PERNOD RICARD SA (RI.PA) Stock Fundamental Analysis
EPA:RI - Euronext Paris - Matif - FR0000120693 - Common Stock - Currency: EUR
Taking everything into account, RI scores 4 out of 10 in our fundamental rating. RI was compared to 27 industry peers in the Beverages industry. RI has only an average score on both its financial health and profitability. RI does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year RI was profitable.
RI had a positive operating cash flow in the past year.
In the past 5 years RI has always been profitable.
Each year in the past 5 years RI had a positive operating cash flow.
1.2 Ratios
RI has a Return On Assets of 2.76%. This is comparable to the rest of the industry: RI outperforms 48.15% of its industry peers.
RI has a Return On Equity (6.63%) which is in line with its industry peers.
RI has a Return On Invested Capital of 6.20%. This is in the lower half of the industry: RI underperforms 66.67% 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
With a decent Profit Margin value of 9.81%, RI is doing good in the industry, outperforming 70.37% of the companies in the same industry.
RI's Profit Margin has declined in the last couple of years.
The Operating Margin of RI (26.27%) is better than 85.19% 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 59.61%, RI is in the better half of the industry, outperforming 74.07% 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.
RI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RI has less shares outstanding
RI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.80, we must say that RI is in the distress zone and has some risk of bankruptcy.
RI has a Altman-Z score (1.80) which is in line with 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's Debt to FCF ratio of 12.80 is in line compared to the rest of the industry. RI outperforms 48.15% of its industry peers.
RI has a Debt/Equity ratio of 0.76. This is a neutral value indicating RI is somewhat dependend on debt financing.
RI has a Debt to Equity ratio (0.76) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 12.8 | ||
| Altman-Z | 1.8 |
ROIC/WACC1.06
WACC5.82%
2.3 Liquidity
RI has a Current Ratio of 1.97. This is a normal value and indicates that RI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RI (1.97) is better than 70.37% 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.
RI has a Quick ratio of 0.70. This is in the better half of the industry: RI outperforms 66.67% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 1.24% on average over the past years.
Looking at the last year, RI shows a decrease in Revenue. The Revenue has decreased by -3.68% in the last year.
The Revenue has been growing slightly by 4.78% on average over the past years.
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
Based on estimates for the next years, RI will show a small growth in Earnings Per Share. The EPS will grow by 2.69% on average per year.
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-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.
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
With a Price/Earnings ratio of 20.91, RI is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as RI.
RI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.82.
A Price/Forward Earnings ratio of 12.50 indicates a correct valuation of RI.
RI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RI is cheaper than 74.07% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RI to the average of the S&P500 Index (21.76), we can say RI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 12.5 |
4.2 Price Multiples
RI's Enterprise Value to EBITDA is on the same level as the industry average.
RI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.12 | ||
| EV/EBITDA | 10.29 |
4.3 Compensation for Growth
RI's earnings are expected to decrease with -2.25% in the coming years. This may justify a cheaper valuation.
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 4.95%, which is a nice return.
Compared to an average industry Dividend Yield of 2.76, RI pays a better dividend. On top of this RI pays more dividend than 96.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, RI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
5.2 History
On average, the dividend of RI grows each year by 14.30%, which is quite nice.
Dividend Growth(5Y)14.3%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
109.66% of the earnings are spent on dividend by RI. 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, 5:36:15 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 | 4.95% |
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)-14.98%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-4.17%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.61%
Revenue NY rev (3m)-2.61%
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 | 10.29 |
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 | 1.8 |
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 Year6.59%
EBIT Next 3Y4.21%
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%