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Pernod Ricard
(OTC:PRNDY)
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Rating:64Neutral
Price Target:
$14.50
▼(-7.53% Downside)
Action:Downgraded
Date:09/19/26
PRNDY scores as a mid-range opportunity: durable margins and supportive valuation/dividend are key positives, but they are offset by weakening recent growth/profitability, elevated leverage considerations, and clearly bearish technical momentum. The earnings call adds modest support via strong cash generation and efficiency-driven margin protection, but near-term sales headwinds and conservative FY27 guidance limit upside conviction.
Positive Factors
Durable Profitability
Persistently high gross and EBITDA margins indicate that Pernod Ricard continues to retain substantial economics from its branded portfolio. This profitability provides capacity to fund marketing, innovation, and distribution while absorbing moderate cost pressure over the next several quarters.
Negative Factors
Weakening Revenue Growth
The shift from strong growth in 2022–2023 to repeated revenue declines indicates that Pernod Ricard is facing a material demand and volume challenge. Broadly flat FY27 guidance suggests the recovery may take several quarters, limiting operating leverage and near-term earnings momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable Profitability
Persistently high gross and EBITDA margins indicate that Pernod Ricard continues to retain substantial economics from its branded portfolio. This profitability provides capacity to fund marketing, innovation, and distribution while absorbing moderate cost pressure over the next several quarters.
Read all positive factors
Pernod Ricard (PRNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.09B
Dividend Yield8.01%
Average Volume (3M)90.09K
Price to Earnings (P/E)12.6
Beta (1Y)0.65
Revenue Growth-7.90%
EPS Growth-20.53%
CountryUS
Employees16,893
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)0.95
Shares Outstanding1,261,346,000
10 Day Avg. Volume29,551
30 Day Avg. Volume90,087
Financial Highlights & Ratios
PEG Ratio-0.51
Price to Book (P/B)1.03
Price to Sales (P/S)1.71
P/FCF Ratio13.60
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)1.3
Revenue Forecast (FY)$10.69B
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, retailers, and on-trade customers, generating revenue from the shipment of spirits and wines under its owned brand portfolio. Its core revenue model is bra...
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
72
Positive
Balance Sheet
66
Positive
Cash Flow
63
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.40B | 10.96B | 11.60B | 12.14B | 10.70B |
| Gross Profit | 5.50B | 6.52B | 6.97B | 7.25B | 6.47B |
| EBITDA | 2.74B | 3.19B | 3.19B | 3.75B | 3.33B |
| Net Income | 1.20B | 1.63B | 1.48B | 2.26B | 2.00B |
Balance Sheet | |||||
| Total Assets | 37.30B | 37.08B | 39.19B | 37.68B | 36.01B |
| Cash, Cash Equivalents and Short-Term Investments | 1.99B | 1.83B | 2.68B | 1.61B | 2.53B |
| Total Debt | 12.68B | 12.59B | 13.62B | 11.87B | 11.17B |
| Total Liabilities | 20.76B | 20.85B | 22.39B | 20.96B | 19.76B |
| Stockholders Equity | 15.50B | 15.21B | 15.75B | 15.72B | 15.94B |
Cash Flow | |||||
| Free Cash Flow | 1.18B | 1.12B | 954.00M | 1.33B | 1.79B |
| Operating Cash Flow | 1.58B | 1.79B | 1.73B | 2.03B | 2.29B |
| Investing Cash Flow | -8.00M | -521.00M | -676.00M | -1.73B | -1.20B |
| Financing Cash Flow | -1.41B | -2.40B | -209.00M | -1.12B | -683.00M |
Pernod Ricard Technical Analysis
Negative
15.68
Price Trends
14.87
Negative
14.58
Negative
15.52
Negative
Market Momentum
-0.41
Positive
37.86
Neutral
16.58
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRNDY, the sentiment is Negative. The current price of 15.68 is above the 20-day moving average (MA) of 13.92, above the 50-day MA of 14.87, and above the 200-day MA of 15.52, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 37.86 is Neutral, neither overbought nor oversold. The STOCH value of 16.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $45.43B | 14.61 | 18.13% | 4.20% | 4.24% | 19.95% | |
68 Neutral | $19.26B | 10.73 | 23.13% | 3.64% | -9.99% | ― | |
67 Neutral | $12.16B | 16.90 | 17.80% | 3.44% | -0.18% | -13.00% | |
66 Neutral | $147.07B | 12.46 | 12.72% | 1.81% | 6.60% | 31.61% | |
66 Neutral | $47.38B | 27.29 | 15.52% | 3.89% | -3.59% | -26.73% | |
64 Neutral | $17.09B | 12.63 | 7.77% | 8.01% | -7.90% | -20.53% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
PRNDY
Pernod Ricard
13.78
-4.78
-25.76%
BUD
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BF.A
Brown Forman A
26.83
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1.65%
STZ
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113.06
-21.94
-16.25%
DEO
Diageo
85.60
-7.62
-8.17%
ABEV
Ambev SA
2.92
0.82
39.05%
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.