ANHEUSER-BUSCH INBEV SA/NV (ABI.BR) Stock Fundamental Analysis
EBR:ABI - Euronext Brussels - BE0974293251 - Common Stock - Currency: EUR
Taking everything into account, ABI scores 3 out of 10 in our fundamental rating. ABI was compared to 25 industry peers in the Beverages industry. ABI has a medium profitability rating, but doesn't score so well on its financial health evaluation. ABI is valued correctly, but it does not seem to be growing.
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 4 of the past 5 years.
ABI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.81%, ABI is in line with its industry, outperforming 42.31% of the companies in the same industry.
ABI has a Return On Equity of 7.55%. This is comparable to the rest of the industry: ABI outperforms 46.15% of its industry peers.
ABI has a Return On Invested Capital (6.49%) which is in line with its industry peers.
ABI had an Average Return On Invested Capital over the past 3 years of 6.15%. This is in line with the industry average of 7.88%.
The last Return On Invested Capital (6.49%) for ABI is above the 3 year average (6.15%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 9.89%, ABI is doing good in the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Profit Margin of ABI has grown nicely.
ABI has a better Operating Margin (25.14%) than 73.08% of its industry peers.
ABI's Operating Margin has declined in the last couple of years.
The Gross Margin of ABI (54.48%) is comparable to the rest of the 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
ABI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for ABI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
ABI has an Altman-Z score of 1.68. This is a bad value and indicates that ABI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.68, ABI is doing worse than 69.23% of the companies in the same industry.
ABI has a debt to FCF ratio of 7.84. This is a slightly negative value and a sign of low solvency as ABI would need 7.84 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.84, ABI is doing good in the industry, outperforming 61.54% of the companies in the same industry.
ABI has a Debt/Equity ratio of 0.97. This is a neutral value indicating ABI is somewhat dependend on debt financing.
ABI's Debt to Equity ratio of 0.97 is in line compared to the rest of the industry. ABI outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 7.84 | ||
| Altman-Z | 1.68 |
ROIC/WACC1.05
WACC6.21%
2.3 Liquidity
A Current Ratio of 0.69 indicates that ABI may have some problems paying its short term obligations.
ABI has a worse Current ratio (0.69) than 84.62% of its industry peers.
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.
ABI's Quick ratio of 0.51 is on the low side compared to the rest of the industry. ABI is outperformed by 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.08% over the past year.
The Earnings Per Share has been decreasing by -1.83% on average over the past years.
EPS 1Y (TTM)15.08%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%7.32%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.54%
3.2 Future
The Earnings Per Share is expected to grow by 11.70% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.75% on average over the next years.
EPS Next Y1.23%
EPS Next 2Y7.16%
EPS Next 3Y12.23%
EPS Next 5Y11.7%
Revenue Next Year1.44%
Revenue Next 2Y2.97%
Revenue Next 3Y3.98%
Revenue Next 5Y5.75%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ABI is valuated rather expensively with a Price/Earnings ratio of 18.04.
69.23% of the companies in the same industry are more expensive than ABI, based on the Price/Earnings ratio.
ABI is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.80, the valuation of ABI can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as ABI.
ABI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 17.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABI indicates a somewhat cheap valuation: ABI is cheaper than 73.08% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ABI is valued cheaper than 80.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.41 | ||
| EV/EBITDA | 9.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABI does not grow enough to justify the current Price/Earnings ratio.
ABI's earnings are expected to grow with 12.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)14.71
PEG (5Y)N/A
EPS Next 2Y7.16%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, ABI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.64, ABI's dividend is way lower than its industry peers. On top of this 80.77% of the companies listed in the same industry pay a better dividend than ABI!
With a Dividend Yield of 0.99, ABI pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
The dividend of ABI decreases each year by -17.57%.
Dividend Growth(5Y)-17.57%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
ABI pays out 54.53% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP54.53%
EPS Next 2Y7.16%
EPS Next 3Y12.23%
EBR:ABI (3/7/2025, 7:00:00 PM)
58.26
+0.52 (+0.9%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners17.94%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap113.98B
Analysts80.59
Price Target70.88 (21.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend1.4
Dividend Growth(5Y)-17.57%
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)4.44%
PT rev (3m)1.14%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)-0.59%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 17.8 | ||
| P/S | 2.06 | ||
| P/FCF | 12.41 | ||
| P/OCF | 8.69 | ||
| P/B | 1.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.27 |
EPS(TTM)3.23
EY5.54%
EPS(NY)3.27
Fwd EY5.62%
FCF(TTM)4.69
FCFY8.06%
OCF(TTM)6.7
OCFY11.5%
SpS28.21
BVpS36.97
TBVpS-35.61
PEG (NY)14.71
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 | 1.68 |
F-Score7
WACC6.21%
ROIC/WACC1.05
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)15.08%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%7.32%
EPS Next Y1.23%
EPS Next 2Y7.16%
EPS Next 3Y12.23%
EPS Next 5Y11.7%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.54%
Revenue Next Year1.44%
Revenue Next 2Y2.97%
Revenue Next 3Y3.98%
Revenue Next 5Y5.75%
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%