Pernod Ricard (RI) AI Stock Analysis

• Market Cap: €19.44B
• Dividend Yield: 6.45%
• Average Volume (3M): 742.70K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.00
• 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): 4.04
• 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: 19.02
• 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: €91.95
• Price Target Upside: 18.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): 5.9
• Revenue Forecast (FY): €9.58B

• Rating: 71 Outperform
• Price Target: €96.00 ▲(24.06% Upside)
• Action: Reiterated Date: 12/20/25
• Date: Action: Reiterated 12/20/25

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

Premium brand portfolio & global reach

A wide roster of iconic, premium brands and established global distribution underpin durable pricing power and customer loyalty. This lowers revenue volatility, supports higher margins over time and enables efficient market entry and local scale economies across developed and emerging markets.

High and resilient gross margins

Consistently high gross margins and improving net profit margin signal structural cost efficiency and strong product mix toward premium SKUs. Sustained margins enhance cash generation capacity, funding marketing, innovation and selective M&A without immediate reliance on external financing.

Manageable leverage and stable capital structure

A moderate debt-to-equity ratio and a solid equity ratio indicate balanced leverage that supports strategic investments and acquisitions while retaining financial flexibility. The ROE shows reasonable returns on equity, suggesting capital is being deployed with modest efficiency.

Negative Factors

Material revenue contraction

A double-digit recent revenue decline indicates structural demand or execution headwinds that threaten scale economics. If not reversed, shrinking top line can erode fixed-cost leverage, limit margin expansion and constrain reinvestment, making strategic objectives harder to fund.

Rising debt trend

An upward trajectory in indebtedness raises refinancing and interest-rate sensitivity risks, particularly if revenue growth lags. Growing leverage can reduce strategic optionality, pressure free cash flow allocation between debt service, capex and shareholder returns over the medium term.

Fragile cash generation metrics

Only modest FCF recovery and missing operating-cash-to-net-income metrics point to uneven cash conversion. Limited and slow cash generation weakens the firm's ability to deleverage, sustain dividends or finance growth initiatives without pulling on debt or cutting discretionary investment.

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 healthy margins and a stable balance sheet. However, the recent revenue decline and increasing debt levels warrant attention. Cash flow management shows signs of improvement but requires further enhancement.

Income Statement

Pernod Ricard's income statement shows a strong gross profit margin consistently above 59%, indicating efficient cost management. However, the company experienced a revenue decline of 2.01% in the latest year, which is a concern. The net profit margin improved to 14.84% from the previous year, showing enhanced profitability. The EBIT and EBITDA margins are robust, reflecting solid operational performance.

Balance Sheet

The balance sheet reveals a manageable debt-to-equity ratio of 0.83, suggesting a balanced approach to leverage. Return on equity is moderate at 10.69%, indicating decent profitability relative to shareholder equity. The equity ratio stands at 41%, reflecting a stable capital structure. However, the increasing debt levels over the years could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis shows a slight improvement in free cash flow growth at 2.75% after a previous decline. The operating cash flow to net income ratio is not available, which limits the analysis. The free cash flow to net income ratio is not calculated, indicating potential areas for improvement in cash flow management.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	10.04B	10.96B	11.60B	12.14B	10.70B	8.82B
Gross Profit	5.86B	6.52B	6.97B	7.25B	6.47B	5.29B
EBITDA	2.92B	3.28B	3.19B	3.75B	3.33B	2.63B
Net Income	1.41B	1.63B	1.48B	2.26B	2.00B	1.30B
Balance Sheet
Total Assets	37.68B	37.08B	39.19B	37.68B	36.01B	32.15B
Cash, Cash Equivalents and Short-Term Investments	2.40B	1.83B	2.68B	1.61B	2.53B	2.08B
Total Debt	13.93B	12.59B	13.62B	11.87B	11.17B	9.60B
Total Liabilities	21.15B	20.85B	22.39B	20.96B	19.76B	17.07B
Stockholders Equity	15.47B	15.21B	15.75B	15.72B	15.94B	14.83B
Cash Flow
Free Cash Flow	478.00M	1.12B	954.00M	1.33B	1.79B	1.57B
Operating Cash Flow	699.00M	1.79B	1.73B	2.03B	2.29B	2.00B
Investing Cash Flow	82.00M	-521.00M	-676.00M	-1.73B	-1.20B	-486.00M
Financing Cash Flow	-188.00M	-2.40B	-209.00M	-1.12B	-683.00M	-1.41B

Pernod Ricard Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 77.38
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 77.38 is below the 20-day moving average (MA) of 81.67, above the 50-day MA of 77.29, and below the 200-day MA of 83.47, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 44.37 is Neutral, neither overbought nor oversold. The STOCH value of 13.13 is Positive, 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
LPE	72 Outperform	€523.60M	11.83	7.22%	2.31%	3.60%	-9.53%
RI	71 Outperform	€19.44B	13.96	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	€2.13B	23.59	4.83%	4.18%	-13.80%	-45.00%
MBWS	55 Neutral	€307.62M	53.61	2.70%	―	-5.42%	-43.44%