One-glance verdict
Within fair range
$15.88 our estimate vs market $16.25
Wall Street consensus: $15.90 (0.1% higher than our fair-value estimate)
2% above our estimate
Fundamentals snapshot
Pernod Ricard SA
PRNDY · PNK · Consumer Defensive · Beverages - Wineries & Distilleries
Current price
$16.25
52-week range
$13.40 - $24.13
Market cap
$20.46B
Balance sheet
Watch
5.71x Adequate
Net debt $12.95B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 8.6% on equity, ahead of 25% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Net debt grew 24.5% over 3 years.
- Risk Insider ownership is only 0.0% (peer median: 0.0%).
What this company does
Pernod Ricard SA
Pernod Ricard is one of the world's largest sellers of spirits and wine, owning famous brands like Jameson Irish Whiskey, Absolut Vodka, and The Glenlivet Scotch. The company makes its money selling these premium beverages across the globe, with a strong presence in the United States and China. Having a portfolio of well-known, desirable brands means the company can often charge higher prices, leading to strong profit margins (the portion of money left over from a sale after subtracting the costs of making and selling the product).
How the company got here
Pernod Ricard's story begins with two separate French spirits companies, Pernod, founded in 1805, and Ricard, created in 1932. Originally competitors famous for their anise-flavored aperitifs (drinks served before a meal), they merged in 1975 to become a dominant force in their home market. This merger was the starting point for a global expansion, as the new company began acquiring well-known brands from around the world. Key purchases included Jameson Irish whiskey in 1988, a large part of the Seagram's portfolio (including Chivas Regal and The Glenlivet) in 2001, Allied Domecq (owner of brands like Ballantine's and Malibu) in 2005, and the maker of Absolut Vodka in 2008.
What it actually does
Pernod Ricard makes and sells a wide variety of alcoholic beverages that you would likely see in a liquor store or behind a bar. Their products include well-known brands of whiskey, vodka, gin, rum, tequila, champagne, and wine. You might recognize names like Absolut vodka, Jameson Irish whiskey, The Glenlivet scotch, Beefeater gin, Malibu rum, and Mumm champagne. The company also produces non-alcoholic versions of some of its popular drinks, catering to a growing trend of people choosing not to drink alcohol.
Americas
This part of the business sells the company's full range of spirits and wines to customers in North, Central, and South America. The United States is a particularly important market within this region. Sales in this segment come from a mix of 'on-trade' customers, like bars and restaurants that sell drinks to be consumed on-site, and 'off-trade' customers, like liquor stores and supermarkets where people buy bottles to take home. This segment is one of the company's three major geographic business areas.
Europe
This segment covers all sales of Pernod Ricard's beverage brands across the European continent, including its home country of France. Similar to the Americas, this division sells to both on-trade (bars, hotels, restaurants) and off-trade (retail stores) customers. The mix of popular brands can vary from country to country, reflecting local tastes, but includes the company's major international labels. This is another of the three core geographic regions the company uses to organize its business.
Asia/Rest of the World
This division is responsible for selling the company's products in all markets outside of the Americas and Europe, including rapidly growing economies in Asia like China and India. This is a key area of focus for the company's growth, as rising incomes in these regions lead to more people buying premium spirits. The business here also serves a combination of on-trade and off-trade channels. This segment completes the company's global footprint, making it one of the three main pillars of its sales structure.
What management is betting on now
The company's leadership is focused on making its top brands even more desirable to customers, which they believe is the key to long-term, steady growth. They are also concentrating on what they call 'premiumization,' which means encouraging customers to buy higher-priced, more luxurious versions of their spirits. To appeal to changing tastes, the company is expanding its ready-to-drink products, like canned cocktails, and offering more no-and-low alcohol options. Geographically, management sees significant opportunities for growth in markets like India and is investing in making its operations more efficient and environmentally friendly, for example by building a carbon-neutral (not adding to the world's carbon problem) distillery in the U.S.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $15.88 vs current price $16.25
Wall Street consensus is the average analyst price target: $15.90 (0.1% higher than our fair-value estimate).
Our most-likely fair value is $15.88 a share — about 2.3% away from today's price of $16.25, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $13.0B. Interest coverage 5.7x.
Net debt
$12.95B
Interest coverage
5.71x
Pernod Ricard SA's profit covers its interest bill about 5.7 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
PRNDY
BASELINE
Pernod Ricard SA
Total debt $15.73B Interest coverage 5.71x This is the baseline the peer rows are being compared against.
Total debt $22.31B Interest coverage 3.93x -31% vs PRNDY Carries about 1.5x less debt cushion than PRNDY.
Total debt $10.53B Interest coverage 7.92x +39% vs PRNDY Carries about 1.4x more debt cushion than PRNDY.
Total debt $888.31M Interest coverage 4.86x -15% vs PRNDY Has roughly the same debt cushion as PRNDY.
What you should know
The case for and against PRNDY
3 Rewards
2 Risks
Rewards
-
Returns 8.6% on equity, ahead of 25% of its peers.
-
Free cash flow was positive in 4/10 years.
-
Trades at 12.6x P/E vs peer median 31.0x (59.3% cheaper).
Risks
-
Net debt grew 24.5% over 3 years.
-
Insider ownership is only 0.0% (peer median: 0.0%).
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)
12.60x
Forward P/E
12.44x
P/B
1.14x
P/S
2.04x
EV/EBITDA
11.36x
PEG ratio
2.22x
Profitability
How much profit each dollar creates
Gross margin
58.4%
Operating margin
30.5%
Net margin
14.1%
ROE
8.6%
ROA
4.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.82x
Current ratio
2.34x
Quick ratio
0.80x
Total debt
$15.73B
Total cash
$2.77B
Growth
How the business has been compounding
Revenue TTM
$11.60B
Revenue 5Y CAGR
0.8%
EPS TTM
1.29
EPS 5Y CAGR
-5.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.07B
Free CF TTM
$1.30B
FCF margin
11.2%
Dividend
Shareholder payout
Yield
6.6%
Payout ratio
84.9%
Last ex-div date
2026-07-21