DUTCH BROS INC-CLASS A (BROS)
US26701L1008 - Common Stock
We assign a fundamental rating of 4 out of 10 to BROS. BROS was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. The financial health of BROS is average, but there are quite some concerns on its profitability. BROS is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
BROS had positive earnings in the past year.
BROS had a positive operating cash flow in the past year.
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 (0.92%) which is in line with its industry peers.
BROS has a Return On Equity (4.28%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 2.50%, BROS is doing worse than 67.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 4.28% | ||
| ROIC | 2.5% |
ROA(3y)-0.87%
ROA(5y)2.85%
ROE(3y)-5.56%
ROE(5y)3.94%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BROS has a Profit Margin of 1.95%. This is comparable to the rest of the industry: BROS outperforms 45.52% of its industry peers.
BROS's Operating Margin of 8.46% is in line compared to the rest of the industry. BROS outperforms 49.25% of its industry peers.
BROS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 28.90%, BROS is not doing good in the industry: 78.36% of the companies in the same industry are doing better.
BROS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.46% | ||
| PM (TTM) | 1.95% | ||
| GM | 28.9% |
OM growth 3Y16.51%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.23%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BROS is destroying value.
The number of shares outstanding for BROS has been increased compared to 1 year ago.
BROS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.43 indicates that BROS is not a great score, but indicates only limited risk for bankruptcy at the moment.
BROS has a better Altman-Z score (2.43) than 71.64% of its industry peers.
A Debt/Equity ratio of 1.18 is on the high side and indicates that BROS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.18, BROS perfoms like the industry average, outperforming 59.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.43 |
ROIC/WACC0.29
WACC8.77%
2.3 Liquidity
A Current Ratio of 2.19 indicates that BROS has no problem at all paying its short term obligations.
The Current ratio of BROS (2.19) is better than 88.81% of its industry peers.
BROS has a Quick Ratio of 1.88. 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 better Quick ratio (1.88) than 85.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 60.00% over the past year.
The Revenue has grown by 30.69% in the past year. This is a very strong growth!
The Revenue has been growing by 43.42% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)60%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%14.29%
Revenue 1Y (TTM)30.69%
Revenue growth 3Y43.42%
Revenue growth 5YN/A
Sales Q2Q%27.86%
3.2 Future
BROS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.69% yearly.
BROS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.02% yearly.
EPS Next Y34.16%
EPS Next 2Y25.65%
EPS Next 3Y24.14%
EPS Next 5Y32.69%
Revenue Next Year27.59%
Revenue Next 2Y24.02%
Revenue Next 3Y22.38%
Revenue Next 5Y22.02%
3.3 Evolution
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
The Price/Earnings ratio is 98.16, which means the current valuation is very expensive for BROS.
The rest of the industry has a similar Price/Earnings ratio as BROS.
The average S&P500 Price/Earnings ratio is at 28.76. BROS is valued rather expensively when compared to this.
BROS is valuated quite expensively with a Price/Forward Earnings ratio of 96.27.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BROS indicates a slightly more expensive valuation: BROS is more expensive than 64.18% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BROS to the average of the S&P500 Index (23.90), we can say BROS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.16 | ||
| Fwd PE | 96.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BROS is valued a bit more expensive than 78.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 32.67 |
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 24.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.87
PEG (5Y)N/A
EPS Next 2Y25.65%
EPS Next 3Y24.14%
5. Dividend
5.1 Amount
No dividends for BROS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DUTCH BROS INC-CLASS A
NYSE:BROS (11/7/2024, 11:19:08 AM)
47.115
+12.18 (+34.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.16 | ||
| Fwd PE | 96.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.87
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 4.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.46% | ||
| PM (TTM) | 1.95% | ||
| GM | 28.9% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)60%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y34.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)30.69%
Revenue growth 3Y43.42%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y