ANHEUSER-BUSCH INBEV SA/NV (ABI.BR) Stock Fundamental Analysis
EBR:ABI - Euronext Brussels - BE0974293251 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to ABI. ABI was compared to 24 industry peers in the Beverages industry. While ABI is still in line with the averages on profitability rating, there are concerns on its financial health. ABI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ABI was profitable.
ABI had a positive operating cash flow in the past year.
ABI had positive earnings in each of the past 5 years.
ABI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.81%, ABI is doing worse than 66.67% of the companies in the same industry.
ABI's Return On Equity of 7.55% is on the low side compared to the rest of the industry. ABI is outperformed by 61.90% of its industry peers.
ABI has a Return On Invested Capital (6.49%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ABI is below the industry average of 8.61%.
The 3 year average ROIC (6.15%) for ABI is below the current ROIC(6.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 7.55% | ||
| ROIC | 6.49% |
ROA(3y)2.46%
ROA(5y)2.38%
ROE(3y)7.15%
ROE(5y)7.13%
ROIC(3y)6.15%
ROIC(5y)5.9%
1.3 Margins
ABI has a Profit Margin of 9.89%. This is comparable to the rest of the industry: ABI outperforms 47.62% of its industry peers.
ABI's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 25.14%, ABI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
ABI's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 54.48%, ABI perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
In the last couple of years the Gross Margin of ABI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.14% | ||
| PM (TTM) | 9.89% | ||
| GM | 54.48% |
OM growth 3Y-2.27%
OM growth 5Y-5.36%
PM growth 3Y44.25%
PM growth 5Y1.77%
GM growth 3Y-2.5%
GM growth 5Y-2.91%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABI is creating some value.
Compared to 1 year ago, ABI has about the same amount of shares outstanding.
Compared to 5 years ago, ABI has more shares outstanding
ABI has a better debt/assets ratio than last year.
2.2 Solvency
ABI has an Altman-Z score of 1.56. This is a bad value and indicates that ABI is not financially healthy and even has some risk of bankruptcy.
ABI has a Altman-Z score of 1.56. This is amonst the worse of the industry: ABI underperforms 80.95% of its industry peers.
The Debt to FCF ratio of ABI is 7.84, which is on the high side as it means it would take ABI, 7.84 years of fcf income to pay off all of its debts.
ABI has a Debt to FCF ratio of 7.84. This is in the better half of the industry: ABI outperforms 66.67% of its industry peers.
ABI has a Debt/Equity ratio of 0.97. This is a neutral value indicating ABI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.97, ABI is in line with its industry, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 7.84 | ||
| Altman-Z | 1.56 |
ROIC/WACC1.12
WACC5.79%
2.3 Liquidity
ABI has a Current Ratio of 0.69. This is a bad value and indicates that ABI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.69, ABI is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
ABI has a Quick Ratio of 0.69. This is a bad value and indicates that ABI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.51, ABI is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.48% over the past year.
Measured over the past years, ABI shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.43% on average per year.
The Revenue has decreased by -0.30% in the past year.
Measured over the past years, ABI shows a small growth in Revenue. The Revenue has been growing by 2.28% on average per year.
EPS 1Y (TTM)7.48%
EPS 3Y16.68%
EPS 5Y-2.43%
EPS Q2Q%13.95%
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y8.2%
Revenue growth 5Y2.28%
Sales Q2Q%-3.39%
3.2 Future
ABI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.37% yearly.
ABI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.04% yearly.
EPS Next Y10.9%
EPS Next 2Y8.33%
EPS Next 3Y9.81%
EPS Next 5Y12.37%
Revenue Next Year-1.56%
Revenue Next 2Y-0.2%
Revenue Next 3Y1.42%
Revenue Next 5Y3.04%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.10, the valuation of ABI can be described as correct.
ABI's Price/Earnings ratio is rather cheap when compared to the industry. ABI is cheaper than 80.95% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, ABI is valued rather cheaply.
A Price/Forward Earnings ratio of 13.59 indicates a correct valuation of ABI.
66.67% of the companies in the same industry are more expensive than ABI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ABI to the average of the S&P500 Index (92.74), we can say ABI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 13.59 |
4.2 Price Multiples
76.19% of the companies in the same industry are more expensive than ABI, based on the Enterprise Value to EBITDA ratio.
80.95% of the companies in the same industry are more expensive than ABI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.58 | ||
| EV/EBITDA | 7.91 |
4.3 Compensation for Growth
ABI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.29
PEG (5Y)N/A
EPS Next 2Y8.33%
EPS Next 3Y9.81%
5. Dividend
5.1 Amount
ABI has a Yearly Dividend Yield of 1.20%.
Compared to an average industry Dividend Yield of 2.86, ABI's dividend is way lower than its industry peers. On top of this 85.71% of the companies listed in the same industry pay a better dividend than ABI!
With a Dividend Yield of 1.20, ABI pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
The dividend of ABI decreases each year by -17.56%.
Dividend Growth(5Y)-17.56%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
54.53% of the earnings are spent on dividend by ABI. This is a bit on the high side, but may be sustainable.
DP54.53%
EPS Next 2Y8.33%
EPS Next 3Y9.81%
ANHEUSER-BUSCH INBEV SA/NV
EBR:ABI (2/5/2025, 11:20:17 AM)
47.08
+0.01 (+0.02%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners13.92%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap92.43B
Analysts80.59
Price Target67.86 (44.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
Yearly Dividend1.52
Dividend Growth(5Y)-17.56%
DP54.53%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.56%
Min EPS beat(2)4.3%
Max EPS beat(2)10.83%
EPS beat(4)4
Avg EPS beat(4)5.47%
Min EPS beat(4)1.97%
Max EPS beat(4)10.83%
EPS beat(8)8
Avg EPS beat(8)8.38%
EPS beat(12)10
Avg EPS beat(12)8.75%
EPS beat(16)12
Avg EPS beat(16)5.85%
Revenue beat(2)1
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)0.82%
Revenue beat(4)1
Avg Revenue beat(4)-2.53%
Min Revenue beat(4)-7.51%
Max Revenue beat(4)0.82%
Revenue beat(8)1
Avg Revenue beat(8)-2.34%
Revenue beat(12)5
Avg Revenue beat(12)-1.01%
Revenue beat(16)8
Avg Revenue beat(16)0.06%
PT rev (1m)-2.51%
PT rev (3m)-4.42%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)-0.59%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-1.77%
Revenue NY rev (3m)-1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 13.59 | ||
| P/S | 1.59 | ||
| P/FCF | 9.58 | ||
| P/OCF | 6.71 | ||
| P/B | 1.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.91 |
EPS(TTM)3.34
EY7.09%
EPS(NY)3.46
Fwd EY7.36%
FCF(TTM)4.91
FCFY10.44%
OCF(TTM)7.02
OCFY14.9%
SpS29.53
BVpS38.7
TBVpS-37.28
PEG (NY)1.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 7.55% | ||
| ROCE | 8.36% | ||
| ROIC | 6.49% | ||
| ROICexc | 6.78% | ||
| ROICexgc | 63.66% | ||
| OM | 25.14% | ||
| PM (TTM) | 9.89% | ||
| GM | 54.48% | ||
| FCFM | 16.64% |
ROA(3y)2.46%
ROA(5y)2.38%
ROE(3y)7.15%
ROE(5y)7.13%
ROIC(3y)6.15%
ROIC(5y)5.9%
ROICexc(3y)6.54%
ROICexc(5y)6.27%
ROICexgc(3y)76.95%
ROICexgc(5y)66.93%
ROCE(3y)7.92%
ROCE(5y)7.63%
ROICexcg growth 3Y15.24%
ROICexcg growth 5Y-12.95%
ROICexc growth 3Y7.38%
ROICexc growth 5Y-1.64%
OM growth 3Y-2.27%
OM growth 5Y-5.36%
PM growth 3Y44.25%
PM growth 5Y1.77%
GM growth 3Y-2.5%
GM growth 5Y-2.91%
F-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 7.84 | ||
| Debt/EBITDA | 3.68 | ||
| Cap/Depr | 76.77% | ||
| Cap/Sales | 7.12% | ||
| Interest Coverage | 4.24 | ||
| Cash Conversion | 69.03% | ||
| Profit Quality | 168.21% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.56 |
F-Score7
WACC5.79%
ROIC/WACC1.12
Cap/Depr(3y)99.66%
Cap/Depr(5y)97.67%
Cap/Sales(3y)9.04%
Cap/Sales(5y)9.02%
Profit Quality(3y)164.66%
Profit Quality(5y)219.33%
High Growth Momentum
Growth
EPS 1Y (TTM)7.48%
EPS 3Y16.68%
EPS 5Y-2.43%
EPS Q2Q%13.95%
EPS Next Y10.9%
EPS Next 2Y8.33%
EPS Next 3Y9.81%
EPS Next 5Y12.37%
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y8.2%
Revenue growth 5Y2.28%
Sales Q2Q%-3.39%
Revenue Next Year-1.56%
Revenue Next 2Y-0.2%
Revenue Next 3Y1.42%
Revenue Next 5Y3.04%
EBIT growth 1Y2.25%
EBIT growth 3Y5.74%
EBIT growth 5Y-3.2%
EBIT Next Year39.94%
EBIT Next 3Y14.48%
EBIT Next 5Y12.76%
FCF growth 1Y31.63%
FCF growth 3Y6.66%
FCF growth 5Y-1.23%
OCF growth 1Y9.16%
OCF growth 3Y6.79%
OCF growth 5Y-1.33%