DANONE SA (BN) AI Stock Analysis

• Market Cap: €47.96B
• Dividend Yield: 2.89%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 23.7
• Beta (1Y): 0.20
• Revenue Growth: -0.88%
• EPS Growth: 129.97%
• Country: FR
• Employees: 89,528
• Sector: Consumer Defensive
• Sector Strength: 69
• Industry: Packaged Foods
• EPS (TTM): 3.14
• Shares Outstanding: 681,068,400
• 10 Day Avg. Volume: 1,195,433
• 30 Day Avg. Volume: 1,275,373
• PEG Ratio: 0.24
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.47
• 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: €76.63
• Price Target Upside: 3.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 72 Outperform
• Price Target: ―

Danone SA demonstrates strong financial performance with improving profitability and a solid balance sheet, which are significant strengths. Technical analysis shows a positive trend, although the absence of detailed momentum data limits the insight. The valuation is moderate, with a reasonable P/E ratio and dividend yield. Despite stagnant revenue growth, the company's financial stability positions it well in the market.

Positive Factors

Market Positioning

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

Product Portfolio

Danone appears increasingly unique, with a food & beverage portfolio comprised largely of 'better-for-you' products, and the stock has benefitted accordingly, up nearly 20% over the past twelve months.

Sales Performance

Solid LFL sales performance was another proof-point of Danone's portfolio's potential.

Negative Factors

Competition

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

Margin Risks

There is a broad indication of potential intensified promotions in the China IMF category that could lead to a margin reset risk for Danone.

Regional Performance

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

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 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
	EBIT
3.38B	2.04B	2.14B	2.26B	2.80B
	EBITDA
4.77B	3.81B	4.00B	3.58B	4.30B
	Net Income Common Stockholders
2.02B	881.00M	959.00M	1.92B	1.96B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.16B	6.00B	4.68B	5.86B	4.27B
	Total Assets
45.29B	44.49B	45.28B	45.42B	42.78B
	Total Debt
14.80B	15.60B	14.16B	16.59B	16.50B
	Net Debt
13.33B	13.24B	13.11B	15.93B	15.91B
	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: Neutral
• Last Price: 74.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 74.28 is below the 20-day moving average (MA) of 74.51, above the 50-day MA of 72.44, and above the 200-day MA of 66.15, indicating a neutral trend. The MACD of 0.62 indicates Positive momentum. The RSI at 51.47 is Neutral, neither overbought nor oversold. The STOCH value of 7.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:BN.

DANONE SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BN	72 Outperform	€47.96B	23.68	11.87%	2.89%	-0.88%	129.97%
Sector *	65 Neutral	$8.94B	14.98	4.76%	203.76%	3.54%	-2.49%
0N75		€261.11M	―	-15.69%	2.41%	―	―
0J75		€114.50M	2.43	7.40%	4.80%	―	―
0RJ6		€2.96B	12.15	11.02%	2.15%	―	―
0DTK		€927.14M	8.43	6.45%	2.37%	―	―
UNBL	60 Neutral	€2.47B	37.01		0.76%	2.58%	-21.50%