DUTCH BROS INC-CLASS A (BROS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BROS - US26701L1008 - Common Stock
58.08 USD
-0.35 (-0.6%)
57.5 USD
-0.58 (-1%)
BROS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 131 industry peers in the Hotels, Restaurants & Leisure industry. BROS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. BROS shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
BROS had positive earnings in the past year.
In the past year BROS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BROS reported negative net income in multiple years.
Each year in the past 5 years BROS had a positive operating cash flow.
1.2 Ratios
BROS has a Return On Assets of 2.12%. This is comparable to the rest of the industry: BROS outperforms 48.09% of its industry peers.
With a decent Return On Equity value of 9.46%, BROS is doing good in the industry, outperforming 66.41% of the companies in the same industry.
BROS's Return On Invested Capital of 3.89% is in line compared to the rest of the industry. BROS outperforms 41.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.12% | ||
| ROE | 9.46% | ||
| ROIC | 3.89% |
ROA(3y)0.37%
ROA(5y)-0.24%
ROE(3y)1.1%
ROE(5y)-2.02%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BROS's Profit Margin of 4.04% is in line compared to the rest of the industry. BROS outperforms 53.44% of its industry peers.
In the last couple of years the Profit Margin of BROS has declined.
Looking at the Operating Margin, with a value of 9.95%, BROS is in line with its industry, outperforming 57.25% of the companies in the same industry.
In the last couple of years the Operating Margin of BROS has declined.
BROS's Gross Margin of 29.45% is on the low side compared to the rest of the industry. BROS is outperformed by 77.10% of its industry peers.
In the last couple of years the Gross Margin of BROS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.95% | ||
| PM (TTM) | 4.04% | ||
| GM | 29.45% |
OM growth 3YN/A
OM growth 5Y-5.29%
PM growth 3YN/A
PM growth 5Y-25.4%
GM growth 3Y-0.28%
GM growth 5Y-4.98%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BROS is destroying value.
The number of shares outstanding for BROS has been reduced compared to 1 year ago.
Compared to 5 years ago, BROS has less shares outstanding
Compared to 1 year ago, BROS has an improved debt to assets ratio.
2.2 Solvency
BROS has an Altman-Z score of 3.33. This indicates that BROS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.33, BROS is in the better half of the industry, outperforming 77.86% of the companies in the same industry.
The Debt to FCF ratio of BROS is 9.26, which is on the high side as it means it would take BROS, 9.26 years of fcf income to pay off all of its debts.
BROS's Debt to FCF ratio of 9.26 is fine compared to the rest of the industry. BROS outperforms 61.83% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that BROS is somewhat dependend on debt financing.
BROS has a Debt to Equity ratio of 0.89. This is in the better half of the industry: BROS outperforms 61.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 9.26 | ||
| Altman-Z | 3.33 |
ROIC/WACC0.45
WACC8.57%
2.3 Liquidity
BROS has a Current Ratio of 1.52. This is a normal value and indicates that BROS is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.52, BROS is doing good in the industry, outperforming 72.52% of the companies in the same industry.
BROS has a Quick Ratio of 1.32. This is a normal value and indicates that BROS is financially healthy and should not expect problems in meeting its short term obligations.
BROS has a Quick ratio of 1.32. This is in the better half of the industry: BROS outperforms 67.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.50% over the past year.
The earnings per share for BROS have been decreasing by -11.03% on average. This is quite bad
The Revenue has grown by 28.93% in the past year. This is a very strong growth!
The Revenue has been growing by 39.97% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)37.5%
EPS 3YN/A
EPS 5Y-11.03%
EPS Q2Q%18.75%
Revenue 1Y (TTM)28.93%
Revenue growth 3Y37.03%
Revenue growth 5Y39.97%
Sales Q2Q%25.24%
3.2 Future
Based on estimates for the next years, BROS will show a very strong growth in Earnings Per Share. The EPS will grow by 32.80% on average per year.
BROS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.61% yearly.
EPS Next Y36.38%
EPS Next 2Y34.17%
EPS Next 3Y32.95%
EPS Next 5Y32.8%
Revenue Next Year28.63%
Revenue Next 2Y27.01%
Revenue Next 3Y25.43%
Revenue Next 5Y24.61%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 88.00, BROS can be considered very expensive at the moment.
61.07% of the companies in the same industry are cheaper than BROS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.49, BROS is valued quite expensively.
The Price/Forward Earnings ratio is 63.26, which means the current valuation is very expensive for BROS.
61.83% of the companies in the same industry are cheaper than BROS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.69. BROS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88 | ||
| Fwd PE | 63.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BROS is valued a bit more expensive than the industry average as 77.86% of the companies are valued more cheaply.
BROS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 146.09 | ||
| EV/EBITDA | 38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BROS's earnings are expected to grow with 32.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.42
PEG (5Y)N/A
EPS Next 2Y34.17%
EPS Next 3Y32.95%
5. Dividend
5.1 Amount
BROS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
58.08
-0.35 (-0.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners90.94%
Inst Owner Change4.3%
Ins Owners0.92%
Ins Owner Change-144.89%
Market Cap9.56B
Revenue(TTM)1.54B
Net Income(TTM)62.08M
Analysts84.62
Price Target76.68 (32.02%)
Short Float %10.01%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.59%
Min EPS beat(2)7.83%
Max EPS beat(2)41.35%
EPS beat(4)4
Avg EPS beat(4)75.22%
Min EPS beat(4)7.83%
Max EPS beat(4)224.17%
EPS beat(8)8
Avg EPS beat(8)114.38%
EPS beat(12)11
Avg EPS beat(12)95.82%
EPS beat(16)13
Avg EPS beat(16)45.69%
Revenue beat(2)2
Avg Revenue beat(2)0.63%
Min Revenue beat(2)0.27%
Max Revenue beat(2)0.98%
Revenue beat(4)4
Avg Revenue beat(4)2%
Min Revenue beat(4)0.27%
Max Revenue beat(4)5.75%
Revenue beat(8)7
Avg Revenue beat(8)1.8%
Revenue beat(12)9
Avg Revenue beat(12)0.43%
Revenue beat(16)12
Avg Revenue beat(16)0.61%
PT rev (1m)-2.6%
PT rev (3m)-8.68%
EPS NQ rev (1m)-4.65%
EPS NQ rev (3m)-8.8%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88 | ||
| Fwd PE | 63.26 | ||
| P/S | 6.22 | ||
| P/FCF | 146.09 | ||
| P/OCF | 34.35 | ||
| P/B | 14.55 | ||
| P/tB | 15.09 | ||
| EV/EBITDA | 38 |
EPS(TTM)0.66
EY1.14%
EPS(NY)0.92
Fwd EY1.58%
FCF(TTM)0.4
FCFY0.68%
OCF(TTM)1.69
OCFY2.91%
SpS9.34
BVpS3.99
TBVpS3.85
PEG (NY)2.42
PEG (5Y)N/A
Graham Number7.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.12% | ||
| ROE | 9.46% | ||
| ROCE | 5.67% | ||
| ROIC | 3.89% | ||
| ROICexc | 4.32% | ||
| ROICexgc | 4.36% | ||
| OM | 9.95% | ||
| PM (TTM) | 4.04% | ||
| GM | 29.45% | ||
| FCFM | 4.25% |
ROA(3y)0.37%
ROA(5y)-0.24%
ROE(3y)1.1%
ROE(5y)-2.02%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y-28.12%
ROICexc growth 3YN/A
ROICexc growth 5Y-24.54%
OM growth 3YN/A
OM growth 5Y-5.29%
PM growth 3YN/A
PM growth 5Y-25.4%
GM growth 3Y-0.28%
GM growth 5Y-4.98%
F-Score7
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 9.26 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 195.33% | ||
| Cap/Sales | 13.84% | ||
| Interest Coverage | 3.91 | ||
| Cash Conversion | 106.2% | ||
| Profit Quality | 105.35% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 3.33 |
F-Score7
WACC8.57%
ROIC/WACC0.45
Cap/Depr(3y)329.63%
Cap/Depr(5y)343.93%
Cap/Sales(3y)22.13%
Cap/Sales(5y)20.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.5%
EPS 3YN/A
EPS 5Y-11.03%
EPS Q2Q%18.75%
EPS Next Y36.38%
EPS Next 2Y34.17%
EPS Next 3Y32.95%
EPS Next 5Y32.8%
Revenue 1Y (TTM)28.93%
Revenue growth 3Y37.03%
Revenue growth 5Y39.97%
Sales Q2Q%25.24%
Revenue Next Year28.63%
Revenue Next 2Y27.01%
Revenue Next 3Y25.43%
Revenue Next 5Y24.61%
EBIT growth 1Y43.75%
EBIT growth 3YN/A
EBIT growth 5Y32.56%
EBIT Next Year189.42%
EBIT Next 3Y66.25%
EBIT Next 5Y49.19%
FCF growth 1Y160.03%
FCF growth 3YN/A
FCF growth 5Y7.46%
OCF growth 1Y148.3%
OCF growth 3Y45.27%
OCF growth 5Y34.16%
DUTCH BROS INC-CLASS A / BROS FAQ
What is the ChartMill fundamental rating of DUTCH BROS INC-CLASS A (BROS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BROS.
What is the valuation status of DUTCH BROS INC-CLASS A (BROS) stock?
ChartMill assigns a valuation rating of 1 / 10 to DUTCH BROS INC-CLASS A (BROS). This can be considered as Overvalued.
What is the profitability of BROS stock?
DUTCH BROS INC-CLASS A (BROS) has a profitability rating of 3 / 10.
Can you provide the financial health for BROS stock?
The financial health rating of DUTCH BROS INC-CLASS A (BROS) is 6 / 10.