Pernod Ricard S.A.
Pernod Ricard S.A. Fundamental Analysis
Pernod Ricard S.A. (PER.DE) shows moderate financial fundamentals with a PE ratio of 11.45, profit margin of 14.06%, and ROE of 9.20%. The company generates $10.0B in annual revenue with weak year-over-year growth of -5.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PER.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakPER.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPER.DE trades at attractive valuation levels.
Growth Score
ModeratePER.DE shows steady but slowing expansion.
Financial Health Score
ExcellentPER.DE maintains a strong and stable balance sheet.
Profitability Score
WeakPER.DE struggles to sustain strong margins.
Key Financial Metrics
Is PER.DE Expensive or Cheap?
P/E Ratio
PER.DE trades at 11.45 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PER.DE's PEG of -0.87 indicates potential undervaluation.
Price to Book
The market values Pernod Ricard S.A. at 1.04 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.59 times EBITDA. This is generally considered low.
How Well Does PER.DE Make Money?
Net Profit Margin
For every $100 in sales, Pernod Ricard S.A. keeps $14.06 as profit after all expenses.
Operating Margin
Core operations generate -2.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.20 in profit for every $100 of shareholder equity.
ROA
Pernod Ricard S.A. generates $3.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pernod Ricard S.A. generates limited operating cash flow of $699.44M, signaling weaker underlying cash strength.
Free Cash Flow
Pernod Ricard S.A. produces free cash flow of $478.30M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.90 in free cash annually.
FCF Yield
PER.DE converts 2.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.90
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How PER.DE Stacks Against Its Sector Peers
| Metric | PER.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.45 | 22.46 | Better (Cheaper) |
| ROE | 9.20% | 1260.00% | Weak |
| Net Margin | 14.06% | -5313.00% (disorted) | Strong |
| Debt/Equity | 0.90 | 0.84 | Neutral |
| Current Ratio | 2.33 | 2.49 | Strong Liquidity |
| ROA | 3.75% | -193380.00% (disorted) | Weak |
PER.DE outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pernod Ricard S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.31%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
415.50%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
57.91%
Industry Style: Defensive, Dividend, Low Volatility
High Growth