Pernod Ricard (PRNDY) AI Stock Analysis

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Pernod Ricard

(OTC:PRNDY)

68Neutral

Pernod Ricard's stock is moderately attractive, supported by a solid financial base and positive short-term technical trends. Challenges include declining financial performance metrics and potential overbought conditions in the stock, which could hinder upward momentum. The valuation is reasonable, with a competitive dividend yield enhancing its appeal.

Pernod Ricard (PRNDY) vs. S&P 500 (SPY)

Market Cap

$25.16B

Dividend Yield3.56%

Average Volume (3M)61.08K

Price to Earnings (P/E)20.7

Beta (1Y)0.62

Revenue Growth-3.63%

EPS Growth-45.78%

CountryUS

Employees19,557

SectorConsumer Defensive

Sector Strength86

IndustryBeverages - Wineries & Distilleries

Share Statistics

EPS (TTM)0.94

Shares Outstanding1,261,346,000

10 Day Avg. Volume183,253

30 Day Avg. Volume61,084

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)4.68

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Pernod Ricard Business Overview & Revenue Model

Company DescriptionPernod Ricard (PRNDY) is a leading global producer of premium wines and spirits. Headquartered in Paris, France, the company operates in the alcoholic beverage industry and is known for its diverse portfolio of iconic brands. These include Absolut Vodka, Chivas Regal, Jameson Irish Whiskey, Martell Cognac, and Perrier-Jouët Champagne, among others. Pernod Ricard's operations span across production, distribution, and marketing of its products, serving consumers worldwide with a strong presence in Europe, the Americas, Asia, and Africa.

How the Company Makes MoneyPernod Ricard generates revenue primarily through the sale of its alcoholic beverages, which are distributed across various channels including retail, wholesale, online platforms, and direct sales to bars, restaurants, and other hospitality venues. The company's business model focuses on premiumization, leveraging its strong brand portfolio to cater to consumer preferences for high-quality and luxury spirits. Pernod Ricard also invests in strategic marketing and brand-building initiatives to enhance brand equity and drive sales. Key revenue streams include sales from its major spirit categories: whiskey, vodka, cognac, rum, and liqueurs. Additionally, the company capitalizes on its extensive distribution network and strategic partnerships with distributors and retailers to expand its market reach and optimize its supply chain efficiency. Pernod Ricard's earnings are influenced by factors such as consumer trends, regulatory changes, and economic conditions in its operating regions.

Pernod Ricard Financial Statement Overview

Summary

Pernod Ricard demonstrates a solid financial foundation with strong gross margins and effective cash conversion. However, recent declines in revenue, net income, and free cash flow growth present challenges that need addressing. The company shows resilience in maintaining a healthy equity base despite these pressures.

Income Statement

Positive

Pernod Ricard's revenue has shown some volatility, with a noticeable decline in the most recent year. Net profit margin decreased significantly from the previous year, indicating potential challenges in cost management or pricing. Despite this, gross profit margins remain robust, reflecting strong production efficiency.

Balance Sheet

Positive

The company maintains a stable equity base with a moderate debt-to-equity ratio, suggesting a balanced approach to leveraging. Return on Equity has decreased, reflecting lower net income relative to equity. The equity ratio is healthy, indicating a solid financial foundation.

Cash Flow

Neutral

Free cash flow has declined, indicating pressure on cash generation. The operating cash flow to net income ratio is strong, suggesting effective cash conversion from earnings. However, the decrease in free cash flow growth rate could signal challenges in sustaining investment or operational flexibility.

Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
11.60B	12.14B	10.70B	8.82B	8.45B
	Gross Profit
6.97B	7.25B	6.47B	5.29B	5.09B
	EBIT
2.72B	3.27B	2.96B	2.36B	2.19B
	EBITDA
3.19B	3.75B	3.33B	2.63B	1.32B
	Net Income Common Stockholders
1.48B	2.26B	2.00B	1.30B	329.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.68B	1.61B	2.53B	2.08B	1.94B
	Total Assets
39.19B	37.68B	36.01B	32.15B	31.52B
	Total Debt
13.62B	11.87B	11.17B	9.60B	10.41B
	Net Debt
10.94B	10.26B	8.64B	7.52B	8.48B
	Total Liabilities
22.39B	20.96B	19.76B	17.07B	17.31B
	Stockholders Equity
15.75B	15.72B	15.94B	14.83B	13.97B
Cash Flow		Free Cash Flow
954.00M	1.33B	1.79B	1.57B	816.00M
	Operating Cash Flow
1.73B	2.03B	2.29B	2.00B	1.18B
	Investing Cash Flow
-676.00M	-1.73B	-1.20B	-486.00M	-936.00M
	Financing Cash Flow
-209.00M	-1.12B	-683.00M	-1.41B	795.00M

Pernod Ricard Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price19.56

Price Trends

50DMA

20.92

Negative

100DMA

21.72

Negative

200DMA

24.32

Negative

Market Momentum

MACD

-0.44

Positive

RSI

39.18

Neutral

STOCH

17.60

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRNDY, the sentiment is Neutral. The current price of 19.56 is below the 20-day moving average (MA) of 20.22, below the 50-day MA of 20.92, and below the 200-day MA of 24.32, indicating a neutral trend. The MACD of -0.44 indicates Positive momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 17.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRNDY.

Pernod Ricard Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABEV	83 Outperform	$37.01B	14.22	16.55%	5.43%	―	―
TAP	74 Outperform	$12.28B	11.33	8.54%	2.95%	-0.64%	22.45%
BF.B	72 Outperform	$16.06B	16.32	27.99%	2.60%	-5.11%	3.64%
DEO	70 Neutral	$58.26B	16.62	35.83%	3.81%	-1.21%	-8.89%
PRNDY	68 Neutral	$25.16B	20.71	6.78%	3.56%	-3.63%	-45.78%
STZ	68 Neutral	$33.15B	49.10	-0.98%	2.36%	3.69%	-55.78%
Sector *	63 Neutral	$20.41B	13.98	-16.01%	3.26%	1.30%	5.01%

* Consumer Defensive Sector Average

Performance Comparison

PRNDY

Pernod Ricard

20.42

-9.20

-31.06%

STZ

Constellation Brands

184.75

-78.71

-29.88%

DEO

Diageo

107.04

-29.16

-21.41%

TAP

Molson Coors

59.95

-5.76

-8.77%

BF.B

Brown-Forman B

33.64

-15.72

-31.85%

ABEV

Ambev SA

2.26

0.00

0.00%

Pernod Ricard Earnings Call Summary

Earnings Call Date: Feb 6, 2025 | % Change Since: -8.26% | Next Earnings Date: Aug 28, 2025

Earnings Call Sentiment Neutral

The earnings call presented a challenging start to the fiscal year with notable declines in key markets like China and the U.S., offset by strong performances in other regions and operational efficiency efforts. The sentiment is cautiously optimistic about a gradual improvement in key markets, but overall, the challenges faced indicate a neutral sentiment.

Highlights

Strong Market Performance

Despite overall challenges, the company achieved market share gains in over 70% of its main markets, including Japan, Canada, Poland, Brazil, Turkey, Nigeria, and strong travel retail performances in the Americas and Europe.

Solid Growth in India

India reported a solid sales growth of 2%, with expectations for strong growth in the full year, driven by double-digit growth on Jameson and Seagram whiskeys, Royal Stag, and Blenders Pride.

Global Travel Retail Growth

Global travel retail saw strong growth of 3% in all regions except Asia, with good performance for Absolut, Jameson, and Ballantine’s.

Operational Efficiencies

Emphasis on operational efficiencies, including production efficiency initiatives and marketing improvements, to sustain operating margin and adapt to challenging environments.

Lowlights

Overall Sales Decline

The company reported a 5.9% decline in organic net sales for Q1 FY’25, with a reported decline of 8.5%.

Significant Decline in China

China experienced a sharp sales decline of 26% due to a challenging macroeconomic environment and weak consumer demand.

U.S. Market Challenges

The U.S. market saw a 10% decline, with inventory adjustments and strong promotional intensity impacting net sales.

Adverse Weather Impact in Europe

Adverse weather conditions over the summer negatively affected market performance in Europe.

Negative Price Mix

Price mix was at minus 6% in Q1, mainly due to negative market mix in the U.S. and China.

Company Guidance

In the recent Q1 FY'25 sales call, the company reported a 5.9% decline in organic net sales, or 8.5% on a reported basis, with a 5% decline excluding Russia. The company highlighted several key metrics: the U.S. experienced a 10% decline, India saw a 2% growth despite sales phasing, and China faced a significant 26% sales decline due to weak consumer demand and tariffs. Global travel retail grew by 3%, with strong performances in Japan, Canada, and Brazil among others. The company expects modest growth for the full year, with a focus on sustaining operating margins through operational efficiencies and strict cost discipline. The pricing environment remains challenging, particularly in the U.S. and China, but the company maintains confidence in its long-term strategy.

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.