Pernod Ricard AI Stock Analysis
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Pernod Ricard (PRNDY) AI Stock Analysis
Pernod Ricard
(Other OTC:PRNDY)
The overall score reflects a company facing significant headwinds. The primary drags are the weak financial performance, marked by declining revenue and profitability, and a bearish technical picture with strong downward momentum. These negatives are partially balanced by a seemingly attractive valuation with a low P/E and high dividend yield, and an earnings call that highlighted strong operational execution and cash generation, even as it confirmed near-term top-line challenges in key markets like the U.S. and China.
Pernod Ricard (PRNDY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $20.15B
- Dividend Yield
- 6.79%
- Average Volume (3M)
- 496.83K
- Price to Earnings (P/E)
- 15.2
- Beta (1Y)
- 0.58
- Revenue Growth
- -7.90%
- EPS Growth
- -20.53%
- Country
- US
- Employees
- 16,893
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Beverages - Alcoholic
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 establ...
How the Company Makes Money
Pernod Ricard primarily makes money by selling branded alcoholic beverages to distributors, retailers, and on-trade customers, generating revenue from the shipment of spirits and wines under its owned brand portfolio. Its core revenue model is brand-...
Pernod Ricard Earnings Call Summary
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.
Q4-2026 Updates
Positive Updates
Negative 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
Financial performance is under pressure. While gross margins remain strong near 60%, revenue has declined consistently, with a sharp 5.9% drop in FY2026. Net income has nearly halved from FY2023 to FY2026, and the net profit margin has compressed. The balance sheet shows moderate leverage, but return on equity has weakened significantly. Cash flow is adequate but volatile, with declining operating cash flow and weak coverage ratios.
Income Statement
48NeutralBalance Sheet
62PositiveCash Flow
55Neutral| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.37B | 9.40B | 10.96B | 11.60B | 12.14B | 10.70B |
| Gross Profit | 5.47B | 5.50B | 6.52B | 6.97B | 7.25B | 6.47B |
| EBITDA | 2.84B | 2.84B | 3.19B | 3.19B | 3.75B | 3.33B |
| Net Income | 1.20B | 1.20B | 1.63B | 1.48B | 2.26B | 2.00B |
Balance Sheet | ||||||
| Total Assets | 37.30B | 37.30B | 37.08B | 39.19B | 37.68B | 36.01B |
| Cash, Cash Equivalents and Short-Term Investments | 1.99B | 1.99B | 1.83B | 2.68B | 1.61B | 2.53B |
| Total Debt | 12.68B | 12.68B | 12.59B | 13.62B | 11.87B | 11.17B |
| Total Liabilities | 20.76B | 20.76B | 20.85B | 22.39B | 20.96B | 19.76B |
| Stockholders Equity | 15.50B | 15.50B | 15.21B | 15.75B | 15.72B | 15.94B |
Cash Flow | ||||||
| Free Cash Flow | 1.19B | 1.19B | 1.12B | 954.00M | 1.33B | 1.79B |
| Operating Cash Flow | 1.59B | 1.58B | 1.79B | 1.73B | 2.03B | 2.29B |
| Investing Cash Flow | -9.80M | -8.00M | -521.00M | -676.00M | -1.73B | -1.20B |
| Financing Cash Flow | -1.43B | -1.41B | -2.40B | -209.00M | -1.12B | -683.00M |
Pernod Ricard Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRNDY, the sentiment is Positive. The current price of 16.05 is above the 20-day moving average (MA) of 15.39, above the 50-day MA of 14.48, and above the 200-day MA of 15.15, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 64.15 is Neutral, neither overbought nor oversold. The STOCH value of 77.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRNDY.
Pernod Ricard Peers Comparison
Overall Rating
STZ79Outperform
ABEV72Outperform
BUD72Outperform
BF.A66Neutral
DEO64Neutral- PRNDY50Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| STZ | 79Outperform | $24.47B | 13.05 | 23.58% | 2.82% | -4.31% | 62.57% |
| ABEV | 72Outperform | $43.03B | 15.48 | 17.63% | 4.38% | 7.66% | 8.00% |
| BUD | 72Outperform | $167.30B | 13.62 | 13.31% | 1.59% | 6.60% | 31.61% |
| BF.A | 66Neutral | $13.93B | 19.90 | 17.80% | 2.92% | -0.18% | -13.00% |
| DEO | 64Neutral | $55.86B | 32.54 | 15.52% | 1.97% | -3.59% | -26.73% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| PRNDY | 50Neutral | $19.83B | 15.22 | 7.77% | 6.79% | -7.90% | -20.53% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| PRNDY | Pernod Ricard Sa Unsponsored Adr | 16.05 | -1.96 | -10.86% | |
| BUD | Anheuser-busch Inbev | 84.81 | 23.49 | 38.32% | |
| BF.A | Brown Forman Inc A | 31.59 | 5.06 | 19.07% | |
| STZ | Constellation Brands | 145.61 | 18.38 | 14.45% | |
| DEO | Diageo | 101.59 | 10.62 | 11.68% | |
| ABEV | Ambev SA | 2.76 | 0.35 | 14.33% |
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.
Date of analysis: Sep 19, 2026