DUTCH BROS INC-CLASS A (BROS) Stock Fundamental Analysis
USA - NYSE:BROS - US26701L1008 - Common Stock
59.34 USD
-2.76 (-4.44%)
59.6 USD
+0.26 (+0.44%)
We assign a fundamental rating of 5 out of 10 to BROS. BROS was compared to 133 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 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.
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
With a Return On Assets value of 2.04%, BROS perfoms like the industry average, outperforming 45.11% of the companies in the same industry.
With a decent Return On Equity value of 9.00%, BROS is doing good in the industry, outperforming 64.66% of the companies in the same industry.
BROS's Return On Invested Capital of 3.82% is in line compared to the rest of the industry. BROS outperforms 40.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 9% | ||
| ROIC | 3.82% |
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
With a Profit Margin value of 3.94%, BROS perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
In the last couple of years the Profit Margin of BROS has declined.
BROS has a Operating Margin of 10.03%. This is comparable to the rest of the industry: BROS outperforms 54.89% of its industry peers.
In the last couple of years the Operating Margin of BROS has declined.
BROS has a Gross Margin of 29.77%. This is in the lower half of the industry: BROS underperforms 78.20% of its industry peers.
BROS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.03% | ||
| PM (TTM) | 3.94% | ||
| GM | 29.77% |
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
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 reduced compared to 1 year ago.
BROS has less shares outstanding than it did 5 years ago.
BROS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.46 indicates that BROS is not in any danger for bankruptcy at the moment.
BROS has a Altman-Z score of 3.46. This is in the better half of the industry: BROS outperforms 76.69% of its industry peers.
BROS has a debt to FCF ratio of 8.16. This is a slightly negative value and a sign of low solvency as BROS would need 8.16 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.16, BROS is in the better half of the industry, outperforming 66.17% of the companies in the same industry.
A Debt/Equity ratio of 0.91 indicates that BROS is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.91, BROS is doing good in the industry, outperforming 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 8.16 | ||
| Altman-Z | 3.46 |
ROIC/WACC0.43
WACC8.85%
2.3 Liquidity
BROS has a Current Ratio of 1.64. 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 Current ratio of 1.64 is fine compared to the rest of the industry. BROS outperforms 75.19% of its industry peers.
A Quick Ratio of 1.42 indicates that BROS should not have too much problems paying its short term obligations.
BROS's Quick ratio of 1.42 is fine compared to the rest of the industry. BROS outperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.96% over the past year.
Measured over the past years, BROS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.03% on average per year.
BROS shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.80%.
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)36.96%
EPS 3YN/A
EPS 5Y-11.03%
EPS Q2Q%36.84%
Revenue 1Y (TTM)29.8%
Revenue growth 3Y37.03%
Revenue growth 5Y39.97%
Sales Q2Q%27.97%
3.2 Future
The Earnings Per Share is expected to grow by 29.63% 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 21.31% yearly.
EPS Next Y36.09%
EPS Next 2Y33.98%
EPS Next 3Y32.65%
EPS Next 5Y29.63%
Revenue Next Year27.69%
Revenue Next 2Y26.27%
Revenue Next 3Y24.62%
Revenue Next 5Y21.31%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 94.19, BROS can be considered very expensive at the moment.
BROS's Price/Earnings ratio is a bit more expensive when compared to the industry. BROS is more expensive than 63.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of BROS to the average of the S&P500 Index (27.20), we can say BROS is valued expensively.
A Price/Forward Earnings ratio of 64.82 indicates a quite expensive valuation of BROS.
Based on the Price/Forward Earnings ratio, BROS is valued a bit more expensive than the industry average as 64.66% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of BROS to the average of the S&P500 Index (22.71), we can say BROS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.19 | ||
| Fwd PE | 64.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BROS is valued a bit more expensive than 76.69% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BROS is valued a bit more expensive than 60.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 133.93 | ||
| EV/EBITDA | 40.53 |
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 32.65% in the coming years.
PEG (NY)2.61
PEG (5Y)N/A
EPS Next 2Y33.98%
EPS Next 3Y32.65%
5. Dividend
5.1 Amount
BROS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
59.34
-2.76 (-4.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners79.61%
Inst Owner Change3.89%
Ins Owners0.91%
Ins Owner Change-54.4%
Market Cap9.76B
Analysts84.8
Price Target83.97 (41.51%)
Short Float %9.63%
Short Ratio3.47
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)34.43%
Min EPS beat(2)27.51%
Max EPS beat(2)41.35%
EPS beat(4)4
Avg EPS beat(4)81.14%
Min EPS beat(4)27.51%
Max EPS beat(4)224.17%
EPS beat(8)8
Avg EPS beat(8)125.93%
EPS beat(12)11
Avg EPS beat(12)96.29%
EPS beat(16)13
Avg EPS beat(16)58.58%
Revenue beat(2)2
Avg Revenue beat(2)1%
Min Revenue beat(2)0.98%
Max Revenue beat(2)1.02%
Revenue beat(4)4
Avg Revenue beat(4)2.43%
Min Revenue beat(4)0.98%
Max Revenue beat(4)5.75%
Revenue beat(8)7
Avg Revenue beat(8)1.83%
Revenue beat(12)8
Avg Revenue beat(12)0.4%
Revenue beat(16)12
Avg Revenue beat(16)0.71%
PT rev (1m)4.69%
PT rev (3m)5.43%
EPS NQ rev (1m)1.18%
EPS NQ rev (3m)0.02%
EPS NY rev (1m)14.49%
EPS NY rev (3m)12.12%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.7%
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.19 | ||
| Fwd PE | 64.82 | ||
| P/S | 6.72 | ||
| P/FCF | 133.93 | ||
| P/OCF | 35.83 | ||
| P/B | 15.35 | ||
| P/tB | 15.94 | ||
| EV/EBITDA | 40.53 |
EPS(TTM)0.63
EY1.06%
EPS(NY)0.92
Fwd EY1.54%
FCF(TTM)0.44
FCFY0.75%
OCF(TTM)1.66
OCFY2.79%
SpS8.83
BVpS3.87
TBVpS3.72
PEG (NY)2.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 9% | ||
| ROCE | 5.57% | ||
| ROIC | 3.82% | ||
| ROICexc | 4.23% | ||
| ROICexgc | 4.27% | ||
| OM | 10.03% | ||
| PM (TTM) | 3.94% | ||
| GM | 29.77% | ||
| FCFM | 5.02% |
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 8.16 | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | 192.42% | ||
| Cap/Sales | 13.75% | ||
| Interest Coverage | 3.6 | ||
| Cash Conversion | 109.3% | ||
| Profit Quality | 127.36% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 3.46 |
F-Score7
WACC8.85%
ROIC/WACC0.43
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)36.96%
EPS 3YN/A
EPS 5Y-11.03%
EPS Q2Q%36.84%
EPS Next Y36.09%
EPS Next 2Y33.98%
EPS Next 3Y32.65%
EPS Next 5Y29.63%
Revenue 1Y (TTM)29.8%
Revenue growth 3Y37.03%
Revenue growth 5Y39.97%
Sales Q2Q%27.97%
Revenue Next Year27.69%
Revenue Next 2Y26.27%
Revenue Next 3Y24.62%
Revenue Next 5Y21.31%
EBIT growth 1Y53.82%
EBIT growth 3YN/A
EBIT growth 5Y32.56%
EBIT Next Year174.33%
EBIT Next 3Y64.53%
EBIT Next 5Y45.9%
FCF growth 1Y162.13%
FCF growth 3YN/A
FCF growth 5Y7.46%
OCF growth 1Y206.13%
OCF growth 3Y45.27%
OCF growth 5Y34.16%