Pernod Ricard (RI) AI Stock Analysis

• Market Cap: €21.28B
• Dividend Yield: 5.55%
• Average Volume (3M): 694.73K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 1.05
• 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: 564,125
• 30 Day Avg. Volume: 694,729
• 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: €108.70
• Price Target Upside: 28.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: €101.00 ▲(19.27% Upside)

Pernod Ricard's strong financial performance, evidenced by profitability and operational efficiency, is tempered by recent declines in revenue and cash flow. Valuation metrics are favorable, with a fair P/E ratio and high dividend yield supporting the stock's attractiveness. Despite some short-term technical weakness, the stock's overall score reflects a balanced view of potential risks and rewards.

Positive Factors

Negative Factors

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 production, distribution, and sale of its alcoholic beverages. The company's key revenue streams include the sale of spirits, wines, and champagnes across various global markets. Pernod Ricard leverages its strong brand portfolio and extensive distribution network to maintain a competitive edge in the industry. Strategic acquisitions and partnerships also play a significant role in its growth and earnings, enabling the company to expand its product offerings and market reach. Additionally, Pernod Ricard invests in marketing and brand development to enhance consumer engagement and drive sales.

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	0.00	954.00M	1.33B	1.79B	1.57B
Operating Cash Flow	805.00M	0.00	1.73B	2.03B	2.29B	2.00B
Investing Cash Flow	-506.00M	0.00	-676.00M	-1.73B	-1.20B	-486.00M
Financing Cash Flow	-1.23B	0.00	-209.00M	-1.12B	-683.00M	-1.41B

Pernod Ricard Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 84.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 84.68 is below the 20-day moving average (MA) of 87.87, below the 50-day MA of 93.19, and below the 200-day MA of 94.30, indicating a bearish trend. The MACD of -3.10 indicates Positive momentum. The RSI at 31.61 is Neutral, neither overbought nor oversold. The STOCH value of 29.88 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RI	74 Outperform	€21.28B	13.04	10.50%	5.55%	-5.51%	10.76%
SBT	71 Outperform	€594.79M	19.88	9.31%	3.79%	-0.20%	3.77%
LPE	68 Neutral	€524.79M	10.94	7.74%	2.39%	-5.79%	-25.29%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MBWS	57 Neutral	€327.76M	57.12	2.70%	―	-5.42%	-43.44%
RCO	56 Neutral	€2.51B	20.35	6.42%	3.11%	-17.54%	-35.36%
VRAP	55 Neutral	€106.11M	77.76	0.35%	6.69%	-8.01%	-77.61%