DANONE (BN.PA)

FR0000120644 - Common Stock

60.06  +0.52 (+0.87%)

Fundamental Rating

4

Overall BN gets a fundamental rating of 4 out of 10. We evaluated BN against 58 industry peers in the Food Products industry. There are concerns on the financial health of BN while its profitability can be described as average. BN has a valuation in line with the averages, but it does not seem to be growing.



6

1. Profitability

1.1 Basic Checks

In the past year BN was profitable.
In the past year BN had a positive cash flow from operations.
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 Return On Assets (1.96%) which is comparable to the rest of the industry.
With a Return On Equity value of 5.40%, BN perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
BN has a better Return On Invested Capital (5.81%) than 63.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BN is in line with the industry average of 6.15%.
The 3 year average ROIC (5.56%) for BN is below the current ROIC(5.81%), indicating increased profibility in the last year.
Industry RankSector 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

BN has a Profit Margin (3.16%) which is in line with its industry peers.
BN's Profit Margin has declined in the last couple of years.
BN's Operating Margin of 12.60% is amongst the best of the industry. BN outperforms 80.70% of its industry peers.
In the last couple of years the Operating Margin of BN has declined.
With a decent Gross Margin value of 47.37%, BN is doing good in the industry, outperforming 77.19% 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 RankSector 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%

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BN is still creating some value.
Compared to 1 year ago, BN has more shares outstanding
Compared to 5 years ago, BN has less shares outstanding
Compared to 1 year ago, BN has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.23 indicates that BN is not a great score, but indicates only limited risk for bankruptcy at the moment.
BN has a Altman-Z score (2.23) which is comparable to the rest of the industry.
BN has a debt to FCF ratio of 6.01. This is a slightly negative value and a sign of low solvency as BN would need 6.01 years to pay back of all of its debts.
BN has a Debt to FCF ratio of 6.01. This is in the better half of the industry: BN outperforms 61.40% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that BN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.82, BN is doing worse than 63.16% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.01
Altman-Z 2.23
ROIC/WACC1.01
WACC5.76%

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: 82.46% of the companies in the same industry are doing better.
A Quick Ratio of 0.76 indicates that BN may have some problems paying its short term obligations.
BN has a worse Quick ratio (0.76) than 61.40% of its industry peers.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.76

3

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 3.21% over the past year.
The Earnings Per Share has been decreasing by -0.22% on average over the past years.
The Revenue has decreased by -0.15% in the past year.
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

The Earnings Per Share is expected to grow by 5.76% on average over the next years.
The Revenue is expected to grow by 2.31% on average over the next years.
EPS Next Y3.45%
EPS Next 2Y5.36%
EPS Next 3Y6.32%
EPS Next 5Y5.76%
Revenue Next Year-0.72%
Revenue Next 2Y1.25%
Revenue Next 3Y2.11%
Revenue Next 5Y2.31%

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

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 16.97, BN is valued correctly.
BN's Price/Earnings ratio is a bit cheaper when compared to the industry. BN is cheaper than 61.40% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.24. BN is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.40 indicates a correct valuation of BN.
BN's Price/Forward Earnings ratio is in line with the industry average.
BN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 19.93, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 16.97
Fwd PE 16.4

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BN is on the same level as its industry peers.
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 RankSector Rank
P/FCF 15.72
EV/EBITDA 8.55

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)4.92
PEG (5Y)N/A
EPS Next 2Y5.36%
EPS Next 3Y6.32%

4

5. Dividend

5.1 Amount

BN has a Yearly Dividend Yield of 3.51%. Purely for dividend investing, there may be better candidates out there.
BN's Dividend Yield is a higher than the industry average which is at 3.00.
Compared to an average S&P500 Dividend Yield of 2.37, BN pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.51%

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

BN pays out 146.51% of its income as dividend. 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 (6/12/2024, 5:29:56 PM)

60.06

+0.52 (+0.87%)

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 Cap40.80B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.51%
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 RankSector Rank
PE 16.97
Fwd PE 16.4
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)4.92
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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