Pernod Ricard (RI) AI Stock Analysis

• Market Cap: €23.82B
• Dividend Yield: 4.96%
• Average Volume (3M): 503.27K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.96
• Revenue Growth: -3.68%
• EPS Growth: -45.85%
• Country: FR
• Employees: 19,557
• Sector: Consumer Defensive
• Sector Strength: 71
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 5.06
• Shares Outstanding: 252,269,200
• 10 Day Avg. Volume: 396,101
• 30 Day Avg. Volume: 503,272
• PEG Ratio: -0.64
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €108.93
• Price Target Upside: 14.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

Pernod Ricard's stock score reflects strong profitability and an attractive dividend yield, providing a solid income base for investors. However, challenges include declining revenue and cash flow growth, along with weak market momentum, which suggest potential risks to future growth. The overall score is moderated by a neutral technical outlook and moderate valuation.

Positive Factors

Geographical Diversification

Pernod Ricard has a broad geographical footprint which allows it to weather challenging conditions in key markets like the US and China.

Market Expansion

Pernod Ricard has established a strong presence beyond the US and China, with double-digit growth from 2019 to 2024 in Brazil, Poland, Turkey, and Japan.

Product Strategy

The company is focusing on expanding Absolut, Olmeca, and Jameson in China, which are gaining traction as consumers shift toward spirit cocktails and by-the-glass purchases.

Negative Factors

Macroeconomic Risks

Key risks include potential further deterioration in macroeconomic conditions in China and slower than expected market recovery in the US.

Operating Environment

The stock has been downgraded to HOLD with a revised target price of EUR86, due to the increasingly challenging operating environment and potential delay in earnings recovery until FY27 or later.

Profitability Impact

China (-25% in 1H25) negatively impacted top line and profitability.

Pernod Ricard Business Overview & Revenue Model

Company Description

Pernod Ricard (RI) is a leading global producer and distributor of wines and spirits. Headquartered in Paris, France, the company operates in the beverage industry, primarily focusing on premium alcoholic brands. Its diverse portfolio includes well-known labels such as Absolut Vodka, Chivas Regal, Jameson Irish Whiskey, and Perrier-Jouët Champagne. Pernod Ricard serves markets worldwide, catering to both retail consumers and on-trade establishments like bars and restaurants.

How the Company Makes Money

Pernod Ricard makes money through the production, marketing, and distribution of its wide range of premium alcoholic beverages. The company's revenue model is centered around selling its products to wholesalers, retailers, and directly to consumers in various markets globally. Key revenue streams include the sale of spirits, wines, and champagnes, with significant contributions from its flagship brands. Pernod Ricard also benefits from strategic partnerships and acquisitions that expand its brand portfolio and market reach. Additionally, the company invests in marketing and brand development to maintain and grow its market share, leveraging its extensive distribution network and strong brand recognition to drive sales.

Pernod Ricard Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
10.70B	11.60B	12.14B	10.70B	8.82B	8.45B
	Gross Profit
6.47B	6.97B	7.25B	6.47B	5.29B	5.09B
	EBIT
3.02B	2.72B	3.35B	3.02B	2.42B	2.26B
	EBITDA
3.35B	3.19B	3.75B	3.33B	2.63B	2.61B
	Net Income Common Stockholders
2.00B	1.48B	2.26B	2.00B	1.30B	329.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.64B	2.68B	1.61B	2.53B	2.08B	1.95B
	Total Assets
38.74B	39.19B	37.68B	36.01B	32.15B	31.52B
	Total Debt
13.02B	13.62B	11.87B	11.17B	9.60B	10.41B
	Net Debt
11.38B	10.94B	10.26B	8.64B	7.52B	8.48B
	Total Liabilities
21.53B	22.39B	20.96B	19.76B	17.07B	17.31B
	Stockholders Equity
16.19B	15.75B	15.72B	15.94B	14.83B	13.97B
Cash Flow		Free Cash Flow
1.79B	954.00M	1.33B	1.79B	1.57B	816.00M
	Operating Cash Flow
2.29B	1.73B	2.03B	2.29B	2.00B	1.18B
	Investing Cash Flow
-1.20B	-676.00M	-1.73B	-1.20B	-486.00M	-939.00M
	Financing Cash Flow
-683.00M	-209.00M	-1.12B	-683.00M	-1.41B	795.00M

Pernod Ricard Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 94.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:RI, the sentiment is Negative. The current price of 94.82 is below the 20-day moving average (MA) of 95.83, below the 50-day MA of 95.21, and below the 200-day MA of 109.08, indicating a bearish trend. The MACD of 0.48 indicates Positive momentum. The RSI at 47.47 is Neutral, neither overbought nor oversold. The STOCH value of 25.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:RI.

Pernod Ricard Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMS	81 Outperform	$270.40B	58.82	28.67%	0.96%	12.98%	6.62%
PUB	76 Outperform	€23.84B	14.35	15.92%	3.58%	8.30%	26.51%
MC	75 Outperform	€251.72B	20.05	19.53%	2.59%	-1.71%	-17.20%
EL	72 Outperform	€118.96B	50.16	6.00%	1.51%	4.38%	1.71%
RI	70 Neutral	€23.82B	21.74	6.70%	4.96%	-3.68%	-45.85%
Sector *	64 Neutral	$8.77B	14.68	4.78%	173.90%	3.25%	2.18%
KER	62 Neutral	€21.88B	19.32	7.52%	6.50%	-12.12%	-62.09%