DUTCH BROS INC-CLASS A (BROS) Stock Fundamental Analysis
USA - NYSE:BROS - US26701L1008 - Common Stock
53.43 USD
+0.21 (+0.39%)
53.5001 USD
+0.07 (+0.13%)
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. While BROS seems to be doing ok healthwise, there are quite some concerns on its profitability. BROS shows excellent growth, but is valued quite expensive already.
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
Looking at the Return On Assets, with a value of 2.04%, BROS is in line with its industry, outperforming 44.70% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.00%, BROS is in the better half of the industry, outperforming 65.15% of the companies in the same industry.
The Return On Invested Capital of BROS (3.82%) is worse than 60.61% 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
BROS has a Profit Margin (3.94%) which is in line with its industry peers.
BROS's Profit Margin has declined in the last couple of years.
BROS has a Operating Margin of 10.03%. This is comparable to the rest of the industry: BROS outperforms 56.06% of its industry peers.
BROS's Operating Margin has declined in the last couple of years.
BROS has a Gross Margin of 29.77%. This is in the lower half of the industry: BROS underperforms 77.27% of its industry peers.
In the last couple of years the Gross Margin of BROS has declined.
| 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
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.
Compared to 5 years ago, BROS has less shares outstanding
Compared to 1 year ago, BROS has an improved debt to assets ratio.
2.2 Solvency
BROS has an Altman-Z score of 3.19. This indicates that BROS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.19, BROS is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
The Debt to FCF ratio of BROS is 8.16, which is on the high side as it means it would take BROS, 8.16 years of fcf income to pay off all of its debts.
BROS's Debt to FCF ratio of 8.16 is fine compared to the rest of the industry. BROS outperforms 67.42% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that BROS is somewhat dependend on debt financing.
The Debt to Equity ratio of BROS (0.91) is better than 62.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 8.16 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.45
WACC8.52%
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 has a Current ratio of 1.64. This is in the better half of the industry: BROS outperforms 75.00% of its industry peers.
BROS has a Quick Ratio of 1.42. This is a normal value and indicates that BROS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BROS (1.42) is better than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.42 |
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.
The earnings per share for BROS have been decreasing by -11.03% on average. This is quite bad
Looking at the last year, BROS shows a very strong growth in Revenue. The Revenue has grown by 32.64%.
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)32.64%
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 32.21% on average per year.
BROS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.09% yearly.
EPS Next Y36.5%
EPS Next 2Y34.42%
EPS Next 3Y31.97%
EPS Next 5Y32.21%
Revenue Next Year27.61%
Revenue Next 2Y26.36%
Revenue Next 3Y24.85%
Revenue Next 5Y24.09%
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
A Price/Earnings ratio of 80.95 indicates a quite expensive valuation of BROS.
Based on the Price/Earnings ratio, BROS is valued a bit more expensive than 62.12% of the companies in the same industry.
When comparing the Price/Earnings ratio of BROS to the average of the S&P500 Index (25.83), we can say BROS is valued expensively.
With a Price/Forward Earnings ratio of 57.98, BROS can be considered very expensive at the moment.
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 64.39% 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 (32.68), we can say BROS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.95 | ||
| Fwd PE | 57.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BROS is valued a bit more expensive than the industry average as 78.79% of the companies are valued more cheaply.
BROS's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BROS is more expensive than 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 120.59 | ||
| EV/EBITDA | 36.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as BROS's earnings are expected to grow with 31.97% in the coming years.
PEG (NY)2.22
PEG (5Y)N/A
EPS Next 2Y34.42%
EPS Next 3Y31.97%
5. Dividend
5.1 Amount
BROS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
53.43
+0.21 (+0.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners82.93%
Inst Owner Change0.16%
Ins Owners0.91%
Ins Owner Change-83.95%
Market Cap8.79B
Revenue(TTM)1.28B
Net Income(TTM)57.23M
Analysts84.8
Price Target78.73 (47.35%)
Short Float %9.62%
Short Ratio3.05
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)-6.24%
PT rev (3m)-1.69%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)1.29%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)14.6%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.95 | ||
| Fwd PE | 57.98 | ||
| P/S | 6.05 | ||
| P/FCF | 120.59 | ||
| P/OCF | 32.26 | ||
| P/B | 13.82 | ||
| P/tB | 14.35 | ||
| EV/EBITDA | 36.49 |
EPS(TTM)0.66
EY1.24%
EPS(NY)0.92
Fwd EY1.72%
FCF(TTM)0.44
FCFY0.83%
OCF(TTM)1.66
OCFY3.1%
SpS8.83
BVpS3.87
TBVpS3.72
PEG (NY)2.22
PEG (5Y)N/A
Graham Number7.58
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
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 Turnover0.52
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 | 3.19 |
F-Score7
WACC8.52%
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 Y36.5%
EPS Next 2Y34.42%
EPS Next 3Y31.97%
EPS Next 5Y32.21%
Revenue 1Y (TTM)32.64%
Revenue growth 3Y37.03%
Revenue growth 5Y39.97%
Sales Q2Q%25.24%
Revenue Next Year27.61%
Revenue Next 2Y26.36%
Revenue Next 3Y24.85%
Revenue Next 5Y24.09%
EBIT growth 1Y53.82%
EBIT growth 3YN/A
EBIT growth 5Y32.56%
EBIT Next Year190.23%
EBIT Next 3Y66.72%
EBIT Next 5Y49.18%
FCF growth 1Y162.13%
FCF growth 3YN/A
FCF growth 5Y7.46%
OCF growth 1Y206.13%
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 of DUTCH BROS INC-CLASS A (BROS) stock?
ChartMill assigns a valuation rating of 1 / 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.
Can you provide the financial health for BROS stock?
The financial health rating of DUTCH BROS INC-CLASS A (BROS) is 6 / 10.