DANONE (BN.PA) Stock Fundamental Analysis
EPA:BN - Euronext Paris - Matif - FR0000120644 - Common Stock - Currency: EUR
Overall BN gets a fundamental rating of 5 out of 10. We evaluated BN against 59 industry peers in the Food Products industry. BN has an excellent profitability rating, but there are some minor 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 better Return On Assets (4.46%) than 66.10% of its industry peers.
BN has a better Return On Equity (11.34%) than 67.80% of its industry peers.
BN has a Return On Invested Capital of 6.58%. This is in the better half of the industry: BN outperforms 66.10% of its industry peers.
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 6.44%.
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
The Profit Margin of BN (7.37%) is better than 71.19% of its industry peers.
BN's Profit Margin has been stable in the last couple of years.
BN has a Operating Margin of 13.00%. This is in the better half of the industry: BN outperforms 77.97% of its industry peers.
BN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 49.70%, BN is in the better half of the industry, outperforming 72.88% of the companies in the same industry.
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 | 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
BN has a better debt/assets ratio than last year.
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 has a better Altman-Z score (2.48) than 64.41% of its industry peers.
BN has a debt to FCF ratio of 4.89. This is a neutral value as BN would need 4.89 years to pay back of all of its debts.
BN's Debt to FCF ratio of 4.89 is fine compared to the rest of the industry. BN outperforms 71.19% 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.
Looking at the Debt to Equity ratio, with a value of 0.66, BN is in line with its industry, outperforming 44.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.89 | ||
| Altman-Z | 2.48 |
ROIC/WACC1.04
WACC6.3%
2.3 Liquidity
A Current Ratio of 0.93 indicates that BN may have some problems paying its short term obligations.
BN's Current ratio of 0.93 is on the low side compared to the rest of the industry. BN is outperformed by 77.97% of its industry peers.
A Quick Ratio of 0.77 indicates that BN may have some problems paying its short term obligations.
BN's Quick ratio of 0.77 is on the low side compared to the rest of the industry. BN is outperformed by 67.80% 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.
BN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.17% yearly.
BN shows a decrease in Revenue. In the last year, the revenue decreased by -0.88%.
BN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.60% yearly.
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
Based on estimates for the next years, BN will show a small growth in Earnings Per Share. The EPS will grow by 6.38% on average per year.
Based on estimates for the next years, BN will show a small growth in Revenue. The Revenue will grow by 3.05% on average per year.
EPS Next Y7.96%
EPS Next 2Y7.64%
EPS Next 3Y7.59%
EPS Next 5Y6.38%
Revenue Next Year1.76%
Revenue Next 2Y2.51%
Revenue Next 3Y2.9%
Revenue Next 5Y3.05%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.72, the valuation of BN can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as BN.
The average S&P500 Price/Earnings ratio is at 26.20. BN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 19.19, BN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, BN is valued a bit more expensive than the industry average as 64.41% of the companies are valued more cheaply.
BN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.72 | ||
| Fwd PE | 19.19 |
4.2 Price Multiples
BN's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 17.58 | ||
| EV/EBITDA | 11.17 |
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.
The decent profitability rating of BN may justify a higher PE ratio.
PEG (NY)2.6
PEG (5Y)N/A
EPS Next 2Y7.64%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.84%, BN has a reasonable but not impressive dividend return.
BN's Dividend Yield is a higher than the industry average which is at 3.21.
BN's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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
66.80% of the earnings are spent on dividend by BN. This is not a sustainable payout ratio.
The dividend of BN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.8%
EPS Next 2Y7.64%
EPS Next 3Y7.59%
EPA:BN (5/29/2025, 7:00:00 PM)
75.22
-0.18 (-0.24%)
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 Cap51.12B
Analysts71.25
Price Target74.92 (-0.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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)2.25%
PT rev (3m)7.09%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.72 | ||
| Fwd PE | 19.19 | ||
| P/S | 1.87 | ||
| P/FCF | 17.58 | ||
| P/OCF | 13.35 | ||
| P/B | 2.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.17 |
EPS(TTM)3.63
EY4.83%
EPS(NY)3.92
Fwd EY5.21%
FCF(TTM)4.28
FCFY5.69%
OCF(TTM)5.64
OCFY7.49%
SpS40.29
BVpS26.18
TBVpS-9.15
PEG (NY)2.6
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
WACC6.3%
ROIC/WACC1.04
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 Year1.76%
Revenue Next 2Y2.51%
Revenue Next 3Y2.9%
Revenue Next 5Y3.05%
EBIT growth 1Y2.24%
EBIT growth 3Y2.2%
EBIT growth 5Y-1.53%
EBIT Next Year35.65%
EBIT Next 3Y14.25%
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%