Pernod Ricard SA
Pernod Ricard SA Fundamental Analysis
Pernod Ricard SA (RI.PA) shows moderate financial fundamentals with a PE ratio of 11.54, 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 42.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RI.PA's fundamental strength across five key dimensions:
Efficiency Score
WeakRI.PA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRI.PA trades at attractive valuation levels.
Growth Score
ModerateRI.PA shows steady but slowing expansion.
Financial Health Score
ExcellentRI.PA maintains a strong and stable balance sheet.
Profitability Score
WeakRI.PA struggles to sustain strong margins.
Key Financial Metrics
Is RI.PA Expensive or Cheap?
P/E Ratio
RI.PA trades at 11.54 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RI.PA's PEG of 0.40 indicates potential undervaluation.
Price to Book
The market values Pernod Ricard SA at 1.05 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.63 times EBITDA. This is generally considered low.
How Well Does RI.PA Make Money?
Net Profit Margin
For every $100 in sales, Pernod Ricard SA 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 SA 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 SA produces operating cash flow of $1.68B, showing steady but balanced cash generation.
Free Cash Flow
Pernod Ricard SA generates strong free cash flow of $1.16B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.63 in free cash annually.
FCF Yield
RI.PA converts 7.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.62
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 RI.PA Stacks Against Its Sector Peers
| Metric | RI.PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.54 | 22.73 | Better (Cheaper) |
| ROE | 9.20% | 1198.00% | Weak |
| Net Margin | 14.06% | -5449.00% (disorted) | Strong |
| Debt/Equity | 0.90 | 0.74 | Weak (High Leverage) |
| Current Ratio | 2.33 | 2.51 | Strong Liquidity |
| ROA | 3.75% | -605473.00% (disorted) | Weak |
RI.PA 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 SA'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