(BN) Danone - Ratings and Ratios
Yogurt, Baby Formula, Water, Plant-Based, Medical Nutrition
Description: BN Danone
Danone S.A. (ticker BN) is a global food-and-beverage group headquartered in Paris, operating across Europe, North America, Asia, Africa, the Middle East and the CIS. Its business is organized into three segments – Essential Dairy & Plant-Based, Specialized Nutrition, and Waters – covering a portfolio that ranges from yogurts, cheese and plant-based milks to infant formulas, medical nutrition, and branded mineral waters.
Key brands include Actimel, Activia, Alpro, Aptamil, Danone, Oikos, Silk, So Delicious, Evian, Volvic, and many regional names such as Bonafont and Lanjarón. Distribution channels span traditional retail, convenience stores, food-service outlets, hospitals/pharmacies and growing e-commerce networks.
**Recent quantitative highlights (FY 2023-24)**: - Revenue of €27.5 bn, with a 3.2 % YoY increase driven largely by a 9 % rise in plant-based sales, which now represent roughly 12 % of total volume. - Adjusted operating margin of 7.8 %, down 0.4 pp amid higher commodity and logistics costs, but offset by price-adjustments in the Waters segment. - Free cash flow conversion of 78 % of EBITDA, supporting a steady dividend payout ratio of ~70 % of net income.
**Sector-level drivers affecting Danone**: - Accelerating consumer shift toward “better-for-you” and plant-based products, projected to grow at a CAGR of 10-12 % globally through 2028. - Inflationary pressure on dairy and raw-material inputs, which compresses margins unless offset by price-elasticity-aware pricing strategies. - Regulatory scrutiny on infant-formula marketing and nutritional claims, creating compliance costs but also barriers to entry for new competitors.
**Strategic considerations**: Danone’s “One Planet One Health” agenda aims to double its plant-based portfolio share and achieve carbon-neutral operations by 2050, which could unlock premium pricing and align with ESG-focused investor demand. However, the success of this transition hinges on execution risk in supply-chain restructuring and consumer acceptance in price-sensitive markets.
For a deeper, data-driven assessment of Danone’s valuation metrics and peer comparison, the ValueRay platform offers a transparent, model-based view.
BN Stock Overview
| Market Cap in USD | 58,202m |
| Sub-Industry | Packaged Foods & Meats |
| IPO / Inception |
BN Stock Ratings
| Growth Rating | 86.9% |
| Fundamental | 79.0% |
| Dividend Rating | 52.6% |
| Return 12m vs S&P 500 | 6.18% |
| Analyst Rating | - |
BN Dividends
| Dividend Yield 12m | 2.77% |
| Yield on Cost 5y | 5.05% |
| Annual Growth 5y | 0.00% |
| Payout Consistency | 99.2% |
| Payout Ratio | 75.4% |
BN Growth Ratios
| Growth Correlation 3m | 70.7% |
| Growth Correlation 12m | 80.2% |
| Growth Correlation 5y | 80.7% |
| CAGR 5y | 19.70% |
| CAGR/Max DD 3y (Calmar Ratio) | 1.47 |
| CAGR/Mean DD 3y (Pain Ratio) | 5.91 |
| Sharpe Ratio 12m | -0.23 |
| Alpha | 15.63 |
| Beta | 0.406 |
| Volatility | 16.70% |
| Current Volume | 952.8k |
| Average Volume 20d | 952.8k |
| Stop Loss | 75.3 (-3.1%) |
| Signal | 0.61 |
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income (2.85b TTM) > 0 and > 6% of Revenue (6% = 3.27b TTM) |
| FCFTA 0.13 (>2.0%) and ΔFCFTA 5.69pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -1.32% (prev -3.67%; Δ 2.36pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.17 (>3.0%) and CFO 7.37b > Net Income 2.85b (YES >=105%, WARN >=100%) |
| Net Debt (13.59b) to EBITDA (9.10b) ratio: 1.49 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.95 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (644.4m) change vs 12m ago 0.45% (target <= -2.0% for YES) |
| Gross Margin 49.46% (prev 46.67%; Δ 2.79pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 122.3% (prev 76.08%; Δ 46.26pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 4.75 (EBITDA TTM 9.10b / Interest Expense TTM 1.31b) >= 6 (WARN >= 3) |
Altman Z'' 2.53
| (A) -0.02 = (Total Current Assets 12.90b - Total Current Liabilities 13.62b) / Total Assets 43.76b |
| (B) 0.38 = Retained Earnings (Balance) 16.73b / Total Assets 43.76b |
| (C) 0.14 = EBIT TTM 6.22b / Avg Total Assets 44.60b |
| (D) 0.44 = Book Value of Equity 12.16b / Total Liabilities 27.84b |
| Total Rating: 2.53 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 78.99
| 1. Piotroski 5.50pt = 0.50 |
| 2. FCF Yield 9.36% = 4.68 |
| 3. FCF Margin 10.14% = 2.54 |
| 4. Debt/Equity 0.96 = 2.06 |
| 5. Debt/Ebitda 1.49 = 0.97 |
| 6. ROIC - WACC (= 10.65)% = 12.50 |
| 7. RoE 17.09% = 1.42 |
| 8. Rev. Trend 46.89% = 3.52 |
| 9. EPS Trend 16.09% = 0.80 |
What is the price of BN shares?
Over the past week, the price has changed by +3.99%, over one month by +7.02%, over three months by +15.66% and over the past year by +23.62%.
Is Danone a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of BN is around 85.04 EUR . This means that BN is currently overvalued and has a potential downside of 9.45%.
Is BN a buy, sell or hold?
What are the forecasts/targets for the BN price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 76.7 | -1.3% |
| Analysts Target Price | - | - |
| ValueRay Target Price | 92.8 | 19.5% |
BN Fundamental Data Overview
Market Cap EUR = 49.92b (49.92b EUR * 1.0 EUR.EUR)
P/E Trailing = 27.2
P/E Forward = 18.8324
P/S = 1.8248
P/B = 2.9701
P/EG = 2.7292
Beta = 0.406
Revenue TTM = 54.56b EUR
EBIT TTM = 6.22b EUR
EBITDA TTM = 9.10b EUR
Long Term Debt = 9.88b EUR (from longTermDebt, last quarter)
Short Term Debt = 4.41b EUR (from shortTermDebt, last quarter)
Debt = 15.20b EUR (from shortLongTermDebtTotal, last quarter)
Net Debt = 13.59b EUR (from netDebt column, last quarter)
Enterprise Value = 59.11b EUR (49.92b + Debt 15.20b - CCE 6.01b)
Interest Coverage Ratio = 4.75 (Ebit TTM 6.22b / Interest Expense TTM 1.31b)
FCF Yield = 9.36% (FCF TTM 5.54b / Enterprise Value 59.11b)
FCF Margin = 10.14% (FCF TTM 5.54b / Revenue TTM 54.56b)
Net Margin = 5.21% (Net Income TTM 2.85b / Revenue TTM 54.56b)
Gross Margin = 49.46% ((Revenue TTM 54.56b - Cost of Revenue TTM 27.58b) / Revenue TTM)
Gross Margin QoQ = 50.90% (prev 50.04%)
Tobins Q-Ratio = 1.35 (Enterprise Value 59.11b / Total Assets 43.76b)
Interest Expense / Debt = 2.38% (Interest Expense 362.0m / Debt 15.20b)
Taxrate = 25.78% (373.0m / 1.45b)
NOPAT = 4.62b (EBIT 6.22b * (1 - 25.78%))
Current Ratio = 0.95 (Total Current Assets 12.90b / Total Current Liabilities 13.62b)
Debt / Equity = 0.96 (Debt 15.20b / totalStockholderEquity, last quarter 15.86b)
Debt / EBITDA = 1.49 (Net Debt 13.59b / EBITDA 9.10b)
Debt / FCF = 2.45 (Net Debt 13.59b / FCF TTM 5.54b)
Total Stockholder Equity = 16.64b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.50% (Net Income 2.85b / Total Assets 43.76b)
RoE = 17.09% (Net Income TTM 2.85b / Total Stockholder Equity 16.64b)
RoCE = 23.45% (EBIT 6.22b / Capital Employed (Equity 16.64b + L.T.Debt 9.88b))
RoIC = 16.82% (NOPAT 4.62b / Invested Capital 27.45b)
WACC = 6.17% (E(49.92b)/V(65.12b) * Re(7.51%) + D(15.20b)/V(65.12b) * Rd(2.38%) * (1-Tc(0.26)))
Discount Rate = 7.51% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: 33.33 | Cagr: 0.20%
[DCF Debug] Terminal Value 77.44% ; FCFE base≈4.59b ; Y1≈4.34b ; Y5≈4.11b
Fair Price DCF = 114.2 (DCF Value 73.54b / Shares Outstanding 644.0m; 5y FCF grow -7.05% → 3.0% )
EPS Correlation: 16.09 | EPS CAGR: -0.89% | SUE: -0.32 | # QB: 0
Revenue Correlation: 46.89 | Revenue CAGR: 43.76% | SUE: 0.67 | # QB: 0