DANONE

Danone operates globally in the food and beverage industry. It has four main segments: Essential Dairy & Plant-Based, Specialized Nutrition, Waters, and other products. The company produces yogurts, dairy products, beverages, plant-based products, ice creams, and cheese under various brands. Danone also provides specialized nutrition for babies and young children, as well as medical food for adults and children. Additionally, the company offers tube feeding products and oral nutritional supplements. Its Waters segment includes mineral waters and infused water brands. Danone distributes its products through various channels, including retail chains, convenience stores, hotels, restaurants, hospitals, clinics, pharmacies, and e-commerce.

Overview

Sector

Oil & Gas

Target Price

48.7 EUR

Current Price

68.1 EUR

Potential

-28%

Strengths

Price to book ratio (2.45) is lower than the sector mean (5.03).
EV/EBIT (19.33) is lower than the sector mean.
Price to free cash flow (14.99) is lower than the sector mean.

Weaknesses

With a depreciation Potential of -28.02%, based on our fundamental analysis, it suggests the stock may be overvalued.
The company has high debt. Net Debt to EBITDA Ratio (5.45) is higher than the sector mean.
The company have lower returns than the sector in which it operates. ROIC (8.46%) is significantly lower than the sector mean (10.87%).

Key Financial Data

Indicator	Value
PER	21.7
EV/EBITDA	14.6
Price/Free Cash Flow'	15.1
ROIC	8.5%
Net Debt/EBITDA	5.5