Operating Margin

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Price: 75.36 EUR -1.52% Market Closed

Market Cap: €19B

26.8%

Declining

by 0.2%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

26.8%

Operating Income

€2.9B

Revenue

€11B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

26.8%

Operating Income

€2.9B

Revenue

€11B

Peer Comparison

Country	Company	Market Cap	Operating Margin
FR	Pernod Ricard SA PAR:RI	19B EUR	Loading...
CN	Kweichow Moutai Co Ltd SSE:600519	1.7T CNY	Loading...
CN	Wuliangye Yibin Co Ltd SZSE:000858	399.8B CNY	Loading...
UK	Diageo PLC LSE:DGE	37.2B GBP	Loading...
CN	Shanxi Xinghuacun Fen Wine Factory Co Ltd SSE:600809	201B CNY	Loading...
US	Constellation Brands Inc NYSE:STZ	27.6B USD	Loading...
CN	Luzhou Laojiao Co Ltd SZSE:000568	164.9B CNY	Loading...
CN	Jiangsu Yanghe Brewery Joint-Stock Co Ltd SZSE:002304	94.2B CNY	Loading...
US	Brown-Forman Corp NYSE:BF.B	12.9B USD	Loading...
IN	United Spirits Ltd NSE:MCDOWELL-N	973.5B INR	Loading...
CN	Anhui Gujing Distillery Co Ltd SZSE:000596	66.6B CNY	Loading...

Market Distribution

Min	-17 526.7%
30th Percentile	1.3%
Median	6.1%
70th Percentile	11.5%
Max	89 700%

Other Profitability Ratios

Pernod Ricard SA
Glance View

Economic Moat

None

Market Cap

19B EUR

Industry

Beverages

Pernod Ricard SA, a stalwart in the global spirits industry, has its roots deeply entrenched in the tradition of French alcoholic beverages. Born from the merger of two well-known French anise-based spirit companies, Pernod and Ricard, in 1975, the company has grown into a formidable player in the international market. Pernod Ricard's journey is a tale of strategic vision and expansion, marked by a series of astute acquisitions. From bringing Chivas Brothers and Jameson Irish Whiskey into its fold to adding Malibu Rum and Absolut Vodka, the company has leveraged both organic growth and smart acquisitions to craft a diverse portfolio that appeals to a wide range of tastes and preferences. The company's operational ethos revolves around building iconic brand narratives and tapping into the premiumization trend—consumers' increasing willingness to pay for superior quality and craftsmanship in their alcoholic drinks. Pernod Ricard earns its revenue by producing and distributing its renowned brands across virtually every continent, with a robust distribution network fostering both on-premise and off-premise sales. This involves selling directly to retailers, bars, and restaurants, as well as through wholesalers who help navigate complex local regulations worldwide. Moreover, the company invests heavily in marketing and brand storytelling, capitalizing on its brands' heritage and aspirational qualities that resonate with consumers seeking luxury experiences. Through this multifaceted approach, Pernod Ricard has positioned itself as not just a purveyor of spirits, but a creator of global moments of conviviality.

View RI Analysis

RI Intrinsic Value

Undervaluation 28%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Pernod Ricard SA
PAR:RI

Peer Comparison

Market Distribution

Other Profitability Ratios

Pernod Ricard SA
Glance View

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Pernod Ricard SA PAR:RI