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

BE0974293251 - Common Stock

54.96  +0.8 (+1.48%)

Fundamental Rating

4

Taking everything into account, ABI scores 4 out of 10 in our fundamental rating. ABI was compared to 23 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 correct valuation and a medium growth rate.



5

1. Profitability

1.1 Basic Checks

In the past year ABI was profitable.
In the past year ABI had a positive cash flow from operations.
In the past 5 years ABI has always been profitable.
ABI had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 2.43%, ABI is in line with its industry, outperforming 42.86% of the companies in the same industry.
ABI's Return On Equity of 6.52% is on the low side compared to the rest of the industry. ABI is outperformed by 61.90% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.22%, ABI is doing worse than 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ABI is in line with the industry average of 6.98%.
The last Return On Invested Capital (6.22%) for ABI is above the 3 year average (6.15%), which is a sign of increasing profitability.
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

ABI has a Profit Margin of 8.99%. This is comparable to the rest of the industry: ABI outperforms 52.38% of its industry peers.
In the last couple of years the Profit Margin of ABI has grown nicely.
ABI's Operating Margin of 24.57% is fine compared to the rest of the industry. ABI outperforms 76.19% 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 53.86%, ABI is in the better half of the industry, outperforming 61.90% of the companies in the same 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

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABI is creating some value.
ABI has about the same amout of shares outstanding than it did 1 year ago.
ABI has more shares outstanding than it did 5 years ago.
ABI has a better debt/assets ratio than last year.

2.2 Solvency

ABI has an Altman-Z score of 1.54. This is a bad value and indicates that ABI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.54, ABI is doing worse than 76.19% of the companies in the same industry.
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 76.19% of its industry peers.
ABI has a Debt/Equity ratio of 0.91. This is a neutral value indicating ABI is somewhat dependend on debt financing.
ABI has a Debt to Equity ratio (0.91) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF 9.06
Altman-Z 1.54
ROIC/WACC1.03
WACC6.03%

2.3 Liquidity

ABI has a Current 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.
The Current ratio of ABI (0.63) is worse than 90.48% of its industry peers.
A Quick Ratio of 0.48 indicates that ABI may have some problems paying its short term obligations.
With a Quick ratio value of 0.48, ABI is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
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%.
ABI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.43% yearly.
Looking at the last year, ABI shows a small growth in Revenue. The Revenue has grown by 2.76% in the last year.
ABI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.28% yearly.
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

Based on estimates for the next years, ABI will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.19% on average per year.
The Revenue is expected to grow by 3.73% on average over the next years.
EPS Next Y10.31%
EPS Next 2Y12.55%
EPS Next 3Y16.61%
EPS Next 5Y13.19%
Revenue Next Year2.83%
Revenue Next 2Y6.19%
Revenue Next 3Y3.92%
Revenue Next 5Y3.73%

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

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 19.22, which indicates a rather expensive current valuation of ABI.
Compared to the rest of the industry, the Price/Earnings ratio of ABI is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 24.76. ABI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.40, the valuation of ABI can be described as rather expensive.
ABI's Price/Forward Earnings ratio is in line with the industry average.
ABI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.26.
Industry RankSector Rank
PE 19.22
Fwd PE 17.4

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ABI is valued a bit cheaper than 76.19% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABI indicates a rather cheap valuation: ABI is cheaper than 80.95% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.38
EV/EBITDA 8.94

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)1.86
PEG (5Y)N/A
EPS Next 2Y12.55%
EPS Next 3Y16.61%

2

5. Dividend

5.1 Amount

ABI has a Yearly Dividend Yield of 1.06%.
Compared to an average industry Dividend Yield of 2.25, ABI's dividend is way lower than its industry peers. On top of this 80.95% of the companies listed in the same industry pay a better dividend than ABI!
Compared to an average S&P500 Dividend Yield of 2.44, ABI's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.06%

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 2Y12.55%
EPS Next 3Y16.61%

ANHEUSER-BUSCH INBEV SA/NV

EBR:ABI (4/19/2024, 7:00:00 PM)

54.96

+0.8 (+1.48%)

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 Cap108.33B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.06%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
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 19.22
Fwd PE 17.4
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)1.86
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 Y10.31%
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