One-glance verdict
Within fair range
$87.04 our estimate vs market $74.32
15% below our estimate
Fundamentals snapshot
Pernod Ricard SA
PDRDF · PNK · Consumer Defensive · Beverages - Wineries & Distilleries
Current price
$74.32
52-week range
$65.20 - $104.40
Market cap
$18.71B
Balance sheet
Watch
4.88x Stretched
Net debt $12.01B. 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 25% 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 SA is a big company that makes and sells famous alcoholic drinks like Jameson whiskey and Absolut vodka all over the world. Their money mostly comes from selling these well-known brands, and it matters because it shows how popular their products are and how well they manage their business operations.
How the company got here
Pernod Ricard's story began in 1805 with Henri Louis Pernod opening an absinthe distillery in France. Absinthe, a popular drink made with anise, was later banned due to health concerns. In 1932, Paul Ricard introduced a similar anise-flavored drink called pastis, which became very popular in France. The modern company, Pernod Ricard, was officially formed in 1975 through the merger of the Pernod and Ricard companies, which were both involved in anise-based spirits. Since then, the company has grown significantly by acquiring numerous other well-known wine and spirits brands, becoming one of the largest companies in its industry.
What it actually does
Pernod Ricard is a global company that produces and sells a wide variety of alcoholic beverages, including spirits and wines. Think of them as a giant collection of many famous drink brands that you might see in a well-stocked liquor store. They make everything from whiskey and vodka to champagne and tequila, and they sell these products in countries all around the world. Their business is all about creating, marketing, and distributing these well-known alcoholic drinks.
Scotch Whisky
This part of Pernod Ricard's business focuses on making and selling Scotch whiskies. Brands like Chivas Regal, Ballantine's, The Glenlivet, and Royal Salute fall under this category. They are known for their aged spirits, which are made in Scotland and have a long history. This segment represents a significant portion of the company's premium offerings, appealing to consumers who appreciate the craftsmanship and heritage of fine Scotch.
Irish Whiskey
Pernod Ricard is a major player in the Irish whiskey market, primarily through its ownership of Irish Distillers. This subsidiary is famous for iconic brands such as Jameson, Powers, Redbreast, and Midleton Very Rare. These whiskies are produced in Ireland and are known for their smooth, distinct character. This segment is a cornerstone of the company's spirits portfolio, contributing significantly to its global sales.
Cognac
The company's cognac business is centered around the prestigious Martell brand. Cognac is a type of brandy made in the Cognac region of France, and Martell is one of the oldest and most respected cognac houses. This segment offers premium products that are often enjoyed on special occasions and are a key part of Pernod Ricard's luxury offerings.
Champagne
Pernod Ricard is also a producer of high-end champagnes, with well-known brands like G.H. Mumm and Perrier-Jouët. Champagne is a sparkling wine from the Champagne region of France, celebrated worldwide for its festive and luxurious image. This business line caters to consumers seeking premium celebratory beverages and adds a touch of effervescence to the company's diverse portfolio.
Vodka
Under the Absolut brand, Pernod Ricard is a leading global producer of vodka. Absolut is known for its distinctive bottle and a wide range of flavored vodkas, originating from Sweden. This segment is a significant contributor to the company's overall spirits business, appealing to a broad consumer base looking for a versatile spirit.
Gin
Pernod Ricard offers a diverse range of gin brands, including Beefeater, Monkey 47, and Malfy. These gins come from various regions and offer different flavor profiles, from classic London Dry to more contemporary botanical blends. This segment taps into the growing popularity of gin worldwide, providing consumers with a variety of premium options.
Rum
The company's rum portfolio includes popular brands like Havana Club and Malibu. Havana Club is a Cuban rum with a rich heritage, while Malibu is a flavored rum known for its coconut taste, often used in tropical cocktails. These brands represent different facets of the rum category, from traditional to flavored and accessible.
Tequila and Mezcal
Pernod Ricard is expanding its presence in the agave spirits market with brands like Avion, Del Maguey, and Olmeca. Tequila and mezcal are spirits made from the agave plant, primarily in Mexico. This segment is a growth area for the company, as these spirits have gained significant popularity globally in recent years.
Aperitifs and Liqueurs
This category includes a variety of drinks designed to be enjoyed before or after meals, or as ingredients in cocktails. Brands like Ricard, Suze, Lillet, Italicus, Kahlúa, and Ramazzotti fall into this segment. These products add depth and variety to Pernod Ricard's offerings, catering to specific tastes and occasions.
Wines
While Pernod Ricard is best known for its spirits, it also produces and sells a range of wines. This includes brands like Château Sainte-Marguerite. This segment complements their spirits business, offering a broader beverage portfolio to consumers and trade partners.
What management is betting on now
Pernod Ricard's current strategy, called 'Transform & Accelerate,' focuses on long-term, sustainable growth by strengthening its premium brands and improving efficiency. They are emphasizing 'The Conviviality Platform,' which aims to leverage consumer trends and create meaningful social connections through their products. Management is prioritizing innovation, especially in ready-to-drink (RTD) beverages and smaller product formats, particularly in key markets like the U.S. They are also committed to responsible consumption and sustainability, aiming to have a positive impact on people and the planet.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $87.04 vs current price $74.32
Our most-likely fair value is $87.04 a share — about 17.1% away from today's price of $74.32, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $12.0B. Interest coverage 4.9x.
Net debt
$12.01B
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 $14.25B 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 $10.32B Interest coverage 7.92x +62% vs PDRDF Carries about 1.6x more debt cushion than PDRDF.
Total debt $863.74M 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 25% of its peers.
-
Free cash flow was positive in 4/10 years.
-
Trades at 13.4x P/E vs peer median 30.1x (55.7% 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)
13.37x
Forward P/E
—
P/B
1.07x
P/S
1.99x
EV/EBITDA
11.70x
PEG ratio
1.50x
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
$14.25B
Total cash
$2.24B
Growth
How the business has been compounding
Revenue TTM
$10.57B
Revenue 5Y CAGR
-8.2%
EPS TTM
5.56
EPS 5Y CAGR
-18.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.78B
Free CF TTM
$1.34B
FCF margin
12.6%
Dividend
Shareholder payout
Yield
6.7%
Payout ratio
98.5%
Last ex-div date
2026-11-25