Remy Cointreau (RCO) AI Stock Analysis

• Market Cap: €2.18B
• Dividend Yield: 4.18%
• Average Volume (3M): 108.28K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 1.39
• 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: €45.43
• Price Target Upside: 26.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: €43.00 ▲(19.84% Upside)

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 profit margins

Sustained high gross and operating margins reflect durable pricing power from premium brands and efficient operations. These margins support long-term cash generation and reinvestment capacity, helping the company withstand cyclical volume swings and maintain profitability.

Conservative leverage

Low leverage and a strong equity base give the company financial flexibility for capex, marketing and selective M&A without over-relying on debt. This conservative balance-sheet stance reduces financial risk and supports dividend and investment policies over the medium term.

Premium brand portfolio

A portfolio of iconic luxury brands delivers structural competitive advantage: pricing power, customer loyalty and channel access. Premiumization trends and growth in markets like Asia/North America underpin durable demand and margin resilience over multiple years.

Negative Factors

Sharp revenue decline

A large year-on-year sales drop indicates weakening top-line momentum that can erode scale benefits and strain fixed-cost absorption. If sustained, declining revenue risks compressing margins, reducing reinvestment capacity and slowing long-term growth recovery.

Weak cash-flow conversion

Lower operating cash flow and poor conversion of earnings into cash constrain free cash flow available for dividends, buybacks or growth. Structural cash-generation weakness reduces financial flexibility and raises risk if revenue or margin pressures persist.

Earnings deterioration

Material earnings decline signals underlying profitability or demand issues beyond one-off items. Persistently falling EPS undermines returns on equity (ROE is moderate) and limits capacity to fund strategic initiatives, risking longer-term shareholder value creation.

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

Remy Cointreau shows strong profitability margins and a solid balance sheet with low leverage. However, the company faces challenges with declining revenue and cash flow generation, which could pose risks if not addressed.

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	Dec 2024	Dec 2023	Dec 2023	Dec 2022	Dec 2020
Income Statement
Total Revenue	940.50M	984.60M	1.55B	1.19B	1.31B	1.01B
Gross Profit	593.80M	694.80M	1.06B	850.10M	861.10M	646.10M
EBITDA	209.80M	249.20M	461.90M	330.10M	357.70M	270.00M
Net Income	92.40M	121.20M	293.80M	184.80M	212.50M	144.50M
Balance Sheet
Total Assets	3.46B	3.42B	3.21B	3.37B	2.99B	2.78B
Cash, Cash Equivalents and Short-Term Investments	70.50M	83.10M	73.70M	93.00M	116.30M	201.00M
Total Debt	757.30M	758.64M	607.00M	742.80M	467.40M	513.10M
Total Liabilities	1.54B	1.49B	1.45B	1.53B	1.33B	1.23B
Stockholders Equity	1.92B	1.93B	1.75B	1.85B	1.66B	1.55B
Cash Flow
Free Cash Flow	10.40M	70.40M	42.20M	13.70M	90.30M	123.00M
Operating Cash Flow	54.40M	70.40M	124.10M	94.60M	144.80M	177.00M
Investing Cash Flow	-48.50M	-48.40M	-59.30M	-80.40M	-65.70M	8.40M
Financing Cash Flow	20.30M	-31.90M	-107.20M	7.20M	-175.10M	-253.20M

Remy Cointreau Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 35.88
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:RCO, the sentiment is Neutral. The current price of 35.88 is below the 20-day moving average (MA) of 38.00, below the 50-day MA of 39.10, and below the 200-day MA of 45.98, indicating a neutral trend. The MACD of 0.71 indicates Negative momentum. The RSI at 67.77 is Neutral, neither overbought nor oversold. The STOCH value of 86.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€531.89M	11.68	7.22%	2.31%	3.60%	-9.53%
SBT	71 Outperform	€594.79M	21.59	8.82%	3.80%	-3.97%	-8.33%
RI	71 Outperform	€18.97B	11.68	10.50%	6.45%	-5.51%	10.76%
ALLAN	67 Neutral	€218.49M	9.78	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	€2.18B	23.52	4.83%	4.18%	-13.80%	-45.00%
MBWS	55 Neutral	€318.81M	54.58	2.70%	―	-5.42%	-43.44%