ANHEUSER-BUSCH INBEV-SPN ADR (BUD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BUD - US03524A1088 - ADR
61.16 USD
+0.19 (+0.31%)
61.11 USD
-0.05 (-0.08%)
Overall BUD gets a fundamental rating of 4 out of 10. We evaluated BUD against 34 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BUD was profitable.
BUD had a positive operating cash flow in the past year.
In the past 5 years BUD has always been profitable.
Each year in the past 5 years BUD had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.37%, BUD perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
With a Return On Equity value of 8.82%, BUD perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
The Return On Invested Capital of BUD (6.35%) is worse than 60.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BUD is significantly below the industry average of 11.60%.
The 3 year average ROIC (6.05%) for BUD is below the current ROIC(6.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 8.82% | ||
| ROIC | 6.35% |
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 12.16%. This is in the better half of the industry: BUD outperforms 78.79% of its industry peers.
BUD's Profit Margin has declined in the last couple of years.
BUD has a better Operating Margin (26.51%) than 84.85% of its industry peers.
BUD's Operating Margin has declined in the last couple of years.
BUD's Gross Margin of 55.70% is fine compared to the rest of the industry. BUD outperforms 72.73% of its industry peers.
In the last couple of years the Gross Margin of BUD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.51% | ||
| PM (TTM) | 12.16% | ||
| GM | 55.7% |
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.
BUD has less shares outstanding than it did 1 year ago.
BUD has more shares outstanding than it did 5 years ago.
BUD has a better debt/assets ratio than last year.
2.2 Solvency
BUD has an Altman-Z score of 1.69. This is a bad value and indicates that BUD is not financially healthy and even has some risk of bankruptcy.
BUD has a Altman-Z score (1.69) which is comparable to the rest of the industry.
The Debt to FCF ratio of BUD is 6.48, which is on the high side as it means it would take BUD, 6.48 years of fcf income to pay off all of its debts.
BUD has a Debt to FCF ratio (6.48) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.89 indicates that BUD is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.89, BUD is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 1.69 |
ROIC/WACC1.03
WACC6.17%
2.3 Liquidity
BUD has a Current Ratio of 0.64. This is a bad value and indicates that BUD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of BUD (0.64) is worse than 78.79% of its industry peers.
A Quick Ratio of 0.48 indicates that BUD may have some problems paying its short term obligations.
BUD has a Quick ratio of 0.48. This is in the lower half of the industry: BUD underperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.09% over the past year.
BUD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.83% yearly.
BUD shows a decrease in Revenue. In the last year, the revenue decreased by -1.34%.
The Revenue has been growing slightly by 2.69% on average over the past years.
EPS 1Y (TTM)6.09%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%1.02%
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%0.58%
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 10.40% yearly.
The Revenue is expected to grow by 4.14% on average over the next years.
EPS Next Y6.19%
EPS Next 2Y10.22%
EPS Next 3Y10.85%
EPS Next 5Y10.4%
Revenue Next Year0.49%
Revenue Next 2Y2.95%
Revenue Next 3Y3.19%
Revenue Next 5Y4.14%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.40, which indicates a correct valuation of BUD.
BUD's Price/Earnings ratio is a bit cheaper when compared to the industry. BUD is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.49, BUD is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.09 indicates a correct valuation of BUD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BUD indicates a somewhat cheap valuation: BUD is cheaper than 66.67% of the companies listed in the same industry.
BUD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.4 | ||
| Fwd PE | 14.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BUD indicates a somewhat cheap valuation: BUD is cheaper than 78.79% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BUD indicates a rather cheap valuation: BUD is cheaper than 84.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.23 | ||
| EV/EBITDA | 8.84 |
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.
PEG (NY)2.65
PEG (5Y)N/A
EPS Next 2Y10.22%
EPS Next 3Y10.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.17%, BUD has a reasonable but not impressive dividend return.
BUD's Dividend Yield is comparable with the industry average which is at 3.06.
BUD's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
The dividend of BUD decreases each year by -12.03%.
BUD has been paying a dividend for at least 10 years, so it has a reliable track record.
BUD has decreased its dividend recently.
Dividend Growth(5Y)-12.03%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BUD pays out 51.68% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP51.68%
EPS Next 2Y10.22%
EPS Next 3Y10.85%
61.16
+0.19 (+0.31%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners20.47%
Inst Owner Change-3.95%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap119.29B
Revenue(TTM)58.61B
Net Income(TTM)7.12B
Analysts81.94
Price Target79.59 (30.13%)
Short Float %0.79%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Yearly Dividend1.35
Dividend Growth(5Y)-12.03%
DP51.68%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.58%
Min EPS beat(2)1.01%
Max EPS beat(2)8.16%
EPS beat(4)4
Avg EPS beat(4)8.8%
Min EPS beat(4)1.01%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)7.13%
EPS beat(12)12
Avg EPS beat(12)8.52%
EPS beat(16)14
Avg EPS beat(16)8.77%
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-3.28%
Max Revenue beat(2)-2.1%
Revenue beat(4)1
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-4.2%
Max Revenue beat(4)4.57%
Revenue beat(8)2
Avg Revenue beat(8)-1.89%
Revenue beat(12)2
Avg Revenue beat(12)-1.98%
Revenue beat(16)6
Avg Revenue beat(16)-1.07%
PT rev (1m)0.24%
PT rev (3m)-2.73%
EPS NQ rev (1m)-3.39%
EPS NQ rev (3m)-8.68%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-5.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.82%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.4 | ||
| Fwd PE | 14.09 | ||
| P/S | 2.04 | ||
| P/FCF | 10.23 | ||
| P/OCF | 7.85 | ||
| P/B | 1.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.84 |
EPS(TTM)3.73
EY6.1%
EPS(NY)4.34
Fwd EY7.1%
FCF(TTM)5.98
FCFY9.77%
OCF(TTM)7.79
OCFY12.74%
SpS30
BVpS41.36
TBVpS-38.56
PEG (NY)2.65
PEG (5Y)N/A
Graham Number58.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 8.82% | ||
| ROCE | 8.71% | ||
| ROIC | 6.35% | ||
| ROICexc | 6.62% | ||
| ROICexgc | 76.01% | ||
| OM | 26.51% | ||
| PM (TTM) | 12.16% | ||
| GM | 55.7% | ||
| FCFM | 19.92% |
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%
ROICexgc growth 3Y11.31%
ROICexgc 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-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.48 | ||
| Debt/EBITDA | 3.44 | ||
| Cap/Depr | 65.6% | ||
| Cap/Sales | 6.04% | ||
| Interest Coverage | 4.35 | ||
| Cash Conversion | 72.68% | ||
| Profit Quality | 163.87% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.69 |
F-Score7
WACC6.17%
ROIC/WACC1.03
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)6.09%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%1.02%
EPS Next Y6.19%
EPS Next 2Y10.22%
EPS Next 3Y10.85%
EPS Next 5Y10.4%
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%0.58%
Revenue Next Year0.49%
Revenue Next 2Y2.95%
Revenue Next 3Y3.19%
Revenue Next 5Y4.14%
EBIT growth 1Y2.99%
EBIT growth 3Y2.81%
EBIT growth 5Y-1.1%
EBIT Next Year40.24%
EBIT Next 3Y16.53%
EBIT Next 5Y11.94%
FCF growth 1Y56.54%
FCF growth 3Y6.91%
FCF growth 5Y4.78%
OCF growth 1Y19.49%
OCF growth 3Y0.57%
OCF growth 5Y1.41%
ANHEUSER-BUSCH INBEV-SPN ADR / BUD FAQ
Can you provide the ChartMill fundamental rating for ANHEUSER-BUSCH INBEV-SPN ADR?
ChartMill assigns a fundamental rating of 4 / 10 to BUD.
What is the valuation status for BUD stock?
ChartMill assigns a valuation rating of 5 / 10 to ANHEUSER-BUSCH INBEV-SPN ADR (BUD). This can be considered as Fairly Valued.
How profitable is ANHEUSER-BUSCH INBEV-SPN ADR (BUD) stock?
ANHEUSER-BUSCH INBEV-SPN ADR (BUD) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for BUD stock?
The Earnings per Share (EPS) of ANHEUSER-BUSCH INBEV-SPN ADR (BUD) is expected to grow by 6.19% in the next year.
How sustainable is the dividend of ANHEUSER-BUSCH INBEV-SPN ADR (BUD) stock?
The dividend rating of ANHEUSER-BUSCH INBEV-SPN ADR (BUD) is 3 / 10 and the dividend payout ratio is 51.68%.