Danone SA
🇫🇷 BN.PA · Paris · FR0000120644
Consumer
EUR 67.81 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
24.0
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 67.81 ÷ 2.83 = 24.0
TTM period through: 2025-12-31
Forward P/E (estimated): 17.5
Based on analyst estimates
Reference: Provider P/E (Trailing): 24.2
Yield (Fwd)
3.32%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 3.33%
Net Debt/EBITDA (TTM)
4.3x
Latest quarter: 20.3x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 20.3x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
79.6%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 75.6%
Cash Flow Payout (TTM): 36.5%
FCF Coverage (TTM): 1.98x
ROE
10.8%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
11.6x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Danone is a global leader in essential consumer staples with a highly secure dividend backed by strong free cash flow and dominant dairy and water brands. While the underlying business is performing well and recent accounting losses are driven by temporary restructuring rather than structural decline, the current valuation offers limited upside. Existing shareholders should maintain positions given the well-covered 3.3% yield, but new investors may want to wait for a better entry point.
Sector Context
Danone is a global leader in the consumer staples sector, specializing in essential daily food products including dairy, plant-based alternatives, and bottled water. For dividend investors, large consumer staple companies offer highly defensive, recession-resistant cash flows driven by everyday purchases, making them resilient income generators during economic downturns.
Temporary Opportunity Identified
The Q4 2023 net loss was driven by significant non-recurring items, including the deconsolidation of Russian operations and 'Renew Danone' restructuring costs, which temporarily distorts GAAP earnings and inflates the TTM P/E ratio.
📊 Strategy Analysis
- • Operates an essential consumer staples business with highly resilient demand, dominant brand power, and inflation-resistant pricing capabilities.
- • The 3.33% dividend yield is exceptionally well-covered by free cash flow, indicated by a low 36.49% cash flow payout ratio, ensuring sustainability despite accounting-based fluctuations.
- • Underlying operational performance remains robust, evidenced by +7.0% like-for-like sales growth for the full year 2023.
⚠ What to Watch
- • Current valuation is elevated with a TTM P/E of 23.98 (and forward P/E of 17.51), remaining well above the strategy's target 8-15x range and offering limited margin of safety.
- • Net Debt to EBITDA stands at 4.33x, which exceeds the conservative 3.0x threshold and requires continued monitoring given current macroeconomic conditions.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-18
Disclaimer: This information is for educational purposes only. Not financial advice.