DANONE (BN.PA)
FR0000120644 - Common Stock
We assign a fundamental rating of 4 out of 10 to BN. BN was compared to 59 industry peers in the Food Products industry. While BN is still in line with the averages on profitability rating, there are concerns on its financial health. BN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BN had positive earnings in the past year.
BN had a positive operating cash flow in the past year.
In the past 5 years BN has always been profitable.
BN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.96%, BN perfoms like the industry average, outperforming 49.12% of the companies in the same industry.
With a Return On Equity value of 5.40%, BN perfoms like the industry average, outperforming 45.61% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.81%, BN is doing good in the industry, outperforming 61.40% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BN is in line with the industry average of 6.15%.
The 3 year average ROIC (5.56%) for BN is below the current ROIC(5.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 5.4% | ||
| ROIC | 5.81% |
ROA(3y)2.74%
ROA(5y)3.4%
ROE(3y)7.22%
ROE(5y)8.95%
ROIC(3y)5.56%
ROIC(5y)5.64%
1.3 Margins
With a Profit Margin value of 3.16%, BN perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
In the last couple of years the Profit Margin of BN has declined.
BN has a Operating Margin of 12.60%. This is in the better half of the industry: BN outperforms 78.95% of its industry peers.
BN's Operating Margin has declined in the last couple of years.
BN has a better Gross Margin (47.37%) than 77.19% of its industry peers.
In the last couple of years the Gross Margin of BN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.6% | ||
| PM (TTM) | 3.16% | ||
| GM | 47.37% |
OM growth 3Y-3.56%
OM growth 5Y-2.72%
PM growth 3Y-27.27%
PM growth 5Y-19.71%
GM growth 3Y-0.48%
GM growth 5Y-0.41%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BN is creating some value.
Compared to 1 year ago, BN has more shares outstanding
BN has less shares outstanding than it did 5 years ago.
BN has a worse debt/assets ratio than last year.
2.2 Solvency
BN has an Altman-Z score of 2.17. This is not the best score and indicates that BN is in the grey zone with still only limited risk for bankruptcy at the moment.
BN has a Altman-Z score of 2.17. This is comparable to the rest of the industry: BN outperforms 50.88% of its industry peers.
The Debt to FCF ratio of BN is 6.01, which is on the high side as it means it would take BN, 6.01 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BN (6.01) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.82 indicates that BN is somewhat dependend on debt financing.
BN has a Debt to Equity ratio of 0.82. This is in the lower half of the industry: BN underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 6.01 | ||
| Altman-Z | 2.17 |
ROIC/WACC1
WACC5.8%
2.3 Liquidity
A Current Ratio of 0.93 indicates that BN may have some problems paying its short term obligations.
BN has a Current ratio of 0.93. This is amonst the worse of the industry: BN underperforms 84.21% of its industry peers.
BN has a Quick Ratio of 0.93. This is a bad value and indicates that BN is not financially healthy enough and could expect problems in meeting its short term obligations.
BN has a Quick ratio of 0.76. This is in the lower half of the industry: BN underperforms 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
BN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.21%.
Measured over the past years, BN shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.22% on average per year.
BN shows a decrease in Revenue. In the last year, the revenue decreased by -0.15%.
Measured over the past years, BN shows a small growth in Revenue. The Revenue has been growing by 2.30% on average per year.
EPS 1Y (TTM)3.21%
EPS 3Y1.96%
EPS 5Y-0.22%
EPS Q2Q%-1.11%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y5.35%
Revenue growth 5Y2.3%
Sales Q2Q%-6.17%
3.2 Future
Based on estimates for the next years, BN will show a small growth in Earnings Per Share. The EPS will grow by 5.87% on average per year.
The Revenue is expected to grow by 2.41% on average over the next years.
EPS Next Y3.45%
EPS Next 2Y5.36%
EPS Next 3Y6.32%
EPS Next 5Y5.87%
Revenue Next Year-0.72%
Revenue Next 2Y1.25%
Revenue Next 3Y2.11%
Revenue Next 5Y2.41%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.68, which indicates a correct valuation of BN.
Compared to the rest of the industry, the Price/Earnings ratio of BN indicates a somewhat cheap valuation: BN is cheaper than 64.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.41, BN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.12, BN is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BN is on the same level as its industry peers.
BN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 16.12 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BN.
Based on the Price/Free Cash Flow ratio, BN is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.64 | ||
| EV/EBITDA | 7.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BN may justify a higher PE ratio.
PEG (NY)4.84
PEG (5Y)N/A
EPS Next 2Y5.36%
EPS Next 3Y6.32%
5. Dividend
5.1 Amount
BN has a Yearly Dividend Yield of 3.56%.
BN's Dividend Yield is a higher than the industry average which is at 3.35.
BN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
The dividend of BN is nicely growing with an annual growth rate of 24.27%!
Dividend Growth(5Y)24.27%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
146.51% of the earnings are spent on dividend by BN. This is not a sustainable payout ratio.
The dividend of BN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP146.51%
EPS Next 2Y5.36%
EPS Next 3Y6.32%
DANONE
EPA:BN (7/26/2024, 7:00:00 PM)
59.04
+0.64 (+1.1%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap38.00B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
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 | 16.68 | ||
| Fwd PE | 16.12 | ||
| 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)4.84
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 5.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.6% | ||
| PM (TTM) | 3.16% | ||
| GM | 47.37% | ||
| 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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.76 | ||
| 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)3.21%
EPS 3Y1.96%
EPS 5Y
EPS Q2Q%
EPS Next Y3.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y5.35%
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