ENXTPA:RCO

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet with questionable 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

RCO

4.4%

FR Beverage

0.7%

FR Market


1 Year Return

30.5%

RCO

-3.9%

FR Beverage

-8.0%

FR Market

Return vs Industry: RCO exceeded the French Beverage industry which returned -6.2% over the past year.

Return vs Market: RCO exceeded the French Market which returned -7.5% over the past year.


Shareholder returns

RCOIndustryMarket
7 Day-2.9%4.4%0.7%
30 Day2.7%7.2%3.1%
90 Day14.7%3.5%0.1%
1 Year31.5%30.5%-2.2%-3.9%-6.0%-8.0%
3 Year48.6%42.6%22.6%16.6%4.7%-4.4%
5 Year166.3%146.1%53.5%40.9%29.2%11.5%

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?

72.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RCO (€154.9) is trading above our estimate of fair value (€36.42)

Significantly Below Fair Value: RCO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RCO is good value based on its PE Ratio (72.1x) compared to the FR Beverage industry average (85.9x).

PE vs Market: RCO is poor value based on its PE Ratio (72.1x) compared to the French market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: RCO is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: RCO is overvalued based on its PB Ratio (5.5x) compared to the FR Beverage industry average (0.8x).


Next Steps

Future Growth

How is Rémy Cointreau forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RCO's forecast earnings growth (16.3% per year) is above the savings rate (0.6%).

Earnings vs Market: RCO's earnings (16.3% per year) are forecast to grow slower than the French market (23.3% per year).

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

Revenue vs Market: RCO's revenue (6.4% per year) is forecast to grow slower than the French market (6.8% per year).

High Growth Revenue: RCO's revenue (6.4% 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 (10.4%).


Next Steps

Past Performance

How has Rémy Cointreau performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RCO has high quality earnings.

Growing Profit Margin: RCO's current net profit margins (10.4%) are lower than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: RCO's earnings have grown by 9% per year over the past 5 years.

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

Earnings vs Industry: RCO had negative earnings growth (-32.8%) over the past year, making it difficult to compare to the Beverage industry average (-47.4%).


Return on Equity

High ROE: RCO's Return on Equity (7.6%) is considered low.


Next Steps

Financial Health

How is Rémy Cointreau's financial position?


Financial Position Analysis

Short Term Liabilities: RCO's short term assets (€1.8B) exceed its short term liabilities (€841.6M).

Long Term Liabilities: RCO's short term assets (€1.8B) exceed its long term liabilities (€543.7M).


Debt to Equity History and Analysis

Debt Level: RCO's debt to equity ratio (49.6%) is considered high.

Reducing Debt: RCO's debt to equity ratio has reduced from 50.2% to 49.6% over the past 5 years.

Debt Coverage: RCO's debt is not well covered by operating cash flow (11.6%).

Interest Coverage: RCO's interest payments on its debt are well covered by EBIT (20x coverage).


Balance Sheet


Next Steps

Dividend

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

0.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RCO's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.56%).

High Dividend: RCO's dividend (0.65%) is low compared to the top 25% of dividend payers in the French market (5.29%).


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?

5.3yrs

Average management tenure


CEO

Éric Vallat

0.83

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 ($USD3.77M) is about average for companies of similar size in the French market ($USD3.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Éric Vallat
Chief Executive Officer0.83yr€3.18mno data
Luca Marotta
Chief Financial Officer7yrsno datano data
Patrick Marchand
Group Operations Directorno datano datano data
Marc-Henri Bernard
Group Human Resources Directorno datano datano data
David Ennes
Chief Executive Officer of Asia Pacific & Global Travel Retail5.25yrsno datano data
Christian Lafage
Head of Corporate Social & Environmental Responsibilityno datano datano data
Valérie Alexandre-Courbon
Senior Vice President of Strategic Planningno datano datano data
Jean-Denis Voin
Chief Executive Officer of Liqueurs & Spiritsno datano datano data
Ian McLernon
Chief Executive Officer of Americas Regionno datano datano data
Laurent Venot
Chief Executive Officer of EMEA Region & Europe1.75yrsno datano data
Nicolas Beckers
Chief Executive Officer of Greater Chinano datano datano data
Simon Coughlin
Chief Executive Officer of Whisky Business Unit5.25yrsno datano data

5.3yrs

Average Tenure

Experienced Management: RCO's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Guylaine Saucier
Independent Director2.25yrs€44.10k0.00020%
€ 15.6k
Marc Dubreuil
Chairman of the Board3yrs€291.08k0.00022%
€ 17.1k
Francois Heriard Dubreuil
Director16.08yrs€37.80k0.00025%
€ 19.4k
Dominique Hériard-Dubreuil
Director16.08yrs€40.50k0.0056%
€ 433.1k
Emmanuel de Geuser
Independent Director6.25yrs€37.80k0.00020%
€ 15.6k
Jacques-Etienne De T'Serclaes
Independent Director14.25yrs€40.95k0.0011%
€ 88.7k
Olivier Jolivet
Independent Director7.08yrs€37.80k0.00020%
€ 15.6k
Laure Dubreuil
Director9.25yrs€37.80k0.00021%
€ 16.3k
Marie-Amélie Jacquet
Vice Chairman of the Board1.25yrs€31.50k0.025%
€ 1.9m
Bruno Pavlovsky
Independent Director5.25yrs€41.40k0.00020%
€ 15.6k
Gisèle Durand
Director4.25yrs€37.80k0.0034%
€ 267.5k
Hélène Dubrule
Independent Director1.25yrs€25.20k0.00020%
€ 15.6k

5.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: RCO's board of directors are considered experienced (5.8 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: €7.776b
  • Shares outstanding: 50.20m
  • Website: https://www.remy-cointreau.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REMY.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJan 1992
RMCDB (Deutsche Boerse AG)YesBearer SharesDEEURJan 1992
RCOENXTPA (Euronext Paris)YesBearer SharesFREURJan 1992
0MGULSE (London Stock Exchange)YesBearer SharesGBEURJan 1992
RCOPBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJan 1992
RCOWBAG (Wiener Boerse AG)YesBearer SharesATEURJan 1992
RCOSWX (SIX Swiss Exchange)YesBearer SharesCHCHFJan 1992
RMCETLX (Eurotlx)YesBearer SharesITEURJan 1992
REMY.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJun 2012

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 Analysis2020/10/22 21:33
End of Day Share Price2020/10/22 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.