ENXTPA:RCO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with proven 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


Market Performance


7 Day Return

1.3%

RCO

-0.8%

FR Beverage

2.9%

FR Market


1 Year Return

26.7%

RCO

27.9%

FR Beverage

10.2%

FR Market

Return vs Industry: RCO underperformed the French Beverage industry which returned 27.9% over the past year.

Return vs Market: RCO exceeded the French Market which returned 10.2% over the past year.


Share holder returns

RCOIndustryMarket
7 Day1.3%-0.8%2.9%
30 Day-2.3%2.0%-0.3%
90 Day-0.2%6.8%0.1%
1 Year29.2%26.7%30.1%27.9%14.0%10.2%
3 Year78.1%69.3%64.9%56.8%44.3%30.4%
5 Year162.7%138.8%113.8%95.9%75.2%49.3%

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 based on future cash flows and its price relative to the stock market?

39.94x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: RCO (€127) is trading above our estimate of fair value (€65.86)

Significantly Undervalued: RCO is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: RCO is poor value based on its PE Ratio (39.9x) compared to the Beverage industry average (26.7x).

PE vs Market: RCO is poor value based on its PE Ratio (39.9x) compared to the French market (17.1x).


Price Based on Expected Growth

Low PEG Ratio: RCO is poor value based on its PEG Ratio (3.3x)


Price Based on Value of Assets

PB vs Industry: RCO is overvalued based on its PB Ratio (4.4x) compared to the FR Beverage industry average (1.1x).


Next Steps

Future Growth

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

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: RCO's forecast earnings growth (12.2% per year) is above the savings rate (0.7%).

Earnings vs Market: RCO's earnings (12.2% per year) are forecast to grow faster than the French market (11.1% per year).

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

Revenue vs Market: RCO's revenue (6% per year) is forecast to grow faster than the French market (4.5% per year).

High Growth Revenue: RCO's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: RCO's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has Rémy Cointreau performed over the past 5 years?

18.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RCO's earnings have grown by 18.4% per year over the past 5 years.

Accelerating Growth: RCO's earnings growth over the past year (7.4%) is below its 5-year average (18.4% per year).

Earnings vs Industry: RCO earnings growth over the past year (7.4%) exceeded the Beverage industry 4.2%.


Return on Equity

High ROE: RCO's Return on Equity (11.1%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: RCO has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Rémy Cointreau's financial position?


Financial Position Analysis

Short Term Liabilities: RCO's short term assets (€1.7B) exceeds its short term liabilities (€672.7M)

Long Term Liabilities: RCO's short term assets (1.7B) exceeds its long term liabilities (525.8M)


Debt to Equity History and Analysis

Debt Level: RCO's debt to equity ratio (34.5%) is considered satisfactory

Reducing Debt: RCO's debt to equity ratio has reduced from 59.9% to 34.5% over the past 5 years.

Debt Coverage: RCO's debt is not well covered by operating cash flow (10.8%).

Interest Coverage: RCO's interest payments on its debt are well covered by EBIT (22.6x coverage).


Balance Sheet

Inventory Level: RCO has a high level of physical assets or inventory.

Debt Coverage by Assets: RCO's debt is covered by short term assets (assets are 3.458500x debt).


Next Steps

Dividend

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

1.55%

Expected Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.6%markettop25%4.6%industryaverage1.9%forecastin3Years1.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: RCO's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.57%).

High Dividend: RCO's dividend (1.3%) is low compared to the top 25% of dividend payers in the French market (4.65%).

Stable Dividend: RCO's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.9%), RCO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RCO's dividends in 3 years are forecast to be well covered by earnings (44% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Valérie Chapoulaud-Floquet 0

4.8yrs

Tenure

€2,349,978

Compensation

Ms. Valérie Chapoulaud-Floquet serves as a Member of Board of Directors at Jacobs Holding AG. She elected in 2019. She serves as a Member of Supervisory Board of NextStage - S.C.A since May 2019. She has b ...


CEO Compensation Analysis

Compensation vs. Market: Valérie's total compensation ($USD2.59M) is about average for companies of similar size in the French market ($USD2.60M).

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


Management Age and Tenure

4.3yrs

Average Tenure

Experienced Management: RCO's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

67yo

Average Age

Experienced Board: RCO's board of directors are considered experienced (5.7 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

  • Patrick Marchand

    Senior VP of Operations & Executive VP of Operations

    • Tenure: 0yrs
  • Simon Coughlin (58yo)

    Chief Executive Officer of Whisky Business Unit

    • Tenure: 4.3yrs
  • Luca Marotta (53yo)

    Chief Financial Officer

    • Tenure: 6yrs
  • Valérie Chapoulaud-Floquet

    Chief Executive Officer

    • Tenure: 4.8yrs
    • Compensation: €2.35m
  • Philippe Farnier

    Chief Executive Officer of the House of Rémy Martin

    • Tenure: 1.3yrs
  • Spyridon Ghikas

    Chief Executive Officer of EMEA Region

    • Tenure: 4.3yrs
  • Christian Lafage

    Head of Corporate Social Responsibility

    • Tenure: 0yrs
  • Valérie Alexandre-Courbon

    Senior Vice President of Strategic Planning

    • Tenure: 0yrs
  • Marc-Henri Bernard

    Senior VP of Human Resources & Group Human Resources Director

    • Tenure: 0yrs
  • Ian McLernon

    Chief Executive Officer of Americas Region

    • Tenure: 0yrs

Board Members

  • Marc Dubreuil (68yo)

    Chairman of the Board

    • Tenure: 2yrs
    • Compensation: €514.44k
  • François Dubreuil (71yo)

    Director

    • Tenure: 15.1yrs
    • Compensation: €40.00k
  • Dominique Hériard-Dubreuil (73yo)

    Director

    • Tenure: 15.1yrs
    • Compensation: €43.00k
  • Emmanuel de Geuser (55yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: €40.00k
  • Jacques-Etienne De T'Serclaes (72yo)

    Indépendent Director

    • Tenure: 13.3yrs
    • Compensation: €50.00k
  • Olivier Jolivet (46yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: €40.00k
  • Laure Dubreuil (41yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: €28.00k
  • Marie-Amélie Jacquet

    Vice Chairman

    • Tenure: 0.3yrs
  • Bruno Pavlovsky (56yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: €28.00k
  • Gisèle Durand (67yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: €40.00k

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: €6.326b
  • Shares outstanding: 49.81m
  • 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
RCOSWX (SIX Swiss Exchange)YesBearer SharesCHCHFJan 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 Analysis2019/10/14 20:47
End of Day Share Price2019/10/14 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.

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