Pernod Ricard (PRNDY) AI Stock Analysis

Compare

60 Followers

Top Page

Pernod Ricard

(OTC:PRNDY)

Rating:63Neutral

Price Target:

$22.50

▲(0.27%Upside)

Pernod Ricard's stock score is primarily driven by its stable financial performance and attractive valuation despite recent financial pressures. The technical analysis suggests cautious short-term sentiment, yet the strong dividend yield provides a buffer for investors. The absence of additional insights from earnings calls or corporate events means these areas do not impact the overall score.

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

Market Cap

$27.19B

Dividend Yield4.75%

Average Volume (3M)15.40K

Price to Earnings (P/E)23.8

Beta (1Y)0.58

Revenue Growth-3.63%

EPS Growth-45.78%

CountryUS

Employees19,557

SectorConsumer Defensive

Sector Strength53

IndustryBeverages - Wineries & Distilleries

Share Statistics

EPS (TTM)1.05

Shares Outstanding1,261,346,000

10 Day Avg. Volume46,189

30 Day Avg. Volume15,396

Financial Highlights & Ratios

PEG Ratio0.31

Price to Book (P/B)0.66

Price to Sales (P/S)0.00

P/FCF Ratio7.74

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$22.50

Price Target Upside0.27% Upside

Rating ConsensusHold

Number of Analyst Covering1

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 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 Earnings Call Summary

Earnings Call Date:Feb 06, 2025

(Q1-2025)

% Change Since: 5.25%|

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.

Q1-2025 Updates

Positive Updates

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.

Negative Updates

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.

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.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
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
EBITDA	3.19B	3.75B	3.33B	2.63B	1.32B
Net Income	1.48B	2.26B	2.00B	1.30B	329.00M
Balance Sheet
Total Assets	39.19B	37.68B	36.01B	32.15B	31.52B
Cash, Cash Equivalents and Short-Term Investments	2.68B	1.61B	2.53B	2.08B	1.94B
Total Debt	13.62B	11.87B	11.17B	9.60B	10.41B
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

Positive

Last Price22.44

Price Trends

50DMA

21.01

Positive

100DMA

20.95

Positive

200DMA

22.52

Negative

Market Momentum

MACD

0.14

Negative

RSI

61.55

Neutral

STOCH

91.32

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRNDY, the sentiment is Positive. The current price of 22.44 is above the 20-day moving average (MA) of 20.63, above the 50-day MA of 21.01, and below the 200-day MA of 22.52, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 61.55 is Neutral, neither overbought nor oversold. The STOCH value of 91.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRNDY.

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
ABEV	75 Outperform	$37.76B	14.84	15.09%	3.65%	1.25%	-13.02%
DEO	71 Outperform	$58.65B	16.25	35.83%	3.09%	-1.21%	-8.89%
BF.B	69 Neutral	$13.48B	15.49	23.14%	3.20%	-4.90%	-14.49%
Sector *	65 Neutral	$26.88B	15.20	-4.27%	3.19%	1.02%	1.89%
STZ	65 Neutral	$30.07B	49.10	-5.05%	2.41%	-0.47%	-117.62%
TAP	65 Neutral	$10.02B	9.93	7.90%	3.79%	-5.17%	-0.74%
PRNDY	63 Neutral	$27.19B	23.76	6.78%	4.75%	-3.63%	-45.78%

* Consumer Defensive Sector Average

Performance Comparison

PRNDY

Pernod Ricard

22.44

-5.15

-18.67%

STZ

Constellation Brands

172.12

-82.59

-32.43%

DEO

Diageo

105.49

-21.79

-17.12%

TAP

Molson Coors

49.81

0.19

0.38%

BF.B

Brown-Forman B

29.09

-14.02

-32.52%

ABEV

Ambev SA

2.34

0.33

16.42%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 02, 2025