We assign a fundamental rating of 5 out of 10 to BROS. BROS was compared to 132 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 expensively, but it does show have an excellent growth rating.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
BROS had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

BROS has a Return On Assets of 2.12%. This is comparable to the rest of the industry: BROS outperforms 50.76% of its industry peers.
BROS has a better Return On Equity (9.46%) than 68.94% of its industry peers.
BROS has a Return On Invested Capital (3.89%) which 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

BROS has a Profit Margin of 4.04%. This is comparable to the rest of the industry: BROS outperforms 56.82% of its industry peers.
BROS's Profit Margin has declined in the last couple of years.
BROS has a Operating Margin (9.95%) which is in line with its industry peers.
BROS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 29.45%, BROS is doing worse than 75.00% of the companies in the same industry.
BROS's Gross Margin has declined in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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 3.29 indicates that BROS is not in any danger for bankruptcy at the moment.
BROS has a Altman-Z score of 3.29. This is amongst the best in the industry. BROS outperforms 81.82% of its industry peers.
BROS has a debt to FCF ratio of 9.26. This is a negative value and a sign of low solvency as BROS would need 9.26 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.26, BROS is in the better half of the industry, outperforming 62.12% of the companies in the same industry.
A Debt/Equity ratio of 0.89 indicates that BROS is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.89, BROS is doing good in the industry, outperforming 60.61% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.89
Debt/FCF	9.26
Altman-Z	3.29

ROIC/WACC0.45

WACC8.66%

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.
The Current ratio of BROS (1.52) is better than 71.21% of its industry peers.
A Quick Ratio of 1.32 indicates that BROS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.32, BROS is doing good in the industry, outperforming 68.94% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.52
Quick Ratio	1.32

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 37.50% over the past year.
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

Based on estimates for the next years, BROS will show a very strong growth in Earnings Per Share. The EPS will grow by 33.31% on average per year.
BROS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.85% yearly.

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

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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 87.03, which means the current valuation is very expensive for BROS.
BROS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.60, BROS is valued quite expensively.
BROS is valuated quite expensively with a Price/Forward Earnings ratio of 62.02.
BROS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BROS is more expensive than 62.12% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BROS to the average of the S&P500 Index (25.83), we can say BROS is valued expensively.

		Industry Rank	Sector Rank
PE	87.03
Fwd PE	62.02

4.2 Price Multiples

78.03% of the companies in the same industry are cheaper than BROS, based on the Enterprise Value to EBITDA ratio.
BROS's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	144.48
EV/EBITDA	37.37

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.
BROS's earnings are expected to grow with 33.54% in the coming years. This may justify a more expensive valuation.

PEG (NY)2.36

PEG (5Y)N/A

EPS Next 2Y34.76%

EPS Next 3Y33.54%

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5. Dividend

5.1 Amount

No dividends for BROS!.

		Industry Rank	Sector Rank
Dividend Yield	0%

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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 87.03 and the Price/Book (PB) ratio is 14.39.

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.