# Pernod Ricard (RI.PA)

Canonical: https://gigainvestors.com/s/RI.PA

Analysis as of: 2026-10-16T07:34:49.277Z. Financial observations: FY2003–FY2026.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 66.60 per share; close as of 2026-10-15.

Estimated value: low EUR 56.44 per share, central EUR 63.24 per share, high EUR 72.28 per share. Buy at or below the central value EUR 63.24 per share. Valuation as of 2026-10-16T07:34:49.277Z; scenarios are not confidence intervals.

Expected annual return: 9.6% at the stated quote. About 9.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; FR 10-year bond 4.8% + 4 points).

## Checklist

### understandable: pass

- 5 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.03×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.27×

- FY2018: 0.26×

- FY2019: 0.28×

- FY2020: 0.27×

- FY2021: 0.27×

- FY2022: 0.28×

- FY2023: 0.28×

- FY2024: 0.27×

- FY2025: 0.27×

- FY2026: 0.26×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 11.0%

- ROIC, second-lowest year: 8.8%

- Typical minus recent gross margin: 1.7 pp

- Typical gross margin (annual median): 60.2%

- Recent gross margin (lower of latest and 3-year median): 58.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.5%

- ROIC including acquisitions, ten-year median: 5.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 11.4%

- FY2018: 11.6%

- FY2019: 10.8%

- FY2020: 8.7%

- FY2021: 9.6%

- FY2022: 12.3%

- FY2023: 13.6%

- FY2024: 10.4%

- FY2025: 11.2%

- FY2026: 8.8%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.88×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 7.5B

- Net income, five-year total: EUR 8.6B

- Return on incremental invested capital: 0.8%

- Working capital / revenue, annual change: 2.0 pp

- Working capital / revenue, change between three-year averages: 15.8 pp

- Working capital / revenue, final three-year average: 67.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.95×

- FY2023: 0.96×

- FY2024: 0.71×

- FY2025: 0.80×

- FY2026: 0.94×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 11.4% vs 10.4%

- Per-share earnings: 5.37 to 5.86 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.2%

- Ordinary dilution, 5-year annual growth: -0.5%

- Market cap gain: EUR -14B

- Cumulative retained earnings: EUR 11B

- Diluted shares, 10-year annual growth: -0.2%

- Diluted shares, 5-year annual growth: -0.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 1.1%

- Per-share value change: EUR 0.49

- Per-share value, starting three-year median: EUR 5.37

- Per-share value, ending three-year median: EUR 5.86

- Buybacks concentrated in cheaper years (correlation): -0.19

- Average buyback yield: 0.6%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: EUR 15B

- Cumulative net income, 10 years: EUR 15B

- ROIC, first three-year median: 11.4%

- ROIC, last three-year median: 10.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: EUR 5.37

- FY2018: EUR 6.07

- FY2019: EUR 5.51

- FY2020: EUR 1.26

- FY2021: EUR 5.03

- FY2022: EUR 7.79

- FY2023: EUR 8.93

- FY2024: EUR 5.86

- FY2025: EUR 6.45

- FY2026: EUR 4.75

### accounting: pass

- Sloan accruals: -1.0%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 1.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.31×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.58×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -0.8%

- FY2018: -0.7%

- FY2019: -0.8%

- FY2020: -2.7%

- FY2021: -2.2%

- FY2022: -0.8%

- FY2023: 0.6%

- FY2024: -0.6%

- FY2025: -0.4%

- FY2026: -1.0%

## Holders

- [Thomas Russo](https://gigainvestors.com/GR): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 69% since Dec 2021 · "Pernod Ricard Targets Cost Savings to Offset Slowing Demand in U.S., China" (finance.yahoo.com, Feb 2026) · sales -14.2%

Story as of 2026-10-16T10:00:02.685Z; price observation 2026-10-15.

Price needs cash profits to grow 1.6% a year for ten years

- 2025-05-15: Pernod Ricard loses bid for New Delhi licence again amid probe ([sg.finance.yahoo.com](https://sg.finance.yahoo.com/news/pernod-ricard-loses-bid-delhi-132331731.html))

- 2025-06-18: Pernod Ricard launches restructuring plan as spirits sales slide ([finance.yahoo.com](https://finance.yahoo.com/news/pernod-ricard-launches-restructuring-plan-173923576.html))

- 2025-08-28: Pernod Ricard predicts Q1 sales fall as Chinese and U.S. woes continue ([finance.yahoo.com](https://finance.yahoo.com/news/pernod-ricard-annual-sales-hit-053810117.html))

- 2026-03-21: Pernod Ricard Resets U.S. Distribution As Shares Trade Below Targets ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/pernod-ricard-resets-u-distribution-001731111.html))

- 2026-08-27: Jameson Maker Pernod Ricard Warns of Sales Hit as Americans Ease Off on Drinking ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/pernod-ricard-warns-sales-hit-091300641.html))

- 2026-10-15: Pernod Ricard Q1 sales fall less than expected as India offsets U.S., China slump ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/pernod-ricard-q1-sales-fall-064132061.html))

### Sales · FY2025–2026

sales -14.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: EUR 9.0B 

- FY2018: EUR 9.0B 

- FY2019: EUR 9.2B 

- FY2020: EUR 8.4B 

- FY2021: EUR 8.8B 

- FY2022: EUR 11B 

- FY2023: EUR 12B 

- FY2024: EUR 12B 

- FY2025: EUR 11B 

- FY2026: EUR 9.4B 

### Gross margin · FY2026

gross margin 58.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 62.2% 

- FY2018: 62.4% 

- FY2019: 61.5% 

- FY2020: 60.2% 

- FY2021: 60.0% 

- FY2022: 60.5% 

- FY2023: 59.7% 

- FY2024: 60.1% 

- FY2025: 59.5% 

- FY2026: 58.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in beverages wineries & distilleries; annual sales are EUR 9.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); FY2026: revenue 9403000000; grossProfit 5494000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RI.PA: Pernod Ricard SA produces and sells wines and spirits worldwide. The company offers whiskey, vodka, gin, rum, liqueur and bitters, champagne, tequila and mezcal, and aperitif under the brands Ricard, Mumm, Perrier-Jouët, Martell, Malibu, Ballantine's, Chivas, Beefeater, Jameson, Havana Club, Royal Salute, The Glenlivet, Absolut, KI NO BI, The Chuan, Midleton Very Rare, Rabbit Hole, Royal Salute, Secret Speyside, Avion, Elyx Vodka, L'Orbe, Italicus, Lillet, Pernod, Suze, Augier, Malfy, Jefferson's, Lot No. 40, Powers, Redbreast, Smooth Ambler, TX, Method & Madness, Monkey 47, Plymouth Gin, Ceder's, Green Spot, Aberlour, Scapa, Altos, Del Maguey, Ostoya, Pastis 51, ARARAT, Seagram's Gin, Kahlúa, J.P. Wiser's, Ramazzotti, 100 Pipers, Blenders Pride, Imperial Blue, Royal Stag, Imperial, Longitude 77, Long John, Passport Scotch, Something Special, Olmeca, and Wyborowa. It also provides non-alcoholic beverages under the Seagram's, Beefeater, Cinzano Spritz, Suze Tonic, Ramazzotti Arancia, Almave Ambar, Almave Blanco, Lillet Blanc, and Pacific brand names. Pernod Ricard SA was founded in 1805 and is headquartered in Paris, France.

### Why customers stay

Margins ranged from 58.4% to 60.1% during 2024–26; it earns 11% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); FY2024: grossProfit / revenue = 60.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); FY2025: grossProfit / revenue = 59.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); FY2026: grossProfit / revenue = 58.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); 10-year return on capital observations [[2017,0.11379136477195978],[2018,0.11645133478261879],[2019,0.10759057697053785],[2020,0.08731054977711739],[2021,0.0956758354821028],[2022,0.12295165423800779],[2023,0.1355394468838911],[2024,0.10409162558272127],[2025,0.11231203776759964],[2026,0.0884065753347142]]; median 0.10995130736906875. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 60% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); Gross margin observations: [[2021,0.5998413417951043],[2022,0.6048967386225587],[2023,0.5970173848562248]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back EUR 10 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); FY2017: growth capex 82591576.38867152; upkeep 284408423.6113285; owner earnings 1327591576.3886714. Growth capex / owner earnings = 0.062211585142275455.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); FY2018: growth capex 0; upkeep 374000000; owner earnings 1419000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); FY2019: growth capex 0; upkeep 388000000; owner earnings 1484000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); FY2020: growth capex 0; upkeep 365000000; owner earnings 209800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); FY2021: growth capex 66000000; upkeep 367000000; owner earnings 1203400000. Growth capex / owner earnings = 0.054844606946983544.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); FY2022: growth capex 125000000; upkeep 381000000; owner earnings 1894600000. Growth capex / owner earnings = 0.06597698722685527.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); FY2023: growth capex 285000000; upkeep 417000000; owner earnings 2165400000. Growth capex / owner earnings = 0.1316154059296204.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); FY2024: growth capex 0; upkeep 773000000; owner earnings 1054400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); FY2025: growth capex 0; upkeep 667000000; owner earnings 1294000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); FY2026: growth capex 0; upkeep 391000000; owner earnings 1135200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); Dividend observations: [[2017,511000000],[2018,551000000],[2019,645000000],[2020,849000000],[2021,704000000],[2022,826000000],[2023,1072000000],[2024,1208000000],[2025,1201000000],[2026,1226000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); FY2026: cash repurchases 10000000 EUR.

### Are managers owners

Insiders own 26.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RI.PA SharesStats.PercentInsiders = 26.317 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 1.6% yearly over ten years; actual growth was 0.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:49.277Z); Ten-year compound average after fade. Initial solved rate 0.010376201331589452. Price 66.6; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 4.437810949826039 → FY2026 4.479960346510252. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-10: EUR 108.35 per share

- 2016-11: EUR 99.00 per share

- 2016-12: EUR 102.95 per share

- 2017-01: EUR 108.35 per share

- 2017-02: EUR 107.90 per share

- 2017-03: EUR 110.90 per share

- 2017-04: EUR 114.85 per share

- 2017-05: EUR 120.90 per share

- 2017-06: EUR 117.25 per share

- 2017-07: EUR 117.25 per share

- 2017-08: EUR 114.80 per share

- 2017-09: EUR 117.05 per share

- 2017-10: EUR 128.75 per share

- 2017-11: EUR 131.05 per share

- 2017-12: EUR 131.95 per share

- 2018-01: EUR 128.30 per share

- 2018-02: EUR 135.00 per share

- 2018-03: EUR 135.25 per share

- 2018-04: EUR 137.55 per share

- 2018-05: EUR 143.70 per share

- 2018-06: EUR 139.90 per share

- 2018-07: EUR 137.95 per share

- 2018-08: EUR 136.00 per share

- 2018-09: EUR 141.30 per share

- 2018-10: EUR 134.80 per share

- 2018-11: EUR 141.20 per share

- 2018-12: EUR 143.30 per share

- 2019-01: EUR 145.00 per share

- 2019-02: EUR 151.40 per share

- 2019-03: EUR 160.00 per share

- 2019-04: EUR 155.35 per share

- 2019-05: EUR 157.80 per share

- 2019-06: EUR 162.05 per share

- 2019-07: EUR 159.05 per share

- 2019-08: EUR 173.70 per share

- 2019-09: EUR 163.40 per share

- 2019-10: EUR 165.50 per share

- 2019-11: EUR 166.70 per share

- 2019-12: EUR 159.40 per share

- 2020-01: EUR 156.50 per share

- 2020-02: EUR 146.40 per share

- 2020-03: EUR 129.45 per share

- 2020-04: EUR 139.10 per share

- 2020-05: EUR 140.10 per share

- 2020-06: EUR 140.05 per share

- 2020-07: EUR 146.00 per share

- 2020-08: EUR 143.50 per share

- 2020-09: EUR 136.15 per share

- 2020-10: EUR 138.40 per share

- 2020-11: EUR 160.00 per share

- 2020-12: EUR 156.80 per share

- 2021-01: EUR 155.70 per share

- 2021-02: EUR 157.35 per share

- 2021-03: EUR 160.05 per share

- 2021-04: EUR 170.70 per share

- 2021-05: EUR 180.15 per share

- 2021-06: EUR 187.20 per share

- 2021-07: EUR 186.10 per share

- 2021-08: EUR 177.95 per share

- 2021-09: EUR 190.70 per share

- 2021-10: EUR 198.70 per share

- 2021-11: EUR 202.50 per share

- 2021-12: EUR 211.50 per share

- 2022-01: EUR 189.00 per share

- 2022-02: EUR 195.65 per share

- 2022-03: EUR 199.30 per share

- 2022-04: EUR 197.65 per share

- 2022-05: EUR 182.50 per share

- 2022-06: EUR 175.30 per share

- 2022-07: EUR 191.50 per share

- 2022-08: EUR 183.55 per share

- 2022-09: EUR 188.85 per share

- 2022-10: EUR 177.70 per share

- 2022-11: EUR 188.95 per share

- 2022-12: EUR 183.75 per share

- 2023-01: EUR 189.90 per share

- 2023-02: EUR 197.70 per share

- 2023-03: EUR 208.70 per share

- 2023-04: EUR 209.40 per share

- 2023-05: EUR 202.10 per share

- 2023-06: EUR 202.40 per share

- 2023-07: EUR 200.60 per share

- 2023-08: EUR 181.20 per share

- 2023-09: EUR 157.85 per share

- 2023-10: EUR 167.50 per share

- 2023-11: EUR 158.55 per share

- 2023-12: EUR 159.75 per share

- 2024-01: EUR 152.50 per share

- 2024-02: EUR 154.55 per share

- 2024-03: EUR 149.95 per share

- 2024-04: EUR 142.00 per share

- 2024-05: EUR 136.95 per share

- 2024-06: EUR 126.70 per share

- 2024-07: EUR 124.00 per share

- 2024-08: EUR 128.80 per share

- 2024-09: EUR 135.60 per share

- 2024-10: EUR 114.25 per share

- 2024-11: EUR 105.90 per share

- 2024-12: EUR 109.00 per share

- 2025-01: EUR 110.20 per share

- 2025-02: EUR 103.25 per share

- 2025-03: EUR 91.26 per share

- 2025-04: EUR 95.22 per share

- 2025-05: EUR 91.02 per share

- 2025-06: EUR 84.60 per share

- 2025-07: EUR 90.36 per share

- 2025-08: EUR 97.20 per share

- 2025-09: EUR 83.54 per share

- 2025-10: EUR 84.96 per share

- 2025-11: EUR 77.58 per share

- 2025-12: EUR 73.10 per share

- 2026-01: EUR 75.08 per share

- 2026-02: EUR 78.26 per share

- 2026-03: EUR 64.22 per share

- 2026-04: EUR 62.84 per share

- 2026-05: EUR 63.42 per share

- 2026-06: EUR 63.86 per share

- 2026-07: EUR 67.82 per share

- 2026-08: EUR 64.50 per share

- 2026-09: EUR 60.66 per share

- 2026-10: EUR 65.52 per share

## Annual estimated value (EUR per share)

- FY2017: low EUR 53.24 per share, central EUR 61.54 per share, high EUR 71.24 per share

- FY2018: low EUR 53.42 per share, central EUR 61.70 per share, high EUR 71.38 per share

- FY2019: low EUR 60.00 per share, central EUR 69.33 per share, high EUR 80.16 per share

- FY2020: low EUR 58.83 per share, central EUR 66.00 per share, high EUR 75.55 per share

- FY2021: low EUR 62.08 per share, central EUR 69.63 per share, high EUR 79.68 per share

- FY2022: low EUR 81.49 per share, central EUR 91.91 per share, high EUR 105.30 per share

- FY2023: low EUR 90.37 per share, central EUR 102.53 per share, high EUR 118.23 per share

- FY2024: low EUR 79.21 per share, central EUR 89.84 per share, high EUR 102.83 per share

- FY2025: low EUR 71.19 per share, central EUR 80.12 per share, high EUR 92.01 per share

- FY2026: low EUR 56.09 per share, central EUR 62.84 per share, high EUR 71.83 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:36.466Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.