ANHEUSER-BUSCH INBEV SA/NV (ABI.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:ABI - BE0974293251 - Common Stock
58.82 EUR
-0.5 (-0.84%)
Overall ABI gets a fundamental rating of 3 out of 10. We evaluated ABI against 30 industry peers in the Beverages industry. ABI has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, ABI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year ABI was profitable.
- ABI had a positive operating cash flow in the past year.
- Each year in the past 5 years ABI has been profitable.
- Each year in the past 5 years ABI had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ABI (3.37%) is comparable to the rest of the industry.
- ABI's Return On Equity of 8.82% is in line compared to the rest of the industry. ABI outperforms 46.67% of its industry peers.
- With a Return On Invested Capital value of 6.35%, ABI is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for ABI is below the industry average of 8.18%.
- The 3 year average ROIC (6.05%) for ABI 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
- With a decent Profit Margin value of 12.16%, ABI is doing good in the industry, outperforming 76.67% of the companies in the same industry.
- In the last couple of years the Profit Margin of ABI has declined.
- The Operating Margin of ABI (26.51%) is better than 76.67% of its industry peers.
- In the last couple of years the Operating Margin of ABI has declined.
- Looking at the Gross Margin, with a value of 55.70%, ABI is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
- ABI'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
- ABI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- ABI has less 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
- Based on the Altman-Z score of 1.76, we must say that ABI is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.76, ABI is doing worse than 66.67% of the companies in the same industry.
- ABI has a debt to FCF ratio of 6.48. This is a slightly negative value and a sign of low solvency as ABI would need 6.48 years to pay back of all of its debts.
- The Debt to FCF ratio of ABI (6.48) is better than 70.00% of its industry peers.
- A Debt/Equity ratio of 0.89 indicates that ABI is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.89, ABI is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 1.76 |
ROIC/WACC1.02
WACC6.22%
2.3 Liquidity
- A Current Ratio of 0.64 indicates that ABI may have some problems paying its short term obligations.
- With a Current ratio value of 0.64, ABI is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
- A Quick Ratio of 0.48 indicates that ABI may have some problems paying its short term obligations.
- The Quick ratio of ABI (0.48) is worse than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
- ABI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.09%.
- The Earnings Per Share has been decreasing by -1.83% on average over the past years.
- The Revenue has decreased by -1.34% in the past 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
- Based on estimates for the next years, ABI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.06% on average per year.
- Based on estimates for the next years, ABI will show a small growth in Revenue. The Revenue will grow by 4.08% on average per year.
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
- 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. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 18.79, which indicates a rather expensive current valuation of ABI.
- ABI's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.30. ABI is valued slightly cheaper when compared to this.
- ABI is valuated correctly with a Price/Forward Earnings ratio of 16.19.
- The rest of the industry has a similar Price/Forward Earnings ratio as ABI.
- ABI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 16.19 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABI is on the same level as its industry peers.
- 70.00% of the companies in the same industry are more expensive than ABI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.52 | ||
| EV/EBITDA | 9.61 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABI does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.12
PEG (5Y)N/A
EPS Next 2Y10.07%
EPS Next 3Y10.82%
5. Dividend
5.1 Amount
- ABI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ANHEUSER-BUSCH INBEV SA/NV / ABI.BR FAQ
What is the ChartMill fundamental rating of ANHEUSER-BUSCH INBEV SA/NV (ABI.BR) stock?
ChartMill assigns a fundamental rating of 3 / 10 to ABI.BR.
What is the valuation status of ANHEUSER-BUSCH INBEV SA/NV (ABI.BR) stock?
ChartMill assigns a valuation rating of 3 / 10 to ANHEUSER-BUSCH INBEV SA/NV (ABI.BR). This can be considered as Overvalued.
Can you provide the profitability details for ANHEUSER-BUSCH INBEV SA/NV?
ANHEUSER-BUSCH INBEV SA/NV (ABI.BR) has a profitability rating of 5 / 10.
What is the valuation of ANHEUSER-BUSCH INBEV SA/NV based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ANHEUSER-BUSCH INBEV SA/NV (ABI.BR) is 18.79 and the Price/Book (PB) ratio is 1.66.
How financially healthy is ANHEUSER-BUSCH INBEV SA/NV?
The financial health rating of ANHEUSER-BUSCH INBEV SA/NV (ABI.BR) is 2 / 10.