Remy Cointreau (RCO) AI Stock Analysis

• Market Cap: €1.95B
• Dividend Yield: 4.03%
• Average Volume (3M): 108.28K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 1.40
• 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: €48.60
• Price Target Upside: 30.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: €41.00 ▲(10.22% Upside)

The overall score reflects strong profitability and a solid balance sheet, but is weighed down by bearish technical indicators and challenges in revenue and cash flow. The valuation is reasonable with an attractive dividend yield, but the negative market momentum and financial performance concerns are significant risks.

Positive Factors

Profitability Margins

Strong profitability margins indicate effective cost management and pricing power, which are crucial for sustaining long-term financial health and competitiveness in the premium spirits market.

Balance Sheet Health

A solid balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Brand Portfolio Strength

A strong brand portfolio, especially in high-demand segments like Cognac, enhances market position and supports premium pricing strategies, driving long-term revenue growth.

Negative Factors

Revenue Decline

A significant decline in revenue growth can impact the company's ability to expand and invest in new opportunities, potentially weakening its market position over time.

Cash Flow Challenges

Negative free cash flow growth indicates challenges in generating cash from operations, which can limit the company's ability to fund new projects and return capital to shareholders.

Declining Net Income

A decrease in net income reflects potential operational inefficiencies or market challenges, which could hinder profitability and investment capacity if not addressed.

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: Negative
• Last Price: 37.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 37.2 is below the 20-day moving average (MA) of 37.78, below the 50-day MA of 41.94, and below the 200-day MA of 46.48, indicating a bearish trend. The MACD of -1.48 indicates Negative momentum. The RSI at 38.71 is Neutral, neither overbought nor oversold. The STOCH value of 71.03 is Neutral, 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
RI	74 Outperform	€19.27B	11.86	10.50%	6.12%	-5.51%	10.76%
LPE	72 Outperform	€528.34M	11.60	7.22%	2.36%	3.60%	-9.53%
SBT	71 Outperform	€579.34M	21.03	8.82%	3.89%	-3.97%	-8.33%
ALLAN	67 Neutral	€214.45M	9.60	6.04%	2.83%	3.70%	-23.93%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
RCO	58 Neutral	€1.95B	21.04	4.83%	4.03%	-13.80%	-45.00%
MBWS	55 Neutral	€317.69M	55.56	2.70%	―	-5.42%	-43.44%