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Pernod Ricard
(OTC:PRNDY)
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Rating:71Outperform
Price Target:
$17.50
▲(11.61% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by solid financial performance (strong margins and stable leverage) and supportive valuation (moderate P/E and high dividend yield). Technicals are constructive but somewhat extended, adding near-term pullback risk that tempers the overall rating.
Positive Factors
High Profitability
Sustained gross margins near 60% and improving net margin indicate durable pricing power from premium brands. High margins support marketing, aging inventories and dividend capacity, and provide a buffer versus input cost swings, underpinning long-term cash generation.
Negative Factors
Weak Revenue Growth
Negative top-line growth over recent periods suggests challenges expanding volumes or prices. Persistent revenue decline can erode operating leverage and limit investment capacity; reversing this requires sustained innovation, geographic execution or successful premium mix recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained gross margins near 60% and improving net margin indicate durable pricing power from premium brands. High margins support marketing, aging inventories and dividend capacity, and provide a buffer versus input cost swings, underpinning long-term cash generation.
Read all positive factors
Pernod Ricard (PRNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.68B
Dividend Yield6.92%
Average Volume (3M)255.08K
Price to Earnings (P/E)12.1
Beta (1Y)0.66
Revenue Growth-6.18%
EPS Growth35.75%
CountryUS
Employees18,224
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)1.12
Shares Outstanding1,261,346,000
10 Day Avg. Volume0
30 Day Avg. Volume255,084
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.34
Revenue Forecast (FY)$10.86B
Pernod Ricard Business Overview & Revenue Model
Company Description
Pernod Ricard SA operates as a global purveyor of alcoholic beverages, manufacturing and distributing a diverse array of wines and spirits across international markets. The company, which offers its products under numerous distinct labels, was est...
How the Company Makes Money
Pernod Ricard primarily makes money by selling branded alcoholic beverages to distributors, wholesalers, retailers, and on-trade customers (e.g., bars, restaurants, hotels), with revenue recognized from shipments of its products across global mark...
Pernod Ricard Earnings Call Summary
Earnings Call Date:Aug 27, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Neutral
The call conveyed a balanced picture: strong operational delivery (accelerated EUR 1bn efficiency program delivered half in FY26, improved cash conversion to 91%, EUR 1.2bn free cash flow, structure cost reductions, maintained dividend) and clear strategic initiatives (digital, RTD and format innovation, India momentum). At the same time, meaningful top-line pressures in the U.S. (-14%) and China (-19%), margin headwinds from price/mix and COGS, EPS decline (-19%) and an elevated net debt/EBITDA (3.7x) present tangible near-term challenges. Management emphasized disciplined cost control, targeted investments and a cautious FY27 outlook (flat organic sales) while aiming to return to mid-term growth around the lower end of the 3–6% band and reduce leverage below 3x by FY29.Positive Updates
Operational Efficiency Acceleration
EUR 1.0 billion operational efficiencies program: ~50% delivered in FY26 (~EUR 500m) and full delivery now expected by FY28 (one year ahead of prior plan), driving margin protection and reinvestment capacity.
Negative Updates
Top-line Decline (Organic and Reported)
Net sales declined roughly -4% organically and -14% reported (currency and perimeter impacts), driven notably by weakness in the U.S., China and a Q4 Middle East impact.
Read all updates
Q4-2026 Updates
Positive
Negative
Operational Efficiency Acceleration
EUR 1.0 billion operational efficiencies program: ~50% delivered in FY26 (~EUR 500m) and full delivery now expected by FY28 (one year ahead of prior plan), driving margin protection and reinvestment capacity.
Read all positive updates
Company Guidance
The company guided to broadly stable organic net sales for FY‑27 (while noting expected inventory adjustments and declines in the U.S. and China), with A&P maintained at circa 16% of net sales, strategic investments capped at ~€700m (vs €800m previously), and cash conversion targeted at ~90% (up from a prior 80% target). Management reiterated a medium‑term framework of organic net‑sales growth close to the lower end of the +3%–+6% range (around 3% on average for FY‑27 to FY‑29), organic operating‑margin expansion supported by the accelerated €1bn operational‑efficiency program (c.€500m delivered in FY‑26 and full delivery now expected by FY‑28), and a goal to bring net‑debt/EBITDA below 3x by FY‑29 (FY‑26 was ~3.7x). They also confirmed dividend policy (total €4.70 per share, final €2.35 payable in cash or shares) and anchored guidance to FY‑26 cash strength (FY‑26 free cash flow €1.2bn, +6%; FY‑26 cash conversion 91%) as the basis for deleveraging and continued brand investment.Pernod Ricard Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.00B | 10.96B | 11.60B | 12.14B | 10.70B | 8.82B |
| Gross Profit | 5.83B | 6.52B | 6.97B | 7.25B | 6.47B | 5.29B |
| EBITDA | 2.88B | 3.19B | 3.19B | 3.75B | 3.33B | 2.63B |
| Net Income | 1.40B | 1.63B | 1.48B | 2.26B | 2.00B | 1.30B |
Balance Sheet | ||||||
| Total Assets | 37.66B | 37.08B | 39.19B | 37.68B | 36.01B | 32.15B |
| Cash, Cash Equivalents and Short-Term Investments | 2.40B | 1.83B | 2.68B | 1.61B | 2.53B | 2.08B |
| Total Debt | 13.60B | 12.59B | 13.62B | 11.87B | 11.17B | 9.60B |
| Total Liabilities | 21.14B | 20.85B | 22.39B | 20.96B | 19.76B | 17.07B |
| Stockholders Equity | 15.47B | 15.21B | 15.75B | 15.72B | 15.94B | 14.83B |
Cash Flow | ||||||
| Free Cash Flow | 1.16B | 1.12B | 954.00M | 1.33B | 1.79B | 1.57B |
| Operating Cash Flow | 1.68B | 1.79B | 1.73B | 2.03B | 2.29B | 2.00B |
| Investing Cash Flow | 66.39M | -521.00M | -676.00M | -1.73B | -1.20B | -486.00M |
| Financing Cash Flow | -1.35B | -2.40B | -209.00M | -1.12B | -683.00M | -1.41B |
Pernod Ricard Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $19.68B | 12.07 | 9.20% | 7.64% | -6.18% | 35.75% | |
70 Outperform | $46.02B | 14.65 | 18.13% | 4.28% | 4.24% | 19.95% | |
69 Neutral | $13.06B | 18.47 | 17.63% | 3.42% | -0.45% | -16.82% | |
66 Neutral | $52.46B | 30.26 | 15.52% | 4.00% | -3.59% | -26.73% | |
64 Neutral | $17.49B | 12.82 | 23.13% | 3.14% | -9.99% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
50 Neutral | $13.06B | 18.47 | 17.63% | 3.29% | -0.45% | -16.82% |
* Consumer Defensive Sector Average
PRNDY
Pernod Ricard
15.02
-7.34
-32.81%
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BF.B
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ABEV
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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.
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