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Pernod Ricard (PRNDY)
OTHER OTC:PRNDY
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Pernod Ricard
(OTC:PRNDY)
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Rating:70Outperform
Price Target:
$23.00
â–²(10.47% Upside)
Pernod Ricard's overall stock score reflects strong profitability and valuation, balanced by technical indicators suggesting caution. The earnings call highlighted operational efficiencies but also noted challenges in key markets, contributing to a cautious outlook.
Pernod Ricard (PRNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.14B
Dividend Yield5.21%
Average Volume (3M)20.51K
Price to Earnings (P/E)14.8
Beta (1Y)0.66
Revenue Growth-5.04%
EPS Growth11.11%
CountryUS
Employees19,557
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Wineries & Distilleries
Share Statistics
EPS (TTM)2.33
Shares Outstanding1,261,346,000
10 Day Avg. Volume36,586
30 Day Avg. Volume20,506
Financial Highlights & Ratios
PEG Ratio1.24
Price to Book (P/B)1.41
Price to Sales (P/S)1.95
P/FCF Ratio19.08
Enterprise Value/Market Cap1.49
Enterprise Value/Revenue3.55
Enterprise Value/Gross Profit5.97
Enterprise Value/Ebitda11.95
Forecast
1Y Price Target
$23.00Price Target Upside10.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Pernod Ricard Business Overview & Revenue Model
Company DescriptionPernod Ricard SA produces and sells wines and spirits worldwide. It offers its products under various brands. The company was founded in 1805 and is headquartered in Paris, France.
How the Company Makes MoneyPernod Ricard generates revenue primarily through the production, marketing, and distribution of its wide range of premium alcoholic beverages. The company's key revenue streams include the sale of spirits like whiskey, vodka, rum, gin, and tequila, as well as wines and champagne. Pernod Ricard leverages its extensive global distribution network and strategic partnerships with local distributors and retailers to ensure its products reach a broad customer base. The company also engages in targeted marketing campaigns and brand innovations to enhance brand visibility and consumer engagement. Additionally, Pernod Ricard's premiumization strategy focuses on increasing sales of higher-margin products, thus boosting profitability. The company's earnings are influenced by factors such as global economic conditions, consumer trends, and changes in regulations related to alcohol sales and distribution.
Pernod Ricard Earnings Call Summary
Earnings Call Date:Aug 28, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant achievements in operational efficiencies and cash flow management. However, these were offset by declines in key markets such as China and the U.S., leading to a cautious outlook for the fiscal year '26.Q4-2025 Updates
Positive Updates
Strong Cash Flow Management
Free cash flow reached EUR 1.133 billion, up 18%, with strong operating working capital management leading to an improvement in cash conversion.
Operational Efficiencies Achieved
EUR 900 million in operational efficiencies were completed, contributing to strong organic operating margin expansion of 64%.
Innovation and Brand Performance
Innovations such as Absolut Ocean Spray and Kahlúa Dunkin were highlighted as successful, with strong double-digit growth for brands like Jameson and Bumbu.
Negative Updates
Net Sales Decline
Net sales were down 3% organically and 6% in reported terms, impacted by currency effects and declines in China, U.S.A., and GTR Asia.
Challenges in China
Organic net sales in China were down 21% due to a challenging macroeconomic environment and consumer sentiment impacted by a ban on public officials' alcohol consumption.
U.S. Market Underperformance
The U.S. market saw a decline of 6% in net sales, with a subdued consumer confidence and economic moderation affecting performance.
Company Guidance
In the fiscal year 2025 sales and results call, Pernod Ricard discussed various financial metrics and strategic initiatives. The company reported a 3% organic decline in net sales, affected by currency impacts, with a 2% volume recovery marking the third consecutive semester of growth. Despite challenges in China, the U.S., and GTR Asia, Pernod Ricard achieved organic operating margin expansion of 64%, driven by strong cost discipline and EUR 900 million in operational efficiencies. Free cash flow increased by 18% to EUR 1.133 billion, supported by effective working capital management. The company also proposed a stable dividend of EUR 4.70 per share. Looking forward, Pernod Ricard aims for organic net sales growth of 3% to 6% per annum from fiscal years 2027 to 2029, with a focus on margin expansion and a new EUR 1 billion efficiency program over the next four years.Pernod Ricard Financial Statement Overview
Summary
Pernod Ricard demonstrates a solid financial foundation with strong gross margins and effective cash conversion. However, recent declines in revenue, net income, and free cash flow growth present challenges that need addressing. The company shows resilience in maintaining a healthy equity base despite these pressures.Income Statement
Pernod Ricard's revenue has shown some volatility, with a noticeable decline in the most recent year. Net profit margin decreased significantly from the previous year, indicating potential challenges in cost management or pricing. Despite this, gross profit margins remain robust, reflecting strong production efficiency.75
Positive
Balance Sheet
The company maintains a stable equity base with a moderate debt-to-equity ratio, suggesting a balanced approach to leveraging. Return on Equity has decreased, reflecting lower net income relative to equity. The equity ratio is healthy, indicating a solid financial foundation.70
Positive
Cash Flow
Free cash flow has declined, indicating pressure on cash generation. The operating cash flow to net income ratio is strong, suggesting effective cash conversion from earnings. However, the decrease in free cash flow growth rate could signal challenges in sustaining investment or operational flexibility.68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.96B | 10.96B | 11.60B | 12.14B | 10.70B | 8.82B |
| Gross Profit | 6.52B | 6.52B | 6.97B | 7.25B | 6.47B | 5.29B |
| EBITDA | 3.25B | 3.19B | 3.19B | 3.75B | 3.33B | 2.63B |
| Net Income | 1.63B | 1.63B | 1.48B | 2.26B | 2.00B | 1.30B |
Balance Sheet | ||||||
| Total Assets | 37.08B | 37.08B | 39.19B | 37.68B | 36.01B | 32.15B |
| Cash, Cash Equivalents and Short-Term Investments | 1.83B | 1.83B | 2.68B | 1.61B | 2.53B | 2.08B |
| Total Debt | 12.59B | 12.59B | 13.62B | 11.87B | 11.17B | 9.60B |
| Total Liabilities | 20.85B | 20.85B | 22.39B | 20.96B | 19.76B | 17.07B |
| Stockholders Equity | 15.21B | 15.21B | 15.75B | 15.72B | 15.94B | 14.83B |
Cash Flow | ||||||
| Free Cash Flow | 1.12B | 1.12B | 954.00M | 1.33B | 1.79B | 1.57B |
| Operating Cash Flow | 1.79B | 1.79B | 1.73B | 2.03B | 2.29B | 2.00B |
| Investing Cash Flow | -521.00M | -521.00M | -676.00M | -1.73B | -1.20B | -486.00M |
| Financing Cash Flow | -2.40B | -2.40B | -209.00M | -1.12B | -683.00M | -1.41B |
Pernod Ricard Technical Analysis
Neutral
20.82
Price Trends
21.37
Negative
21.14
Negative
21.04
Negative
Market Momentum
-0.26
Negative
57.82
Neutral
99.99
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRNDY, the sentiment is Neutral. The current price of 20.82 is above the 20-day moving average (MA) of 19.83, below the 50-day MA of 21.37, and below the 200-day MA of 21.04, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 57.82 is Neutral, neither overbought nor oversold. The STOCH value of 99.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRNDY.
Pernod Ricard Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $35.96B | 13.73 | 15.08% | 2.02% | -0.79% | -10.83% | |
74 Outperform | $13.54B | 15.98 | 22.65% | 3.18% | -3.34% | -14.19% | |
74 Outperform | $13.54B | 16.09 | 22.65% | 3.16% | -3.34% | -14.19% | |
70 Outperform | $26.14B | 14.81 | 10.16% | 5.21% | -5.04% | 11.11% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $54.55B | 22.93 | 22.33% | 4.23% | 0.22% | -38.76% | |
57 Neutral | $24.58B | 20.50 | 15.91% | 2.89% | -5.57% | 119.49% |
* Consumer Defensive Sector Average
PRNDY
Pernod Ricard
20.88
-5.53
-20.94%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.