PERNOD RICARD SA (RI.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:RI • FR0000120693
75.08 EUR
+0.96 (+1.3%)
Last: Jan 30, 2026, 07:00 PM
RI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 29 industry peers in the Beverages industry. RI scores excellent on profitability, but there are concerns on its financial health. RI is valued correctly, but it does not seem to be growing. RI also has an excellent dividend rating.
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.
- RI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 4.39%, RI is doing good in the industry, outperforming 62.07% of the companies in the same industry.
- The Return On Equity of RI (10.69%) is better than 62.07% of its industry peers.
- The Return On Invested Capital of RI (6.69%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for RI is in line with the industry average of 7.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.39% | ||
| ROE | 10.69% | ||
| ROIC | 6.69% |
ROA(3y)4.72%
ROA(5y)4.75%
ROE(3y)11.48%
ROE(5y)11.15%
ROIC(3y)6.96%
ROIC(5y)6.8%
1.3 Margins
- RI has a better Profit Margin (14.84%) than 86.21% of its industry peers.
- RI's Profit Margin has improved in the last couple of years.
- RI has a Operating Margin of 26.84%. This is amongst the best in the industry. RI outperforms 86.21% of its industry peers.
- RI's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 59.46%, RI belongs to the top of the industry, outperforming 82.76% 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 | 26.84% | ||
| PM (TTM) | 14.84% | ||
| GM | 59.46% |
OM growth 3Y-1.67%
OM growth 5Y0.61%
PM growth 3Y-7.34%
PM growth 5Y30.67%
GM growth 3Y-0.57%
GM growth 5Y-0.25%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RI is creating some value.
- RI has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, RI has less shares outstanding
- Compared to 1 year ago, RI has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.75, we must say that RI is in the distress zone and has some risk of bankruptcy.
- RI has a worse Altman-Z score (1.75) than 68.97% of its industry peers.
- The Debt to FCF ratio of RI is 11.23, which is on the high side as it means it would take RI, 11.23 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 11.23, RI is doing worse than 68.97% of the companies in the same industry.
- A Debt/Equity ratio of 0.73 indicates that RI is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.73, RI is doing good in the industry, outperforming 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 11.23 | ||
| Altman-Z | 1.75 |
ROIC/WACC1.15
WACC5.82%
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 75.86% 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 Quick ratio of 0.60. This is comparable to the rest of the industry: RI outperforms 48.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- RI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.10%.
- RI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.69% yearly.
- Looking at the last year, RI shows a decrease in Revenue. The Revenue has decreased by -5.51% in the last year.
- RI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.34% yearly.
EPS 1Y (TTM)-8.1%
EPS 3Y-5.62%
EPS 5Y38.69%
EPS Q2Q%0%
Revenue 1Y (TTM)-5.51%
Revenue growth 3Y0.8%
Revenue growth 5Y5.34%
Sales Q2Q%-4.49%
3.2 Future
- RI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.77% yearly.
- Based on estimates for the next years, RI will show a small growth in Revenue. The Revenue will grow by 1.49% on average per year.
EPS Next Y-14.38%
EPS Next 2Y-6.39%
EPS Next 3Y-2.67%
EPS Next 5Y2.77%
Revenue Next Year-10.43%
Revenue Next 2Y-4.85%
Revenue Next 3Y-2.19%
Revenue Next 5Y1.49%
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 decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 10.34 indicates a reasonable valuation of RI.
- Based on the Price/Earnings ratio, RI is valued cheaper than 89.66% of the companies in the same industry.
- When comparing the Price/Earnings ratio of RI to the average of the S&P500 Index (28.30), we can say RI is valued rather cheaply.
- The Price/Forward Earnings ratio is 12.08, which indicates a correct valuation of RI.
- Based on the Price/Forward Earnings ratio, RI is valued a bit cheaper than 79.31% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. RI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.34 | ||
| Fwd PE | 12.08 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RI is valued a bit cheaper than the industry average as 68.97% of the companies are valued more expensively.
- RI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.9 | ||
| EV/EBITDA | 8.65 |
4.3 Compensation for Growth
- RI has a very decent profitability rating, which may justify a higher PE ratio.
- RI's earnings are expected to decrease with -2.67% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y-6.39%
EPS Next 3Y-2.67%
5. Dividend
5.1 Amount
- RI has a Yearly Dividend Yield of 6.14%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.70, RI pays a better dividend. On top of this RI pays more dividend than 96.55% of the companies listed in the same industry.
- RI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.14% |
5.2 History
- The dividend of RI is nicely growing with an annual growth rate of 8.09%!
Dividend Growth(5Y)8.09%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- RI pays out 73.86% of its income as dividend. This is not a sustainable payout ratio.
- RI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP73.86%
EPS Next 2Y-6.39%
EPS Next 3Y-2.67%
PERNOD RICARD SA / RI.PA FAQ
Can you provide the ChartMill fundamental rating for PERNOD RICARD SA?
ChartMill assigns a fundamental rating of 5 / 10 to RI.PA.
What is the valuation status of PERNOD RICARD SA (RI.PA) stock?
ChartMill assigns a valuation rating of 5 / 10 to PERNOD RICARD SA (RI.PA). This can be considered as Fairly Valued.
What is the profitability of RI stock?
PERNOD RICARD SA (RI.PA) has a profitability rating of 7 / 10.
What is the financial health of PERNOD RICARD SA (RI.PA) stock?
The financial health rating of PERNOD RICARD SA (RI.PA) is 3 / 10.
How sustainable is the dividend of PERNOD RICARD SA (RI.PA) stock?
The dividend rating of PERNOD RICARD SA (RI.PA) is 7 / 10 and the dividend payout ratio is 73.86%.