DUTCH BROS INC-CLASS A (BROS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BROS - US26701L1008 - Common Stock
61.69 USD
-0.68 (-1.09%)
61.8 USD
+0.11 (+0.18%)
Overall BROS gets a fundamental rating of 5 out of 10. We evaluated BROS against 133 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
BROS had positive earnings in the past year.
In the past year BROS had a positive cash flow from operations.
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 has a Return On Assets (2.12%) which is comparable to the rest of the industry.
BROS has a better Return On Equity (9.46%) than 68.42% of its industry peers.
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
BROS's Profit Margin of 4.04% is in line compared to the rest of the industry. BROS outperforms 57.14% of its industry peers.
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 57.89% of the companies in the same industry.
In the last couple of years the Operating Margin of BROS has declined.
BROS has a worse Gross Margin (29.45%) than 75.19% 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.
BROS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BROS has been reduced compared to 5 years ago.
Compared to 1 year ago, BROS has an improved debt to assets ratio.
2.2 Solvency
BROS has an Altman-Z score of 3.50. 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 3.50, BROS is in the better half of the industry, outperforming 79.70% of the companies in the same industry.
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.
The Debt to FCF ratio of BROS (9.26) is better than 62.41% 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.
The Debt to Equity ratio of BROS (0.89) is better than 60.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 9.26 | ||
| Altman-Z | 3.5 |
ROIC/WACC0.45
WACC8.62%
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.
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.
The Quick ratio of BROS (1.32) is better than 69.17% 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
The Earnings Per Share is expected to grow by 33.31% 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 24.85% yearly.
EPS Next Y36.82%
EPS Next 2Y34.7%
EPS Next 3Y33.31%
EPS Next 5Y33.31%
Revenue Next Year28.78%
Revenue Next 2Y27.16%
Revenue Next 3Y25.61%
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.
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
The Price/Earnings ratio is 93.47, which means the current valuation is very expensive for BROS.
BROS's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.25. BROS is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 66.67 indicates a quite expensive valuation of BROS.
Based on the Price/Forward Earnings ratio, BROS is valued a bit more expensive than 62.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BROS to the average of the S&P500 Index (23.98), we can say BROS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.47 | ||
| Fwd PE | 66.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BROS indicates a slightly more expensive valuation: BROS is more expensive than 78.20% of the companies listed 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 | 155.17 | ||
| EV/EBITDA | 40.47 |
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 33.31% in the coming years.
PEG (NY)2.54
PEG (5Y)N/A
EPS Next 2Y34.7%
EPS Next 3Y33.31%
5. Dividend
5.1 Amount
BROS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
61.69
-0.68 (-1.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners91.05%
Inst Owner Change-0.06%
Ins Owners0.92%
Ins Owner Change-145.14%
Market Cap10.15B
Revenue(TTM)1.54B
Net Income(TTM)62.08M
Analysts84.62
Price Target76.88 (24.62%)
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)0.27%
PT rev (3m)-8.44%
EPS NQ rev (1m)1.51%
EPS NQ rev (3m)-10.79%
EPS NY rev (1m)0.33%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.47 | ||
| Fwd PE | 66.67 | ||
| P/S | 6.6 | ||
| P/FCF | 155.17 | ||
| P/OCF | 36.49 | ||
| P/B | 15.46 | ||
| P/tB | 16.03 | ||
| EV/EBITDA | 40.47 |
EPS(TTM)0.66
EY1.07%
EPS(NY)0.93
Fwd EY1.5%
FCF(TTM)0.4
FCFY0.64%
OCF(TTM)1.69
OCFY2.74%
SpS9.34
BVpS3.99
TBVpS3.85
PEG (NY)2.54
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 | 3.5 |
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 5Y33.31%
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 5Y24.85%
EBIT growth 1Y43.75%
EBIT growth 3YN/A
EBIT growth 5Y32.56%
EBIT Next Year188.75%
EBIT Next 3Y66.44%
EBIT Next 5Y49.57%
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 93.47 and the Price/Book (PB) ratio is 15.46.
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.