DUTCH BROS INC-CLASS A (BROS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BROS - US26701L1008 - Common Stock
62.16 USD
+0.94 (+1.54%)
62.1001 USD
-0.06 (-0.1%)
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 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.
Each year in the past 5 years BROS had a positive operating cash flow.
1.2 Ratios
BROS has a Return On Assets (2.12%) which is comparable to the rest of the industry.
The Return On Equity of BROS (9.46%) is better than 67.67% of its industry peers.
BROS has a Return On Invested Capital (3.89%) which is in line with its industry peers.
| 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's Profit Margin of 4.04% is in line compared to the rest of the industry. BROS outperforms 56.39% of its industry peers.
In the last couple of years the Profit Margin of BROS has declined.
BROS has a Operating Margin of 9.95%. This is comparable to the rest of the industry: BROS outperforms 57.89% of its industry peers.
BROS's Operating Margin has declined in the last couple of years.
BROS's Gross Margin of 29.45% is on the low side compared to the rest of the industry. BROS is outperformed by 75.94% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BROS 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.
BROS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.45 indicates that BROS is not in any danger for bankruptcy at the moment.
The Altman-Z score of BROS (3.45) is better than 79.70% 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.
The Debt to FCF ratio of BROS (9.26) is better than 62.41% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that BROS is somewhat dependend on debt financing.
BROS has a better Debt to Equity ratio (0.89) than 61.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 9.26 | ||
| Altman-Z | 3.45 |
ROIC/WACC0.45
WACC8.62%
2.3 Liquidity
A Current Ratio of 1.52 indicates that BROS should not have too much problems paying its short term obligations.
BROS has a better Current ratio (1.52) than 71.43% of its industry peers.
BROS has a Quick Ratio of 1.32. 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 Quick ratio of 1.32. This is in the better half of the industry: BROS outperforms 69.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.50% 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.
Looking at the last year, BROS shows a very strong growth in Revenue. The Revenue has grown by 28.93%.
BROS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.97% yearly.
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 32.80% on average per year.
Based on estimates for the next years, BROS will show a very strong growth in Revenue. The Revenue will grow by 24.61% on average per year.
EPS Next Y36.82%
EPS Next 2Y34.7%
EPS Next 3Y33.31%
EPS Next 5Y32.8%
Revenue Next Year28.78%
Revenue Next 2Y27.16%
Revenue Next 3Y25.61%
Revenue Next 5Y24.61%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 94.18, the valuation of BROS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of BROS is on the same level as its industry peers.
BROS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.60.
BROS is valuated quite expensively with a Price/Forward Earnings ratio of 67.18.
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 61.65% of the companies listed in the same industry.
BROS is valuated expensively when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.18 | ||
| Fwd PE | 67.18 |
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 78.95% of the companies in the same industry.
BROS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 156.35 | ||
| EV/EBITDA | 39.75 |
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 33.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.56
PEG (5Y)N/A
EPS Next 2Y34.7%
EPS Next 3Y33.31%
5. Dividend
5.1 Amount
No dividends for BROS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
62.16
+0.94 (+1.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners90.94%
Inst Owner Change4.3%
Ins Owners0.92%
Ins Owner Change-144.89%
Market Cap10.23B
Revenue(TTM)1.54B
Net Income(TTM)62.08M
Analysts84.62
Price Target76.88 (23.68%)
Short Float %11.09%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)24.59%
Min EPS beat(2)7.83%
Max EPS beat(2)41.35%
EPS beat(4)4
Avg EPS beat(4)75.22%
Min EPS beat(4)7.83%
Max EPS beat(4)224.17%
EPS beat(8)8
Avg EPS beat(8)114.38%
EPS beat(12)11
Avg EPS beat(12)95.82%
EPS beat(16)13
Avg EPS beat(16)45.69%
Revenue beat(2)2
Avg Revenue beat(2)0.63%
Min Revenue beat(2)0.27%
Max Revenue beat(2)0.98%
Revenue beat(4)4
Avg Revenue beat(4)2%
Min Revenue beat(4)0.27%
Max Revenue beat(4)5.75%
Revenue beat(8)7
Avg Revenue beat(8)1.8%
Revenue beat(12)9
Avg Revenue beat(12)0.43%
Revenue beat(16)12
Avg Revenue beat(16)0.61%
PT rev (1m)1.39%
PT rev (3m)-8.44%
EPS NQ rev (1m)2.94%
EPS NQ rev (3m)-8.57%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.18 | ||
| Fwd PE | 67.18 | ||
| P/S | 6.65 | ||
| P/FCF | 156.35 | ||
| P/OCF | 36.77 | ||
| P/B | 15.58 | ||
| P/tB | 16.15 | ||
| EV/EBITDA | 39.75 |
EPS(TTM)0.66
EY1.06%
EPS(NY)0.93
Fwd EY1.49%
FCF(TTM)0.4
FCFY0.64%
OCF(TTM)1.69
OCFY2.72%
SpS9.34
BVpS3.99
TBVpS3.85
PEG (NY)2.56
PEG (5Y)N/A
Graham Number7.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.12% | ||
| ROE | 9.46% | ||
| ROCE | 5.67% | ||
| ROIC | 3.89% | ||
| ROICexc | 4.32% | ||
| ROICexgc | 4.36% | ||
| OM | 9.95% | ||
| PM (TTM) | 4.04% | ||
| GM | 29.45% | ||
| FCFM | 4.25% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 9.26 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 195.33% | ||
| Cap/Sales | 13.84% | ||
| Interest Coverage | 3.91 | ||
| Cash Conversion | 106.2% | ||
| Profit Quality | 105.35% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 3.45 |
F-Score7
WACC8.62%
ROIC/WACC0.45
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)37.5%
EPS 3YN/A
EPS 5Y-11.03%
EPS Q2Q%18.75%
EPS Next Y36.82%
EPS Next 2Y34.7%
EPS Next 3Y33.31%
EPS Next 5Y32.8%
Revenue 1Y (TTM)28.93%
Revenue growth 3Y37.03%
Revenue growth 5Y39.97%
Sales Q2Q%25.24%
Revenue Next Year28.78%
Revenue Next 2Y27.16%
Revenue Next 3Y25.61%
Revenue Next 5Y24.61%
EBIT growth 1Y43.75%
EBIT growth 3YN/A
EBIT growth 5Y32.56%
EBIT Next Year188.75%
EBIT Next 3Y66.44%
EBIT Next 5Y49.19%
FCF growth 1Y160.03%
FCF growth 3YN/A
FCF growth 5Y7.46%
OCF growth 1Y148.3%
OCF growth 3Y45.27%
OCF growth 5Y34.16%
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 94.18 and the Price/Book (PB) ratio is 15.58.
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 36.82% in the next year.