ENXTPA:RCO

Stock Analysis Report

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Market Cap

€8.4b

Last Updated

2021/06/24 18:31 UTC

Data Sources

Company Financials +

Executive Summary

Rémy Cointreau SA, together with its subsidiaries, produces and distributes liqueurs and spirits. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RCO is less volatile than 75% of French stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: RCO's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.1%

RCO

1.3%

FR Beverage

-1.7%

FR Market


1 Year Return

40.3%

RCO

32.0%

FR Beverage

35.5%

FR Market

Return vs Industry: RCO exceeded the French Beverage industry which returned 29.6% over the past year.

Return vs Market: RCO exceeded the French Market which returned 36.1% over the past year.


Shareholder returns

RCOIndustryMarket
7 Day1.1%1.3%-1.7%
30 Day-1.5%1.3%2.6%
90 Day7.5%14.7%10.3%
1 Year41.4%40.3%34.1%32.0%39.7%35.5%
3 Year55.9%49.6%37.3%30.4%35.8%24.4%
5 Year136.2%118.3%90.4%74.9%89.0%61.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RCO (€167.6) is trading below our estimate of fair value (€172.23)

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


Price To Earnings Ratio

PE vs Industry: RCO's PE Ratio (58.1x) is in line with the French Beverage industry average.

PE vs Market: RCO is poor value based on its PE Ratio (58.1x) compared to the French market (23.1x).


Price to Earnings Growth Ratio

PEG Ratio: RCO is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: RCO is overvalued based on its PB Ratio (5.4x) compared to the FR Beverage industry average (1x).


Future Growth

How is Rémy Cointreau forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RCO's forecast earnings growth (13.5% per year) is above the savings rate (0.4%).

Earnings vs Market: RCO's earnings (13.5% per year) are forecast to grow slower than the French market (18.9% per year).

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

Revenue vs Market: RCO's revenue (8.4% per year) is forecast to grow faster than the French market (7% per year).

High Growth Revenue: RCO's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RCO's Return on Equity is forecast to be low in 3 years time (12.9%).


Past Performance

How has Rémy Cointreau performed over the past 5 years?

0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RCO has high quality earnings.

Growing Profit Margin: RCO's current net profit margins (14.3%) are higher than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: RCO's earnings have grown by 0.6% per year over the past 5 years.

Accelerating Growth: RCO's earnings growth over the past year (35%) exceeds its 5-year average (0.6% per year).

Earnings vs Industry: RCO earnings growth over the past year (35%) exceeded the Beverage industry -13.8%.


Return on Equity

High ROE: RCO's Return on Equity (9.3%) is considered low.


Financial Health

How is Rémy Cointreau's financial position?


Financial Position Analysis

Short Term Liabilities: RCO's short term assets (€1.9B) exceed its short term liabilities (€719.8M).

Long Term Liabilities: RCO's short term assets (€1.9B) exceed its long term liabilities (€512.1M).


Debt to Equity History and Analysis

Debt Level: RCO's debt to equity ratio (32%) is considered satisfactory.

Reducing Debt: RCO's debt to equity ratio has reduced from 45.5% to 32% over the past 5 years.

Debt Coverage: RCO's debt is well covered by operating cash flow (35.7%).

Interest Coverage: RCO's interest payments on its debt are well covered by EBIT (19.3x coverage).


Balance Sheet


Dividend

What is Rémy Cointreau current dividend yield, its reliability and sustainability?

0.59%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 25 2021Ex Dividend DateSep 29 2021Dividend Pay DateOct 01 20212 days from Ex DividendBuy in the next 96 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: RCO's dividend (0.6%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.26%).

High Dividend: RCO's dividend (0.6%) is low compared to the top 25% of dividend payers in the French market (3.75%).


Stability and Growth of Payments

Stable Dividend: RCO is not paying a notable dividend for the French market, therefore no need to check if payments are stable.

Growing Dividend: RCO is not paying a notable dividend for the French market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: RCO is not paying a notable dividend for the French market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RCO's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Éric Vallat

1.5yrs

Tenure

€3,183,694

Compensation

Mr. Éric Vallat serves as Chief Executive Officer of Rémy Cointreau since December 1, 2019. Mr. Éric Vallat served as Head of Fashion & Accessories Maisons at Compagnie Financière Richemont SA since June 1...


CEO Compensation Analysis

Compensation vs Market: Éric's total compensation ($USD3.80M) is about average for companies of similar size in the French market ($USD3.77M).

Compensation vs Earnings: Insufficient data to compare Éric's compensation with company performance.


Leadership Team

Experienced Management: RCO's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: RCO'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

Rémy Cointreau SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rémy Cointreau SA
  • Ticker: RCO
  • Exchange: ENXTPA
  • Founded: 1724
  • Industry: Distillers and Vintners
  • Sector: Food, Beverage & Tobacco
  • Market Cap: €8.424b
  • Shares outstanding: 50.26m
  • Website: https://www.remy-cointreau.com

Number of Employees


Location

  • Rémy Cointreau SA
  • Rue Joseph Pataa
  • Cognac
  • Poitou-Charentes
  • 16100
  • France

Listings


Biography

Rémy Cointreau SA, together with its subsidiaries, produces and distributes liqueurs and spirits. The company operates through Rémy Martin, Liqueurs & Spirits, and Partner Brands segments. It offers liqueu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 18:31
End of Day Share Price2021/06/24 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.