DANONE (BN.PA) Stock Fundamental Analysis
EPA:BN - Euronext Paris - Matif - FR0000120644 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to BN. BN was compared to 58 industry peers in the Food Products industry. BN has a medium profitability rating, but doesn't score so well on its financial health evaluation. BN is valued expensive and 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.
Each year in the past 5 years BN has been profitable.
In the past 5 years BN always reported a positive cash flow from operatings.
1.2 Ratios
BN has a worse Return On Assets (2.21%) than 60.00% of its industry peers.
The Return On Equity of BN (5.99%) is comparable to the rest of the industry.
BN has a Return On Invested Capital (5.77%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for BN is in line with the industry average of 6.76%.
The last Return On Invested Capital (5.77%) for BN is above the 3 year average (5.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 5.99% | ||
| ROIC | 5.77% |
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 3.69%, BN perfoms like the industry average, outperforming 52.73% of the companies in the same industry.
In the last couple of years the Profit Margin of BN has declined.
The Operating Margin of BN (12.83%) is better than 78.18% of its industry peers.
BN's Operating Margin has declined in the last couple of years.
BN's Gross Margin of 48.44% is fine compared to the rest of the industry. BN outperforms 76.36% of its industry peers.
BN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.83% | ||
| PM (TTM) | 3.69% | ||
| GM | 48.44% |
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
BN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BN has more shares outstanding than it did 1 year ago.
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 2.25. 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 (2.25) which is comparable to the rest of the industry.
BN has a debt to FCF ratio of 5.88. This is a neutral value as BN would need 5.88 years to pay back of all of its debts.
BN has a Debt to FCF ratio of 5.88. This is comparable to the rest of the industry: BN outperforms 58.18% of its industry peers.
BN has a Debt/Equity ratio of 0.78. This is a neutral value indicating BN is somewhat dependend on debt financing.
BN has a worse Debt to Equity ratio (0.78) than 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 5.88 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.98
WACC5.91%
2.3 Liquidity
A Current Ratio of 0.91 indicates that BN may have some problems paying its short term obligations.
With a Current ratio value of 0.91, BN is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.74 indicates that BN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.74, BN is doing worse than 65.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
BN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.56%.
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.
The Revenue has decreased by -4.54% in the past year.
BN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.30% yearly.
EPS 1Y (TTM)0.56%
EPS 3Y1.96%
EPS 5Y-0.22%
EPS Q2Q%2.27%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y5.35%
Revenue growth 5Y2.3%
Sales Q2Q%-2.89%
3.2 Future
The Earnings Per Share is expected to grow by 6.36% on average over the next years.
Based on estimates for the next years, BN will show a small growth in Revenue. The Revenue will grow by 2.60% on average per year.
EPS Next Y2.72%
EPS Next 2Y4.86%
EPS Next 3Y6%
EPS Next 5Y6.36%
Revenue Next Year-1.99%
Revenue Next 2Y0.61%
Revenue Next 3Y1.65%
Revenue Next 5Y2.6%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.18, which indicates a rather expensive current valuation of BN.
The rest of the industry has a similar Price/Earnings ratio as BN.
BN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.72, the valuation of BN can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as BN.
BN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.18 | ||
| Fwd PE | 16.72 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BN.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.59 | ||
| EV/EBITDA | 9.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)6.68
PEG (5Y)N/A
EPS Next 2Y4.86%
EPS Next 3Y6%
5. Dividend
5.1 Amount
BN has a Yearly Dividend Yield of 3.26%.
BN's Dividend Yield is a higher than the industry average which is at 3.21.
Compared to an average S&P500 Dividend Yield of 2.28, BN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
5.2 History
On average, the dividend of BN grows each year by 24.27%, which is quite nice.
Dividend Growth(5Y)24.27%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
134.40% 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.
DP134.4%
EPS Next 2Y4.86%
EPS Next 3Y6%
DANONE
EPA:BN (1/23/2025, 5:28:19 PM)
65.07
-0.09 (-0.14%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners54.49%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap44.22B
Analysts72.57
Price Target69.16 (6.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
Yearly Dividend2
Dividend Growth(5Y)24.27%
DP134.4%
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)0.62%
PT rev (3m)4.42%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.18 | ||
| Fwd PE | 16.72 | ||
| P/S | 1.63 | ||
| P/FCF | 16.59 | ||
| P/OCF | 12.55 | ||
| P/B | 2.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.08 |
EPS(TTM)3.58
EY5.5%
EPS(NY)3.89
Fwd EY5.98%
FCF(TTM)3.92
FCFY6.03%
OCF(TTM)5.18
OCFY7.97%
SpS40.04
BVpS24.64
TBVpS-10.05
PEG (NY)6.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 5.99% | ||
| ROCE | 11.32% | ||
| ROIC | 5.77% | ||
| ROICexc | 7.09% | ||
| ROICexgc | 48.71% | ||
| OM | 12.83% | ||
| PM (TTM) | 3.69% | ||
| GM | 48.44% | ||
| FCFM | 9.8% |
ROA(3y)2.74%
ROA(5y)3.4%
ROE(3y)7.22%
ROE(5y)8.95%
ROIC(3y)5.56%
ROIC(5y)5.64%
ROICexc(3y)6.63%
ROICexc(5y)6.61%
ROICexgc(3y)38.45%
ROICexgc(5y)35.29%
ROCE(3y)10.43%
ROCE(5y)10.57%
ROICexcg growth 3Y16.02%
ROICexcg growth 5Y3.63%
ROICexc growth 3Y4.15%
ROICexc growth 5Y1.16%
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%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 5.88 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 52.52% | ||
| Cap/Sales | 3.15% | ||
| Interest Coverage | -6.46 | ||
| Cash Conversion | 68.78% | ||
| Profit Quality | 265.8% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.25 |
F-Score6
WACC5.91%
ROIC/WACC0.98
Cap/Depr(3y)60.63%
Cap/Depr(5y)63.35%
Cap/Sales(3y)3.51%
Cap/Sales(5y)3.67%
Profit Quality(3y)215.54%
Profit Quality(5y)176.02%
High Growth Momentum
Growth
EPS 1Y (TTM)0.56%
EPS 3Y1.96%
EPS 5Y-0.22%
EPS Q2Q%2.27%
EPS Next Y2.72%
EPS Next 2Y4.86%
EPS Next 3Y6%
EPS Next 5Y6.36%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y5.35%
Revenue growth 5Y2.3%
Sales Q2Q%-2.89%
Revenue Next Year-1.99%
Revenue Next 2Y0.61%
Revenue Next 3Y1.65%
Revenue Next 5Y2.6%
EBIT growth 1Y-0.2%
EBIT growth 3Y1.61%
EBIT growth 5Y-0.48%
EBIT Next Year34.37%
EBIT Next 3Y14.41%
EBIT Next 5Y10.09%
FCF growth 1Y27.44%
FCF growth 3Y8.99%
FCF growth 5Y3.65%
OCF growth 1Y14.99%
OCF growth 3Y5.08%
OCF growth 5Y2.05%