Morningstar Rating
Stock XPAR Rating as of
€126.95 +0.25(0.20%)
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Company Report
Company Report
Pernod Ricard Should Benefit From Premiumization and Pricing Over the Long Run
Jelena Sokolova
Pernod Ricard, formed in 1975 through the merger of two French aniseed liqueur makers by the same names, has established itself as the world's number-two distiller through a series of acquisitions. Although the industry is fairly concentrated (we estimate a four-firm concentration ratio of 0.6, above many other fast-moving consumer goods categories, including the global brewing industry at 0.5), we believe there is more consolidation to come. Outside of the top five firms, the industry is highly fragmented, with local players often dominating in niche product categories or narrowly defined geographies. These firms present a new wave of merger opportunities for the industry consolidators--including Pernod--to strengthen their presence in emerging markets.
Price vs Fair Value
Price vs Fair Value
RI is trading at a 750% premium.
Price
€126.70
Fair Value
€361.00
Uncertainty
Low
- 1-Star Price
- €111.53
- 5-Star Price
- €733.00
- Economic Moat
- Bpys
- Capital Allocation
- Lkmfxgns
Bulls Say, Bears Say
Bulls Say, Bears Say
Bulls
Pernod has a strong presence in some fast-growth emerging markets, and has labeled both China and India as "must win" markets.
Bears
Premium spirits are more cyclical than most other consumer staples categories, including beer, and volumes can suffer slightly steeper declines in economic downturns.
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News
News
- ABSOLUT® TAPS PARIS HILTON TO BRING BACK THE COSMO WITH NEW COLLAB
- THIS SUMMER MALIBU® ENLISTS PAIGE DESORBO TO UNLOCK VACATION YOU ANYTIME, ANYWHERE
- Skrewball Whiskey Encourages Consumers to "Skrew the Usual" With New Campaign
- Pernod Ricard Sales Fall as It Struggles in China, U.S. — 2nd Update
- Pernod Ricard Backs Guidance Despite Lower Sales — Update
- Pernod Ricard Backs Guidance Despite Lower Sales
- Pernod Ricard's Sainte Marguerite en Provence to Buy French Vineyard
- Sláinte! Why Irish whiskey sales have soared to over $1 billion a year in the U.S.
Trading Information
Trading Information
- Previous Close Price
- €126.70
- Day Range
€126.95–130.65
- 52-Week Range
€126.10–205.70
- Bid/Ask
- €126.80/€129.00
- Market Cap
- €31.90 Bil
- Volume/Avg
- 402,131/435,826
Key Statistics
Key Statistics
- Price/Earnings (Normalized)
- 15.25
- Price/Sales
- 2.78
- Dividend Yield (Trailing)
- 3.71%
- Dividend Yield (Forward)
- 3.71%
- Total Yield
- 6.16%
Company Profile
Company Profile
Pernod Ricard is the world's second-largest spirits maker by volume, behind Diageo. The firm's key markets are Europe, the United States, and Asia. Pernod's key spirits brands include Absolut vodka, Beefeater gin, Chivas Regal and The Glenlivet scotch whisky, Jameson Irish whiskey, Malibu rum, and Martell cognac. The firm's strategic wine portfolio, which represented around 4% of fiscal 2023 revenue among the group's focus brands, includes Jacob's Creek, Brancott Estate, Campo Viejo, Mumm, and Perrier-Jouet.
- Sector
- Consumer Defensive
- Industry
- Beverages - Wineries & Distilleries
- Stock Style Box
- Large Core
- Total Number of Employees
- 20,617
- Website
- https://www.pernod-ricard.com
Competitors
Competitors
- Brown-Forman Corp Registered Shs -B- Non Vtg BF.B
- Diageo PLC DGE
Valuation
Valuation
| Metric | RI | BF.B | DGE |
|---|---|---|---|
Price/Earnings (Normalized) | 15.25 | 20.18 | 17.10 |
Price/Book Value | 1.97 | 5.80 | 7.24 |
Price/Sales | 2.78 | 4.93 | 3.41 |
Price/Cash Flow | 13.96 | 22.65 | 14.39 |
Price/Earnings
RI
BF.B
DGE
Financial Strength
Financial Strength
| Metric | RI | BF.B | DGE |
|---|---|---|---|
Quick Ratio | 0.66 | 0.78 | 0.65 |
Current Ratio | 1.91 | 2.59 | 1.58 |
Interest Coverage | 8.50 | 11.11 | 5.60 |
Quick Ratio
RI
BF.B
DGE
Profitability
Profitability
| Metric | RI | BF.B | DGE |
|---|---|---|---|
Return on Assets (Normalized) | 5.39% | 10.39% | 9.16% |
Return on Equity (Normalized) | 12.64% | 24.93% | 42.99% |
Return on Invested Capital (Normalized) | 7.92% | 14.31% | 14.78% |
Return on Assets
RI
BF.B
DGE
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Beverages - Wineries & Distilleries Industry Comparables
Beverages - Wineries & Distilleries Industry Comparables
| 1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| Diageo PLC DGEAF | — | Hckn | $70.0 Bil | |||
| Diageo PLC ADR DEO | Gxkrgrfz | Gprt | $70.0 Bil | |||
| Constellation Brands Inc Class A STZ | Frkwxsnhh | Zdnq | $47.1 Bil | |||
| Pernod Ricard SA PDRDF | — | Swgz | $34.1 Bil | |||
| Pernod Ricard SA ADR PRNDY | — | Tpxh | $34.1 Bil | |||
| Brown-Forman Corp Class A BF.A | Pcxqphspt | Zhhtz | $20.6 Bil | |||
| Brown-Forman Corp Registered Shs -B- Non Vtg BF.B | Vfdxrvxgm | Mwqm | $20.6 Bil | |||
| Davide Campari-Milano NV Az nom Post Frazionamento DVDCF | — | Nvscp | $11.4 Bil | |||
| Davide Campari-Milano NV ADR DVCMY | — | Nxllm | $11.4 Bil | |||
| Thai Beverage PLC ADR TBVPY | — | Xvvj | $8.3 Bil |
