Danone SA ADR (DANOY)
OTHER OTC:DANOY
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Danone SA
(OTC:DANOY)
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Rating:63Neutral
Price Target:
$16.00
â–¼(-12.09% Downside)
Action:Reiterated
Date:02/23/26
The score is driven primarily by steady but unspectacular financial performance (stable margins and recurring free cash flow but weak recent revenue momentum and moderate debt coverage). Earnings-call commentary is a meaningful positive due to solid FY25 execution and supportive FY26 guidance, partly offset by recall-related and regional (North America) risks. Technicals are only modestly supportive and valuation is a headwind given the elevated P/E.
Positive Factors
Strong cash generation and improving ROIC
Consistent multi-billion free cash flow and a double-digit ROIC show durable capital efficiency and internal funding capacity. This supports reinvestment, modest capex increases, dividends and selective M&A without relying excessively on external financing, strengthening long-term optionality.
Negative Factors
Infant Milk Formula recalls and reputational risk
Recalls in IMF create persistent reputational and regulatory risk in a highly sensitive category. Rebuilding trust in infant and medical nutrition can be slow and costly, pressuring volumes and pricing in key markets and requiring sustained marketing, quality controls and potential litigation reserves.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and improving ROIC
Consistent multi-billion free cash flow and a double-digit ROIC show durable capital efficiency and internal funding capacity. This supports reinvestment, modest capex increases, dividends and selective M&A without relying excessively on external financing, strengthening long-term optionality.
Read all positive factors
Danone SA (DANOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$48.01B
Dividend Yield2.61%
Average Volume (3M)499.12K
Price to Earnings (P/E)22.7
Beta (1Y)-0.17
Revenue Growth4.02%
EPS Growth-6.28%
CountryUS
Employees89,528
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.56
Shares Outstanding3,414,781,300
10 Day Avg. Volume458,961
30 Day Avg. Volume499,116
Financial Highlights & Ratios
PEG Ratio-2.74
Price to Book (P/B)2.92
Price to Sales (P/S)1.81
P/FCF Ratio18.87
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue1.91
Enterprise Value/Gross Profit3.78
Enterprise Value/Ebitda16.85
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.92
Revenue Forecast (FY)$32.82B
Danone SA Business Overview & Revenue Model
Company Description
Danone S.A. operates in the food and beverage industry in Europe, Noram, Latin America, the Asia Pacific, Africa, and the Middle East. The company operates through three segments: Essential Dairy & Plant-Based, Specialized Nutrition, and Waters. I...
How the Company Makes Money
Danone primarily makes money by selling branded consumer packaged goods to retail and foodservice channels, recognizing revenue from the sale of finished products produced internally or via co-manufacturing arrangements. Its key revenue streams ge...
Danone SA Earnings Call Summary
Earnings Call Date:Feb 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presented a predominately positive operational and financial performance for FY25: like-for-like sales growth (+4.5%), margin expansion (+44 bps to 13.4%), EPS growth (+4.6% to EUR 3.80), strong free cash flow (EUR 2.8bn) and improved ROIC (10.7%). Strategic highlights included platform scale-ups (Oikos PRO, Alpro), Medical Nutrition M&A (Kate Farms ~ $500m), sustainability milestones (B Corp, CDP Triple A) and supply-chain recognition. Against this backdrop, notable near-term challenges were the Infant Milk Formula recalls (estimated one-off Q1 sales impact ~0.5%–1.0%), North American underperformance, currency headwinds and some H2 margin phasing pressures from ingredient inflation. Management framed these as addressable (targeted investments, leadership changes, capacity expansion and confidence in FY26 guidance). Overall, positives (broad-based growth, cash generation, strategic milestones) outweigh the lowlights, which are significant but largely short- to medium-term in nature.Positive Updates
Solid Like-for-Like Sales Growth
Full-year like-for-like sales grew +4.5% (Q4 +4.7%), driven by volume/mix (+2.7% FY; +2.5% Q4) and price (+1.8% FY; +2.1% Q4). Reported sales were broadly stable at EUR 27.3bn after currency and scope effects.
Negative Updates
Infant Milk Formula (IMF) Recalls and Short-Term Impact
Recalls of certain IMF batches in Europe and the Middle East led to shelf disruption and consumer concern. Management estimates a one-off Q1 net sales impact of c.0.5%–1.0% (50–100 basis points at group level). Most recalled batches were sold in 2025 and returns have not yet been significant.
Read all updates
Q4-2025 Updates
Positive
Negative
Solid Like-for-Like Sales Growth
Full-year like-for-like sales grew +4.5% (Q4 +4.7%), driven by volume/mix (+2.7% FY; +2.5% Q4) and price (+1.8% FY; +2.1% Q4). Reported sales were broadly stable at EUR 27.3bn after currency and scope effects.
Read all positive updates
Company Guidance
Danone guided 2026 net sales like‑for‑like growth of +3% to +5% with recurring operating income expected to grow faster than sales, while flagging a one‑off Q1 sales headwind of ~0.5–1.0% (50–100 bps) from Infant Milk Formula recalls that management expects to normalize through March; they expect North America recovery to pick up from Q2 (easier coffee‑creamer comps) and plan to include Kate Farms in like‑for‑like from Q3. Capital deployment will modestly step up to support capacity (CapEx around 4–4.5% of sales), the board will propose a dividend of EUR 2.25 per share (~+5%), and management reiterated the ambition to keep ROIC sustainably in double‑digit territory (ROIC was 10.7% in 2025). This guidance is set against FY25 results of +4.5% LFL sales (volume/mix +2.7%, price +1.8%), recurring operating margin up 44 bps to 13.4%, recurring EPS EUR 3.80 (+4.6%), and EUR 2.8bn free cash flow.Danone SA Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.28B | 27.38B | 27.62B | 27.66B | 24.28B |
| Gross Profit | 13.81B | 13.61B | 13.08B | 12.74B | 11.52B |
| EBITDA | 3.03B | 4.77B | 4.75B | 4.25B | 4.15B |
| Net Income | 1.82B | 2.02B | 881.00M | 959.00M | 1.92B |
Balance Sheet | |||||
| Total Assets | 45.05B | 45.29B | 44.49B | 45.28B | 45.42B |
| Cash, Cash Equivalents and Short-Term Investments | 6.57B | 6.16B | 6.00B | 4.68B | 5.86B |
| Total Debt | 15.11B | 14.56B | 15.60B | 14.60B | 16.30B |
| Total Liabilities | 28.09B | 27.44B | 28.26B | 27.29B | 28.05B |
| Stockholders Equity | 16.91B | 17.80B | 16.18B | 17.92B | 17.27B |
Cash Flow | |||||
| Free Cash Flow | 2.62B | 2.91B | 2.60B | 2.09B | 2.43B |
| Operating Cash Flow | 3.63B | 3.83B | 3.44B | 2.96B | 3.47B |
| Investing Cash Flow | -1.70B | -463.00M | -834.00M | -749.00M | 561.00M |
| Financing Cash Flow | -1.54B | -3.82B | -2.06B | -1.93B | -4.03B |
Danone SA Technical Analysis
Neutral
18.20
Price Trends
15.09
Negative
15.61
Negative
16.45
Negative
Market Momentum
-0.11
Negative
50.96
Neutral
67.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DANOY, the sentiment is Neutral. The current price of 18.2 is above the 20-day moving average (MA) of 14.58, above the 50-day MA of 15.09, and above the 200-day MA of 16.45, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 50.96 is Neutral, neither overbought nor oversold. The STOCH value of 67.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DANOY.
Danone SA Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $48.01B | 22.71 | 11.13% | 2.61% | 4.02% | -6.28% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $17.69B | 8.10 | 23.70% | 5.19% | -6.48% | -10.99% | |
62 Neutral | $26.77B | -4.66 | -13.85% | 6.75% | -1.75% | -319.68% | |
61 Neutral | $13.00B | 27.85 | 5.86% | 4.82% | 2.47% | -37.67% | |
61 Neutral | $11.04B | -8.80 | -21.55% | 4.45% | 1.58% | -389.82% | |
54 Neutral | $6.46B | 11.75 | 13.98% | 5.64% | -0.81% | 5.57% |
* Consumer Defensive Sector Average
DANOY
Danone SA
14.83
-1.65
-10.04%
CPB
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GIS
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HRL
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-20.49%
SJM
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103.54
-3.82
-3.56%
KHC
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22.58
-2.24
-9.01%
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.