Pernod Ricard

Pernod Ricard is streamlining its business by grouping brands into two main divisions, according to internal presentation slides seen by Reuters on Wednesday, as European spirits makers grapple with a downturn in sales.» Mehr auf reuters.com

Pernod Ricard's stock has halved, pushing the dividend yield above 5%, but I remain cautious due to weak fundamentals and valuation concerns. Sales momentum has stalled, and high debt limits financial flexibility, making the current dividend payout unsustainable. The dividend now exceeds free cash flow for the second year in a row, raising the risk of a cut; a prudent reduction would benefit long-term health despite short-term disappointment.» Mehr auf seekingalpha.com

Pernod Ricard's recent 25%+ share price drop is overdone; fundamentals remain strong, despite short-term sales weakness from tariffs and geopolitics. Recovery is likely delayed until 2027-2029, but the company's 5% dividend is safe and its BBB+ rating and low leverage provide stability. Valuation is now attractive, with a fair value of €140/share and long-term upside potential of 20%+ annualized returns once recovery begins.» Mehr auf seekingalpha.com