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Pernod Ricard
(OTC:PRNDY)
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Rating:71Outperform
Price Target:
$17.50
▲(22.21% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by solid financial performance (strong margins and stable leverage) and supportive valuation (moderate P/E and high dividend yield). Technicals are constructive but somewhat extended, adding near-term pullback risk that tempers the overall rating.
Positive Factors
High Profitability
Sustained gross margins near 60% and improving net margin indicate durable pricing power from premium brands. High margins support marketing, aging inventories and dividend capacity, and provide a buffer versus input cost swings, underpinning long-term cash generation.
Negative Factors
Weak Revenue Growth
Negative top-line growth over recent periods suggests challenges expanding volumes or prices. Persistent revenue decline can erode operating leverage and limit investment capacity; reversing this requires sustained innovation, geographic execution or successful premium mix recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained gross margins near 60% and improving net margin indicate durable pricing power from premium brands. High margins support marketing, aging inventories and dividend capacity, and provide a buffer versus input cost swings, underpinning long-term cash generation.
Read all positive factors
Pernod Ricard (PRNDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.70B
Dividend Yield6.91%
Average Volume (3M)255.08K
Price to Earnings (P/E)12.2
Beta (1Y)0.67
Revenue Growth-6.18%
EPS Growth35.75%
CountryUS
Employees18,224
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Wineries & Distilleries
Share Statistics
EPS (TTM)1.12
Shares Outstanding1,261,346,000
10 Day Avg. Volume0
30 Day Avg. Volume255,084
Financial Highlights & Ratios
PEG Ratio1.24
Price to Book (P/B)1.41
Price to Sales (P/S)1.95
P/FCF Ratio19.08
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.33
Revenue Forecast (FY)$10.85B
Pernod Ricard Business Overview & Revenue Model
Company Description
Pernod Ricard SA operates as a global purveyor of alcoholic beverages, manufacturing and distributing a diverse array of wines and spirits across international markets. The company, which offers its products under numerous distinct labels, was est...
How the Company Makes Money
Pernod Ricard primarily makes money by selling branded alcoholic beverages to distributors, wholesalers, retailers, and on-trade customers (e.g., bars, restaurants, hotels), with revenue recognized from shipments of its products across global mark...
Pernod Ricard Earnings Call Summary
Earnings Call Date:Aug 28, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 27, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant achievements in operational efficiencies and cash flow management. However, these were offset by declines in key markets such as China and the U.S., leading to a cautious outlook for the fiscal year '26.Positive Updates
Strong Cash Flow Management
Free cash flow reached EUR 1.133 billion, up 18%, with strong operating working capital management leading to an improvement in cash conversion.
Negative Updates
Net Sales Decline
Net sales were down 3% organically and 6% in reported terms, impacted by currency effects and declines in China, U.S.A., and GTR Asia.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Cash Flow Management
Free cash flow reached EUR 1.133 billion, up 18%, with strong operating working capital management leading to an improvement in cash conversion.
Read all positive updates
Company Guidance
In the fiscal year 2025 sales and results call, Pernod Ricard discussed various financial metrics and strategic initiatives. The company reported a 3% organic decline in net sales, affected by currency impacts, with a 2% volume recovery marking the third consecutive semester of growth. Despite challenges in China, the U.S., and GTR Asia, Pernod Ricard achieved organic operating margin expansion of 64%, driven by strong cost discipline and EUR 900 million in operational efficiencies. Free cash flow increased by 18% to EUR 1.133 billion, supported by effective working capital management. The company also proposed a stable dividend of EUR 4.70 per share. Looking forward, Pernod Ricard aims for organic net sales growth of 3% to 6% per annum from fiscal years 2027 to 2029, with a focus on margin expansion and a new EUR 1 billion efficiency program over the next four years.Pernod Ricard Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.00B | 10.96B | 11.60B | 12.14B | 10.70B | 8.82B |
| Gross Profit | 5.83B | 6.52B | 6.97B | 7.25B | 6.47B | 5.29B |
| EBITDA | 2.88B | 3.19B | 3.19B | 3.75B | 3.33B | 2.63B |
| Net Income | 1.40B | 1.63B | 1.48B | 2.26B | 2.00B | 1.30B |
Balance Sheet | ||||||
| Total Assets | 37.66B | 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 | 13.60B | 12.59B | 13.62B | 11.87B | 11.17B | 9.60B |
| Total Liabilities | 21.14B | 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 | 1.16B | 1.12B | 954.00M | 1.33B | 1.79B | 1.57B |
| Operating Cash Flow | 1.68B | 1.79B | 1.73B | 2.03B | 2.29B | 2.00B |
| Investing Cash Flow | 66.39M | -521.00M | -676.00M | -1.73B | -1.20B | -486.00M |
| Financing Cash Flow | -1.35B | -2.40B | -209.00M | -1.12B | -683.00M | -1.41B |
Pernod Ricard Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $44.99B | 14.35 | 18.13% | 4.28% | 4.24% | 19.95% | |
71 Outperform | $19.70B | 12.20 | 9.20% | 7.64% | -6.18% | 35.75% | |
69 Neutral | $12.89B | 18.44 | 17.63% | 3.29% | -0.45% | -16.82% | |
69 Neutral | $12.89B | 18.44 | 17.63% | 3.42% | -0.45% | -16.82% | |
64 Neutral | $22.88B | 13.00 | 23.13% | 3.14% | -9.99% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $51.96B | 30.31 | 15.52% | 4.00% | -3.59% | -26.73% |
* Consumer Defensive Sector Average
PRNDY
Pernod Ricard
15.78
-5.72
-26.61%
BF.A
Brown Forman A
28.55
-0.71
-2.44%
STZ
Constellation Brands
136.35
-28.35
-17.21%
DEO
Diageo
95.01
-11.89
-11.13%
BF.B
Brown-Forman B
28.03
-1.16
-3.96%
ABEV
Ambev SA
2.84
0.75
35.76%
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.