WATCH Pernod Ricard SA (RI.PA)
Consumer Defensive · Beverages - Wineries & Distilleries · PAR · France
57
Final Score
4.1%
Margin of Safety
54
Quality Score
€62.54
Current Price
€15.7B
Market Cap
Key Metrics
Pe Ratio
11.19
Forward Pe
10.50
Pb Ratio
1.02
Ev Ebitda
10.22
Roe
7.6%
Gross Margin
58.4%
Operating Margin
19.7%
Net Margin
12.8%
Dividend Yield
729.0%
Debt To Equity
76.65
Current Ratio
2.47
Beta
0.48
📈 Trend Charts
Revenue Trend
EPS Trend
Net Income Trend
Free Cash Flow Trend
Intrinsic Value Estimates
Low
€52.16
Base
€65.20
High
€78.23
⚠️ Value Trap Flags
- 🚩 {'flag': 'DEBT_OUTPACING_INCOME', 'severity': 'MED', 'evidence': 'Net debt growth (26.9%) outpacing operating income growth (-2.6%)'}
Pipeline Stage Details
Stage A — Hard Filters ✅
Pe Ratio
11.19
Eps Positive Years
4.00
Eps Lookback
4.00
Fcf Positive Years
4.00
Fcf Lookback
4.00
Debt To Equity
0.77
Current Ratio
2.47
Dilution Cagr
-0.01
Stage B — Quality Score: 54/100
Stage C — Cyclicality: LOW
Normalized EPS
€7.19
Stage F — Final Score Breakdown
| Component | Weighted Score |
|---|---|
| Valuation | 10.5 |
| Earnings Quality | 13.4 |
| Balance Sheet | 15.0 |
| Stability | 12.0 |
| Moat Proxies | 5.7 |
Top Drivers
- Modest discount: 4% margin of safety (price €62.54 vs intrinsic €65.20).
- Reasonable P/E of 11.2x — below long-run market average (~15-17x), suggesting the stock is not overpriced.
- Conservative leverage: D/E ratio of 0.77x is well within Graham's maximum of 1.0x, reducing insolvency risk.
- Strong free cash flow generation — the company converts earnings into real cash effectively, supporting dividends, buybacks, and debt reduction.
- Low cyclicality: earnings are relatively stable and predictable, making intrinsic value estimates more reliable.
Top Risks
- ⚠️ [MED] Leverage risk: Net debt growth (26.9%) outpacing operating income growth (-2.6%). Growing debt with stagnant income can lead to financial distress.
Financial History
| Year | Revenue | Gross Profit | Operating Income | Net Income | EPS |
|---|---|---|---|---|---|
| 2022 | €10.7B | €6.5B | €3.0B | €2.0B | €7.69 |
| 2023 | €12.1B | €7.2B | €3.3B | €2.3B | €8.81 |
| 2024 | €11.6B | €7.0B | €3.1B | €1.5B | €5.83 |
| 2025 | €11.0B | €6.5B | €2.9B | €1.6B | €6.45 |
Cash Flow History
| Year | Operating CF | CapEx | Free Cash Flow |
|---|---|---|---|
| 2022 | €2.3B | €-506.0M | €1.8B |
| 2023 | €2.0B | €-702.0M | €1.3B |
| 2024 | €1.7B | €-773.0M | €954.0M |
| 2025 | €1.8B | €-667.0M | €1.1B |