DANOY

Consumer Defensive

Danone S.A. · Packaged Foods · $51B

UQS Score — Balanced Preset
39.9
Below Average

Danone S.A. scores 39.9/100 using the Balanced preset.

UQS vs Consumer Defensive Sector
DANOY
39.9
Sector avg
38.4
Quality
Neutral
Moat
Weak
Growth
Weak
Risk
Weak
Valuation
Good

What is Danone S.A.?

Danone S.A. is a global food and beverage company headquartered in Paris, France, with operations spanning Europe, North America, Latin America, Asia Pacific, Africa, and the Middle East. Its portfolio covers everyday nutrition categories from dairy to specialized medical nutrition.

Danone generates revenue across three segments: Essential Dairy & Plant-Based, Specialized Nutrition, and Waters. The Essential Dairy segment covers yogurts, milk products, coffee creamers, and plant-based alternatives. Specialized Nutrition serves infants, young children, pregnant mothers, and patients requiring medical nutrition. The Waters segment distributes still and sparkling water brands globally. Products reach consumers through retail chains, convenience stores, and foodservice channels worldwide.

Danone in its current form was established in 1996 and is headquartered in Paris, France.

  • Yogurts and dairy products under Activia, Actimel, and Danio
  • Plant-based alternatives under the Alpro brand
  • Infant and medical nutrition under Aptamil and Nutricia
  • Bottled water under evian and Volvic
  • Licensed beverages including International Delight and Dunkin' Donuts creamers

Is DANOY a Good Stock to Buy?

UQS Score rates DANOY as Below Average overall, reflecting meaningful headwinds across several key quality dimensions.

Among the five pillars, Valuation stands out as the relative bright spot, rated Good — suggesting the market may already be pricing in many of the company's challenges. Quality is rated Neutral, indicating Danone maintains baseline operational stability even if it does not lead its peer group.

Moat, Growth, and Risk are all rated Weak, pointing to limited competitive differentiation, subdued expansion prospects, and elevated uncertainty in the business environment.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account at uqs-score.com. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does DANOY pay dividends?

Yes — Danone S.A. pays a dividend.

Danone pays a regular dividend, consistent with its positioning as a large-cap consumer defensive company. Mature food and beverage businesses like Danone typically return cash to shareholders rather than reinvesting heavily in high-growth initiatives. Income-oriented investors often look to names like DANOY for dividend continuity, though the sustainability of that payout should be weighed against the company's Weak Risk pillar rating.

When does DANOY report earnings?

Danone reports financial results on a regular cadence, consistent with European-listed multinationals that cross-list ADRs in the United States.

Danone's recent reporting periods have reflected the pressures visible in its UQS pillar profile — modest top-line momentum and ongoing cost challenges across its global supply chain. Growth has remained below what investors might expect from a company of its scale.

For the most recent quarter's results and upcoming reporting dates, visit Danone's official investor relations page at danone.com.

DANOY Price History

+20.0% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Danone S.A.?

$
Today it would be worth
$12,290
That's a +22.9% total return, or +4.2% annualized.

Based on Danone S.A.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

DANOY Long-term Outlook

Danone's fundamental outlook, as reflected in its UQS pillar profile, is cautious. With Growth and Moat both rated Weak, the company faces structural questions about its ability to accelerate revenue and defend market share against both global peers and private-label competition. The Weak Risk rating adds further uncertainty. That said, a Good Valuation rating suggests the current price may already reflect these challenges, leaving less downside surprise if execution stabilizes.

Growth drivers

  • Expansion of specialized nutrition in emerging markets where infant formula demand is growing
  • Plant-based product lines tapping into shifting consumer dietary preferences
  • Premium water brands with pricing power in health-conscious consumer segments

Key risks

  • Weak competitive moat leaves core dairy categories exposed to private-label substitution
  • Elevated risk profile tied to input cost volatility and complex global supply chains
  • Subdued growth trajectory may limit the company's ability to re-rate to a higher valuation over time

DANOY vs Peers

Danone competes in the global consumer staples space alongside diversified food and beverage companies with overlapping product categories.

JBSSimilar UQS
JBS N.V.

JBS focuses primarily on protein processing and meat products, giving it a different demand profile and margin structure compared to Danone's dairy and nutrition focus.

KHCSimilar UQS
The Kraft Heinz Company

Kraft Heinz competes in packaged foods with a heavily branded portfolio, but faces similar structural pressures around brand relevance and private-label competition.

GISSimilar UQS
General Mills, Inc.

General Mills operates across cereals, snacks, and pet food, offering broader category diversification than Danone's nutrition and dairy-centric model.

Frequently Asked Questions

What does Danone do?

Danone is a global food and beverage company operating across three segments: Essential Dairy & Plant-Based, Specialized Nutrition, and Waters. It produces and distributes yogurts, infant formula, medical nutrition products, and bottled water under well-known brands such as Activia, Aptamil, evian, and Alpro, selling through retail and foodservice channels worldwide.

Does DANOY pay dividends?

Yes, Danone pays a regular dividend. As a large-cap consumer defensive company, it has historically returned cash to shareholders through dividends. Investors should review the company's investor relations page for the most current dividend schedule and payout details, and weigh the payout against Danone's Weak Risk pillar rating.

When does DANOY report earnings?

Danone reports financial results on a regular cadence as a European-listed company with US-traded ADRs. Specific upcoming reporting dates are not covered by our data source. For confirmed dates, check Danone's investor relations page at danone.com or your brokerage's earnings calendar.

Is DANOY a good stock to buy?

UQS Score rates DANOY as Below Average, driven by Weak ratings across Moat, Growth, and Risk pillars. The Valuation pillar is rated Good, which may offer some cushion. Whether DANOY fits your portfolio depends on your income needs, risk tolerance, and view on the company's ability to improve its competitive position over time.

Is DANOY overvalued?

Based on the UQS Valuation pillar, DANOY is rated Good — meaning the current market price appears reasonable relative to the company's fundamentals. This does not imply the stock is a bargain, but it suggests the market has already discounted many of the challenges reflected in the weaker pillars. Full valuation metrics are available to Pro members.

How does DANOY compare to its competitors?

Compared to peers like Kraft Heinz and General Mills, Danone's differentiation lies in its Specialized Nutrition segment and premium water brands. However, its Weak Moat rating suggests limited structural advantages over competitors in core dairy categories. A side-by-side UQS pillar comparison with these peers is available on each competitor's page at uqs-score.com.

What is DANOY's market cap bracket?

DANOY is classified as a large-cap stock, reflecting Danone's scale as one of the world's largest food and beverage companies. Large-cap consumer defensive stocks are often held for income and stability, though Danone's Below Average UQS Score signals that size alone does not guarantee quality across all dimensions.

Who founded Danone?

The modern Danone S.A. entity was formed in 1996 following the merger of BSN Gervais Danone and other corporate restructurings. The Danone brand itself has much older roots — the original Danone yogurt brand was created in the early twentieth century. Detailed founding history is widely available through public sources and Danone's own corporate history pages.

Is DANOY a long-term quality investment?

As a long-term quality indicator, DANOY's Below Average UQS Score raises questions. Weak ratings in Moat, Growth, and Risk suggest the company faces structural challenges that may persist over a multi-year horizon. The Good Valuation rating and dividend history may appeal to income-focused investors, but long-term quality seekers should review the full pillar breakdown available to Pro members.

What is the main competitive advantage of Danone?

Danone's most defensible position lies in its Specialized Nutrition segment, where regulatory requirements and clinical credibility create higher barriers to entry than in commodity dairy. Its premium water brands like evian also carry some pricing power. However, the UQS Moat pillar is rated Weak overall, suggesting these advantages are not yet sufficient to distinguish the company at a portfolio level.

What sector does DANOY belong to?

DANOY is classified in the Consumer Defensive sector. Companies in this sector produce essential goods — food, beverages, and household products — that tend to see relatively stable demand regardless of economic cycles. Danone fits this profile through its dairy, nutrition, and water product lines, though its Below Average UQS Score shows that defensive sector membership does not guarantee strong fundamentals.

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Pro Analysis

DANOY — Score History

303540455055Apr 5Apr 15Apr 25May 5May 15May 24v5
Score changes· 24 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 23, 202640.449.127.035.425.369.80.0
May 21, 202640.449.127.035.525.369.9+0.1
May 19, 202640.349.127.035.525.368.80.0
May 17, 202640.349.127.035.525.369.40.0
May 11, 202640.349.127.035.625.369.4+1.8
May 10, 202638.544.427.035.625.365.0+3.3
May 8, 202635.214.927.035.643.474.3-4.7
May 6, 202639.948.127.035.625.368.40.0
May 3, 202639.948.127.035.425.368.40.0
Apr 29, 202639.948.127.035.425.368.20.0

DANOY — Pillar Breakdown

Quality

49.1/100 (25%)

Danone S.A. has average quality metrics, with room for improvement in margins or capital efficiency.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityModerate

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsStrong

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

35.4/100 (20%)

Danone S.A. shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

25.3/100 (15%)

Danone S.A. presents elevated risk with concerns around leverage or financial stability.

Financial LeverageWeak

Debt levels relative to earnings capacity.

Debt/EquityModerate

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

66.8/100 (15%)

Danone S.A. trades at a reasonable valuation with decent earnings yield and FCF multiples.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorWeak

Enterprise value multiple relative to sector median.

Moat

27/100 (25%)

Danone S.A. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for DANOY.

Score Composition

Quality
49.1×25%12.3
Growth
35.4×20%7.1
Risk
25.3×15%3.8
Valuation
66.8×15%10.0
Moat
27.0×25%6.8
Total
39.9Below Average

Financial Data

More Stock Analysis

How is the DANOY UQS Score Calculated?

The UQS (Unified Quality Score) for Danone S.A. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Danone S.A.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Danone S.A. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.