PERNOD RICARD SA (RI.PA) Stock Fundamental Analysis
EPA:RI - Euronext Paris - Matif - FR0000120693 - Common Stock - Currency: EUR
RI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 27 industry peers in the Beverages industry. RI has an average financial health and profitability rating. RI has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RI had positive earnings in the past year.
RI had a positive operating cash flow in the past year.
Each year in the past 5 years RI has been profitable.
RI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RI has a Return On Assets of 2.76%. This is comparable to the rest of the industry: RI outperforms 50.00% of its industry peers.
RI has a Return On Equity (6.63%) which is comparable to the rest of the industry.
RI's Return On Invested Capital of 6.20% is on the low side compared to the rest of the industry. RI is outperformed by 64.29% of its industry peers.
RI had an Average Return On Invested Capital over the past 3 years of 7.26%. This is in line with the industry average of 8.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 6.63% | ||
| ROIC | 6.2% |
ROA(3y)5.1%
ROA(5y)4.08%
ROE(3y)12.09%
ROE(5y)9.49%
ROIC(3y)7.26%
ROIC(5y)6.76%
1.3 Margins
RI has a better Profit Margin (9.81%) than 71.43% of its industry peers.
In the last couple of years the Profit Margin of RI has declined.
RI has a Operating Margin of 26.27%. This is amongst the best in the industry. RI outperforms 85.71% of its industry peers.
RI's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 59.61%, RI is doing good in the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Gross Margin of RI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.27% | ||
| PM (TTM) | 9.81% | ||
| GM | 59.61% |
OM growth 3Y-0.44%
OM growth 5Y-0.69%
PM growth 3Y-4.88%
PM growth 5Y-4.29%
GM growth 3Y0.09%
GM growth 5Y-0.45%
2. Health
2.1 Basic Checks
RI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, RI has less shares outstanding
Compared to 5 years ago, RI has less shares outstanding
The debt/assets ratio for RI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that RI is in the distress zone and has some risk of bankruptcy.
RI's Altman-Z score of 1.78 is on the low side compared to the rest of the industry. RI is outperformed by 71.43% of its industry peers.
The Debt to FCF ratio of RI is 12.80, which is on the high side as it means it would take RI, 12.80 years of fcf income to pay off all of its debts.
RI has a Debt to FCF ratio (12.80) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.76 indicates that RI is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.76, RI is doing good in the industry, outperforming 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 12.8 | ||
| Altman-Z | 1.78 |
ROIC/WACC1.06
WACC5.82%
2.3 Liquidity
A Current Ratio of 1.97 indicates that RI should not have too much problems paying its short term obligations.
RI has a better Current ratio (1.97) than 75.00% of its industry peers.
RI has a Quick Ratio of 1.97. This is a bad value and indicates that RI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.70, RI is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for RI have decreased strongly by -45.69% in the last year.
Measured over the past 5 years, RI shows a small growth in Earnings Per Share. The EPS has been growing by 1.24% on average per year.
Looking at the last year, RI shows a decrease in Revenue. The Revenue has decreased by -3.68% in the last year.
RI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.78% yearly.
EPS 1Y (TTM)-45.69%
EPS 3Y5.32%
EPS 5Y1.24%
EPS Q2Q%-11.27%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y9.54%
Revenue growth 5Y4.78%
Sales Q2Q%-6.28%
3.2 Future
The Earnings Per Share is expected to grow by 2.69% on average over the next years.
The Revenue is expected to grow by 1.49% on average over the next years.
EPS Next Y-11.31%
EPS Next 2Y-5.91%
EPS Next 3Y-2.25%
EPS Next 5Y2.69%
Revenue Next Year-5.57%
Revenue Next 2Y-4.01%
Revenue Next 3Y-1.65%
Revenue Next 5Y1.49%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RI is valuated rather expensively with a Price/Earnings ratio of 20.91.
Compared to the rest of the industry, the Price/Earnings ratio of RI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of RI to the average of the S&P500 Index (25.82), we can say RI is valued inline with the index average.
With a Price/Forward Earnings ratio of 12.50, RI is valued correctly.
Based on the Price/Forward Earnings ratio, RI is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, RI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 12.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RI indicates a somewhat cheap valuation: RI is cheaper than 64.29% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RI is valued a bit cheaper than the industry average as 60.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.12 | ||
| EV/EBITDA | 10.07 |
4.3 Compensation for Growth
A cheap valuation may be justified as RI's earnings are expected to decrease with -2.25% in the coming years.
PEG (NY)N/A
PEG (5Y)16.8
EPS Next 2Y-5.91%
EPS Next 3Y-2.25%
5. Dividend
5.1 Amount
RI has a Yearly Dividend Yield of 4.94%, which is a nice return.
RI's Dividend Yield is rather good when compared to the industry average which is at 2.77. RI pays more dividend than 92.86% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, RI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
5.2 History
The dividend of RI is nicely growing with an annual growth rate of 14.30%!
Dividend Growth(5Y)14.3%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
RI pays out 109.66% of its income as dividend. This is not a sustainable payout ratio.
The dividend of RI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP109.66%
EPS Next 2Y-5.91%
EPS Next 3Y-2.25%
EPA:RI (5/23/2025, 7:00:00 PM)
91.16
-2.92 (-3.1%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners52.44%
Inst Owner ChangeN/A
Ins Owners0.68%
Ins Owner ChangeN/A
Market Cap23.00B
Analysts73.33
Price Target114.29 (25.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
Yearly Dividend4.77
Dividend Growth(5Y)14.3%
DP109.66%
Div Incr Years3
Div Non Decr Years4
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)-7.03%
PT rev (3m)-9.21%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.93%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 12.5 | ||
| P/S | 2.06 | ||
| P/FCF | 21.12 | ||
| P/OCF | 12.51 | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.07 |
EPS(TTM)4.36
EY4.78%
EPS(NY)7.29
Fwd EY8%
FCF(TTM)4.32
FCFY4.74%
OCF(TTM)7.29
OCFY8%
SpS44.33
BVpS65.58
TBVpS-11.05
PEG (NY)N/A
PEG (5Y)16.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 6.63% | ||
| ROCE | 8.86% | ||
| ROIC | 6.2% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 16.35% | ||
| OM | 26.27% | ||
| PM (TTM) | 9.81% | ||
| GM | 59.61% | ||
| FCFM | 9.74% |
ROA(3y)5.1%
ROA(5y)4.08%
ROE(3y)12.09%
ROE(5y)9.49%
ROIC(3y)7.26%
ROIC(5y)6.76%
ROICexc(3y)7.83%
ROICexc(5y)7.29%
ROICexgc(3y)21.73%
ROICexgc(5y)20.26%
ROCE(3y)10.2%
ROCE(5y)9.46%
ROICexcg growth 3Y5.76%
ROICexcg growth 5Y-0.66%
ROICexc growth 3Y4.26%
ROICexc growth 5Y0.96%
OM growth 3Y-0.44%
OM growth 5Y-0.69%
PM growth 3Y-4.88%
PM growth 5Y-4.29%
GM growth 3Y0.09%
GM growth 5Y-0.45%
F-Score5
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 12.8 | ||
| Debt/EBITDA | 3.73 | ||
| Cap/Depr | 172.41% | ||
| Cap/Sales | 6.71% | ||
| Interest Coverage | 6.43 | ||
| Cash Conversion | 54.52% | ||
| Profit Quality | 99.27% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.78 |
F-Score5
WACC5.82%
ROIC/WACC1.06
Cap/Depr(3y)158.81%
Cap/Depr(5y)139.74%
Cap/Sales(3y)5.73%
Cap/Sales(5y)5.28%
Profit Quality(3y)71%
Profit Quality(5y)116.07%
High Growth Momentum
Growth
EPS 1Y (TTM)-45.69%
EPS 3Y5.32%
EPS 5Y1.24%
EPS Q2Q%-11.27%
EPS Next Y-11.31%
EPS Next 2Y-5.91%
EPS Next 3Y-2.25%
EPS Next 5Y2.69%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y9.54%
Revenue growth 5Y4.78%
Sales Q2Q%-6.28%
Revenue Next Year-5.57%
Revenue Next 2Y-4.01%
Revenue Next 3Y-1.65%
Revenue Next 5Y1.49%
EBIT growth 1Y-3.32%
EBIT growth 3Y9.06%
EBIT growth 5Y4.06%
EBIT Next Year6.37%
EBIT Next 3Y2.31%
EBIT Next 5Y3.79%
FCF growth 1Y-18.85%
FCF growth 3Y-15.21%
FCF growth 5Y-6.43%
OCF growth 1Y-5.16%
OCF growth 3Y-4.74%
OCF growth 5Y0.1%