ANHEUSER-BUSCH INBEV-SPN ADR (BUD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BUD - US03524A1088 - ADR
63.71 USD
-0.33 (-0.52%)
63.71 USD
0 (0%)
Taking everything into account, BUD scores 4 out of 10 in our fundamental rating. BUD was compared to 33 industry peers in the Beverages industry. There are concerns on the financial health of BUD while its profitability can be described as average. BUD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BUD was profitable.
BUD had a positive operating cash flow in the past year.
BUD had positive earnings in each of the past 5 years.
BUD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BUD has a Return On Assets (3.37%) which is comparable to the rest of the industry.
BUD has a Return On Equity of 8.82%. This is comparable to the rest of the industry: BUD outperforms 43.75% of its industry peers.
BUD's Return On Invested Capital of 6.35% is in line compared to the rest of the industry. BUD outperforms 40.63% of its industry peers.
BUD had an Average Return On Invested Capital over the past 3 years of 6.05%. This is significantly below the industry average of 11.47%.
The last Return On Invested Capital (6.35%) for BUD is above the 3 year average (6.05%), which is a sign of increasing profitability.
| 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 75.00% of its industry peers.
In the last couple of years the Profit Margin of BUD has declined.
BUD has a Operating Margin of 26.51%. This is amongst the best in the industry. BUD outperforms 84.38% of its industry peers.
In the last couple of years the Operating Margin of BUD has declined.
BUD's Gross Margin of 55.70% is fine compared to the rest of the industry. BUD outperforms 71.88% of its industry peers.
BUD's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BUD is still creating some value.
Compared to 1 year ago, BUD has less shares outstanding
The number of shares outstanding for BUD has been increased compared to 5 years ago.
BUD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that BUD is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.71, BUD is in line with its industry, outperforming 43.75% of the companies in the same industry.
BUD has a debt to FCF ratio of 6.48. This is a slightly negative value and a sign of low solvency as BUD would need 6.48 years to pay back of 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.
BUD's Debt to Equity ratio of 0.89 is on the low side compared to the rest of the industry. BUD is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 1.71 |
ROIC/WACC1.02
WACC6.22%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BUD may have some problems paying its short term obligations.
BUD's Current ratio of 0.64 is on the low side compared to the rest of the industry. BUD is outperformed by 81.25% 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 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
BUD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.09%.
Measured over the past years, BUD shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.83% on average per year.
BUD shows a decrease in Revenue. In the last year, the revenue decreased by -1.34%.
Measured over the past years, BUD shows a small growth in Revenue. The Revenue has been growing by 2.69% on average per year.
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
Based on estimates for the next years, BUD will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.40% on average per year.
Based on estimates for the next years, BUD will show a small growth in Revenue. The Revenue will grow by 4.14% on average per year.
EPS Next Y6.02%
EPS Next 2Y10.07%
EPS Next 3Y10.82%
EPS Next 5Y10.4%
Revenue Next Year0.47%
Revenue Next 2Y2.92%
Revenue Next 3Y3.14%
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
Based on the Price/Earnings ratio of 17.08, the valuation of BUD can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of BUD is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.60, BUD is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.71, the valuation of BUD can be described as correct.
68.75% of the companies in the same industry are more expensive than BUD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BUD to the average of the S&P500 Index (23.23), we can say BUD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.08 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BUD is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BUD is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.66 | ||
| EV/EBITDA | 9.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.84
PEG (5Y)N/A
EPS Next 2Y10.07%
EPS Next 3Y10.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.08%, BUD has a reasonable but not impressive dividend return.
BUD's Dividend Yield is comparable with the industry average which is at 1.80.
Compared to an average S&P500 Dividend Yield of 1.94, BUD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
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.
The dividend of BUD decreased 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 2Y10.07%
EPS Next 3Y10.82%
63.71
-0.33 (-0.52%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners20.5%
Inst Owner Change0%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap124.26B
Revenue(TTM)58.61B
Net Income(TTM)7.12B
Analysts81.94
Price Target79.94 (25.47%)
Short Float %0.82%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Yearly Dividend1.35
Dividend Growth(5Y)-12.03%
DP51.68%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-0.38%
PT rev (3m)0.22%
EPS NQ rev (1m)-3.39%
EPS NQ rev (3m)-7.7%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-4.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.62%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.08 | ||
| Fwd PE | 14.71 | ||
| P/S | 2.12 | ||
| P/FCF | 10.66 | ||
| P/OCF | 8.18 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.08 |
EPS(TTM)3.73
EY5.85%
EPS(NY)4.33
Fwd EY6.8%
FCF(TTM)5.98
FCFY9.38%
OCF(TTM)7.79
OCFY12.23%
SpS30
BVpS41.36
TBVpS-38.56
PEG (NY)2.84
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 | 1.71 |
F-Score7
WACC6.22%
ROIC/WACC1.02
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 Y6.02%
EPS Next 2Y10.07%
EPS Next 3Y10.82%
EPS Next 5Y10.4%
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%0.58%
Revenue Next Year0.47%
Revenue Next 2Y2.92%
Revenue Next 3Y3.14%
Revenue Next 5Y4.14%
EBIT growth 1Y2.99%
EBIT growth 3Y2.81%
EBIT growth 5Y-1.1%
EBIT Next Year40.22%
EBIT Next 3Y16.41%
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.
Can you provide the valuation status for ANHEUSER-BUSCH INBEV-SPN ADR?
ChartMill assigns a valuation rating of 4 / 10 to ANHEUSER-BUSCH INBEV-SPN ADR (BUD). This can be considered as Fairly Valued.
What is the profitability of 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 6.02% in the next year.
Can you provide the dividend sustainability for BUD stock?
The dividend rating of ANHEUSER-BUSCH INBEV-SPN ADR (BUD) is 4 / 10 and the dividend payout ratio is 51.68%.