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Remy Cointreau SA (FR:RCO)
:RCO
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Remy Cointreau (RCO) AI Stock Analysis

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FR:RCO

Remy Cointreau

(LSE:RCO)

Rating:70Outperform
Price Target:
€62.00
▲(7.45%Upside)
Remy Cointreau's overall stock score reflects strong technical indicators, suggesting bullish momentum, and solid valuation metrics with an attractive dividend yield. Despite these strengths, there are potential risks due to declining revenue and cash flow, necessitating strategic improvements in these areas.
Positive Factors
Earnings Guidance
FY25 guidance was confirmed, with a gradual recovery in sales over the year while protecting profitability.
Investment Outlook
For long-term investors, the risk-reward looks skewed to the upside.
Product Performance
With cognac driving respectively 65% and 80%+ of FY24 sales and EBIT, a positive surprise on cognac is generally good news.
Negative Factors
Market Conditions
Excess cognac inventory and negative depletions in the US, retaliation risk on duty taxes in China and overall weakness in EMEA are the main short-term headwinds.
Sales Performance
1Q25 organic sales growth came below expectations at -15.6% driven by Liqueurs & Spirits (all regions), while the decline in Cognac organic sales was -12.2% (better-than-expected driven by flat China).
Taxation Impact
The recent tax implementation by Chinese MOFCOM is another setback.

Remy Cointreau (RCO) vs. iShares MSCI France ETF (EWQ)

Remy Cointreau Business Overview & Revenue Model

Company DescriptionRémy 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 MoneyRemy Cointreau generates revenue primarily through the sale of its premium spirits and liqueurs. The company operates a vertically integrated business model, overseeing everything from the sourcing of raw materials, such as grapes for its cognac, to the production, marketing, and distribution of its products. A significant portion of its revenue comes from its cognac segment, particularly through its flagship brand, Rémy Martin, which is highly regarded in both domestic and international markets. The company also benefits from a strong distribution network and strategic partnerships, which enhance its market reach and brand visibility. Moreover, Remy Cointreau capitalizes on the growing global trend towards premiumization in the spirits industry, positioning its products as luxury items that command higher price points, further boosting its profitability.

Remy Cointreau Financial Statement Overview

Summary
Remy Cointreau shows robust profitability with solid profit margins and a strong balance sheet, marked by low leverage. However, there are notable challenges with a decrease in revenue and cash flow generation, which could pose risks if not addressed promptly.
Income Statement
68
Positive
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
72
Positive
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
55
Neutral
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue984.60M1.19B1.55B1.31B1.01B
Gross Profit694.80M850.10M1.06B861.10M646.10M
EBITDA249.20M330.10M461.90M374.40M270.00M
Net Income121.20M184.80M293.80M212.50M144.50M
Balance Sheet
Total Assets3.42B3.37B3.21B2.99B2.78B
Cash, Cash Equivalents and Short-Term Investments83.10M93.00M73.70M116.30M201.00M
Total Debt758.64M742.80M607.00M467.40M513.10M
Total Liabilities1.49B1.53B1.45B1.33B1.23B
Stockholders Equity1.93B1.85B1.75B1.66B1.55B
Cash Flow
Free Cash Flow70.40M13.70M42.20M90.30M123.00M
Operating Cash Flow70.40M94.60M124.10M144.80M177.00M
Investing Cash Flow-48.40M-80.40M-59.30M-65.70M8.40M
Financing Cash Flow-31.90M7.20M-107.20M-175.10M-253.20M

Remy Cointreau Technical Analysis

Technical Analysis Sentiment
Positive
Last Price57.70
Price Trends
50DMA
48.99
Positive
100DMA
47.53
Positive
200DMA
51.91
Positive
Market Momentum
MACD
2.22
Negative
RSI
71.53
Negative
STOCH
72.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:RCO, the sentiment is Positive. The current price of 57.7 is above the 20-day moving average (MA) of 51.62, above the 50-day MA of 48.99, and above the 200-day MA of 51.91, indicating a bullish trend. The MACD of 2.22 indicates Negative momentum. The RSI at 71.53 is Negative, neither overbought nor oversold. The STOCH value of 72.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:RCO.

Remy Cointreau Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
€2.90B23.766.42%5.36%-17.54%-35.36%
50
Neutral
AU$2.21B-0.09-14.39%10.51%7.38%-60.19%
€566.25M11.877.71%2.20%
€334.47M35.274.63%
€598.65M20.149.31%11.22%
€23.98B21.876.70%4.93%
€252.88M10.226.53%2.42%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:RCO
Remy Cointreau
57.70
-15.50
-21.17%
GB:0MV6
Laurent Perrier
95.00
-22.84
-19.38%
GB:0DQP
Marie Brizard Wine and Spirits
3.04
-0.65
-17.62%
GB:0O33
Oeneo SA
9.36
-0.88
-8.59%
GB:0HAT
Pernod Ricard
97.36
-24.33
-19.99%
DE:GQ6
Lanson-BCC
36.80
-6.68
-15.36%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 11, 2025