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DUTCH BROS INC-CLASS A (BROS) Stock Fundamental Analysis

NYSE:BROS - New York Stock Exchange, Inc. - US26701L1008 - Common Stock - Currency: USD

57.03  -1.24 (-2.13%)

After market: 57.25 +0.22 (+0.39%)

Fundamental Rating

5

Overall BROS gets a fundamental rating of 5 out of 10. We evaluated BROS against 136 industry peers in the Hotels, Restaurants & Leisure industry. While BROS seems to be doing ok healthwise, there are quite some concerns on its profitability. BROS shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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3

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.
In multiple years BROS reported negative net income over the last 5 years.
BROS had a positive operating cash flow in each of the past 5 years.
BROS Yearly Net Income VS EBIT VS OCF VS FCFBROS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 100M -100M 200M

1.2 Ratios

The Return On Assets of BROS (1.41%) is comparable to the rest of the industry.
BROS has a better Return On Equity (6.56%) than 64.71% of its industry peers.
BROS has a Return On Invested Capital (3.70%) which is comparable to the rest of the industry.
Industry RankSector Rank
ROA 1.41%
ROE 6.56%
ROIC 3.7%
ROA(3y)0.37%
ROA(5y)-0.24%
ROE(3y)1.1%
ROE(5y)-2.02%
ROIC(3y)N/A
ROIC(5y)N/A
BROS Yearly ROA, ROE, ROICBROS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

1.3 Margins

BROS has a Profit Margin (2.75%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BROS has declined.
With a Operating Margin value of 9.68%, BROS perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
In the last couple of years the Operating Margin of BROS has declined.
Looking at the Gross Margin, with a value of 29.52%, BROS is doing worse than 77.94% of the companies in the same industry.
BROS's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 9.68%
PM (TTM) 2.75%
GM 29.52%
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%
BROS Yearly Profit, Operating, Gross MarginsBROS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 20 -20 40

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6

2. Health

2.1 Basic Checks

BROS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BROS has less shares outstanding
The number of shares outstanding for BROS has been reduced compared to 5 years ago.
Compared to 1 year ago, BROS has an improved debt to assets ratio.
BROS Yearly Shares OutstandingBROS Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 50M 100M 150M
BROS Yearly Total Debt VS Total AssetsBROS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.2 Solvency

BROS has an Altman-Z score of 3.66. This indicates that BROS is financially healthy and has little risk of bankruptcy at the moment.
BROS has a better Altman-Z score (3.66) than 84.56% of its industry peers.
The Debt to FCF ratio of BROS is 25.09, which is on the high side as it means it would take BROS, 25.09 years of fcf income to pay off all of its debts.
BROS has a Debt to FCF ratio (25.09) which is in line with its industry peers.
BROS has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
BROS has a Debt to Equity ratio of 1.10. This is in the better half of the industry: BROS outperforms 62.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.1
Debt/FCF 25.09
Altman-Z 3.66
ROIC/WACC0.42
WACC8.75%
BROS Yearly LT Debt VS Equity VS FCFBROS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 200M 400M

2.3 Liquidity

BROS has a Current Ratio of 1.76. This is a normal value and indicates that BROS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.76, BROS belongs to the top of the industry, outperforming 81.62% of the companies in the same industry.
BROS has a Quick Ratio of 1.58. This is a normal value and indicates that BROS is financially healthy and should not expect problems in meeting its short term obligations.
BROS's Quick ratio of 1.58 is fine compared to the rest of the industry. BROS outperforms 78.68% of its industry peers.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.58
BROS Yearly Current Assets VS Current LiabilitesBROS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 100M 200M 300M

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9

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 64.52% over the past year.
The earnings per share for BROS have been decreasing by -11.03% on average. This is quite bad
Looking at the last year, BROS shows a very strong growth in Revenue. The Revenue has grown by 32.63%.
BROS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.97% yearly.
EPS 1Y (TTM)64.52%
EPS 3YN/A
EPS 5Y-11.03%
EPS Q2Q%75%
Revenue 1Y (TTM)32.63%
Revenue growth 3Y37.03%
Revenue growth 5Y39.97%
Sales Q2Q%34.89%

3.2 Future

The Earnings Per Share is expected to grow by 27.28% on average over the next years. This is a very strong growth
BROS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.70% yearly.
EPS Next Y20.78%
EPS Next 2Y29.4%
EPS Next 3Y29.07%
EPS Next 5Y27.28%
Revenue Next Year25.98%
Revenue Next 2Y24.72%
Revenue Next 3Y23.42%
Revenue Next 5Y20.7%

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.
BROS Yearly Revenue VS EstimatesBROS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1B 2B 3B 4B
BROS Yearly EPS VS EstimatesBROS Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1 2 3

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 111.82, which means the current valuation is very expensive for BROS.
Based on the Price/Earnings ratio, BROS is valued a bit more expensive than 63.24% of the companies in the same industry.
BROS is valuated expensively when we compare the Price/Earnings ratio to 27.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 92.58, BROS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, BROS is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.85, BROS is valued quite expensively.
Industry RankSector Rank
PE 111.82
Fwd PE 92.58
BROS Price Earnings VS Forward Price EarningsBROS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

BROS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. BROS is more expensive than 76.47% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BROS is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 375.82
EV/EBITDA 45.2
BROS Per share dataBROS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BROS does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as BROS's earnings are expected to grow with 29.07% in the coming years.
PEG (NY)5.38
PEG (5Y)N/A
EPS Next 2Y29.4%
EPS Next 3Y29.07%

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0

5. Dividend

5.1 Amount

No dividends for BROS!.
Industry RankSector Rank
Dividend Yield N/A

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DUTCH BROS INC-CLASS A

NYSE:BROS (4/21/2025, 8:04:01 PM)

After market: 57.25 +0.22 (+0.39%)

57.03

-1.24 (-2.13%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-12 2025-02-12/amc
Earnings (Next)05-13 2025-05-13/amc
Inst Owners85.36%
Inst Owner Change0.11%
Ins Owners0.94%
Ins Owner Change59.14%
Market Cap9.28B
Analysts87.62
Price Target85.21 (49.41%)
Short Float %4.97%
Short Ratio1.65
Dividend
Industry RankSector 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)127.85%
Min EPS beat(2)31.52%
Max EPS beat(2)224.17%
EPS beat(4)4
Avg EPS beat(4)182.16%
Min EPS beat(4)31.52%
Max EPS beat(4)427.41%
EPS beat(8)8
Avg EPS beat(8)141.46%
EPS beat(12)9
Avg EPS beat(12)52.58%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.86%
Min Revenue beat(2)1.98%
Max Revenue beat(2)5.75%
Revenue beat(4)4
Avg Revenue beat(4)3.4%
Min Revenue beat(4)0.46%
Max Revenue beat(4)5.75%
Revenue beat(8)5
Avg Revenue beat(8)0.22%
Revenue beat(12)8
Avg Revenue beat(12)0.48%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.3%
PT rev (3m)48.07%
EPS NQ rev (1m)-8.05%
EPS NQ rev (3m)3.07%
EPS NY rev (1m)1.25%
EPS NY rev (3m)8.15%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)3.9%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)3.59%
Valuation
Industry RankSector Rank
PE 111.82
Fwd PE 92.58
P/S 7.24
P/FCF 375.82
P/OCF 37.66
P/B 17.27
P/tB 18.1
EV/EBITDA 45.2
EPS(TTM)0.51
EY0.89%
EPS(NY)0.62
Fwd EY1.08%
FCF(TTM)0.15
FCFY0.27%
OCF(TTM)1.51
OCFY2.66%
SpS7.87
BVpS3.3
TBVpS3.15
PEG (NY)5.38
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.41%
ROE 6.56%
ROCE 5.4%
ROIC 3.7%
ROICexc 4.24%
ROICexgc 4.29%
OM 9.68%
PM (TTM) 2.75%
GM 29.52%
FCFM 1.93%
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 1.1
Debt/FCF 25.09
Debt/EBITDA 2.71
Cap/Depr 238.42%
Cap/Sales 17.31%
Interest Coverage 3.17
Cash Conversion 113.56%
Profit Quality 70.04%
Current Ratio 1.76
Quick Ratio 1.58
Altman-Z 3.66
F-Score7
WACC8.75%
ROIC/WACC0.42
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)64.52%
EPS 3YN/A
EPS 5Y-11.03%
EPS Q2Q%75%
EPS Next Y20.78%
EPS Next 2Y29.4%
EPS Next 3Y29.07%
EPS Next 5Y27.28%
Revenue 1Y (TTM)32.63%
Revenue growth 3Y37.03%
Revenue growth 5Y39.97%
Sales Q2Q%34.89%
Revenue Next Year25.98%
Revenue Next 2Y24.72%
Revenue Next 3Y23.42%
Revenue Next 5Y20.7%
EBIT growth 1Y153.7%
EBIT growth 3YN/A
EBIT growth 5Y32.56%
EBIT Next Year179.07%
EBIT Next 3Y65.02%
EBIT Next 5Y45.07%
FCF growth 1Y127.89%
FCF growth 3YN/A
FCF growth 5Y7.46%
OCF growth 1Y76.13%
OCF growth 3Y45.27%
OCF growth 5Y34.16%