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Pernod Ricard (FR:RI)
:RI

Pernod Ricard (RI) AI Stock Analysis

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Pernod Ricard

(LSE:RI)

Rating:70Neutral
Price Target:
€104.00
▲(18.18%Upside)
Pernod Ricard's stock score reflects strong profitability and an attractive dividend yield, providing a solid income base for investors. However, challenges include declining revenue and cash flow growth, along with weak market momentum, which suggest potential risks to future growth. The overall score is moderated by a neutral technical outlook and moderate valuation.
Positive Factors
Growth Prospects
The company expects a stronger 4Q25, supported by recovering momentum in India as regulatory issues ease, a lower comparison base, and an Easter-related boost.
Investment Strategy
Pernod Ricard prioritizes investments to support long-term growth while maintaining a shareholder-friendly dividend policy.
Market Expansion
Pernod Ricard has established a strong presence beyond the US and China, with double-digit growth from 2019 to 2024 in Brazil, Poland, Turkey, and Japan.
Negative Factors
Macroeconomic Risks
Key risks include potential further deterioration in macroeconomic conditions in China and slower than expected market recovery in the US.
Operating Environment
The stock has been downgraded to HOLD with a revised target price of EUR86, due to the increasingly challenging operating environment and potential delay in earnings recovery until FY27 or later.
Tariff and Recession Concerns
The outlook remains challenging given the risks of prolonged US tariff pressures and broader recessionary concerns.

Pernod Ricard (RI) vs. iShares MSCI France ETF (EWQ)

Pernod Ricard Business Overview & Revenue Model

Company DescriptionPernod Ricard SA produces and sells wines and spirits worldwide. It offers its products under various brands. The company was founded in 1805 and is headquartered in Paris, France.
How the Company Makes MoneyPernod Ricard makes money through the production, marketing, and distribution of its wide range of premium alcoholic beverages. The company's revenue model is centered around selling its products to wholesalers, retailers, and directly to consumers in various markets globally. Key revenue streams include the sale of spirits, wines, and champagnes, with significant contributions from its flagship brands. Pernod Ricard also benefits from strategic partnerships and acquisitions that expand its brand portfolio and market reach. Additionally, the company invests in marketing and brand development to maintain and grow its market share, leveraging its extensive distribution network and strong brand recognition to drive sales.

Pernod Ricard Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
10.70B11.60B12.14B10.70B8.82B8.45B
Gross Profit
6.47B6.97B7.25B6.47B5.29B5.09B
EBIT
3.02B2.72B3.35B3.02B2.42B2.26B
EBITDA
3.35B3.19B3.75B3.33B2.63B2.61B
Net Income Common Stockholders
2.00B1.48B2.26B2.00B1.30B329.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.64B2.68B1.61B2.53B2.08B1.95B
Total Assets
38.74B39.19B37.68B36.01B32.15B31.52B
Total Debt
13.02B13.62B11.87B11.17B9.60B10.41B
Net Debt
11.38B10.94B10.26B8.64B7.52B8.48B
Total Liabilities
21.53B22.39B20.96B19.76B17.07B17.31B
Stockholders Equity
16.19B15.75B15.72B15.94B14.83B13.97B
Cash FlowFree Cash Flow
1.79B954.00M1.33B1.79B1.57B816.00M
Operating Cash Flow
2.29B1.73B2.03B2.29B2.00B1.18B
Investing Cash Flow
-1.20B-676.00M-1.73B-1.20B-486.00M-939.00M
Financing Cash Flow
-683.00M-209.00M-1.12B-683.00M-1.41B795.00M

Pernod Ricard Technical Analysis

Technical Analysis Sentiment
Negative
Last Price88.00
Price Trends
50DMA
93.20
Negative
100DMA
97.58
Negative
200DMA
106.97
Negative
Market Momentum
MACD
-1.54
Positive
RSI
35.95
Neutral
STOCH
26.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:RI, the sentiment is Negative. The current price of 88 is below the 20-day moving average (MA) of 93.01, below the 50-day MA of 93.20, and below the 200-day MA of 106.97, indicating a bearish trend. The MACD of -1.54 indicates Positive momentum. The RSI at 35.95 is Neutral, neither overbought nor oversold. The STOCH value of 26.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:RI.

Pernod Ricard Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FRRI
70
Neutral
€22.11B20.176.70%5.34%-3.68%-45.85%
65
Neutral
$8.88B15.014.76%203.76%3.54%-2.49%
€562.69M11.807.71%2.22%
€363.56M37.704.63%
€607.67M20.189.67%3.71%
€2.44B19.926.42%4.25%
€100.78M110.190.22%7.05%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:RI
Pernod Ricard
88.00
-41.79
-32.20%
GB:0MV6
Laurent Perrier
94.60
-31.16
-24.78%
GB:0DQP
Marie Brizard Wine and Spirits
3.25
-0.04
-1.22%
GB:0O33
Oeneo SA
9.42
-1.93
-17.00%
GB:0MGU
Remy Cointreau
47.00
-32.62
-40.97%
GB:0J7D
Vranken Pommery Monopole
11.35
-3.97
-25.91%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.