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Danone SA ADR (DANOY)
:DANOY

Danone SA (DANOY) AI Stock Analysis

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Danone SA

(OTC:DANOY)

Rating:70Outperform
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 (DANOY) vs. SPDR S&P 500 ETF (SPY)

Danone SA Business Overview & Revenue Model

Company DescriptionDanone SA is a multinational food-products corporation headquartered in Paris, France. The company operates in the food and beverage industry, focusing primarily on four business segments: Essential Dairy and Plant-Based Products, Waters, Early Life Nutrition, and Medical Nutrition. Danone's core product offerings include yogurts, plant-based foods and beverages, bottled water, infant formula, and specialized nutritional solutions designed to meet specific health needs.
How the Company Makes MoneyDanone SA generates revenue through the sale of its diverse range of food and beverage products across multiple global markets. The company's key revenue streams are derived from its four primary business segments. Essential Dairy and Plant-Based Products contribute significantly to revenue through the sale of dairy items like yogurts and plant-based alternatives. The Waters segment generates income through the sale of bottled water under various brand names. Early Life Nutrition provides substantial earnings by offering infant formulas and baby food products. Medical Nutrition targets specific health-related needs with specialized dietary products. Additionally, Danone benefits from strategic partnerships and collaborations that enhance its distribution networks and market reach, contributing to its overall earnings.

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
75
Positive
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
80
Positive
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.38B27.62B27.66B24.28B23.62B
Gross Profit13.61B13.08B12.74B11.52B11.35B
EBITDA4.77B4.05B4.21B3.71B4.45B
Net Income2.02B881.00M959.00M1.92B1.96B
Balance Sheet
Total Assets45.29B44.49B45.28B45.42B42.78B
Cash, Cash Equivalents and Short-Term Investments6.16B6.00B4.68B5.86B4.27B
Total Debt0.0015.60B14.16B16.59B16.50B
Total Liabilities27.44B28.26B27.29B28.05B26.48B
Stockholders Equity17.80B16.18B17.92B17.27B16.20B
Cash Flow
Free Cash Flow2.91B2.60B2.09B2.43B2.00B
Operating Cash Flow3.83B3.44B2.96B3.47B2.97B
Investing Cash Flow-463.00M-834.00M-749.00M561.00M-610.00M
Financing Cash Flow-3.82B-1.94B-1.93B-4.03B-2.27B

Danone SA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.54
Price Trends
50DMA
16.78
Negative
100DMA
15.93
Positive
200DMA
14.91
Positive
Market Momentum
MACD
-0.11
Positive
RSI
48.15
Neutral
STOCH
47.59
Neutral
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 16.54 is below the 20-day moving average (MA) of 16.65, below the 50-day MA of 16.78, and above the 200-day MA of 14.91, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 47.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DANOY.

Danone SA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
KHKHC
74
Outperform
$31.49B12.065.36%6.01%-4.25%-4.04%
70
Outperform
$53.46B24.3712.02%2.84%-0.83%130.22%
HRHRL
68
Neutral
$16.88B22.589.39%3.78%-1.01%-2.93%
CACAG
67
Neutral
$10.05B30.803.67%6.65%-3.15%-65.38%
65
Neutral
$27.28B15.30-4.01%3.16%1.00%1.98%
GIGIS
63
Neutral
$28.85B12.9824.57%4.51%-1.87%-5.16%
SJSJM
47
Neutral
$10.98B22.22-17.87%4.20%6.69%-261.87%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DANOY
Danone SA
16.43
3.66
28.66%
CAG
Conagra Brands
21.14
-5.68
-21.18%
GIS
General Mills
53.83
-6.69
-11.05%
HRL
Hormel Foods
30.81
1.64
5.62%
SJM
JM Smucker
104.83
-0.87
-0.82%
KHC
Kraft Heinz
27.06
-3.41
-11.19%
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.Date of analysis: Feb 27, 2025