ANHEUSER-BUSCH INBEV SA/NV (ABI.BR)

BE0974293251 - Common Stock

56.46  +0.21 (+0.37%)

Fundamental Rating

4

Taking everything into account, ABI scores 4 out of 10 in our fundamental rating. ABI was compared to 26 industry peers in the Beverages industry. ABI has a medium profitability rating, but doesn't score so well on its financial health evaluation. ABI has a decent growth rate and is not valued too expensively.



5

1. Profitability

1.1 Basic Checks

In the past year ABI was profitable.
ABI had a positive operating cash flow in the past year.
ABI had positive earnings in each of the past 5 years.
Each year in the past 5 years ABI had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of 2.43%, ABI perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
The Return On Equity of ABI (6.52%) is worse than 62.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.22%, ABI is doing worse than 70.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABI is in line with the industry average of 7.46%.
The 3 year average ROIC (6.15%) for ABI is below the current ROIC(6.22%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.43%
ROE 6.52%
ROIC 6.22%
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

With a Profit Margin value of 8.99%, ABI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ABI has grown nicely.
Looking at the Operating Margin, with a value of 24.57%, ABI is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
ABI's Operating Margin has declined in the last couple of years.
The Gross Margin of ABI (53.86%) is comparable to the rest of the industry.
ABI's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 24.57%
PM (TTM) 8.99%
GM 53.86%
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

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABI is still creating some value.
ABI has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ABI has been increased compared to 5 years ago.
Compared to 1 year ago, ABI has an improved debt to assets ratio.

2.2 Solvency

ABI has an Altman-Z score of 1.56. This is a bad value and indicates that ABI is not financially healthy and even has some risk of bankruptcy.
ABI has a worse Altman-Z score (1.56) than 70.83% of its industry peers.
ABI has a debt to FCF ratio of 9.06. This is a negative value and a sign of low solvency as ABI would need 9.06 years to pay back of all of its debts.
The Debt to FCF ratio of ABI (9.06) is better than 62.50% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that ABI is somewhat dependend on debt financing.
The Debt to Equity ratio of ABI (0.91) is worse than 62.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF 9.06
Altman-Z 1.56
ROIC/WACC1.05
WACC5.94%

2.3 Liquidity

A Current Ratio of 0.63 indicates that ABI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.63, ABI is doing worse than 95.83% of the companies in the same industry.
ABI has a Quick Ratio of 0.63. This is a bad value and indicates that ABI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.48, ABI is doing worse than 79.17% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.63
Quick Ratio 0.48

4

3. Growth

3.1 Past

ABI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.17%.
The Earnings Per Share has been decreasing by -2.43% on average over the past years.
Looking at the last year, ABI shows a small growth in Revenue. The Revenue has grown by 2.76% in the last year.
The Revenue has been growing slightly by 2.28% on average over the past years.
EPS 1Y (TTM)-3.17%
EPS 3Y16.68%
EPS 5Y-2.43%
EPS growth Q2Q-16.33%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y8.2%
Revenue growth 5Y2.28%
Revenue growth Q2Q-1.33%

3.2 Future

ABI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.19% yearly.
ABI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.73% yearly.
EPS Next Y11%
EPS Next 2Y12.88%
EPS Next 3Y16.61%
EPS Next 5Y13.19%
Revenue Next Year3.07%
Revenue Next 2Y6.19%
Revenue Next 3Y3.93%
Revenue Next 5Y3.73%

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

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 20.02, the valuation of ABI can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as ABI.
ABI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.04, ABI is valued on the expensive side.
ABI's Price/Forward Earnings is on the same level as the industry average.
ABI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.02
Fwd PE 18.04

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ABI is valued a bit cheaper than 70.83% of the companies in the same industry.
75.00% of the companies in the same industry are more expensive than ABI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 13.97
EV/EBITDA 9.18

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 ABI's earnings are expected to grow with 16.61% in the coming years.
PEG (NY)1.82
PEG (5Y)N/A
EPS Next 2Y12.88%
EPS Next 3Y16.61%

2

5. Dividend

5.1 Amount

ABI has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.36, ABI is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, ABI's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.05%

5.2 History

The dividend of ABI decreases each year by -17.56%.
Dividend Growth(5Y)-17.56%
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

ABI pays out 56.42% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP56.42%
EPS Next 2Y12.88%
EPS Next 3Y16.61%

ANHEUSER-BUSCH INBEV SA/NV

EBR:ABI (3/28/2024, 7:00:00 PM)

56.46

+0.21 (+0.37%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap111.44B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.05%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
PT rev (3m)
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EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 20.02
Fwd PE 18.04
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.82
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.43%
ROE 6.52%
ROCE
ROIC
ROICexc
ROICexgc
OM 24.57%
PM (TTM) 8.99%
GM 53.86%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.27
Health
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.63
Quick Ratio 0.48
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-3.17%
EPS 3Y16.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.76%
Revenue growth 3Y8.2%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y