French stock alert

FRA

CLOSING UPDATE: Danone lifts 2.6% on robust volume 20 September 2018 18:10 CEST

NEWS BITES - EUROPE

This is an end of day Alert, produced after today's French market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Danone, France's largest food producer company by market capitalisation, traded on heavy volume of 1.4 times average today while the price lifted EUR1.67 (or 2.6%) to trade at EUR65.99. Compared with the CAC 40 Index which rose 57.9 points (or 1.1%) in the day, this represented a relative price increase of 1.5%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Dividend yield of 2.9% [2.4%]

+ Return on Assets 5.5% [4.9%]

Bullish Signals:

+ Tobin's Q Ratio is 1. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 8% in the last 3 years. This is better than the sector average of 5.9% and suggests a high margin of safety.

+ The Brand Value represents an impressive 9.9% of the estimated Enterprise Value of EUR64 billion (US$74.8 billion).

+ As per the Du Pont analysis, Return on Equity of 15.4% is better than sector average of 14.2%.

Note

Danone today is at a discount of 5.8% to the 12-month high of EUR70.08 on 18 Dec, 2017. It is at a premium of 7.4% to the 12-month low of EUR61.43 on 15 Feb, 2018.

The stock has outperformed 68% of the French market over the past 6 months.

Bearish Signals:

The negative 0.64 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

The price dropped 3.0% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Sales of 1.8 [1.2]

TODAY'S ALERTS

Afternoon Alert: Danone inches higher, resistance at 12-day EMA

20 September 2018 14:05 CEST

Danone (FR:BN) has increased 1.5% but fell short of the 12-day Exponential Moving Average [EMA] of EUR65.40.

Afternoon Alert: Danone inches higher, resistance at 12-day EMA

20 September 2018 12:08 CEST

Danone (FR:BN) has increased 1.4% but fell short of the 12-day Exponential Moving Average [EMA] of EUR65.38.

RECENT ALERT

Afternoon Alert: Danone increases 0.3%, leads Food producers sector higher

18 September 2018 14:05 CEST

Danone (FR:BN) has increased 0.3% to trade at EUR64.98 vs. the Food producers sector which strengthened 10.7 points (or 0.2%) to 5,944.3. Representing a weighting of about 74.2% of the sector, the stock accounted for the gain. Trading volume was 1.2 times average so far today.

Danone (FR:BN; EPA:BN; PA:BN; FP:BN)

ISIN: FR0000120644

PermID: 4295867387

Source: www.BuySellSignals.com