minor concerns on its financial health. RI has a expensive valuation and it also scores bad on growth.
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.
RI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.26%, RI is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
RI has a better Return On Equity (12.59%) than 82.61% of its industry peers.
RI has a Return On Invested Capital of 7.01%. This is comparable to the rest of the industry: RI outperforms 56.52% 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 7.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 12.59% | ||
| ROIC | 7.01% |
ROA(3y)5.2%
ROA(5y)4.27%
ROE(3y)11.9%
ROE(5y)9.43%
ROIC(3y)7.42%
ROIC(5y)7.16%
1.3 Margins
RI has a Profit Margin of 17.56%. This is amongst the best in the industry. RI outperforms 86.96% of its industry peers.
In the last couple of years the Profit Margin of RI has remained more or less at the same level.
With an excellent Operating Margin value of 26.17%, RI belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
RI's Operating Margin has been stable in the last couple of years.
The Gross Margin of RI (59.93%) is better than 86.96% of its industry peers.
RI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.17% | ||
| PM (TTM) | 17.56% | ||
| GM | 59.93% |
OM growth 3Y1.67%
OM growth 5Y0.06%
PM growth 3Y68.52%
PM growth 5Y0.61%
GM growth 3Y-0.29%
GM growth 5Y-0.31%
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.
RI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RI has a worse debt to assets ratio.
2.2 Solvency
RI has an Altman-Z score of 2.26. 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.
Looking at the Altman-Z score, with a value of 2.26, RI is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
RI has a debt to FCF ratio of 16.82. This is a negative value and a sign of low solvency as RI would need 16.82 years to pay back of all of its debts.
RI has a Debt to FCF ratio (16.82) which is comparable to the rest of the industry.
RI has a Debt/Equity ratio of 0.74. This is a neutral value indicating RI is somewhat dependend on debt financing.
RI has a Debt to Equity ratio of 0.74. This is in the better half of the industry: RI outperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 16.82 | ||
| Altman-Z | 2.26 |
ROIC/WACC1.14
WACC6.16%
2.3 Liquidity
A Current Ratio of 1.91 indicates that RI should not have too much problems paying its short term obligations.
RI has a Current ratio of 1.91. This is in the better half of the industry: RI outperforms 65.22% of its industry peers.
RI has a Quick Ratio of 1.91. This is a bad value and indicates that RI is not financially healthy enough and could expect problems in meeting its short term obligations.
RI's Quick ratio of 0.69 is fine compared to the rest of the industry. RI outperforms 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
RI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.76%.
RI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.20% yearly.
Looking at the last year, RI shows a decrease in Revenue. The Revenue has decreased by -2.08% in the last year.
The Revenue has been growing slightly by 6.83% on average over the past years.
EPS 1Y (TTM)-13.76%
EPS 3Y91.22%
EPS 5Y8.2%
EPS growth Q2Q-16.1%
Revenue 1Y (TTM)-2.08%
Revenue growth 3Y12.84%
Revenue growth 5Y6.83%
Revenue growth Q2Q-7.39%
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 4.11% on average per year.
The Revenue is expected to grow by 3.08% on average over the next years.
EPS Next Y-12.14%
EPS Next 2Y-3.06%
EPS Next 3Y0.62%
EPS Next 5Y4.11%
Revenue Next Year-2.58%
Revenue Next 2Y0.89%
Revenue Next 3Y2.37%
Revenue Next 5Y3.08%
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
RI is valuated rather expensively with a Price/Earnings ratio of 18.55.
Based on the Price/Earnings ratio, RI is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.15, RI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.37, the valuation of RI can be described as correct.
RI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RI is cheaper than 65.22% of the companies in the same industry.
RI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.55 | ||
| Fwd PE | 16.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RI indicates a slightly more expensive valuation: RI is more expensive than 65.22% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RI is valued a bit more expensive than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.49 | ||
| EV/EBITDA | 13.87 |
4.3 Compensation for Growth
RI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.26
EPS Next 2Y-3.06%
EPS Next 3Y0.62%
5. Dividend
5.1 Amount
RI has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.27, 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 a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
On average, the dividend of RI grows each year by 14.93%, which is quite nice.
Dividend Growth(5Y)14.93%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
59.15% of the earnings are spent on dividend by RI. This is a bit on the high side, but may be sustainable.
RI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP59.15%
EPS Next 2Y-3.06%
EPS Next 3Y0.62%
PERNOD RICARD SA
EPA:RI (5/17/2024, 7:00:00 PM)
148.75
-1.45 (-0.97%)
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 Cap37.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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 | 18.55 | ||
| Fwd PE | 16.37 | ||
| 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)N/A
PEG (5Y)2.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 12.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.17% | ||
| PM (TTM) | 17.56% | ||
| GM | 59.93% | ||
| 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 | 1.91 | ||
| Quick Ratio | 0.69 | ||
| 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)
Growth
EPS 1Y (TTM)-13.76%
EPS 3Y91.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y-12.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.08%
Revenue growth 3Y12.84%
Revenue growth 5Y
Revenue growth 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