Remy Cointreau (RCO) AI Stock Analysis

• Market Cap: €2.90B
• Dividend Yield: 5.36%
• Average Volume (3M): 127.87K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.25
• Revenue Growth: -17.54%
• EPS Growth: -35.36%
• Country: FR
• Employees: 1,943
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.78
• Shares Outstanding: 52,160,290
• 10 Day Avg. Volume: 113,348
• 30 Day Avg. Volume: 127,872
• PEG Ratio: -0.83
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 142.01
• 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: €54.73
• Price Target Upside: -5.15% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 70 Outperform
• 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 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 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	984.60M	1.19B	1.55B	1.31B	1.01B
Gross Profit	694.80M	850.10M	1.06B	861.10M	646.10M
EBITDA	249.20M	330.10M	461.90M	374.40M	270.00M
Net Income	121.20M	184.80M	293.80M	212.50M	144.50M
Balance Sheet
Total Assets	3.42B	3.37B	3.21B	2.99B	2.78B
Cash, Cash Equivalents and Short-Term Investments	83.10M	93.00M	73.70M	116.30M	201.00M
Total Debt	758.64M	742.80M	607.00M	467.40M	513.10M
Total Liabilities	1.49B	1.53B	1.45B	1.33B	1.23B
Stockholders Equity	1.93B	1.85B	1.75B	1.66B	1.55B
Cash Flow
Free Cash Flow	70.40M	13.70M	42.20M	90.30M	123.00M
Operating Cash Flow	70.40M	94.60M	124.10M	144.80M	177.00M
Investing Cash Flow	-48.40M	-80.40M	-59.30M	-65.70M	8.40M
Financing Cash Flow	-31.90M	7.20M	-107.20M	-175.10M	-253.20M

Remy Cointreau Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCO	70 Outperform	€2.90B	23.76	6.42%	5.36%	-17.54%	-35.36%
Sector *	50 Neutral	AU$2.21B	-0.09	-14.39%	10.51%	7.38%	-60.19%
0MV6	―	€566.25M	11.87	7.71%	2.20%	―	―
0DQP	―	€334.47M	35.27	4.63%	―	―	―
0O33	―	€598.65M	20.14	9.31%	11.22%	―	―
0HAT	―	€23.98B	21.87	6.70%	4.93%	―	―
GQ6	―	€252.88M	10.22	6.53%	2.42%	―	―