ENXTPA:RI

Stock Analysis Report

Executive Summary

Pernod Ricard SA produces and sells wines and spirits worldwide.


Snowflake Analysis

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.2%

RI

2.6%

FR Beverage

7.1%

FR Market


1 Year Return

-18.8%

RI

-17.9%

FR Beverage

-17.6%

FR Market

Return vs Industry: RI underperformed the French Beverage industry which returned -14.9% over the past year.

Return vs Market: RI underperformed the French Market which returned -12.9% over the past year.


Shareholder returns

RIIndustryMarket
7 Day2.2%2.6%7.1%
30 Day-14.5%-13.3%-22.3%
90 Day-19.8%-17.7%-25.9%
1 Year-17.2%-18.8%-16.3%-17.9%-14.8%-17.6%
3 Year23.5%17.2%19.3%13.3%0.07%-9.2%
5 Year27.6%16.8%26.5%15.8%9.7%-5.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RI (€129.95) is trading below our estimate of fair value (€159.95)

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


Price To Earnings Ratio

PE vs Industry: RI is good value based on its PE Ratio (23.4x) compared to the Beverage industry average (24.4x).

PE vs Market: RI is poor value based on its PE Ratio (23.4x) compared to the French market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: RI is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: RI is overvalued based on its PB Ratio (2.2x) compared to the FR Beverage industry average (0.9x).


Next Steps

Future Growth

How is Pernod Ricard forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RI's forecast earnings growth (12.8% per year) is above the savings rate (-0.1%).

Earnings vs Market: RI's earnings (12.8% per year) are forecast to grow faster than the French market (12.5% per year).

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

Revenue vs Market: RI's revenue (5.5% per year) is forecast to grow faster than the French market (3.8% per year).

High Growth Revenue: RI's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RI's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Pernod Ricard performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RI has high quality earnings.

Growing Profit Margin: RI's current net profit margins (15.5%) are lower than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: RI's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: RI's earnings growth over the past year (0.8%) is below its 5-year average (10.7% per year).

Earnings vs Industry: RI earnings growth over the past year (0.8%) underperformed the Beverage industry 0.8%.


Return on Equity

High ROE: RI's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is Pernod Ricard's financial position?


Financial Position Analysis

Short Term Liabilities: RI's short term assets (€9.9B) exceed its short term liabilities (€5.1B).

Long Term Liabilities: RI's short term assets (€9.9B) do not cover its long term liabilities (€11.8B).


Debt to Equity History and Analysis

Debt Level: RI's debt to equity ratio (55.8%) is considered high.

Reducing Debt: RI's debt to equity ratio has reduced from 74.8% to 55.8% over the past 5 years.

Debt Coverage: RI's debt is not well covered by operating cash flow (19.4%).

Interest Coverage: RI's interest payments on its debt are well covered by EBIT (8.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: RI's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

2.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RI's dividend (2.4%) is higher than the bottom 25% of dividend payers in the French market (2.01%).

High Dividend: RI's dividend (2.4%) is low compared to the top 25% of dividend payers in the French market (6.17%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35%), RI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RI's dividends in 3 years are forecast to be covered by earnings (50.9% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Alexandre Ricard (47yo)

5.08s

Tenure

€4,766,477

Compensation

Mr. Alexandre Ricard has been the Chairman and Chief Executive Officer at Pernod-Ricard SA since February 11, 2015 and serves as its Member of Executive Board. Mr. Ricard has been Executive Director at Per ...


CEO Compensation Analysis

Compensation vs Market: Alexandre's total compensation ($USD5.28M) is above average for companies of similar size in the French market ($USD3.91M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alexandre Ricard
Chairman5.08yrs€4.77m0.035% 11.9m
Hélène de Tissot
Member of Executive Board and MD of Finance1.67yrsno datano data
Christian Porta
MD of Global Business Development & Member of the Executive Board1.67yrsno datano data
Cédric Ramat
EVP of Human Resourcesno datano datano data
Amanda Hamilton-Stanley
General Counsel1.5yrsno datano data
Mathieu Lambotte
Group Chief Information Officer5.5yrsno datano data
Julia Massies
Vice President of Financial Communication & Investor Relationsno datano datano data
Olivier Cavil
Group Communications Director10.58yrsno datano data
Eric Benoist
Global Marketing & Commercial Directorno datano datano data
Noël Adrian
Managing Director of Pernod Ricard Mexico5.67yrsno datano data

5.1yrs

Average Tenure

51.5yo

Average Age

Experienced Management: RI's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alexandre Ricard
Chairman5.08yrs€4.77m0.035% 11.9m
Gilles Cambournac
Chairman & CEO of Pernod Ricard World Trade Opsno datano datano data
Gilles Bogaert
Chairman and CEO of EMEA & LATAM1.67yrsno datano data
Philippe Coutin
Chairman & CEO of Ricard and Pernod Companies0.83yrno datano data
Jean-Christophe P. Coutures
Chairman & CEO of Chivas Brothers3.67yrsno datano data
Bryan Fry
Chairman & CEO of Pernod Ricard Winemakers0.25yrno datano data
Philippe Guettat
Chairman & CEO of Pernod Ricard Asia4.67yrsno datano data
Anna Malmhake
Chairwoman & CEO of The Absolut Company3.67yrsno datano data
Conor McQuaid
Chairman & CEO of Irish Distillers1.67yrsno datano data
Mohit Lal
Chairman & CEO of Pernod Ricard Global Travel Retail3.67yrsno datano data

3.7yrs

Average Tenure

52yo

Average Age

Experienced Board: RI's board of directors are considered experienced (3.7 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

Pernod Ricard SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pernod Ricard SA
  • Ticker: RI
  • Exchange: ENXTPA
  • Founded: 1805
  • Industry: Distillers and Vintners
  • Sector: Food, Beverage & Tobacco
  • Market Cap: €34.152b
  • Shares outstanding: 262.81m
  • Website: https://www.pernod-ricard.com

Number of Employees


Location

  • Pernod Ricard SA
  • 12, place des États-Unis
  • Cedex 16
  • Paris
  • Ile-de-France
  • 75783
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PDRD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
PERDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
RIENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1992
0HATLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
PERXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1992
RIPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
RIWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
RISWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
RI-UETLX (Eurotlx)YesOrdinary SharesITEURJan 1992
PDRD.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008
PER1DB (Deutsche Boerse AG)ADRDEEUROct 2008

Biography

Pernod Ricard SA produces and sells wines and spirits worldwide. Its brands include Absolut Vodka, Ricard pastis, Ballantine’s, Chivas Regal, Royal Salute, The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Malibu liqueur, Mumm, and Perrier-Jouët champagnes, as well Jacob’s Creek, Brancott Estate, Campo Viejo, and Kenwood wines. The company was founded in 1805 and is headquartered in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 20:55
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.