DANONE (BN.PA) Stock Fundamental Analysis
EPA:BN - Euronext Paris - Matif - FR0000120644 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to BN. BN was compared to 57 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. While showing a medium growth rate, BN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
BN had positive earnings in the past year.
In the past year BN had a positive cash flow from operations.
In the past 5 years BN has always been profitable.
In the past 5 years BN always reported a positive cash flow from operatings.
1.2 Ratios
BN has a Return On Assets (4.46%) which is in line with its industry peers.
The Return On Equity of BN (11.34%) is better than 63.16% of its industry peers.
With a decent Return On Invested Capital value of 6.58%, BN is doing good in the industry, outperforming 61.40% of the companies in the same industry.
BN had an Average Return On Invested Capital over the past 3 years of 6.38%. This is in line with the industry average of 7.04%.
The last Return On Invested Capital (6.58%) for BN is above the 3 year average (6.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.46% | ||
| ROE | 11.34% | ||
| ROIC | 6.58% |
ROA(3y)2.83%
ROA(5y)3.44%
ROE(3y)7.34%
ROE(5y)9%
ROIC(3y)6.38%
ROIC(5y)6.21%
1.3 Margins
BN's Profit Margin of 7.37% is fine compared to the rest of the industry. BN outperforms 64.91% of its industry peers.
BN's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 13.00%, BN is in the better half of the industry, outperforming 75.44% of the companies in the same industry.
BN's Operating Margin has declined in the last couple of years.
The Gross Margin of BN (49.70%) is better than 75.44% of its industry peers.
BN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13% | ||
| PM (TTM) | 7.37% | ||
| GM | 49.7% |
OM growth 3Y-1.81%
OM growth 5Y-3.08%
PM growth 3Y-1.94%
PM growth 5Y-0.54%
GM growth 3Y1.56%
GM growth 5Y0.26%
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.
The number of shares outstanding for BN has been increased compared to 1 year ago.
Compared to 5 years ago, BN has less shares outstanding
Compared to 1 year ago, BN has an improved debt to assets ratio.
2.2 Solvency
BN has an Altman-Z score of 2.48. 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's Altman-Z score of 2.48 is in line compared to the rest of the industry. BN outperforms 57.89% of its industry peers.
The Debt to FCF ratio of BN is 4.89, which is a neutral value as it means it would take BN, 4.89 years of fcf income to pay off all of its debts.
BN's Debt to FCF ratio of 4.89 is fine compared to the rest of the industry. BN outperforms 68.42% of its industry peers.
BN has a Debt/Equity ratio of 0.66. This is a neutral value indicating BN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, BN is not doing good in the industry: 61.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.89 | ||
| Altman-Z | 2.48 |
ROIC/WACC1.03
WACC6.41%
2.3 Liquidity
A Current Ratio of 0.93 indicates that BN may have some problems paying its short term obligations.
With a Current ratio value of 0.93, BN is not doing good in the industry: 80.70% of the companies in the same industry are doing better.
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.
The Quick ratio of BN (0.77) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.54% over the past year.
The Earnings Per Share has been decreasing by -1.17% on average over the past years.
Looking at the last year, BN shows a decrease in Revenue. The Revenue has decreased by -0.88% in the last year.
Measured over the past years, BN shows a small growth in Revenue. The Revenue has been growing by 1.60% on average per year.
EPS 1Y (TTM)2.54%
EPS 3Y3.12%
EPS 5Y-1.17%
EPS Q2Q%2.81%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y4.08%
Revenue growth 5Y1.6%
Sales Q2Q%1.24%
3.2 Future
BN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.38% yearly.
BN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.05% yearly.
EPS Next Y7.96%
EPS Next 2Y7.64%
EPS Next 3Y7.59%
EPS Next 5Y6.38%
Revenue Next Year2.6%
Revenue Next 2Y3.09%
Revenue Next 3Y3.32%
Revenue Next 5Y3.05%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.74, which indicates a rather expensive current valuation of BN.
Compared to the rest of the industry, the Price/Earnings ratio of BN is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.10. BN is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 19.21, which indicates a rather expensive current valuation of BN.
BN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BN is more expensive than 64.91% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, BN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.74 | ||
| Fwd PE | 19.21 |
4.2 Price Multiples
BN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. BN is more expensive than 64.91% of the companies in the same industry.
BN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.6 | ||
| EV/EBITDA | 11.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BN does not grow enough to justify the current Price/Earnings ratio.
BN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.61
PEG (5Y)N/A
EPS Next 2Y7.64%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
BN has a Yearly Dividend Yield of 2.83%.
BN's Dividend Yield is a higher than the industry average which is at 3.20.
BN's Dividend Yield is comparable with the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
The dividend of BN has a limited annual growth rate of 1.58%.
Dividend Growth(5Y)1.58%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
BN pays out 66.80% of its income as dividend. This is not a sustainable payout ratio.
BN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.8%
EPS Next 2Y7.64%
EPS Next 3Y7.59%
EPA:BN (5/6/2025, 2:08:00 PM)
75.28
+0.22 (+0.29%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners54.28%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap51.16B
Analysts71.25
Price Target73.67 (-2.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Yearly Dividend2.1
Dividend Growth(5Y)1.58%
DP66.8%
Div Incr Years2
Div Non Decr Years3
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)0.8%
PT rev (3m)5.37%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.09%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.51%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.74 | ||
| Fwd PE | 19.21 | ||
| P/S | 1.87 | ||
| P/FCF | 17.6 | ||
| P/OCF | 13.36 | ||
| P/B | 2.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.12 |
EPS(TTM)3.63
EY4.82%
EPS(NY)3.92
Fwd EY5.21%
FCF(TTM)4.28
FCFY5.68%
OCF(TTM)5.64
OCFY7.49%
SpS40.29
BVpS26.18
TBVpS-9.15
PEG (NY)2.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.46% | ||
| ROE | 11.34% | ||
| ROCE | 11.27% | ||
| ROIC | 6.58% | ||
| ROICexc | 8.06% | ||
| ROICexgc | 68% | ||
| OM | 13% | ||
| PM (TTM) | 7.37% | ||
| GM | 49.7% | ||
| FCFM | 10.62% |
ROA(3y)2.83%
ROA(5y)3.44%
ROE(3y)7.34%
ROE(5y)9%
ROIC(3y)6.38%
ROIC(5y)6.21%
ROICexc(3y)7.67%
ROICexc(5y)7.39%
ROICexgc(3y)52.44%
ROICexgc(5y)45.6%
ROCE(3y)10.98%
ROCE(5y)10.58%
ROICexcg growth 3Y19.7%
ROICexcg growth 5Y13.36%
ROICexc growth 3Y4.65%
ROICexc growth 5Y1.26%
OM growth 3Y-1.81%
OM growth 5Y-3.08%
PM growth 3Y-1.94%
PM growth 5Y-0.54%
GM growth 3Y1.56%
GM growth 5Y0.26%
F-Score7
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.89 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 79.02% | ||
| Cap/Sales | 3.37% | ||
| Interest Coverage | 20.69 | ||
| Cash Conversion | 81.04% | ||
| Profit Quality | 144.05% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.48 |
F-Score7
WACC6.41%
ROIC/WACC1.03
Cap/Depr(3y)59.49%
Cap/Depr(5y)65.43%
Cap/Sales(3y)3.2%
Cap/Sales(5y)3.59%
Profit Quality(3y)220.86%
Profit Quality(5y)178.79%
High Growth Momentum
Growth
EPS 1Y (TTM)2.54%
EPS 3Y3.12%
EPS 5Y-1.17%
EPS Q2Q%2.81%
EPS Next Y7.96%
EPS Next 2Y7.64%
EPS Next 3Y7.59%
EPS Next 5Y6.38%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y4.08%
Revenue growth 5Y1.6%
Sales Q2Q%1.24%
Revenue Next Year2.6%
Revenue Next 2Y3.09%
Revenue Next 3Y3.32%
Revenue Next 5Y3.05%
EBIT growth 1Y2.24%
EBIT growth 3Y2.2%
EBIT growth 5Y-1.53%
EBIT Next Year38.47%
EBIT Next 3Y15.23%
EBIT Next 5Y10.44%
FCF growth 1Y11.98%
FCF growth 3Y6.14%
FCF growth 5Y3.12%
OCF growth 1Y11.24%
OCF growth 3Y3.31%
OCF growth 5Y2.15%