ANHEUSER-BUSCH INBEV-SPN ADR (BUD) Stock Fundamental Analysis
USA - NYSE:BUD - US03524A1088 - ADR
61.54 USD
+1.28 (+2.12%)
62.02 USD
+0.48 (+0.78%)
BUD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 32 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.
Each year in the past 5 years BUD has been profitable.
Each year in the past 5 years BUD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BUD (3.37%) is comparable to the rest of the industry.
BUD's Return On Equity of 8.82% is in line compared to the rest of the industry. BUD outperforms 50.00% 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 43.75% of its industry peers.
BUD had an Average Return On Invested Capital over the past 3 years of 6.05%. This is below the industry average of 10.90%.
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 78.13% of its industry peers.
BUD's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 26.51%, BUD belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
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 75.00% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BUD is still 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.
The debt/assets ratio for BUD has been reduced compared to a year ago.
2.2 Solvency
BUD has an Altman-Z score of 1.69. This is a bad value and indicates that BUD is not financially healthy and even has some risk of bankruptcy.
BUD's Altman-Z score of 1.69 is in line compared to the rest of the industry. BUD outperforms 43.75% 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 of 6.48. This is in the better half of the industry: BUD outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that BUD is somewhat dependend on debt financing.
BUD has a worse Debt to Equity ratio (0.89) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 1.69 |
ROIC/WACC1.02
WACC6.2%
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 84.38% of its industry peers.
A Quick Ratio of 0.48 indicates that BUD may have some problems paying its short term obligations.
The Quick ratio of BUD (0.48) is worse than 78.13% 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 grown by an nice 9.61% 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 -2.35%.
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)9.61%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%8.89%
Revenue 1Y (TTM)-2.35%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%-2.15%
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 9.96% yearly.
BUD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.20% yearly.
EPS Next Y7.4%
EPS Next 2Y9.55%
EPS Next 3Y12.23%
EPS Next 5Y9.96%
Revenue Next Year0.96%
Revenue Next 2Y3.14%
Revenue Next 3Y3.98%
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 15.98, BUD is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of BUD indicates a somewhat cheap valuation: BUD is cheaper than 71.88% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.29, BUD is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.86, which indicates a correct valuation of BUD.
71.88% of the companies in the same industry are more expensive than BUD, based on the Price/Forward Earnings ratio.
BUD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 13.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BUD indicates a rather cheap valuation: BUD is cheaper than 81.25% 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 90.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.31 | ||
| EV/EBITDA | 8.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as BUD's earnings are expected to grow with 12.23% in the coming years.
PEG (NY)2.16
PEG (5Y)N/A
EPS Next 2Y9.55%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
BUD has a Yearly Dividend Yield of 1.37%.
BUD's Dividend Yield is comparable with the industry average which is at 3.05.
Compared to an average S&P500 Dividend Yield of 2.38, BUD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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 2Y9.55%
EPS Next 3Y12.23%
61.54
+1.28 (+2.12%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners20.3%
Inst Owner Change0%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap120.17B
Analysts83.13
Price Target79.76 (29.61%)
Short Float %0.83%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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)-2.53%
PT rev (3m)-4.87%
EPS NQ rev (1m)-0.94%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)5.67%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.88%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 13.86 | ||
| P/S | 2.05 | ||
| P/FCF | 10.31 | ||
| P/OCF | 7.91 | ||
| P/B | 1.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.88 |
EPS(TTM)3.85
EY6.26%
EPS(NY)4.44
Fwd EY7.21%
FCF(TTM)5.97
FCFY9.7%
OCF(TTM)7.78
OCFY12.64%
SpS29.97
BVpS41.31
TBVpS-38.52
PEG (NY)2.16
PEG (5Y)N/A
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%
ROICexcg growth 3Y11.31%
ROICexcg 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
WACC6.2%
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)9.61%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%8.89%
EPS Next Y7.4%
EPS Next 2Y9.55%
EPS Next 3Y12.23%
EPS Next 5Y9.96%
Revenue 1Y (TTM)-2.35%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%-2.15%
Revenue Next Year0.96%
Revenue Next 2Y3.14%
Revenue Next 3Y3.98%
Revenue Next 5Y4.2%
EBIT growth 1Y2.99%
EBIT growth 3Y2.81%
EBIT growth 5Y-1.1%
EBIT Next Year40.29%
EBIT Next 3Y17.25%
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%