Danone SA (DANOY) AI Stock Analysis

• Market Cap: $57.60B
• Dividend Yield: 2.58%
• Average Volume (3M): 374.32K
• Price to Earnings (P/E): 28.8
• Beta (1Y): -0.17
• Revenue Growth: 1.11%
• EPS Growth: 84.32%
• Country: US
• Employees: 89,528
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.37
• Shares Outstanding: 3,406,972,400
• 10 Day Avg. Volume: 260,712
• 30 Day Avg. Volume: 374,318
• PEG Ratio: 0.16
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 1.52
• P/FCF Ratio: 14.30
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 4.67
• Enterprise Value/Ebitda: 13.33
• 1Y Price Target: $18.80
• Price Target Upside: 3.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ―

Danone SA demonstrates strong financial performance with healthy margins and cash flow generation. The technical analysis suggests bullish momentum, although caution is warranted due to overvaluation concerns. The absence of debt strengthens its balance sheet, providing a solid base for future growth.

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. It produces and distributes yogurts; milk products; coffee creamers, drinks, and beverages; plant-based products; and ice creams, desserts, and nutritional powdered protein products under the Actimel, Activia, Alpro, Aptamil, Danette, Danio, Danonino, evian, Nutricia, Nutrilon, Volvic, as well as under the licensed brands, including International Delight, Dunkin' Donuts, and Bailey's. The company also offers specialized nutrition products for pregnant and breastfeeding mothers, infants, and young children under the Aptamil, Nutrilon, Gallia, Cow & Gate, Blédina, Bebelac, Olvarit, and Happy Family Organics brands. In addition, it provides tube feeding products under the Nutrison name; oral nutritional supplements under the Fortimel and NutriDrink names; and hypoallergenic products for children with allergies primarily under the Aptamil ProSyneo, Aptamil Pepti Syneo, and Neocate Syneo names. Further, the company offers water with natural fruit extracts, fruit juice, and vitamins under the evian, Volvic, Aqua, Mizone, Bonafont, Villavicencio, Villa del Sur, Hayat, Sirma, Fontvella, Lanjarón, Salus, Aqua d'Or, and Zywiec Zdroj brands. It distributes its products through retail chains and traditional market outlets; convenience stores; hospitals, clinics, and pharmacies; and e-commerce. The company was formerly known as Groupe Danone and changed its name to Danone S.A. in April 2009. Danone S.A. was incorporated in 1899 and is headquartered in Paris, France.

How the Company Makes Money

Danone generates revenue through multiple key streams, primarily from the sale of its dairy and plant-based products, which include yogurts and cheese, as well as bottled water and nutrition products. The company leverages strong brand recognition and innovation to drive sales across its product lines. In addition, Danone's specialized nutrition segment, which includes infant formula and medical nutrition, represents a significant revenue source, catering to both health-conscious consumers and those with specific dietary needs. Strategic partnerships with retailers and distributors enhance Danone's market reach. The company's commitment to sustainability and health-oriented products aligns with current consumer trends, contributing positively to its revenue growth.

Danone SA Financial Statement Overview

Summary

Danone SA exhibits a strong financial position with solid profitability and cash flow metrics. Despite a slight revenue decline, the company maintains strong margins and a debt-free balance sheet, positioning it well for future growth. The robust cash flow generation further supports its financial health.

Income Statement

Danone SA shows a stable financial performance with a strong Gross Profit Margin of 49.7% and an improving Net Profit Margin of 7.4% for the latest year. Revenue growth remains a challenge with a slight decline of 0.9% from the previous year. The EBIT and EBITDA margins are healthy at 12.3% and 17.4%, respectively, indicating good operational efficiency.

Balance Sheet

The balance sheet of Danone SA is robust with a Debt-to-Equity Ratio of 0.0, indicating no debt burden, which is a significant improvement from the previous year. The Return on Equity stands at 11.4%, showcasing effective utilization of shareholder equity. The Equity Ratio is 39.3%, reflecting a solid equity base supporting total assets.

Cash Flow

Danone SA's cash flow statements demonstrate strong Free Cash Flow growth of 12.1% year-over-year. The Operating Cash Flow to Net Income Ratio is 1.9, indicating healthy cash flow generation relative to net income. The Free Cash Flow to Net Income Ratio of 1.4 suggests efficient conversion of earnings into free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.38B	27.62B	27.66B	24.28B	23.62B
Gross Profit	13.61B	13.08B	12.74B	11.52B	11.35B
EBITDA	4.77B	4.75B	4.25B	4.15B	4.42B
Net Income	2.02B	881.00M	959.00M	1.92B	1.96B
Balance Sheet
Total Assets	45.29B	44.49B	45.28B	45.42B	42.78B
Cash, Cash Equivalents and Short-Term Investments	6.16B	6.00B	4.68B	5.86B	4.27B
Total Debt	14.80B	15.60B	14.16B	16.21B	16.50B
Total Liabilities	27.44B	28.26B	27.29B	28.05B	26.48B
Stockholders Equity	17.80B	16.18B	17.92B	17.27B	16.20B
Cash Flow
Free Cash Flow	2.91B	2.60B	2.09B	2.43B	2.00B
Operating Cash Flow	3.83B	3.44B	2.96B	3.47B	2.97B
Investing Cash Flow	-463.00M	-834.00M	-749.00M	561.00M	-610.00M
Financing Cash Flow	-3.82B	-2.06B	-1.93B	-4.03B	-2.36B

Danone SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DANOY, the sentiment is Positive. The current price of 18.2 is above the 20-day moving average (MA) of 17.36, above the 50-day MA of 17.24, and above the 200-day MA of 15.98, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 65.50 is Neutral, neither overbought nor oversold. The STOCH value of 90.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DANOY.

Danone SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DANOY	70 Outperform	$57.60B	28.77	10.94%	2.58%	1.11%	84.32%
GIS	68 Neutral	$25.45B	9.03	30.98%	5.00%	-3.26%	25.58%
CPB	67 Neutral	$9.14B	15.30	15.64%	5.06%	6.40%	6.17%
HRL	63 Neutral	$13.06B	17.32	9.46%	4.83%	0.65%	-3.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KHC	56 Neutral	$29.74B	12.81	-11.68%	6.27%	-3.83%	-384.08%
SJM	49 Neutral	$11.08B	22.22	-21.32%	4.12%	2.54%	-293.39%