ANHEUSER-BUSCH INBEV SA/NV (ABI.BR)
BE0974293251 - Common Stock
Overall ABI gets a fundamental rating of 4 out of 10. We evaluated ABI against 26 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.
In the past 5 years ABI has always been profitable.
Each year in the past 5 years ABI had a positive operating cash flow.
1.2 Ratios
ABI has a worse Return On Assets (2.81%) than 64.00% of its industry peers.
ABI's Return On Equity of 7.55% is on the low side compared to the rest of the industry. ABI is outperformed by 60.00% of its industry peers.
ABI has a Return On Invested Capital of 6.49%. This is comparable to the rest of the industry: ABI outperforms 44.00% of 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 8.05%.
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
ABI has a Profit Margin of 9.89%. This is comparable to the rest of the industry: ABI outperforms 52.00% of its industry peers.
In the last couple of years the Profit Margin of ABI has grown nicely.
Looking at the Operating Margin, with a value of 25.14%, ABI is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
ABI's Operating Margin has declined in the last couple of years.
ABI has a Gross Margin of 54.48%. This is comparable to the rest of the industry: ABI outperforms 52.00% of its industry peers.
ABI's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABI is still creating some value.
ABI has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ABI has been increased compared to 5 years ago.
ABI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.57, we must say that ABI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.57, ABI is doing worse than 76.00% of the companies in the same industry.
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.
The Debt to FCF ratio of ABI (7.84) is better than 68.00% of its industry peers.
A Debt/Equity ratio of 0.97 indicates that ABI is somewhat dependend on debt financing.
ABI has a Debt to Equity ratio (0.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 7.84 | ||
| Altman-Z | 1.57 |
ROIC/WACC1.1
WACC5.89%
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.
ABI has a worse Current ratio (0.69) than 92.00% of its industry peers.
A Quick Ratio of 0.51 indicates that ABI may have some problems paying its short term obligations.
With a Quick ratio value of 0.51, ABI is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
ABI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.48%.
The Earnings Per Share has been decreasing by -2.43% on average over the past years.
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
Based on estimates for the next years, ABI will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.71% on average per year.
Based on estimates for the next years, ABI will show a small growth in Revenue. The Revenue will grow by 3.20% on average per year.
EPS Next Y11.08%
EPS Next 2Y11.78%
EPS Next 3Y12.09%
EPS Next 5Y12.71%
Revenue Next Year0.21%
Revenue Next 2Y1.89%
Revenue Next 3Y2.78%
Revenue Next 5Y3.2%
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 14.58, the valuation of ABI can be described as correct.
Based on the Price/Earnings ratio, ABI is valued a bit cheaper than the industry average as 76.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ABI to the average of the S&P500 Index (27.54), we can say ABI is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.21, which indicates a correct valuation of ABI.
Based on the Price/Forward Earnings ratio, ABI is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
ABI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.58 | ||
| Fwd PE | 13.21 |
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 72.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ABI is valued cheaper than 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.96 | ||
| EV/EBITDA | 8.09 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ABI's earnings are expected to grow with 12.09% in the coming years.
PEG (NY)1.32
PEG (5Y)N/A
EPS Next 2Y11.78%
EPS Next 3Y12.09%
5. Dividend
5.1 Amount
ABI has a Yearly Dividend Yield of 1.19%. Purely for dividend investing, there may be better candidates out there.
ABI's Dividend Yield is slightly below the industry average, which is at 2.62.
With a Dividend Yield of 1.19, ABI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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
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 2Y11.78%
EPS Next 3Y12.09%
ANHEUSER-BUSCH INBEV SA/NV
EBR:ABI (12/24/2024, 7:00:00 PM)
48.42
+0.17 (+0.35%)
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 Cap95.48B
Analysts81.18
Price Target70.08 (44.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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)-1.3%
PT rev (3m)0.22%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.58 | ||
| Fwd PE | 13.21 | ||
| P/S | 1.66 | ||
| P/FCF | 9.96 | ||
| P/OCF | 6.97 | ||
| P/B | 1.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.09 |
EPS(TTM)3.32
EY6.86%
EPS(NY)3.67
Fwd EY7.57%
FCF(TTM)4.86
FCFY10.04%
OCF(TTM)6.94
OCFY14.34%
SpS29.23
BVpS38.3
TBVpS-36.9
PEG (NY)1.32
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 | 1.57 |
F-Score7
WACC5.89%
ROIC/WACC1.1
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 Y11.08%
EPS Next 2Y11.78%
EPS Next 3Y12.09%
EPS Next 5Y12.71%
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y8.2%
Revenue growth 5Y2.28%
Sales Q2Q%-3.39%
Revenue Next Year0.21%
Revenue Next 2Y1.89%
Revenue Next 3Y2.78%
Revenue Next 5Y3.2%
EBIT growth 1Y2.25%
EBIT growth 3Y5.74%
EBIT growth 5Y-3.2%
EBIT Next Year39.94%
EBIT Next 3Y14.48%
EBIT Next 5Y12.88%
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%