DANONE SA (BN) AI Stock Analysis

• Market Cap: €45.02B
• Dividend Yield: 2.67%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.20
• Revenue Growth: -0.88%
• EPS Growth: 129.97%
• Country: FR
• Employees: 89,528
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): 1.83
• Shares Outstanding: 681,394,500
• 10 Day Avg. Volume: 1,153,418
• 30 Day Avg. Volume: 1,155,301
• PEG Ratio: -0.66
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €77.19
• Price Target Upside: 11.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 61 Neutral
• Price Target: €74.00 ▲(6.47%Upside)

Danone SA's strong financial performance, marked by improved profitability and reduced leverage, is a positive factor. However, bearish technical indicators and a fair valuation limit the stock's attractiveness. The absence of earnings call data and corporate events means these are not factors in this evaluation.

Positive Factors

Earnings

Danone is expected to achieve close to 5% organic growth this year, placing it at the high-end of its long-term growth algorithm.

Health Trends

Danone is well-positioned to benefit from increasing consumers' focus on health and favorable demographic trends.

Market Position

Danone Aptamil holds a significant market share at 14% in the China IMF market.

Negative Factors

Competition

North America volume/mix slowed as Danone's International Delight brand faced increased competition as well as some product recalls due to texture issues.

Margin Risk

A potential RMB1bn subsidy would suggest a 10-20bps impact on group margins.

Market Challenges

Challenges into the second quarter could get more pronounced.

DANONE SA Business Overview & Revenue Model

Company Description

Danone S.A. is a multinational food-products corporation headquartered in Paris, France. It operates in three primary sectors: Essential Dairy and Plant-Based Products, Specialized Nutrition, and Waters. Danone's core products include yogurt, plant-based foods and beverages, infant nutrition, medical nutrition, and bottled water, with well-known brands like Activia, Actimel, Alpro, Aptamil, and Evian under its portfolio. The company is committed to promoting health through food to as many people as possible, leveraging its global presence and diverse product range.

How the Company Makes Money

Danone S.A. generates revenue through the sale of its diverse range of food and beverage products across its three main sectors. The Essential Dairy and Plant-Based Products segment, which includes yogurt and plant-based alternatives, is a significant contributor to its revenue, leveraging brands like Activia and Alpro. The Specialized Nutrition sector, comprising infant and medical nutrition products, is another key revenue stream, with brands such as Aptamil and Nutricia. The Waters segment, featuring brands like Evian and Volvic, contributes to the company's earnings through the sale of bottled water. Danone's revenue model is supported by its global distribution network, strategic acquisitions, and partnerships that enhance its market reach and product offerings. The company's focus on health and sustainability also plays a crucial role in its business strategy and consumer appeal.

DANONE SA Financial Statement Overview

Summary

Danone SA exhibits strong financial health with improving profitability and reduced leverage. The company maintains consistent cash generation, supporting its operational and strategic initiatives. While revenue growth remains a challenge, the firm's solid balance sheet and cash flow position it well in the competitive consumer products industry.

Income Statement

Danone SA shows a stable gross profit margin with a consistent EBIT and EBITDA margin over the years. The net profit margin improved significantly in 2024 compared to 2023, indicating enhanced profitability. However, revenue growth has been stagnant, reflecting competitive industry pressures.

Balance Sheet

The company's balance sheet reflects strong equity figures, with a notable reduction in total debt by 2024, resulting in a debt-to-equity ratio of 0. This indicates prudent financial management and reduced leverage risk. The equity ratio has remained stable, showcasing a solid financial foundation.

Cash Flow

Danone demonstrates robust free cash flow generation with positive growth in free cash flow from 2023 to 2024. The operating cash flow to net income ratio indicates efficient cash generation relative to earnings. However, fluctuations in investing and financing cash flows suggest potential volatility in capital allocation strategies.

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	3.81B	4.00B	3.58B	4.30B
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	16.59B	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	-1.94B	-1.93B	-4.03B	-2.27B

DANONE SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 69.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:BN, the sentiment is Negative. The current price of 69.5 is below the 20-day moving average (MA) of 72.48, below the 50-day MA of 73.35, and above the 200-day MA of 66.97, indicating a neutral trend. The MACD of -1.02 indicates Positive momentum. The RSI at 24.32 is Positive, neither overbought nor oversold. The STOCH value of 8.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:BN.

DANONE SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$26.91B	15.06	-4.01%	3.23%	1.02%	2.12%
SAVE	63 Neutral	€839.36M	7.65	6.45%	2.27%	5.14%	11.66%
BN	61 Neutral	€45.02B	22.24	11.87%	2.67%	-0.88%	129.97%
UNBL	60 Neutral	€2.47B	37.01		0.76%	2.58%	-21.50%
BON	50 Neutral	€269.79M	―	-15.69%	2.33%	-4.12%	-13922.22%