ENXTPA:BN

Stock Analysis Report

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Executive Summary

Danone S.A. operates in the food and beverage industry in Europe, Noram, Latin America, the Asia Pacific, Africa, and the Middle East.


Snowflake Analysis

Established dividend payer with mediocre balance sheet.


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

Stable Share Price: BN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

BN

1.6%

FR Food

6.4%

FR Market


1 Year Return

-13.1%

BN

-12.4%

FR Food

-4.4%

FR Market

Return vs Industry: BN matched the French Food industry which returned -12.4% over the past year.

Return vs Market: BN underperformed the French Market which returned -4.4% over the past year.


Shareholder returns

BNIndustryMarket
7 Day1.3%1.6%6.4%
30 Day1.3%2.3%13.0%
90 Day-0.7%-0.2%-5.7%
1 Year-13.1%-13.1%-12.2%-12.4%-2.7%-4.4%
3 Year-2.0%-7.3%-8.2%-13.0%8.2%-0.5%
5 Year13.3%1.6%11.6%0.7%27.0%10.8%

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?

6.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BN (€62.32) is trading below our estimate of fair value (€66.9)

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 (21.1x) compared to the Food industry average (15.7x).

PE vs Market: BN is poor value based on its PE Ratio (21.1x) compared to the French market (15x).


Price to Earnings Growth Ratio

PEG Ratio: BN is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: BN is overvalued based on its PB Ratio (2.3x) 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 24 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BN's forecast earnings growth (10.6% per year) is above the savings rate (0.6%).

Earnings vs Market: BN's earnings (10.6% per year) are forecast to grow slower than the French market (13.3% per year).

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

Revenue vs Market: BN's revenue (2.3% per year) is forecast to grow slower than the French market (3.8% per year).

High Growth Revenue: BN's revenue (2.3% 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 (13.4%).


Next Steps

Past Performance

How has Danone performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BN has a large one-off loss of €758.0M impacting its December 31 2019 financial results.

Growing Profit Margin: BN's current net profit margins (7.6%) are lower than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: BN's earnings have grown by 15.3% 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%) over the past year, making it difficult to compare to the Food industry average (3.8%).


Return on Equity

High ROE: BN's Return on Equity (11.7%) is considered low.


Next Steps

Financial Health

How is Danone's financial position?


Financial Position Analysis

Short Term Liabilities: BN's short term assets (€10.1B) do not cover its short term liabilities (€11.3B).

Long Term Liabilities: BN's short term assets (€10.1B) do not cover its long term liabilities (€16.7B).


Debt to Equity History and Analysis

Debt Level: BN's debt to equity ratio (94.3%) is considered high.

Reducing Debt: BN's debt to equity ratio has reduced from 94.9% to 94.3% over the past 5 years.

Debt Coverage: BN's debt is well covered by operating cash flow (21%).

Interest Coverage: BN's interest payments on its debt are well covered by EBIT (18.2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.37%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BN's dividend (3.37%) is higher than the bottom 25% of dividend payers in the French market (1.66%).

High Dividend: BN's dividend (3.37%) is low compared to the top 25% of dividend payers in the French market (4.93%).


Stability and Growth of Payments

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 (71.1%), 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 (56.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Emmanuel Faber (55yo)

5.67yrs

Tenure

€4,032,802

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 ($USD4.53M) is about average for companies of similar size in the French market ($USD3.87M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Emmanuel Faber
Chairman & CEO5.67yrs€4.03m0.016% 6.5m
Cécile Cabanis
Executive VP of Technology2.17yrs€1.74m0.0027% 1.1m
Nadia Salem-Nicolas
Head of Investor Relations and Financial Communicationno datano datano data
Bertrand Austruy
Executive VP of Human Resources & General Secretaryno datano datano data
Michel David-Weill
Honorary Vice-Chairmanno data€23.00kno data
Dominique Poiroux
Executive Vice President of Advanced Medical Nutritionno datano datano data
Laurent Sacchi
Executive VP of Chairman's Office & Director of Publicationno datano datano data
Francisco Camacho
Executive Vice President of Essential Dairy & Plant-Based International11.42yrsno datano data
Henri Bruxelles
Executive Vice President of Waters & Africa2.67yrsno datano data
Véronique Penchienati-Bosetta
Executive Vice President of Specialized Nutrition2.42yrsno datano data

5.5yrs

Average Tenure

53yo

Average Age

Experienced Management: BN's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Emmanuel Faber
Chairman & CEO5.67yrs€4.03m0.016% 6.5m
Cécile Cabanis
Executive VP of Technology2.17yrs€1.74m0.0027% 1.1m
Michel David-Weill
Honorary Vice-Chairmanno data€23.00kno data
Michel Landel
Lead Independent Director2.17yrs€148.00k0.00062% 250.5k
Franck Riboud
Honorary Chairman24.08yrs€25.00k0.019% 7.7m
Benoît Potier
Director17.17yrs€80.00k0.0014% 549.5k
Muriel Pénicaud
Chairman of Danone Ecosystem Fund 6.42yrsno datano data
Jean-Michel Severino
Independent Director9.17yrs€65.00k0.00069% 278.8k
Lionel Zinsou-Derlin
Independent Director6.17yrs€64.00k0.00067% 270.7k
Peng Qin
Chairman of Danone China18.42yrsno datano data

6.4yrs

Average Tenure

63.5yo

Average Age

Experienced Board: BN's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: €40.404b
  • Shares outstanding: 648.34m
  • Website: https://www.danone.com

Number of Employees


Location

  • Danone S.A.
  • 15, Rue Du Helder
  • Paris
  • Ile-de-France
  • 75439
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GPDN.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
0KFXLSE (London Stock Exchange)YesCommon StockGBEURJan 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
BSNXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1992
BNPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJan 1992
BN NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1992
BNWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1992
DANO.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDNov 1997

Biography

Danone S.A. operates in the food and beverage industry in Europe, Noram, Latin America, the Asia Pacific, Africa, and the Middle East. The company operates through three segments: Essential Dairy & Plant-Based, Specialized Nutrition, and Waters. It produces and distributes yogurts; milk products; coffee creamers, drinks, and beverages; plant-based products; and ice creams, desserts, and nutritional powdered protein products under the Danone, Danonino or Prostokvashino, Light & Free, Actimel, Activia, Oikos, Danette, Danissimo, YoPRO, Horizon, SToK, Silk, So Delicious, Vega, and Alpro brands, as well as under the license brands, including International Delight, Dunkin’ Donuts, and Bailey’s. In addition, it offers specialized nutrition products for pregnant and breastfeeding mothers, infants, and young children under the Aptamil, Nutrilon, Gallia, Cow & Gate, Blédina, Bebelac, Olvarit, and Happy Family Organics brands. Further, the company provides tube feeding products under the Nutrison name; oral nutritional supplements under the Fortimel and NutriDrink names; and hypoallergenic products for children with allergies primarily under the Aptamil ProSyneo, Aptamil Pepti Syneo, and Neocate Syneo names. Additionally, it offers water with natural fruit extracts, fruit juice, and vitamins under the evian, Volvic, Aqua, Mizone, Bonafont, Villavicencio, Villa del Sur, Hayat, Sirma, Fontvella, Lanjarón, Salus, Aqua d’Or, and Zywiec Zdroj brands. The company distributes its products through retail chains and traditional market outlets; convenience stores; hospitals, clinics, and pharmacies; and e-commerce. The company was formerly known as Groupe Danone and changed its name to Danone S.A. in April 2009. Danone S.A. was founded in 1899 and is based in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 22:13
End of Day Share Price2020/06/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.