Pernod Ricard (RI) AI Stock Analysis

• Market Cap: €18.97B
• Dividend Yield: 6.45%
• Average Volume (3M): 742.70K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.06
• Revenue Growth: -5.51%
• EPS Growth: 10.76%
• Country: FR
• Employees: 19,557
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 9.93
• Shares Outstanding: 252,269,200
• 10 Day Avg. Volume: 655,149
• 30 Day Avg. Volume: 742,695
• PEG Ratio: 1.24
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 0.00
• 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: €96.01
• Price Target Upside: 26.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: €84.00 ▲(10.53% Upside)

Pernod Ricard's overall stock score is driven by its strong valuation, with a low P/E ratio and high dividend yield, making it attractive for value and income investors. Financial performance is solid, but attention is needed on revenue trends and debt management. Technical indicators suggest bearish momentum, which could impact short-term performance.

Positive Factors

Strong Brand Portfolio

A strong brand portfolio with iconic names like Absolut Vodka and Jameson Irish Whiskey provides a competitive edge, ensuring customer loyalty and stable demand across global markets.

Operational Efficiency

High gross profit margins indicate effective cost management, which supports long-term profitability and allows for reinvestment in growth initiatives and innovation.

Product Diversification

Product diversification through innovation helps capture new market segments and adapt to changing consumer preferences, ensuring sustained revenue growth.

Negative Factors

Revenue Decline

A decline in revenue can signal challenges in market demand or competitive pressures, potentially impacting long-term growth prospects if not addressed.

Increasing Debt Levels

Rising debt levels may strain financial resources and limit flexibility, necessitating careful management to avoid potential financial instability.

Cash Flow Management

While there is some improvement, ongoing challenges in cash flow management could hinder the company's ability to fund operations and growth initiatives effectively.

Pernod Ricard Business Overview & Revenue Model

Company Description

Pernod 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 Money

Pernod Ricard generates revenue primarily through the sale of its extensive range of alcoholic beverages, which are distributed globally. The company’s revenue model is built on several key streams: direct sales to retailers and distributors, sales through e-commerce platforms, and exports to various international markets. Significant revenue is derived from the company's premium and super-premium products, which command higher price points and profit margins. Additionally, Pernod Ricard engages in marketing and promotional activities to enhance brand visibility and consumer loyalty, contributing to sales growth. Strategic partnerships with distributors and retailers, along with investments in emerging markets, further bolster its earnings. The company's focus on innovation and product diversification, such as the introduction of new flavors and limited edition releases, also plays a crucial role in driving revenue.

Pernod Ricard Financial Statement Overview

Summary

Pernod Ricard demonstrates strong profitability and operational efficiency with a solid gross profit margin and robust EBIT and EBITDA margins. However, recent declines in revenue and cash flow growth present concerns about sustaining financial health.

Income Statement

Pernod Ricard's revenue has shown volatility, with a recent decline from 2023 to 2024. Despite this, the company maintains strong profitability, evidenced by its high gross profit margin of 60.1% and a solid net profit margin of 12.7% for 2024. EBIT and EBITDA margins are also robust at 23.5% and 27.5%, respectively, indicating efficient operational management. However, the recent revenue contraction highlights a potential risk in sustaining growth.

Balance Sheet

The balance sheet shows a stable financial structure, with a Debt-to-Equity ratio of 0.86, suggesting moderate leverage. The Return on Equity (ROE) stands at 9.4%, indicating moderate returns for equity holders. The equity ratio is 40.2%, reflecting a balanced asset financing strategy. However, the increase in total debt over the years points to potential risks if not managed prudently.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow from 2023 to 2024, with a negative free cash flow growth rate of -28.3%. The operating cash flow to net income ratio of 1.17 indicates a satisfactory conversion of earnings to cash. However, the free cash flow to net income ratio of 0.65 suggests room for improvement in cash generation relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.96B	10.96B	11.60B	12.14B	10.70B	8.82B
Gross Profit	6.52B	6.52B	6.97B	7.25B	6.47B	5.29B
EBITDA	3.28B	3.28B	3.19B	3.75B	3.33B	2.63B
Net Income	1.63B	1.63B	1.48B	2.26B	2.00B	1.30B
Balance Sheet
Total Assets	37.08B	37.08B	39.19B	37.68B	36.01B	32.15B
Cash, Cash Equivalents and Short-Term Investments	1.83B	1.83B	2.68B	1.61B	2.53B	2.08B
Total Debt	12.59B	12.59B	13.62B	11.87B	11.17B	9.60B
Total Liabilities	20.85B	20.85B	22.39B	20.96B	19.76B	17.07B
Stockholders Equity	15.21B	15.21B	15.75B	15.72B	15.94B	14.83B
Cash Flow
Free Cash Flow	435.00M	1.12B	954.00M	1.33B	1.79B	1.57B
Operating Cash Flow	805.00M	1.79B	1.73B	2.03B	2.29B	2.00B
Investing Cash Flow	-506.00M	-521.00M	-676.00M	-1.73B	-1.20B	-486.00M
Financing Cash Flow	-1.23B	-2.40B	-209.00M	-1.12B	-683.00M	-1.41B

Pernod Ricard Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 76.00
• 50DMA: Negative
• 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:RI, the sentiment is Neutral. The current price of 76 is above the 20-day moving average (MA) of 74.38, below the 50-day MA of 76.53, and below the 200-day MA of 85.08, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 55.02 is Neutral, neither overbought nor oversold. The STOCH value of 85.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:RI.

Pernod Ricard 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%
RI	71 Outperform	€18.97B	11.68	10.50%	6.45%	-5.51%	10.76%
SBT	71 Outperform	€594.79M	21.59	8.82%	3.80%	-3.97%	-8.33%
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%