Pernod Ricard S.A. (RI.PA) stock analysis

In our weekly check, Pernod Ricard S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 8, red flags: 3.

About Pernod Ricard S.A.

Pernod Ricard S.A. is a Consumer Defensive company (Beverages - Wineries & Distilleries) based in France, listed on PAR as RI.PA.

What our checks show for RI.PA

Red flags

• The net margin fell by 5.9 points over 5 years, to 12.8%: the company keeps less of each sale as profit.
• Revenue fell 8.2% a year over the last 3 years.
• The stock has fallen as much as 73% from a peak. Would you have held through that?

Warning signs

• Net debt is 3.8x a year of EBITDA (debt/equity 0.82). That limits room in a downturn and raises refinancing risk.
• The gross margin fell by 2.1 points, to 58.4%: costs are rising faster than prices.
• Analysts expect only about 1.3% a year of growth in revenue.
• Earnings per share fell 18.5% a year over the last 3 years.
• Net profit fell 19% a year over the last 3 years.
• The dividend takes 91% of profit: little cushion if profit falls.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 7.5%.

Strengths

• Operating cash flow is 1.31x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 3.2 points from today's 12.8%.
• Free cash flow is 12.6% of revenue: cash for dividends, buybacks or growth.
• The price is 14.2 times earnings (P/E), reasonable for its growth.
• A large company: market value $19.07 billion.
• Beta 0.52: the stock usually moves less than the market.

Similar companies

STZ · TAP-A · HEIA.AS · ABEV · DEO · 0291.HK

Questions

What grade does Pernod Ricard S.A. (RI.PA) have?

In our weekly check, Pernod Ricard S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 8, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of RI.PA stock?

This week's biggest flags for Pernod Ricard S.A.: Margins falling, Weak revenue growth, Deep past fall. In total 11 of 25 checks show a warning or a red flag.

What does Pernod Ricard S.A. do?

Pernod Ricard S.A. is a Consumer Defensive company (Beverages - Wineries & Distilleries) based in France, listed on PAR as RI.PA.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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