ANHEUSER-BUSCH INBEV-SPN ADR (BUD) Stock Fundamental Analysis
NYSE:BUD - New York Stock Exchange, Inc. - US03524A1088 - ADR - Currency: USD
We assign a fundamental rating of 4 out of 10 to BUD. BUD was compared to 33 industry peers in the Beverages industry. While BUD is still in line with the averages on profitability rating, there are concerns on its financial health. BUD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year BUD was profitable.
In the past year BUD had a positive cash flow from operations.
Each year in the past 5 years BUD has been profitable.
In the past 5 years BUD always reported a positive cash flow from operatings.
1.2 Ratios
BUD has a Return On Assets of 2.83%. This is in the lower half of the industry: BUD underperforms 60.61% of its industry peers.
BUD has a Return On Equity of 7.48%. This is comparable to the rest of the industry: BUD outperforms 42.42% of its industry peers.
BUD has a Return On Invested Capital of 6.49%. This is comparable to the rest of the industry: BUD outperforms 45.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BUD is significantly below the industry average of 11.23%.
The 3 year average ROIC (6.05%) for BUD is below the current ROIC(6.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 7.48% | ||
| ROIC | 6.49% |
ROA(3y)2.69%
ROA(5y)2.17%
ROE(3y)7.38%
ROE(5y)6.2%
ROIC(3y)6.05%
ROIC(5y)5.66%
1.3 Margins
BUD has a Profit Margin of 9.80%. This is in the better half of the industry: BUD outperforms 72.73% of its industry peers.
BUD's Profit Margin has declined in the last couple of years.
BUD's Operating Margin of 25.87% is amongst the best of the industry. BUD outperforms 84.85% of its industry peers.
In the last couple of years the Operating Margin of BUD has declined.
With a decent Gross Margin value of 55.25%, BUD is doing good in the industry, outperforming 78.79% of the companies in the same industry.
BUD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.87% | ||
| PM (TTM) | 9.8% | ||
| GM | 55.25% |
OM growth 3Y-0.42%
OM growth 5Y-3.7%
PM growth 3Y4.44%
PM growth 5Y-10.98%
GM growth 3Y-1.3%
GM growth 5Y-1.99%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BUD is creating some value.
The number of shares outstanding for BUD has been reduced compared to 1 year ago.
The number of shares outstanding for BUD has been increased compared to 5 years ago.
The debt/assets ratio for BUD has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that BUD is in the distress zone and has some risk of bankruptcy.
BUD has a Altman-Z score (1.77) which is comparable to the rest of the industry.
BUD has a debt to FCF ratio of 6.45. This is a slightly negative value and a sign of low solvency as BUD would need 6.45 years to pay back of all of its debts.
BUD has a Debt to FCF ratio of 6.45. This is comparable to the rest of the industry: BUD outperforms 57.58% of its industry peers.
BUD has a Debt/Equity ratio of 0.90. This is a neutral value indicating BUD is somewhat dependend on debt financing.
BUD has a Debt to Equity ratio of 0.90. This is in the lower half of the industry: BUD underperforms 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.45 | ||
| Altman-Z | 1.77 |
ROIC/WACC1.04
WACC6.23%
2.3 Liquidity
A Current Ratio of 0.70 indicates that BUD may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.70, BUD is doing worse than 81.82% of the companies in the same industry.
A Quick Ratio of 0.54 indicates that BUD may have some problems paying its short term obligations.
BUD has a Quick ratio of 0.54. This is in the lower half of the industry: BUD underperforms 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
BUD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.33%, which is quite good.
BUD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.83% yearly.
Looking at the last year, BUD shows a decrease in Revenue. The Revenue has decreased by -1.45% in the last year.
The Revenue has been growing slightly by 2.69% on average over the past years.
EPS 1Y (TTM)13.33%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%8%
Revenue 1Y (TTM)-1.45%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%-6.32%
3.2 Future
BUD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.42% yearly.
The Revenue is expected to grow by 4.35% on average over the next years.
EPS Next Y4.12%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
EPS Next 5Y11.42%
Revenue Next Year1.78%
Revenue Next 2Y3.14%
Revenue Next 3Y3.48%
Revenue Next 5Y4.35%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BUD is valuated rather expensively with a Price/Earnings ratio of 18.45.
Compared to the rest of the industry, the Price/Earnings ratio of BUD indicates a somewhat cheap valuation: BUD is cheaper than 60.61% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.18. BUD is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.94, the valuation of BUD can be described as correct.
Based on the Price/Forward Earnings ratio, BUD is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
BUD is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.45 | ||
| Fwd PE | 15.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BUD is valued a bit cheaper than 78.79% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BUD is valued cheaply inside the industry as 84.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.73 | ||
| EV/EBITDA | 8.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BUD does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as BUD's earnings are expected to grow with 12.23% in the coming years.
PEG (NY)4.48
PEG (5Y)N/A
EPS Next 2Y8.45%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
BUD has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.08, BUD has a dividend in line with its industry peers.
With a Dividend Yield of 1.21, BUD pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of BUD decreases each year by -12.03%.
BUD has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of BUD decreased recently.
Dividend Growth(5Y)-12.03%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BUD pays out 45.64% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP45.64%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
67.72
+0.77 (+1.15%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners19.76%
Inst Owner Change-0.05%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap131.25B
Analysts83.75
Price Target83.84 (23.8%)
Short Float %0.49%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend1.35
Dividend Growth(5Y)-12.03%
DP45.64%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.01%
Min EPS beat(2)5.76%
Max EPS beat(2)20.27%
EPS beat(4)4
Avg EPS beat(4)10.29%
Min EPS beat(4)4.3%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)6.77%
EPS beat(12)10
Avg EPS beat(12)7.21%
EPS beat(16)13
Avg EPS beat(16)7.45%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-4.2%
Max Revenue beat(2)4.57%
Revenue beat(4)2
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-4.2%
Max Revenue beat(4)4.57%
Revenue beat(8)2
Avg Revenue beat(8)-1.53%
Revenue beat(12)4
Avg Revenue beat(12)-1.48%
Revenue beat(16)7
Avg Revenue beat(16)-0.4%
PT rev (1m)0.57%
PT rev (3m)7.46%
EPS NQ rev (1m)-6.9%
EPS NQ rev (3m)-1.25%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.45 | ||
| Fwd PE | 15.94 | ||
| P/S | 2.2 | ||
| P/FCF | 11.73 | ||
| P/OCF | 8.72 | ||
| P/B | 1.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.82 |
EPS(TTM)3.67
EY5.42%
EPS(NY)4.25
Fwd EY6.27%
FCF(TTM)5.77
FCFY8.53%
OCF(TTM)7.77
OCFY11.47%
SpS30.84
BVpS40.37
TBVpS-37.29
PEG (NY)4.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 7.48% | ||
| ROCE | 8.91% | ||
| ROIC | 6.49% | ||
| ROICexc | 6.95% | ||
| ROICexgc | 96.58% | ||
| OM | 25.87% | ||
| PM (TTM) | 9.8% | ||
| GM | 55.25% | ||
| FCFM | 18.73% |
ROA(3y)2.69%
ROA(5y)2.17%
ROE(3y)7.38%
ROE(5y)6.2%
ROIC(3y)6.05%
ROIC(5y)5.66%
ROICexc(3y)6.43%
ROICexc(5y)6.06%
ROICexgc(3y)81%
ROICexgc(5y)72.75%
ROCE(3y)8.3%
ROCE(5y)7.79%
ROICexcg growth 3Y11.31%
ROICexcg growth 5Y15.72%
ROICexc growth 3Y4.65%
ROICexc growth 5Y2.73%
OM growth 3Y-0.42%
OM growth 5Y-3.7%
PM growth 3Y4.44%
PM growth 5Y-10.98%
GM growth 3Y-1.3%
GM growth 5Y-1.99%
F-Score8
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.45 | ||
| Debt/EBITDA | 3.37 | ||
| Cap/Depr | 69.68% | ||
| Cap/Sales | 6.46% | ||
| Interest Coverage | 4.24 | ||
| Cash Conversion | 71.67% | ||
| Profit Quality | 191.15% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 1.77 |
F-Score8
WACC6.23%
ROIC/WACC1.04
Cap/Depr(3y)85.67%
Cap/Depr(5y)89.39%
Cap/Sales(3y)7.73%
Cap/Sales(5y)8.33%
Profit Quality(3y)163.01%
Profit Quality(5y)238.24%
High Growth Momentum
Growth
EPS 1Y (TTM)13.33%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%8%
EPS Next Y4.12%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
EPS Next 5Y11.42%
Revenue 1Y (TTM)-1.45%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%-6.32%
Revenue Next Year1.78%
Revenue Next 2Y3.14%
Revenue Next 3Y3.48%
Revenue Next 5Y4.35%
EBIT growth 1Y5.98%
EBIT growth 3Y2.81%
EBIT growth 5Y-1.1%
EBIT Next Year40.75%
EBIT Next 3Y16.41%
EBIT Next 5Y12.43%
FCF growth 1Y29.73%
FCF growth 3Y6.91%
FCF growth 5Y4.78%
OCF growth 1Y13.49%
OCF growth 3Y0.57%
OCF growth 5Y1.41%