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Pernod Ricard (LTS:0HAT) Owner Earnings per Share (TTM)

: 9.43 (As of Jun. 2023)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Pernod Ricard's Owner Earnings per Share (TTM) ended in Jun. 2023 was €9.43. It's Price-to-Owner-Earnings ratio for today is 15.36.


The historical rank and industry rank for Pernod Ricard's Owner Earnings per Share (TTM) or its related term are showing as below:

LTS:0HAT' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 14.93   Med: 21.69   Max: 263.38
Current: 15.34


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Pernod Ricard was 263.38. The lowest was 14.93. And the median was 21.69.


LTS:0HAT's Price-to-Owner-Earnings is ranked better than
61.16% of 121 companies
in the Beverages - Alcoholic industry
Industry Median: 19.48 vs LTS:0HAT: 15.34

Pernod Ricard's Earnings per Share (Diluted) for the six months ended in Dec. 2023 was €6.19. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was €8.04. It's PE Ratio ratio for today is 18.01.

Pernod Ricard's EPS without NRI for the six months ended in Dec. 2023 was €5.68. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was €8.02. It's PE Ratio without NRI ratio for today is 18.06.


Pernod Ricard Owner Earnings per Share (TTM) Historical Data

The historical data trend for Pernod Ricard's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Pernod Ricard Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.81 0.71 7.54 9.36 9.48

Pernod Ricard Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Owner Earnings per Share (TTM) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 9.36 - 9.48 -

Competitive Comparison

For the Beverages - Wineries & Distilleries subindustry, Pernod Ricard's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Pernod Ricard Price-to-Owner-Earnings Distribution

For the Beverages - Alcoholic industry and Consumer Defensive sector, Pernod Ricard's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Pernod Ricard's Price-to-Owner-Earnings falls into.



Pernod Ricard Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Pernod Ricard's Owner Earnings per Share (TTM) Calculation:

Last Year Average of Last 5 Years
Net Income 2,262
Depreciation, Depletion and Amortization 417
Change In Deferred Tax 651
5Y Average of Maintenance Capital Expenditure 334
Change In Working Capital -568
Shares Outstanding (Diluted Average) 257

1. Start with "Net Income" from income statement. Pernod Ricard's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was €2,262 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Pernod Ricard's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Jun. 2023 was €417 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Pernod Ricard's Change In Deferred Tax for the trailing twelve months (TTM) ended in Jun. 2023 was €651 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = €334 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Pernod Ricard's 5-Year Average Maintenance Capital Expenditure = €334 Mil

5. "Change In Working Capital" is from cashflow statement. Pernod Ricard's Change In Working Capital for the trailing twelve months (TTM) ended in Jun. 2023 was €-568 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Pernod Ricard's Shares Outstanding (Diluted Average) for the months ended in Jun. 2023 was 256.878 Mil.

Pernod Ricard's Onwer Earnings Per Share for Jun. 2023 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 2262 +417+651
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-333.836+-568)/256.878
=9.43

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=144.825/9.43
=15.36

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Pernod Ricard Owner Earnings per Share (TTM) Related Terms

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Pernod Ricard (LTS:0HAT) Business Description

Address
5, Cours Paul Ricard, Paris, FRA, 75008
Pernod Ricard is the world's second-largest spirits maker by volume, behind Diageo. The firm's key markets are Europe, the United States, and Asia. Pernod's key spirits brands include Absolut vodka, Beefeater gin, Chivas Regal and The Glenlivet scotch whisky, Jameson Irish whiskey, Malibu rum, and Martell cognac. The firm's strategic wine portfolio, which represented around 5% of fiscal 2022 revenue among the group's focus brands, includes Jacob's Creek, Brancott Estate, Campo Viejo, Mumm, and Perrier-Jouet.

Pernod Ricard (LTS:0HAT) Headlines

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