DANONE SA (BN) AI Stock Analysis

• Market Cap: €43.56B
• Dividend Yield: 3.18%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.18
• Revenue Growth: -0.88%
• EPS Growth: 129.97%
• Country: FR
• Employees: 89,528
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Packaged Foods
• EPS (TTM): 1.83
• Shares Outstanding: 681,394,500
• 10 Day Avg. Volume: 1,025,733
• 30 Day Avg. Volume: 1,054,563
• PEG Ratio: 0.22
• Price to Book (P/B): 2.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.08
• 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: €77.29
• Price Target Upside: 14.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 61 Neutral
• Price Target: €74.00 ▲(9.34%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

Market Position

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

Product Innovation

The all-important EDP turnaround in Europe looks underway, well-underpinned by product launches which we find reassuring for the margin story.

Sales Growth

The implied sales growth of over 10% is very positive for the outlook on demand.

Negative Factors

Competition

The coffee creamers category in the US, which is significant for the group, faces increasing competition.

Margin Pressure

Feihe's launch of a maternity subsidy program suggests potential margin risks for competitors in China.

Profit Warning

A Feihe profit warning may weigh on Danone, with Feihe shares down 17%.

DANONE SA Business Overview & Revenue Model

Company Description

Danone S.A. is a multinational food-products corporation headquartered in Paris, France. The company operates in three primary sectors: Essential Dairy and Plant-Based Products, Waters, and Specialized Nutrition. Danone is renowned for its diverse range of products including yogurts, plant-based foods and beverages, bottled water, infant nutrition, and medical nutrition products. With a commitment to health and sustainability, Danone aims to offer nutritious and sustainable food options to consumers around the globe.

How the Company Makes Money

Danone makes money through its diversified portfolio of health-focused food and beverage products. The company's revenue model is primarily based on the sale of its products in the Essential Dairy and Plant-Based Products, Waters, and Specialized Nutrition segments. The Essential Dairy and Plant-Based Products division generates income through the sale of yogurt, dairy desserts, and plant-based alternatives. The Waters segment contributes to revenue through the sale of bottled water brands like Evian and Volvic. The Specialized Nutrition segment includes the sale of infant formula and medical nutrition products. Additionally, Danone's earnings are supported by strategic partnerships with retailers and distributors worldwide, as well as its investment in research and development for product innovation and sustainability initiatives.

DANONE SA Financial Statement Overview

Summary

Danone SA shows a stable gross profit margin and improved net profit margin, indicating enhanced profitability. The balance sheet reflects strong equity and reduced debt, showcasing prudent financial management. Robust cash flow generation supports strategic initiatives, although revenue growth remains a challenge.

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: 67.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 67.68 is below the 20-day moving average (MA) of 69.07, below the 50-day MA of 71.99, and above the 200-day MA of 67.34, indicating a neutral trend. The MACD of -1.24 indicates Negative momentum. The RSI at 31.01 is Neutral, neither overbought nor oversold. The STOCH value of 17.44 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
LOUP	76 Outperform	€3.35B	13.75	11.02%	1.89%	2.02%	-20.95%
SAVE	71 Outperform	€905.19M	8.28	6.45%	2.42%	5.14%	11.66%
Sector *	68 Neutral	¥196.41B	21.35	8.29%	2.30%	4.93%	0.78%
BN	61 Neutral	€43.56B	21.57	11.87%	3.18%	-0.88%	129.97%
BON	48 Neutral	€262.72M	―	-15.69%	2.45%	-4.12%	-13922.22%