ANHEUSER-BUSCH INBEV-SPN ADR (BUD) Stock Fundamental Analysis
USA - NYSE:BUD - US03524A1088 - ADR
60.9 USD
+0.89 (+1.48%)
61.3 USD
+0.4 (+0.66%)
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. 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
BUD had positive earnings in the past year.
In the past year BUD had a positive cash flow from operations.
In the past 5 years BUD has always been profitable.
BUD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.37%, BUD is in line with its industry, outperforming 42.42% of the companies in the same industry.
The Return On Equity of BUD (8.82%) is comparable to the rest of the industry.
BUD has a Return On Invested Capital (6.35%) which is comparable to the rest of the industry.
BUD had an Average Return On Invested Capital over the past 3 years of 6.05%. This is below the industry average of 10.75%.
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 better Profit Margin (12.16%) than 78.79% of its industry peers.
BUD's Profit Margin has declined in the last couple of years.
BUD has a Operating Margin of 26.51%. This is amongst the best in the industry. BUD outperforms 84.85% of its industry peers.
In the last couple of years the Operating Margin of BUD has declined.
Looking at the Gross Margin, with a value of 55.70%, BUD is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
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.
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
BUD has an Altman-Z score of 1.68. This is a bad value and indicates that BUD is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.68, BUD is in line with its industry, outperforming 45.45% of the companies in the same 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 of 6.48. This is in the better half of the industry: BUD outperforms 63.64% of its industry peers.
BUD has a Debt/Equity ratio of 0.89. This is a neutral value indicating BUD is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.89, BUD is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 1.68 |
ROIC/WACC1.02
WACC6.21%
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.
Looking at the Current ratio, with a value of 0.64, BUD is doing worse than 84.85% of the companies in the same industry.
A Quick Ratio of 0.48 indicates that BUD may have some problems paying its short term obligations.
BUD's Quick ratio of 0.48 is on the low side compared to the rest of the industry. BUD is outperformed by 78.79% 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.
The Earnings Per Share has been decreasing by -1.83% on average over the past years.
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 9.96% on average per year.
The Revenue is expected to grow by 4.20% on average over the next years.
EPS Next Y6.36%
EPS Next 2Y10.43%
EPS Next 3Y11.28%
EPS Next 5Y9.96%
Revenue Next Year0.63%
Revenue Next 2Y2.97%
Revenue Next 3Y3.21%
Revenue Next 5Y4.2%
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
With a Price/Earnings ratio of 16.37, BUD is valued correctly.
Based on the Price/Earnings ratio, BUD is valued a bit cheaper than 69.70% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.11, BUD is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.99 indicates a correct valuation of BUD.
Based on the Price/Forward Earnings ratio, BUD is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BUD to the average of the S&P500 Index (22.55), we can say BUD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.37 | ||
| Fwd PE | 13.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BUD is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
84.85% of the companies in the same industry are more expensive than BUD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.2 | ||
| 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.
PEG (NY)2.58
PEG (5Y)N/A
EPS Next 2Y10.43%
EPS Next 3Y11.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.32%, BUD has a reasonable but not impressive dividend return.
BUD's Dividend Yield is comparable with the industry average which is at 3.12.
Compared to an average S&P500 Dividend Yield of 2.37, BUD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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 51.68% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP51.68%
EPS Next 2Y10.43%
EPS Next 3Y11.28%
60.9
+0.89 (+1.48%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners20.3%
Inst Owner Change-1.17%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap118.92B
Revenue(TTM)58.61B
Net Income(TTM)7.12B
Analysts82.58
Price Target79.4 (30.38%)
Short Float %1.01%
Short Ratio5.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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)-2.82%
PT rev (3m)-7.36%
EPS NQ rev (1m)-7.81%
EPS NQ rev (3m)-8.42%
EPS NY rev (1m)-4.69%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)-1.62%
Revenue NQ rev (3m)-2.7%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.37 | ||
| Fwd PE | 13.99 | ||
| P/S | 2.03 | ||
| P/FCF | 10.2 | ||
| P/OCF | 7.83 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.82 |
EPS(TTM)3.72
EY6.11%
EPS(NY)4.35
Fwd EY7.15%
FCF(TTM)5.97
FCFY9.8%
OCF(TTM)7.78
OCFY12.77%
SpS29.97
BVpS41.31
TBVpS-38.52
PEG (NY)2.58
PEG (5Y)N/A
Graham Number58.8
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 | 1.68 |
F-Score7
WACC6.21%
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 Y6.36%
EPS Next 2Y10.43%
EPS Next 3Y11.28%
EPS Next 5Y9.96%
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%0.58%
Revenue Next Year0.63%
Revenue Next 2Y2.97%
Revenue Next 3Y3.21%
Revenue Next 5Y4.2%
EBIT growth 1Y2.99%
EBIT growth 3Y2.81%
EBIT growth 5Y-1.1%
EBIT Next Year39.9%
EBIT Next 3Y16.24%
EBIT Next 5Y12%
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 6.36% 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%.