Remy Cointreau (RCO) AI Stock Analysis

• Market Cap: €2.00B
• Dividend Yield: 4.18%
• Average Volume (3M): 108.28K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.32
• Revenue Growth: -13.80%
• EPS Growth: -45.00%
• Country: FR
• Employees: 1,943
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 1.22
• Shares Outstanding: 52,589,878
• 10 Day Avg. Volume: 129,780
• 30 Day Avg. Volume: 108,280
• PEG Ratio: -0.69
• Price to Book (P/B): 2.55
• Price to Sales (P/S): 3.94
• P/FCF Ratio: 343.71
• 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: €41.12
• Price Target Upside: 7.59% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.63
• Revenue Forecast (FY): €939.64M

• Rating: 62 Neutral
• Price Target: €49.00 ▲(28.21% Upside)
• Action: Reiterated Date: 01/09/26
• Date: Action: Reiterated 01/09/26

The score is driven primarily by stable profitability and a strong balance sheet with low leverage, offset by a significant revenue decline and weaker cash-flow conversion. Technically, near-term strength contrasts with a longer-term downtrend and negative MACD. Valuation is moderate, with a supportive dividend yield balancing a P/E in the low-20s.

Positive Factors

High profitability margins

Remy Cointreau's very high gross and healthy operating margins indicate persistent pricing power and strong mix in premium spirits. These margins support operating cash generation and cushion profitability through sales volatility, enabling sustained reinvestment in brands and stable operating leverage over months.

Conservative leverage and strong equity base

A low debt-to-equity ratio and a >50% equity ratio give Remy Cointreau financial flexibility. This conservative structure reduces refinancing risk and preserves capacity for targeted investments or bolt-on M&A, supporting resilience and strategic optionality across economic cycles over the medium term.

Strong premium brand portfolio

Ownership of globally recognized, high-end brands provides durable competitive advantages: pricing power, loyalty, and channel access. These brands align with structural premiumization in beverages and facilitate geographic expansion (Asia, North America), supporting revenue durability beyond short-term cycles.

Negative Factors

Sharp recent revenue decline

A roughly 17.5% YoY revenue drop materially reduces scale and can erode marketing and distribution investments needed to defend premium positioning. If sustained over several quarters, lower top-line volumes weaken fixed-cost absorption and constrain margin resilience and long-term growth prospects.

Weak cash conversion and falling operating cash flow

A marked decline in operating cash flow and a low cash conversion ratio reduce internal funding for capex, brand investment and dividends. Persistent weak cash generation increases reliance on external financing for strategic moves and limits ability to rapidly restore scale after revenue weakness.

Earnings pressure and modest ROE

A near-45% EPS contraction and single-digit ROE signal deteriorating shareholder returns and lower profitability on equity. This trend may constrain management's capacity to fund returns or pursue value-accretive investments, and reflects underlying demand or margin pressure that can persist without structural recovery.

Remy Cointreau Business Overview & Revenue Model

Company Description

Rémy Cointreau SA, together with its subsidiaries, engages in the production, sale, and distribution of liqueurs and spirits. The company operates through Rémy Martin, Liqueurs & Spirits, and Partner Brands segments. It offers liqueurs, brandy, gin, single malt whisky, rum, wine, and champagne primarily under the Cointreau, Metaxa, St-Rémy, Mount Gay, Bruichladdich, Port Charlotte, Octomore, The Botanist, Westland, LOUIS XIII, and Domaine des Hautes Glaces brands. The operates in Europe, the Middle East, Africa, the Americas, Asia, Australia, and New Zealand. Rémy Cointreau SA was founded in 1724 and is headquartered in Cognac, France.

How the Company Makes Money

Remy Cointreau generates revenue primarily through the sale of its premium spirits. The company's revenue model is based on the direct sale of its products to distributors and retailers, as well as through its own branded retail outlets. Key revenue streams include the sales of cognac, which is one of the company’s flagship products, and other spirits such as liqueurs and whiskies. Significant partnerships with distributors around the globe enhance its market reach, while strong brand equity allows it to command higher prices. Additionally, growth in international markets, particularly in Asia and North America, contributes to the company’s earnings, as does the increasing demand for premium and luxury spirits.

Remy Cointreau Financial Statement Overview

Summary

Profitability remains solid (gross margin ~70.56%, EBIT margin ~21.43%, EBITDA margin ~25.31%) and leverage is conservative (debt-to-equity ~0.39; equity ratio ~56.34%). However, revenue contracted sharply (‑17.52% YoY) and cash conversion is weak (operating cash flow to net income ~0.58), pulling the score down.

Income Statement

Remy Cointreau's income statement reflects some challenges over the past year with a noticeable decrease in revenue and net income. The gross profit margin for the most recent year was approximately 70.56%, and the net profit margin was around 12.31%, both indicating solid profitability despite reduced revenue. However, the revenue growth rate has fallen by 17.52% from the previous year, highlighting a contraction in sales. EBIT and EBITDA margins are healthy at 21.43% and 25.31% respectively, suggesting stable operational efficiency.

Balance Sheet

The balance sheet of Remy Cointreau shows a stable financial position with a debt-to-equity ratio of approximately 0.39, indicating a conservative leverage approach. The return on equity (ROE) stands at 6.28%, reflecting moderate profitability relative to equity. The equity ratio is about 56.34%, showing a strong equity base supporting the company’s assets. Overall, the company maintains a solid balance sheet with manageable debt levels.

Cash Flow

The cash flow analysis shows some areas of concern. The free cash flow growth rate is negative due to a decrease in operating cash flow, which fell from €94.6M to €70.4M. The operating cash flow to net income ratio is approximately 0.58, indicating some challenges in converting net income into cash. The free cash flow to net income ratio stands at around 0.58 as well, which suggests limited free cash flow generation relative to net income.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2020	Mar 2019
Income Statement
Total Revenue	940.50M	984.60M	1.55B	1.31B	1.01B	1.02B
Gross Profit	593.80M	694.80M	1.06B	861.10M	646.10M	643.50M
EBITDA	209.80M	249.20M	461.90M	357.70M	270.00M	248.50M
Net Income	92.40M	121.20M	293.80M	212.50M	144.50M	113.40M
Balance Sheet
Total Assets	3.46B	3.42B	3.21B	2.99B	2.78B	2.79B
Cash, Cash Equivalents and Short-Term Investments	70.50M	83.10M	73.70M	116.30M	201.00M	269.40M
Total Debt	757.30M	758.64M	607.00M	467.40M	513.10M	719.60M
Total Liabilities	1.54B	1.49B	1.45B	1.33B	1.23B	1.39B
Stockholders Equity	1.92B	1.93B	1.75B	1.66B	1.55B	1.40B
Cash Flow
Free Cash Flow	10.40M	70.40M	42.20M	90.30M	123.00M	15.70M
Operating Cash Flow	54.40M	70.40M	124.10M	144.80M	177.00M	80.50M
Investing Cash Flow	-48.50M	-48.40M	-59.30M	-65.70M	8.40M	-52.50M
Financing Cash Flow	20.30M	-31.90M	-107.20M	-175.10M	-253.20M	62.10M

Remy Cointreau Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:RCO, the sentiment is Negative. The current price of 38.22 is below the 20-day moving average (MA) of 43.20, below the 50-day MA of 40.74, and below the 200-day MA of 45.43, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 36.26 is Neutral, neither overbought nor oversold. The STOCH value of 4.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:RCO.

Remy Cointreau Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LPE	72 Outperform	€517.68M	5.55	7.22%	2.31%	3.60%	-9.53%
SBT	71 Outperform	€594.79M	11.38	8.82%	3.80%	-3.97%	-8.33%
RI	71 Outperform	€18.82B	4.72	10.50%	6.45%	-5.51%	10.76%
ALLAN	67 Neutral	€188.82M	33.18	6.04%	2.83%	3.70%	-23.93%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
RCO	62 Neutral	€2.00B	9.46	4.83%	4.18%	-13.80%	-45.00%
MBWS	55 Neutral	€304.27M	39.38	2.70%	―	-5.42%	-43.44%