PERNOD RICARD SA (RI.PA)
FR0000120693 - Common Stock
We assign a fundamental rating of 5 out of 10 to RI. RI was compared to 23 industry peers in the Beverages industry. RI scores excellent on profitability, but there are some minor concerns on its financial health. RI does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
RI had positive earnings in the past year.
In the past year RI had a positive cash flow from operations.
RI had positive earnings in each of the past 5 years.
Each year in the past 5 years RI had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.26%, RI is doing good in the industry, outperforming 77.27% of the companies in the same industry.
RI has a better Return On Equity (12.59%) than 81.82% of its industry peers.
RI has a Return On Invested Capital of 7.01%. This is comparable to the rest of the industry: RI outperforms 50.00% of its industry peers.
RI had an Average Return On Invested Capital over the past 3 years of 7.42%. This is in line with the industry average of 6.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 12.59% | ||
| ROIC | 7.01% |
ROA(3y)5.2%
ROA(5y)4.27%
ROE(3y)11.9%
ROE(5y)9.43%
ROIC(3y)7.42%
ROIC(5y)7.16%
1.3 Margins
RI has a better Profit Margin (17.56%) than 86.36% of its industry peers.
In the last couple of years the Profit Margin of RI has remained more or less at the same level.
RI's Operating Margin of 26.17% is amongst the best of the industry. RI outperforms 86.36% of its industry peers.
In the last couple of years the Operating Margin of RI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 59.93%, RI belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
RI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.17% | ||
| PM (TTM) | 17.56% | ||
| GM | 59.93% |
OM growth 3Y1.67%
OM growth 5Y0.06%
PM growth 3Y68.52%
PM growth 5Y0.61%
GM growth 3Y-0.29%
GM growth 5Y-0.31%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RI is still creating some value.
The number of shares outstanding for RI has been reduced compared to 1 year ago.
The number of shares outstanding for RI has been reduced compared to 5 years ago.
RI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.23 indicates that RI is not a great score, but indicates only limited risk for bankruptcy at the moment.
RI has a Altman-Z score of 2.23. This is in the better half of the industry: RI outperforms 63.64% of its industry peers.
The Debt to FCF ratio of RI is 16.82, which is on the high side as it means it would take RI, 16.82 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.82, RI is in line with its industry, outperforming 54.55% of the companies in the same industry.
A Debt/Equity ratio of 0.74 indicates that RI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.74, RI perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 16.82 | ||
| Altman-Z | 2.23 |
ROIC/WACC1.14
WACC6.14%
2.3 Liquidity
A Current Ratio of 1.91 indicates that RI should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.91, RI is doing good in the industry, outperforming 63.64% of the companies in the same industry.
RI has a Quick Ratio of 1.91. This is a bad value and indicates that RI is not financially healthy enough and could expect problems in meeting its short term obligations.
RI has a better Quick ratio (0.69) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for RI have decreased strongly by -13.76% in the last year.
Measured over the past years, RI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.20% on average per year.
RI shows a decrease in Revenue. In the last year, the revenue decreased by -2.08%.
RI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.83% yearly.
EPS 1Y (TTM)-13.76%
EPS 3Y91.22%
EPS 5Y8.2%
EPS growth Q2Q-16.1%
Revenue 1Y (TTM)-2.08%
Revenue growth 3Y12.84%
Revenue growth 5Y6.83%
Revenue growth Q2Q-7.39%
3.2 Future
RI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.40% yearly.
The Revenue is expected to grow by 5.14% on average over the next years.
EPS Next Y-12.14%
EPS Next 2Y-3.06%
EPS Next 3Y0.62%
EPS Next 5Y7.4%
Revenue Next Year-2.58%
Revenue Next 2Y0.89%
Revenue Next 3Y2.37%
Revenue Next 5Y5.14%
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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.59, which indicates a rather expensive current valuation of RI.
Based on the Price/Earnings ratio, RI is valued a bit cheaper than 72.73% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.25, RI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.52, the valuation of RI can be described as correct.
Based on the Price/Forward Earnings ratio, RI is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
RI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 15.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RI is valued a bit more expensive than 63.64% of the companies in the same industry.
RI's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. RI is more expensive than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.98 | ||
| EV/EBITDA | 13.5 |
4.3 Compensation for Growth
RI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.14
EPS Next 2Y-3.06%
EPS Next 3Y0.62%
5. Dividend
5.1 Amount
RI has a Yearly Dividend Yield of 3.27%.
RI's Dividend Yield is rather good when compared to the industry average which is at 2.25. RI pays more dividend than 86.36% of the companies in the same industry.
RI's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
5.2 History
The dividend of RI is nicely growing with an annual growth rate of 14.93%!
Dividend Growth(5Y)14.93%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
RI pays out 59.15% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of RI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP59.15%
EPS Next 2Y-3.06%
EPS Next 3Y0.62%
PERNOD RICARD SA
EPA:RI (4/25/2024, 1:24:59 PM)
141.05
-4 (-2.76%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap35.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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)
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Min EPS beat(4)
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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)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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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 | 17.59 | ||
| Fwd PE | 15.52 | ||
| 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)N/A
PEG (5Y)2.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 12.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.17% | ||
| PM (TTM) | 17.56% | ||
| GM | 59.93% | ||
| 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 Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.91 | ||
| Quick Ratio | 0.69 | ||
| 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)
Growth
EPS 1Y (TTM)-13.76%
EPS 3Y91.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y-12.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.08%
Revenue growth 3Y12.84%
Revenue growth 5Y
Revenue growth 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