DANONE SA (BN) AI Stock Analysis

• Market Cap: €49.34B
• Dividend Yield: 2.8%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 26.8
• Beta (1Y): 0.02
• Revenue Growth: 0.54%
• EPS Growth: 83.09%
• Country: FR
• Employees: 89,528
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 1.61
• Shares Outstanding: 681,394,500
• 10 Day Avg. Volume: 1,201,860
• 30 Day Avg. Volume: 1,009,219
• PEG Ratio: 0.16
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 1.53
• P/FCF Ratio: 14.41
• 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: €82.24
• Price Target Upside: 6.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: €88.00 ▲(14.46% Upside)

Danone SA's strong financial performance, characterized by improving profitability and a solid balance sheet, is the primary driver of its stock score. The technical analysis indicates a bullish trend, though caution is advised due to overbought signals. The high P/E ratio raises valuation concerns, but the dividend yield offers some compensation. Overall, the stock is positioned well, but investors should be mindful of potential valuation risks.

Positive Factors

Cash Generation

Strong cash generation allows Danone to fund operations and strategic initiatives, providing a buffer against market fluctuations and enabling growth.

Balance Sheet Health

A strong balance sheet with reduced debt enhances financial stability and lowers leverage risk, providing flexibility for future investments.

Profitability Improvement

Improved profitability indicates efficient operations and cost management, strengthening Danone's competitive position and shareholder returns.

Negative Factors

Revenue Growth Challenges

Stagnant revenue growth reflects competitive pressures and could limit future expansion opportunities, impacting long-term business sustainability.

Volatile Cash Flows

Volatile cash flows may indicate inconsistent capital allocation, which can affect investment strategies and financial planning.

Competitive Industry Pressures

Intense competition in the food industry may hinder Danone's ability to capture market share and drive revenue growth, affecting long-term prospects.

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 generates revenue through multiple key streams, primarily from the sale of dairy products, plant-based alternatives, bottled water, and specialized nutrition products. The company's revenue model is driven by a combination of retail sales, partnerships with supermarkets and grocery chains, and direct-to-consumer channels. Significant partnerships with retailers enhance its market presence and distribution capabilities. Additionally, DANONE invests in innovation and sustainability initiatives to meet changing consumer demands, which can lead to increased sales and customer loyalty. The growing trend towards health-conscious eating and environmental sustainability also contributes to the company's earnings, as consumers increasingly prefer products that align with these values.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.36B	27.38B	27.62B	27.66B	24.28B	23.62B
Gross Profit	13.81B	13.61B	13.08B	12.74B	11.52B	11.35B
EBITDA	4.52B	4.36B	4.75B	4.25B	4.15B	4.42B
Net Income	1.84B	2.02B	881.00M	959.00M	1.92B	1.96B
Balance Sheet
Total Assets	43.76B	45.29B	44.49B	45.28B	45.42B	42.78B
Cash, Cash Equivalents and Short-Term Investments	6.01B	6.16B	6.00B	4.68B	5.86B	4.27B
Total Debt	14.54B	14.19B	15.60B	14.16B	16.21B	16.04B
Total Liabilities	27.84B	27.44B	28.26B	27.29B	28.05B	26.48B
Stockholders Equity	15.86B	17.80B	16.18B	17.92B	17.27B	16.20B
Cash Flow
Free Cash Flow	2.87B	2.91B	2.60B	2.09B	2.43B	2.00B
Operating Cash Flow	3.85B	3.83B	3.44B	2.96B	3.47B	2.97B
Investing Cash Flow	-921.00M	-463.00M	-834.00M	-749.00M	561.00M	-610.00M
Financing Cash Flow	-2.68B	-3.82B	-1.94B	-1.93B	-4.03B	-2.27B

DANONE SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.88
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 76.88 is above the 20-day moving average (MA) of 76.73, below the 50-day MA of 77.32, and above the 200-day MA of 73.19, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 46.58 is Neutral, neither overbought nor oversold. The STOCH value of 58.80 is Neutral, 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	73 Outperform	€3.10B	12.00	11.24%	1.76%	514.19%	-7.82%
BN	72 Outperform	€49.34B	26.76	11.27%	2.80%	0.54%	83.09%
SAVE	72 Outperform	€803.70M	8.93	5.22%	2.73%	5.30%	-14.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ALFLE	60 Neutral	€107.40M	77.95	―	5.18%	0.17%	-97.54%
BON	54 Neutral	€327.35M	-28.48	3.16%	1.98%	-7.08%	90.42%