ENXTPA:BN

Stock Analysis Report

Executive Summary

Danone S.A. operates in the food and beverage industry worldwide.

Snowflake

Fundamentals

Established dividend payer with questionable track record.


Similar Companies

Share Price & News

How has Danone's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-9.2%

BN

-8.0%

FR Food

-0.9%

FR Market


1 Year Return

15.9%

BN

9.2%

FR Food

12.5%

FR Market

Return vs Industry: BN exceeded the French Food industry which returned 9.2% over the past year.

Return vs Market: BN exceeded the French Market which returned 12.5% over the past year.


Shareholder returns

BNIndustryMarket
7 Day-9.2%-8.0%-0.9%
30 Day-9.4%-8.6%-0.8%
90 Day-3.2%-3.1%-0.5%
1 Year19.1%15.9%12.0%9.2%16.3%12.5%
3 Year25.7%15.8%14.6%6.6%43.1%29.1%
5 Year61.3%41.3%46.1%29.8%71.4%45.4%

Price Volatility Vs. Market

How volatile is Danone's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Danone undervalued compared to its fair value and its price relative to the market?

28.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BN (€72.88) is trading below our estimate of fair value (€101.99)

Significantly Below Fair Value: BN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BN is poor value based on its PE Ratio (21.8x) compared to the Food industry average (16.6x).

PE vs Market: BN is poor value based on its PE Ratio (21.8x) compared to the French market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: BN is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: BN is overvalued based on its PB Ratio (2.9x) compared to the FR Food industry average (1.1x).


Next Steps

Future Growth

How is Danone forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BN's forecast earnings growth (9.9% per year) is above the savings rate (0.7%).

Earnings vs Market: BN's earnings (9.9% per year) are forecast to grow slower than the French market (11.4% per year).

High Growth Earnings: BN's earnings are forecast to grow, but not significantly.

Revenue vs Market: BN's revenue (3.7% per year) is forecast to grow slower than the French market (4.4% per year).

High Growth Revenue: BN's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BN's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has Danone performed over the past 5 years?

19.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BN's earnings have grown by 19.5% per year over the past 5 years.

Accelerating Growth: BN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BN had negative earnings growth (-18.8%) over the past year, making it difficult to compare to the Food industry average (-17.3%).


Return on Equity

High ROE: BN's Return on Equity (13.9%) is considered low.


Return on Assets

ROA vs Industry: BN has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: BN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Danone's financial position?


Financial Position Analysis

Short Term Liabilities: BN's short term assets (€11.3B) do not cover its short term liabilities (€11.9B)

Long Term Liabilities: BN's short term assets (11.3B) do not cover its long term liabilities (18.1B)


Debt to Equity History and Analysis

Debt Level: BN's debt to equity ratio (111.8%) is considered high

Reducing Debt: BN's debt to equity ratio has increased from 107% to 111.8% over the past 5 years.

Debt Coverage: BN's debt is not well covered by operating cash flow (17.1%).

Interest Coverage: BN's interest payments on its debt are well covered by EBIT (17.9x coverage).


Balance Sheet

Inventory Level: BN has a low level of unsold assets or inventory.

Debt Coverage by Assets: BN's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Danone's current dividend yield, its reliability and sustainability?

2.66%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.5%markettop25%4.7%industryaverage2.5%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BN's dividend (2.66%) is higher than the bottom 25% of dividend payers in the French market (1.55%).

High Dividend: BN's dividend (2.66%) is low compared to the top 25% of dividend payers in the French market (4.71%).

Stable Dividend: BN's dividends per share have been stable in the past 10 years.

Growing Dividend: BN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58%), BN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BN's dividends in 3 years are forecast to be covered by earnings (53.1% payout ratio).


Next Steps

Management

What is the CEO of Danone's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Emmanuel Faber (55yo)

5yrs

Tenure

€4,064,482

Compensation

Mr. Emmanuel Faber has been the Chief Executive Officer of Danone since October 1, 2014 and has been its Chairman since December 1, 2017. He serves as Member of Food Advisory Committee at Carrefour SA sinc ...


CEO Compensation Analysis

Compensation vs. Market: Emmanuel's total compensation ($USD4.53M) is about average for companies of similar size in the French market ($USD3.60M).

Compensation vs Earnings: Emmanuel's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.9yrs

Average Tenure

53yo

Average Age

Experienced Management: BN's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: BN's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Emmanuel Faber (55yo)

    Chairman & CEO

    • Tenure: 5yrs
    • Compensation: €4.06m
  • Michel David-Weill (87yo)

    Honorary Vice-Chairman

    • Tenure: 0yrs
    • Compensation: €23.00k
  • Dominique Poiroux

    Executive Vice President of Advanced Medical Nutrition

    • Tenure: 0yrs
  • Laurent Sacchi

    Executive VP of Chairman's Office & Director of Publication

    • Tenure: 0yrs
  • Bertrand Austruy (46yo)

    Executive VP of Human Resources & Corporate Secretary

    • Tenure: 0yrs
  • Paco Camacho (54yo)

    Executive Vice President of Essential Dairy & Plant-Based

    • Tenure: 10.8yrs
  • Cécile Cabanis (48yo)

    Executive VP of IS/IT

    • Tenure: 1.5yrs
    • Compensation: €1.71m
  • Henri Bruxelles (53yo)

    Executive Vice President of Waters & Africa

    • Tenure: 2yrs
  • Véronique Penchienati-Bosetta (52yo)

    Executive Vice President of Specialized Nutrition

    • Tenure: 1.8yrs
  • Nadia Salem-Nicolas

    Head of Investor Relations and Financial Communication

    • Tenure: 0yrs

Board Members

  • Michel Landel (68yo)

    Lead Independent Director

    • Tenure: 1.5yrs
    • Compensation: €45.00k
  • Franck Riboud (64yo)

    Honorary Chairman

    • Tenure: 23.4yrs
    • Compensation: €1.46m
  • Emmanuel Faber (55yo)

    Chairman & CEO

    • Tenure: 5yrs
    • Compensation: €4.06m
  • Michel David-Weill (87yo)

    Honorary Vice-Chairman

    • Tenure: 0yrs
    • Compensation: €23.00k
  • Benoît Potier (62yo)

    Director

    • Tenure: 16.5yrs
    • Compensation: €69.00k
  • Muriel Penicaud (64yo)

    Chairman of Danone Ecosystem Fund

    • Tenure: 5.8yrs
  • Jean-Michel Severino (62yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: €85.00k
  • Peng Qin (63yo)

    Chairman of Danone China

    • Tenure: 17.8yrs
  • Virginia Stallings (69yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: €62.00k
  • Cécile Cabanis (48yo)

    Executive VP of IS/IT

    • Tenure: 1.5yrs
    • Compensation: €1.71m

Company Information

Danone S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Danone S.A.
  • Ticker: BN
  • Exchange: ENXTPA
  • Founded: 1899
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: €47.213b
  • Shares outstanding: 647.81m
  • Website: https://www.danone.com

Number of Employees


Location

  • Danone S.A.
  • 15, rue du Helder
  • Paris
  • Ile-de-France
  • 75009
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BSNXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1992
GPDN.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
BSNDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
BNENXTPA (Euronext Paris)YesCommon StockFREURJan 1992
DANSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1992
DNNBIT (Borsa Italiana)YesCommon StockITEURJan 1992
0KFXLSE (London Stock Exchange)YesCommon StockGBEURJan 1992
BNWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1992
BNPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJan 1992
BN NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1992
DANZBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBCHFJan 1992
DANO.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDNov 1997

Biography

Danone S.A. operates in the food and beverage industry worldwide. The company operates through four segments: EDP International, EDP Noram, Specialized Nutrition, and Waters. It offers yogurts under the Da ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 20:58
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.