ANHEUSER-BUSCH INBEV-SPN ADR (BUD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BUD - US03524A1088 - ADR
65.88 USD
+1.22 (+1.89%)
65.88 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to BUD. BUD was compared to 33 industry peers in the Beverages industry. BUD has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year BUD had a positive cash flow from operations.
In the past 5 years BUD has always been profitable.
In the past 5 years BUD always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BUD (3.37%) is comparable to the rest of the industry.
BUD has a Return On Equity (8.82%) which is comparable to the rest of the industry.
BUD has a Return On Invested Capital of 6.35%. This is in the lower half of the industry: BUD underperforms 60.61% 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 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
The Profit Margin of BUD (12.16%) is better than 75.76% of its industry peers.
In the last couple of years the Profit Margin of BUD has declined.
BUD's Operating Margin of 26.51% 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.
BUD has a Gross Margin of 55.70%. This is in the better half of the industry: BUD outperforms 72.73% 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
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.
BUD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BUD has an improved debt to assets ratio.
2.2 Solvency
BUD has an Altman-Z score of 1.73. 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 of 1.73. This is comparable to the rest of the industry: BUD outperforms 45.45% of its industry peers.
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.
BUD has a Debt to Equity ratio of 0.89. This is in the lower half of the industry: BUD underperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.02
WACC6.25%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BUD may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.64, BUD is doing worse than 78.79% of the companies in the same industry.
BUD has a Quick 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.
BUD's Quick ratio of 0.48 is on the low side compared to the rest of the industry. BUD is outperformed by 69.70% 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%.
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 -1.34% in the last year.
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 10.06% yearly.
BUD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.08% yearly.
EPS Next Y6.02%
EPS Next 2Y10.07%
EPS Next 3Y10.82%
EPS Next 5Y10.06%
Revenue Next Year0.47%
Revenue Next 2Y2.92%
Revenue Next 3Y3.14%
Revenue Next 5Y4.08%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 17.66, the valuation of BUD can be described as rather expensive.
BUD's Price/Earnings is on the same level as the industry average.
BUD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.21, BUD is valued correctly.
60.61% of the companies in the same industry are more expensive than BUD, based on the Price/Forward Earnings ratio.
BUD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 15.21 |
4.2 Price Multiples
75.76% of the companies in the same industry are more expensive than BUD, based on the Enterprise Value to EBITDA ratio.
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 | 11.02 | ||
| EV/EBITDA | 9.28 |
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)2.93
PEG (5Y)N/A
EPS Next 2Y10.07%
EPS Next 3Y10.82%
5. Dividend
5.1 Amount
BUD has a Yearly Dividend Yield of 1.22%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.78, BUD has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 1.90, BUD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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.
BUD has decreased its dividend recently.
Dividend Growth(5Y)-12.03%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
51.68% of the earnings are spent on dividend by BUD. This is a bit on the high side, but may be sustainable.
DP51.68%
EPS Next 2Y10.07%
EPS Next 3Y10.82%
65.88
+1.22 (+1.89%)
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 Cap128.49B
Revenue(TTM)58.61B
Net Income(TTM)7.12B
Analysts83.23
Price Target79.94 (21.34%)
Short Float %0.82%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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)0.44%
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 | 17.66 | ||
| Fwd PE | 15.21 | ||
| P/S | 2.2 | ||
| P/FCF | 11.02 | ||
| P/OCF | 8.46 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.28 |
EPS(TTM)3.73
EY5.66%
EPS(NY)4.33
Fwd EY6.57%
FCF(TTM)5.98
FCFY9.07%
OCF(TTM)7.79
OCFY11.82%
SpS30
BVpS41.36
TBVpS-38.56
PEG (NY)2.93
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 | 1.73 |
F-Score7
WACC6.25%
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 5Y10.06%
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 5Y4.08%
EBIT growth 1Y2.99%
EBIT growth 3Y2.81%
EBIT growth 5Y-1.1%
EBIT Next Year40.22%
EBIT Next 3Y16.41%
EBIT Next 5Y11.68%
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 3 / 10 and the dividend payout ratio is 51.68%.