Pernod Ricard (PRNDY) AI Stock Analysis

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Pernod Ricard

(OTC:PRNDY)

Rating:65Neutral

Price Target:

$23.00

▲(0.52% Upside)

Pernod Ricard's stock is supported by a solid financial foundation and positive technical indicators. However, the high P/E ratio suggests potential overvaluation, and declines in key financial metrics pose challenges. The attractive dividend yield is a positive aspect for income-focused investors.

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

Market Cap

$29.16B

Dividend Yield4.74%

Average Volume (3M)97.99K

Price to Earnings (P/E)25.3

Beta (1Y)0.64

Revenue Growth-3.63%

EPS Growth-45.78%

CountryUS

Employees19,557

SectorConsumer Defensive

Sector Strength49

IndustryBeverages - Wineries & Distilleries

Share Statistics

EPS (TTM)N/A

Shares Outstanding1,261,346,000

10 Day Avg. Volume17,822

30 Day Avg. Volume97,990

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.44

Enterprise Value/Revenue3.62

Enterprise Value/Gross Profit6.02

Enterprise Value/Ebitda12.26

Forecast

1Y Price Target

$23.00

Price Target Upside0.52% Upside

Rating ConsensusHold

Number of Analyst Covering0

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 production, marketing, and distribution of its wide range of premium alcoholic beverages. The company's key revenue streams include the sale of spirits like whiskey, vodka, rum, gin, and tequila, as well as wines and champagne. Pernod Ricard leverages its extensive global distribution network and strategic partnerships with local distributors and retailers to ensure its products reach a broad customer base. The company also engages in targeted marketing campaigns and brand innovations to enhance brand visibility and consumer engagement. Additionally, Pernod Ricard's premiumization strategy focuses on increasing sales of higher-margin products, thus boosting profitability. The company's earnings are influenced by factors such as global economic conditions, consumer trends, and changes in regulations related to alcohol sales and distribution.

Pernod Ricard Earnings Call Summary

Earnings Call Date:Aug 28, 2025

(Q1-2025)

% Change Since: |

Next Earnings Date:Feb 12, 2026

Earnings Call Sentiment Neutral

The earnings call reflects a challenging quarter with notable declines in key markets like China and the U.S., offset by strong performances in India, global travel retail, and operational efficiencies. Market share gains in many regions provide a positive outlook, but the overall sentiment remains cautious due to significant negative trends in sales and economic pressures.

Q1-2025 Updates

Positive Updates

Market Share Gains

Achieved market share gains in over 70% of main markets, including Japan, Canada, Poland, Brazil, Turkey, and Nigeria.

Strong Performance in India

Solid sales growth of +2% in India, with expectations of strong growth for the full year, especially in Jameson and Seagram whiskeys.

Global Travel Retail Growth

Global travel retail saw a growth of +3%, with strong performance in all regions except Asia.

Operational Efficiencies

Focus on production efficiency initiatives and marketing return on investment, leveraging key digital programs for better cost discipline.

Resilient Performance in Europe

Organic sales growth at minus 3% in Europe, with resilience shown despite adverse weather conditions.

Negative Updates

Decline in Organic Net Sales

Reported a minus 5.9% decline in organic net sales for Q1, with a minus 8.5% reported overall.

Significant Decline in China

China's sales declined by minus 26% due to a challenging macroeconomic environment and weak consumer demand.

Challenges in the U.S. Market

Sales in the U.S. declined by minus 10%, with ongoing inventory adjustments and strong promotional intensity.

Negative Price Mix

Price mix was at minus 6%, mainly due to negative country mix impacts from China and the U.S.

Impact of Tariffs in China

Preliminary tariffs on Martell in China expected to impact performance, with an estimated annualized effect of circa 4% of EBIT.

Company Guidance

During the Q1 FY25 sales call, the company reported a 5.9% decline in organic net sales, which was an 8.5% decline on a reported basis. Excluding Russia, the decline was 5%. The decline was attributed to weak performance in China and adverse weather in Europe. However, the company saw strong performances in markets such as Japan, Canada, Poland, Brazil, Turkey, and Nigeria, with overall volumes remaining stable. The price mix FX was at minus 6%. The U.S. market experienced a 10% decline, while India showed a 2% growth despite sales phasing issues. China faced a sharp 26% decline due to a challenging macroeconomic environment. Global travel retail grew by 3%, and Latin America showed a 3% growth, driven by strong results in Brazil. The company expects organic net sales to return to modest growth for the full year, with a sustained organic operating margin, and plans to invest around 16% of net sales in advertising and promotions.

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 Price22.88

Price Trends

50DMA

21.57

Positive

100DMA

21.12

Positive

200DMA

21.34

Positive

Market Momentum

MACD

0.53

Negative

RSI

54.04

Neutral

STOCH

55.18

Neutral

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 22.88 is above the 20-day moving average (MA) of 22.39, above the 50-day MA of 21.57, and above the 200-day MA of 21.34, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 54.04 is Neutral, neither overbought nor oversold. The STOCH value of 55.18 is Neutral, 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABEV	73 Outperform	$35.30B	13.61	15.08%	2.05%	-0.79%	-10.83%
BF.B	70 Outperform	$14.14B	16.89	23.14%	3.01%	-4.90%	-14.49%
DEO	68 Neutral	$63.50B	27.09	22.33%	3.72%	0.22%	-38.76%
TAP	68 Neutral	$9.97B	10.16	7.79%	3.62%	-5.48%	-6.99%
PRNDY	65 Neutral	$29.16B	25.27	6.78%	4.74%	-3.63%	-45.78%
Sector *	63 Neutral	$20.46B	14.51	-3.60%	3.15%	2.60%	-5.31%
STZ	62 Neutral	$27.92B	49.10	-5.05%	2.56%	-0.47%	-117.62%

* Consumer Defensive Sector Average

Performance Comparison

PRNDY

Pernod Ricard

22.88

-4.81

-17.37%

STZ

Constellation Brands

160.50

-74.76

-31.78%

DEO

Diageo

112.03

-16.65

-12.94%

TAP

Molson Coors

51.13

-0.64

-1.24%

BF.B

Brown-Forman B

29.85

-13.93

-31.82%

ABEV

Ambev SA

2.21

0.05

2.31%

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 31, 2025