One-glance verdict
Undervalued
$69.97 our estimate vs market $68.42
2% below our estimate, below the bear case
Fundamentals snapshot
Pernod Ricard SA
PDRDF · PNK · Consumer Defensive · Beverages - Wineries & Distilleries
Current price
$68.42
52-week range
$66.68 - $108.00
Market cap
$17.23B
Balance sheet
Watch
4.88x Stretched
Net debt $12.28B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 7.6% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Operating margin compressed from 27.4% to 19.6% over 3 years.
- Risk Net debt grew 4.0% over 3 years.
What this company does
Pernod Ricard SA
Pernod Ricard is a global company that makes and sells spirits and wine, owning many famous brands like Absolut vodka, Jameson Irish Whiskey, and Malibu rum. The company makes money by selling this wide variety of drinks that people often buy consistently for celebrations and social gatherings. This matters because strong customer loyalty to these well-known brands can lead to predictable and steady sales over time.
How the company got here
Pernod Ricard was born in 1975 when two historic French competitors, Pernod and Ricard, decided to merge. Both companies were famous for their anise-flavored spirits, a popular type of alcoholic drink in France. To grow beyond their home market, the new company began buying other well-known beverage makers from around the world. Major turning points included acquiring Irish Distillers in 1988, which brought the Jameson Irish whiskey brand into its family, and the purchase of a large part of the Seagram's business in 2001, adding brands like Chivas Regal scotch and Martell cognac. Another key move was buying Allied Domecq in 2005, which made it the world's second-largest spirits company and added brands like Beefeater gin and Malibu rum.
What it actually does
Pernod Ricard makes and sells a wide variety of alcoholic beverages that you would likely see in a bar or liquor store. Think of it as a very large house of famous drink brands from around the world. Its collection includes well-known names in nearly every major category of spirits, such as Absolut vodka, Jameson Irish whiskey, Havana Club rum, Beefeater gin, and The Glenlivet scotch whisky. The company also owns champagne brands like Mumm and Perrier-Jouët, as well as several wine labels, including Jacob's Creek and Campo Viejo. It even produces some non-alcoholic versions of its popular drinks.
Strategic International Brands
This is the company's largest and most important business area, featuring its top-priority global brands with the most international potential. These are the famous names you are most likely to recognize, such as Absolut vodka, Chivas Regal and Ballantine's scotch whiskies, Jameson Irish whiskey, and Martell cognac. People and businesses, like bars and restaurants, buy these drinks worldwide. This segment is the main engine of the company, representing the biggest portion of its sales and efforts to attract customers across many different countries.
Strategic Local Brands
This part of the business focuses on brands that are very popular in their home country or a specific region, but not necessarily worldwide. Think of them as local heroes with a strong, loyal following in a particular market. Examples might include certain whiskies that are primarily sold in India or aperitifs (drinks typically served before a meal) that are favorites in France. These brands are important because they give the company a strong foothold in key local markets and contribute significantly to sales in those areas.
Specialty Brands
This segment is all about smaller, unique, and often high-end craft spirits that appeal to consumers looking for something special. This includes brands like Monkey 47 gin, Rabbit Hole whiskey, and Malfy gin. These brands are often acquired when they are young and growing, and they help Pernod Ricard tap into new trends in the spirits world. While this is a smaller part of the overall business, it's a fast-growing area as more drinkers become interested in unique flavors and production stories.
Strategic Wines
As the name suggests, this division handles the company's wine portfolio. It includes well-known wine brands from different parts of the world, such as Jacob's Creek from Australia and Campo Viejo from Spain. While Pernod Ricard is more famous for its spirits, its wine business allows it to offer a wider range of products to customers. This segment caters to wine drinkers and represents a smaller portion of the company's total business compared to its large international spirit brands.
What management is betting on now
The company is heavily focused on 'premiumisation,' which means encouraging customers to choose higher-quality, more expensive drinks. Management believes that even if people drink less, they will be willing to pay more for a better product, especially for at-home cocktails. They are also investing in technology and data to better understand what drinkers want and to market their brands more effectively, for example, through digital advertising. Finally, sustainability is a major priority; the company is working to reduce its carbon footprint (the total amount of greenhouse gases generated by its actions) and use more renewable energy in its production.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $69.97 vs current price $68.42
Our most-likely fair value is $69.97 a share — about 2.3% above today's price of $68.42, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $12.3B. Interest coverage 4.9x.
Net debt
$12.28B
Interest coverage
4.88x
Pernod Ricard SA's profit covers its interest bill about 4.9 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
PDRDF
BASELINE
Pernod Ricard SA
Total debt $14.57B Interest coverage 4.88x This is the baseline the peer rows are being compared against.
Total debt $22.20B Interest coverage 2.94x -40% vs PDRDF Carries about 1.7x less debt cushion than PDRDF.
Total debt $10.53B Interest coverage 7.92x +62% vs PDRDF Carries about 1.6x more debt cushion than PDRDF.
Total debt $2.44B Interest coverage 11.18x +129% vs PDRDF Carries about 2.3x more debt cushion than PDRDF.
Total debt $3.22B Interest coverage 5.72x +17% vs PDRDF Carries about 1.2x more debt cushion than PDRDF.
Total debt $882.80M Interest coverage 4.86x -0% vs PDRDF Has roughly the same debt cushion as PDRDF.
What you should know
The case for and against PDRDF
3 Rewards
2 Risks
Rewards
-
Returns 7.6% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 4/10 years.
-
Trades at 12.5x P/E vs peer median 26.0x (52.0% cheaper).
Risks
-
Operating margin compressed from 27.4% to 19.6% over 3 years.
-
Net debt grew 4.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
12.51x
Forward P/E
—
P/B
0.96x
P/S
1.83x
EV/EBITDA
11.18x
PEG ratio
2.00x
Profitability
How much profit each dollar creates
Gross margin
58.4%
Operating margin
19.6%
Net margin
12.8%
ROE
7.6%
ROA
4.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.77x
Current ratio
2.47x
Quick ratio
0.75x
Total debt
$14.57B
Total cash
$2.29B
Growth
How the business has been compounding
Revenue TTM
$10.81B
Revenue 5Y CAGR
-8.2%
EPS TTM
5.47
EPS 5Y CAGR
-18.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.81B
Free CF TTM
$1.37B
FCF margin
12.6%
Dividend
Shareholder payout
Yield
7.6%
Payout ratio
98.6%
Last ex-div date
2026-07-22