DUTCH BROS INC-CLASS A (BROS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BROS - US26701L1008 - Common Stock
58.88 USD
-2.09 (-3.43%)
59 USD
+0.12 (+0.2%)
BROS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 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 is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
- In the past year BROS was profitable.
- BROS had a positive operating cash flow in the past year.
- In multiple years BROS reported negative net income over the last 5 years.
- In the past 5 years BROS always reported a positive cash flow from operatings.
1.2 Ratios
- BROS's Return On Assets of 2.12% is in line compared to the rest of the industry. BROS outperforms 50.76% of its industry peers.
- With a decent Return On Equity value of 9.46%, BROS is doing good in the industry, outperforming 68.18% of the companies in the same industry.
- The Return On Invested Capital of BROS (3.89%) is comparable to the rest of the industry.
| 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
- The Profit Margin of BROS (4.04%) is comparable to the rest of the industry.
- BROS's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 9.95%, BROS is in line with its industry, outperforming 57.58% of the companies in the same industry.
- In the last couple of years the Operating Margin of BROS has declined.
- With a Gross Margin value of 29.45%, BROS is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
- 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
- BROS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for BROS has been reduced compared to 1 year ago.
- The number of shares outstanding for BROS has been reduced compared to 5 years ago.
- The debt/assets ratio for BROS has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.44 indicates that BROS is not in any danger for bankruptcy at the moment.
- The Altman-Z score of BROS (3.44) is better than 81.06% of its industry peers.
- 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 62.12% of its industry peers.
- BROS has a Debt/Equity ratio of 0.89. This is a neutral value indicating 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 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 9.26 | ||
| Altman-Z | 3.44 |
ROIC/WACC0.45
WACC8.67%
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 71.21% of the companies in the same industry.
- A Quick Ratio of 1.32 indicates that BROS should not have too much problems paying its short term obligations.
- BROS has a Quick ratio of 1.32. This is in the better half of the industry: BROS outperforms 68.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
- BROS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.50%, which is quite impressive.
- BROS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.03% yearly.
- Looking at the last year, BROS shows a very strong growth in Revenue. The Revenue has grown by 28.93%.
- Measured over the past years, BROS shows a very strong growth in Revenue. The Revenue has been growing by 39.97% on average per year.
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
- BROS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.31% yearly.
- The Revenue is expected to grow by 24.85% on average over the next years. This is a very strong growth
EPS Next Y36.89%
EPS Next 2Y34.76%
EPS Next 3Y33.54%
EPS Next 5Y33.31%
Revenue Next Year28.78%
Revenue Next 2Y27.22%
Revenue Next 3Y25.7%
Revenue Next 5Y24.85%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 89.21, the valuation of BROS can be described as expensive.
- BROS's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, BROS is valued quite expensively.
- With a Price/Forward Earnings ratio of 63.57, 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 62.12% of the companies are valued more cheaply.
- BROS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.21 | ||
| Fwd PE | 63.57 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BROS is valued a bit more expensive than 78.79% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BROS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 148.1 | ||
| EV/EBITDA | 39.59 |
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 33.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.42
PEG (5Y)N/A
EPS Next 2Y34.76%
EPS Next 3Y33.54%
5. Dividend
5.1 Amount
- BROS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 for BROS stock?
ChartMill assigns a valuation rating of 2 / 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.
What is the valuation of DUTCH BROS INC-CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DUTCH BROS INC-CLASS A (BROS) is 89.21 and the Price/Book (PB) ratio is 14.75.
What is the earnings growth outlook for DUTCH BROS INC-CLASS A?
The Earnings per Share (EPS) of DUTCH BROS INC-CLASS A (BROS) is expected to grow by 36.89% in the next year.