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Danone SA
(OTC:DANOY)
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Rating:62Neutral
Price Target:
$17.00
â–²(6.52% Upside)
Action:Reiterated
Date:07/29/26
The score is anchored by steady but unspectacular financial performance (stable margins and recurring free cash flow, but weak recent revenue momentum and only moderate debt coverage). The earnings call adds support via reaffirmed guidance and broad-based organic growth with improving margins, while technicals are mixed and valuation looks only fair given a 25.5 P/E despite a supportive ~3.23% dividend yield.
Positive Factors
Reconfirmed guidance & organic growth
Management reconfirmed FY26 like‑for‑like sales guidance of +3% to +5% with Q2 LfL +4.2% and H1 +3.5%, indicating durable multi‑engine organic growth across regions. That sustained top‑line visibility supports operational planning, investment pacing and margin recovery over the next several quarters.
Negative Factors
Weak top‑line momentum
Historical flat or declining revenue, including a 2025 decline of −4.2%, reduces operating leverage and limits the company’s ability to drive margin expansion purely through volume. Persistent top‑line weakness increases dependence on pricing, productivity and M&A to sustain earnings growth over the next 2–6 months.
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Positive Factors
Negative Factors
Reconfirmed guidance & organic growth
Management reconfirmed FY26 like‑for‑like sales guidance of +3% to +5% with Q2 LfL +4.2% and H1 +3.5%, indicating durable multi‑engine organic growth across regions. That sustained top‑line visibility supports operational planning, investment pacing and margin recovery over the next several quarters.
Read all positive factors
Danone SA (DANOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$50.63B
Dividend Yield3.35%
Average Volume (3M)499.12K
Price to Earnings (P/E)22.1
Beta (1Y)-0.22
Revenue Growth7.76%
EPS Growth13.84%
CountryUS
Employees88,670
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.61
Shares Outstanding3,416,685,800
10 Day Avg. Volume458,961
30 Day Avg. Volume499,116
Financial Highlights & Ratios
PEG Ratio-2.75
Price to Book (P/B)2.92
Price to Sales (P/S)1.81
P/FCF Ratio18.87
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)0.9
Revenue Forecast (FY)$32.13B
Danone SA Business Overview & Revenue Model
Company Description
Danone S.A. is a leading global enterprise in the food and beverage industry, with extensive operations spanning Europe, North America, Latin America, the Asia Pacific region, Africa, and the Middle East. The company's business is structured aroun...
How the Company Makes Money
Danone makes money primarily by manufacturing, marketing, and selling packaged food and beverage products to retailers, distributors, and other business customers, with revenue recognized from product sales across its main business lines. A major ...
Danone SA Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2027
Earnings Call Sentiment Positive
The call presented a predominantly constructive picture: broad‑based organic growth across regions and categories, modest margin improvement at group level (+12 bps) and solid cash generation (EUR 0.9bn), alongside active M&A that enhances the health‑focused portfolio. These positives were tempered by legacy IMF recall effects, localized competitiveness issues in North America EDP (capacity constraints), timing‑related EDP margin pressure from inflation versus pricing, an intentional inventory build (~EUR 250m) that temporarily reduced near‑term free cash flow, and currency/refinancing headwinds. Management reiterated FY guidance and outlined concrete remediation and investment plans, signaling confidence in the recovery trajectory.Positive Updates
Strong Like-for-Like Sales Growth
Group like-for-like sales: Q2 +4.2% and H1 +3.5%; reported sales EUR 7.2bn (+4.4% vs. prior year). Company confirmed FY26 guidance of +3% to +5% like-for-like sales growth.
Negative Updates
Infant Milk Formula (IMF) Recall and Market Disruption
IMF recall impacted Q1 operations, on‑shelf availability and margins; management is focused on rebuilding trust (hospital engagement, transparency campaigns) and expects progressive normalization through the rest of the year.
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Q2-2026 Updates
Positive
Negative
Strong Like-for-Like Sales Growth
Group like-for-like sales: Q2 +4.2% and H1 +3.5%; reported sales EUR 7.2bn (+4.4% vs. prior year). Company confirmed FY26 guidance of +3% to +5% like-for-like sales growth.
Read all positive updates
Company Guidance
Danone reconfirmed 2026 guidance of like‑for‑like sales growth of +3% to +5% with recurring operating income to grow faster than sales; this follows H1 momentum (Q2 LfL +4.2%, H1 LfL +3.5%) where Q2 volume‑mix contributed +1.9% (H1 volume‑mix +1.7%), reported Q2 sales were €7.2bn (+4.4% reported, scope +0.8%, FX −1%), recurring operating margin improved 12bps to 13.3%, recurring EPS was €1.92 (+0.9% YoY) and free cash flow reached €0.9bn. Management pointed to category Q2 LfL: EDP +3.8%, Specialized Nutrition +4.5%, Waters +4.7%; H1 regional LfL: EMEA +2.1% (Q2 +3.6%, margin 10.4%), Americas +3.9% (Q2 +4.3%, North America Q2 +2.6%, margin +31bps) and APAC +5.6% (Q2 +5.2%, margin 24.7%); they expect selective pricing, productivity savings and announced M&A (Made Group adding >€400m sales; Kate Farms to enter like‑for‑like from Q3) to support margin progression.Danone SA Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.76B | 27.28B | 27.38B | 27.62B | 27.66B | 24.28B |
| Gross Profit | 12.18B | 13.81B | 13.61B | 13.08B | 12.74B | 11.52B |
| EBITDA | 4.56B | 4.82B | 4.77B | 4.75B | 4.25B | 4.15B |
| Net Income | 1.98B | 1.82B | 2.02B | 881.00M | 959.00M | 1.92B |
Balance Sheet | ||||||
| Total Assets | 48.60B | 45.05B | 45.29B | 44.49B | 45.28B | 45.42B |
| Cash, Cash Equivalents and Short-Term Investments | 8.34B | 6.57B | 6.16B | 6.00B | 4.68B | 5.86B |
| Total Debt | 17.42B | 14.42B | 14.56B | 15.60B | 14.60B | 16.30B |
| Total Liabilities | 30.92B | 28.09B | 27.44B | 28.26B | 27.29B | 28.05B |
| Stockholders Equity | 17.60B | 16.91B | 17.80B | 16.18B | 17.92B | 17.27B |
Cash Flow | ||||||
| Free Cash Flow | 2.50B | 2.62B | 2.91B | 2.60B | 2.09B | 2.43B |
| Operating Cash Flow | 3.62B | 3.63B | 3.83B | 3.44B | 2.96B | 3.47B |
| Investing Cash Flow | -1.78B | -1.70B | -463.00M | -834.00M | -749.00M | 561.00M |
| Financing Cash Flow | -1.81B | -1.54B | -3.82B | -2.06B | -1.93B | -4.03B |
Danone SA Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $13.96B | 29.42 | 5.86% | 4.61% | 2.47% | -37.67% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $50.63B | 22.14 | 11.95% | 3.28% | 7.76% | 13.84% | |
62 Neutral | $6.58B | 10.72 | 15.30% | 7.14% | -2.90% | 33.92% | |
62 Neutral | $13.06B | -91.74 | -2.44% | 3.72% | 3.72% | 88.76% | |
61 Neutral | $19.44B | -210.29 | -0.99% | 6.77% | -5.45% | -104.44% | |
53 Neutral | $31.28B | -5.34 | -13.85% | 6.23% | -1.75% | -319.68% |
* Consumer Defensive Sector Average
DANOY
Danone SA
15.59
-0.79
-4.82%
CPB
Campbell Soup
21.98
-8.42
-27.69%
GIS
General Mills
35.75
-10.32
-22.41%
HRL
Hormel Foods
25.01
-1.71
-6.40%
SJM
JM Smucker
119.26
15.35
14.78%
KHC
Kraft Heinz
25.85
0.16
0.64%
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.