ANHEUSER-BUSCH INBEV-SPN ADR (BUD) Stock Fundamental Analysis
NYSE:BUD - New York Stock Exchange, Inc. - US03524A1088 - ADR - Currency: USD
Taking everything into account, BUD scores 4 out of 10 in our fundamental rating. BUD was compared to 31 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
BUD had positive earnings in the past year.
BUD had a positive operating cash flow in the past year.
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's Return On Assets of 2.81% is on the low side compared to the rest of the industry. BUD is outperformed by 75.00% of its industry peers.
BUD has a worse Return On Equity (7.55%) than 75.00% of its industry peers.
The Return On Invested Capital of BUD (6.49%) is worse than 60.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BUD is significantly below the industry average of 13.34%.
The 3 year average ROIC (6.15%) for BUD is below the current ROIC(6.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 7.55% | ||
| ROIC | 6.49% |
ROA(3y)2.46%
ROA(5y)2.38%
ROE(3y)7.15%
ROE(5y)7.13%
ROIC(3y)6.15%
ROIC(5y)5.9%
1.3 Margins
The Profit Margin of BUD (9.89%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BUD has grown nicely.
BUD has a better Operating Margin (25.14%) than 78.57% of its industry peers.
BUD's Operating Margin has declined in the last couple of years.
The Gross Margin of BUD (54.48%) is better than 67.86% of its industry peers.
In the last couple of years the Gross Margin of BUD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.14% | ||
| PM (TTM) | 9.89% | ||
| GM | 54.48% |
OM growth 3Y-2.27%
OM growth 5Y-5.36%
PM growth 3Y44.25%
PM growth 5Y1.77%
GM growth 3Y-2.5%
GM growth 5Y-2.91%
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 about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, BUD has more shares outstanding
BUD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.59, 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 1.59, BUD is doing worse than 71.43% of the companies in the same industry.
BUD has a debt to FCF ratio of 7.84. This is a slightly negative value and a sign of low solvency as BUD would need 7.84 years to pay back of all of its debts.
BUD's Debt to FCF ratio of 7.84 is in line compared to the rest of the industry. BUD outperforms 42.86% of its industry peers.
BUD has a Debt/Equity ratio of 0.97. This is a neutral value indicating BUD is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.97, BUD is doing worse than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 7.84 | ||
| Altman-Z | 1.59 |
ROIC/WACC1.1
WACC5.89%
2.3 Liquidity
BUD has a Current Ratio of 0.69. 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 Current ratio of 0.69 is on the low side compared to the rest of the industry. BUD is outperformed by 85.71% of its industry peers.
A Quick Ratio of 0.51 indicates that BUD may have some problems paying its short term obligations.
With a Quick ratio value of 0.51, BUD is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.48% over the past year.
Measured over the past years, BUD shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.43% on average per year.
The Revenue has decreased by -0.30% in the past year.
The Revenue has been growing slightly by 2.28% on average over the past years.
EPS 1Y (TTM)7.48%
EPS 3Y16.68%
EPS 5Y-2.43%
EPS Q2Q%13.95%
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y8.2%
Revenue growth 5Y2.28%
Sales Q2Q%-3.39%
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 12.37% on average per year.
The Revenue is expected to grow by 3.04% on average over the next years.
EPS Next Y10.9%
EPS Next 2Y8.33%
EPS Next 3Y9.81%
EPS Next 5Y12.37%
Revenue Next Year-1.56%
Revenue Next 2Y-0.2%
Revenue Next 3Y1.42%
Revenue Next 5Y3.04%
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.
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 15.30, which indicates a correct valuation of BUD.
Based on the Price/Earnings ratio, BUD is valued a bit cheaper than 71.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. BUD is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.76 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 75.00% of the companies listed in the same industry.
BUD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 14.76 |
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 78.57% of the companies listed in the same industry.
BUD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BUD is cheaper than 89.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.62 | ||
| EV/EBITDA | 8.33 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.4
PEG (5Y)N/A
EPS Next 2Y8.33%
EPS Next 3Y9.81%
5. Dividend
5.1 Amount
BUD has a Yearly Dividend Yield of 1.13%.
BUD's Dividend Yield is slightly below the industry average, which is at 3.28.
Compared to an average S&P500 Dividend Yield of 2.29, BUD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
The dividend of BUD decreases each year by -17.56%.
BUD has been paying a dividend for at least 10 years, so it has a reliable track record.
BUD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-17.56%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
54.53% of the earnings are spent on dividend by BUD. This is a bit on the high side, but may be sustainable.
DP54.53%
EPS Next 2Y8.33%
EPS Next 3Y9.81%
54.01
+0.86 (+1.62%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners17.94%
Inst Owner Change1.75%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap105.91B
Analysts80
Price Target71.44 (32.27%)
Short Float %0.44%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend1.52
Dividend Growth(5Y)-17.56%
DP54.53%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.56%
Min EPS beat(2)4.3%
Max EPS beat(2)10.83%
EPS beat(4)4
Avg EPS beat(4)5.47%
Min EPS beat(4)1.97%
Max EPS beat(4)10.83%
EPS beat(8)8
Avg EPS beat(8)8.38%
EPS beat(12)10
Avg EPS beat(12)8.75%
EPS beat(16)12
Avg EPS beat(16)5.85%
Revenue beat(2)1
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)0.82%
Revenue beat(4)1
Avg Revenue beat(4)-2.53%
Min Revenue beat(4)-7.51%
Max Revenue beat(4)0.82%
Revenue beat(8)1
Avg Revenue beat(8)-2.34%
Revenue beat(12)5
Avg Revenue beat(12)-1.01%
Revenue beat(16)8
Avg Revenue beat(16)0.06%
PT rev (1m)-1.61%
PT rev (3m)-7.49%
EPS NQ rev (1m)-3.64%
EPS NQ rev (3m)-3.64%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-3.22%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 14.76 | ||
| P/S | 1.77 | ||
| P/FCF | 10.62 | ||
| P/OCF | 7.44 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.33 |
EPS(TTM)3.53
EY6.54%
EPS(NY)3.66
Fwd EY6.77%
FCF(TTM)5.08
FCFY9.41%
OCF(TTM)7.26
OCFY13.44%
SpS30.56
BVpS40.04
TBVpS-38.57
PEG (NY)1.4
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 7.55% | ||
| ROCE | 8.36% | ||
| ROIC | 6.49% | ||
| ROICexc | 6.78% | ||
| ROICexgc | 63.66% | ||
| OM | 25.14% | ||
| PM (TTM) | 9.89% | ||
| GM | 54.48% | ||
| FCFM | 16.64% |
ROA(3y)2.46%
ROA(5y)2.38%
ROE(3y)7.15%
ROE(5y)7.13%
ROIC(3y)6.15%
ROIC(5y)5.9%
ROICexc(3y)6.54%
ROICexc(5y)6.27%
ROICexgc(3y)76.95%
ROICexgc(5y)66.93%
ROCE(3y)7.92%
ROCE(5y)7.63%
ROICexcg growth 3Y15.24%
ROICexcg growth 5Y-12.95%
ROICexc growth 3Y7.38%
ROICexc growth 5Y-1.64%
OM growth 3Y-2.27%
OM growth 5Y-5.36%
PM growth 3Y44.25%
PM growth 5Y1.77%
GM growth 3Y-2.5%
GM growth 5Y-2.91%
F-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 7.84 | ||
| Debt/EBITDA | 3.68 | ||
| Cap/Depr | 76.77% | ||
| Cap/Sales | 7.12% | ||
| Interest Coverage | 4.24 | ||
| Cash Conversion | 69.03% | ||
| Profit Quality | 168.21% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.59 |
F-Score7
WACC5.89%
ROIC/WACC1.1
Cap/Depr(3y)99.66%
Cap/Depr(5y)97.67%
Cap/Sales(3y)9.04%
Cap/Sales(5y)9.02%
Profit Quality(3y)164.66%
Profit Quality(5y)219.33%
High Growth Momentum
Growth
EPS 1Y (TTM)7.48%
EPS 3Y16.68%
EPS 5Y-2.43%
EPS Q2Q%13.95%
EPS Next Y10.9%
EPS Next 2Y8.33%
EPS Next 3Y9.81%
EPS Next 5Y12.37%
Revenue 1Y (TTM)-0.3%
Revenue growth 3Y8.2%
Revenue growth 5Y2.28%
Sales Q2Q%-3.39%
Revenue Next Year-1.56%
Revenue Next 2Y-0.2%
Revenue Next 3Y1.42%
Revenue Next 5Y3.04%
EBIT growth 1Y2.25%
EBIT growth 3Y5.74%
EBIT growth 5Y-3.2%
EBIT Next Year39.94%
EBIT Next 3Y14.48%
EBIT Next 5Y12.76%
FCF growth 1Y31.63%
FCF growth 3Y6.66%
FCF growth 5Y-1.23%
OCF growth 1Y9.16%
OCF growth 3Y6.79%
OCF growth 5Y-1.33%