ANHEUSER-BUSCH INBEV SA/NV (ABI.BR) Stock Fundamental Analysis
EBR:ABI - Euronext Brussels - BE0974293251 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to ABI. ABI was compared to 27 industry peers in the Beverages industry. There are concerns on the financial health of ABI while its profitability can be described as average. ABI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ABI had positive earnings in the past year.
In the past year ABI had a positive cash flow from operations.
ABI had positive earnings in each of the past 5 years.
In the past 5 years ABI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ABI (2.83%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 7.48%, ABI is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
With a Return On Invested Capital value of 6.49%, ABI perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABI is below the industry average of 8.05%.
The last Return On Invested Capital (6.49%) for ABI is above the 3 year average (6.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 7.48% | ||
| ROIC | 6.49% |
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
The Profit Margin of ABI (9.80%) is better than 66.67% of its industry peers.
In the last couple of years the Profit Margin of ABI has declined.
ABI has a Operating Margin of 25.87%. This is in the better half of the industry: ABI outperforms 77.78% of its industry peers.
In the last couple of years the Operating Margin of ABI has declined.
ABI's Gross Margin of 55.25% is fine compared to the rest of the industry. ABI outperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of ABI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.87% | ||
| PM (TTM) | 9.8% | ||
| GM | 55.25% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABI is creating some value.
The number of shares outstanding for ABI has been reduced compared to 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 1.79, we must say that ABI is in the distress zone and has some risk of bankruptcy.
ABI has a Altman-Z score of 1.79. This is in the lower half of the industry: ABI underperforms 62.96% of its industry peers.
The Debt to FCF ratio of ABI is 6.45, which is on the high side as it means it would take ABI, 6.45 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ABI (6.45) is better than 74.07% of its industry peers.
ABI has a Debt/Equity ratio of 0.90. This is a neutral value indicating ABI is somewhat dependend on debt financing.
ABI has a Debt to Equity ratio (0.90) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.45 | ||
| Altman-Z | 1.79 |
ROIC/WACC1.04
WACC6.25%
2.3 Liquidity
A Current Ratio of 0.70 indicates that ABI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.70, ABI is doing worse than 85.19% of the companies in the same industry.
A Quick Ratio of 0.54 indicates that ABI may have some problems paying its short term obligations.
ABI has a Quick ratio of 0.54. This is comparable to the rest of the industry: ABI outperforms 40.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
ABI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.33%, which is quite good.
ABI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.83% yearly.
Looking at the last year, ABI shows a decrease in Revenue. The Revenue has decreased by -1.45% in the last year.
Measured over the past years, ABI shows a small growth in Revenue. The Revenue has been growing by 2.69% on average per year.
EPS 1Y (TTM)13.33%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%8%
Revenue 1Y (TTM)-1.45%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%-6.32%
3.2 Future
The Earnings Per Share is expected to grow by 12.11% on average over the next years. This is quite good.
ABI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.38% yearly.
EPS Next Y4.12%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
EPS Next 5Y12.11%
Revenue Next Year1.78%
Revenue Next 2Y3.14%
Revenue Next 3Y3.48%
Revenue Next 5Y4.38%
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.
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 19.26, ABI is valued on the expensive side.
ABI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.03. ABI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.63, ABI is valued correctly.
ABI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, ABI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 16.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABI is valued a bit cheaper than the industry average as 74.07% of the companies are valued more expensively.
ABI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ABI is cheaper than 81.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.94 | ||
| EV/EBITDA | 9.02 |
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.
ABI's earnings are expected to grow with 12.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.67
PEG (5Y)N/A
EPS Next 2Y8.45%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
ABI has a Yearly Dividend Yield of 1.16%.
ABI's Dividend Yield is slightly below the industry average, which is at 2.76.
With a Dividend Yield of 1.16, ABI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
The dividend of ABI decreases each year by -12.03%.
Dividend Growth(5Y)-12.03%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
ABI pays out 45.64% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP45.64%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
EBR:ABI (5/22/2025, 2:21:49 PM)
60.66
-0.08 (-0.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners17.94%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap118.07B
Analysts83.03
Price Target71.33 (17.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend1.21
Dividend Growth(5Y)-12.03%
DP45.64%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.01%
Min EPS beat(2)5.76%
Max EPS beat(2)20.27%
EPS beat(4)4
Avg EPS beat(4)10.29%
Min EPS beat(4)4.3%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)6.77%
EPS beat(12)10
Avg EPS beat(12)7.21%
EPS beat(16)13
Avg EPS beat(16)7.45%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-4.2%
Max Revenue beat(2)4.57%
Revenue beat(4)2
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-4.2%
Max Revenue beat(4)4.57%
Revenue beat(8)2
Avg Revenue beat(8)-1.53%
Revenue beat(12)4
Avg Revenue beat(12)-1.48%
Revenue beat(16)7
Avg Revenue beat(16)-0.4%
PT rev (1m)-1.12%
PT rev (3m)5.11%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)0%
EPS NY rev (3m)2.1%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 16.63 | ||
| P/S | 2.24 | ||
| P/FCF | 11.94 | ||
| P/OCF | 8.88 | ||
| P/B | 1.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.02 |
EPS(TTM)3.15
EY5.19%
EPS(NY)3.65
Fwd EY6.01%
FCF(TTM)5.08
FCFY8.37%
OCF(TTM)6.83
OCFY11.26%
SpS27.12
BVpS35.51
TBVpS-32.8
PEG (NY)4.67
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 7.48% | ||
| ROCE | 8.91% | ||
| ROIC | 6.49% | ||
| ROICexc | 6.95% | ||
| ROICexgc | 96.58% | ||
| OM | 25.87% | ||
| PM (TTM) | 9.8% | ||
| GM | 55.25% | ||
| FCFM | 18.73% |
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-Score8
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.45 | ||
| Debt/EBITDA | 3.37 | ||
| Cap/Depr | 69.68% | ||
| Cap/Sales | 6.46% | ||
| Interest Coverage | 4.24 | ||
| Cash Conversion | 71.67% | ||
| Profit Quality | 191.15% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 1.79 |
F-Score8
WACC6.25%
ROIC/WACC1.04
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)13.33%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%8%
EPS Next Y4.12%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
EPS Next 5Y12.11%
Revenue 1Y (TTM)-1.45%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%-6.32%
Revenue Next Year1.78%
Revenue Next 2Y3.14%
Revenue Next 3Y3.48%
Revenue Next 5Y4.38%
EBIT growth 1Y5.98%
EBIT growth 3Y2.81%
EBIT growth 5Y-1.1%
EBIT Next Year41.45%
EBIT Next 3Y16.39%
EBIT Next 5Y12.38%
FCF growth 1Y29.73%
FCF growth 3Y6.91%
FCF growth 5Y4.78%
OCF growth 1Y13.49%
OCF growth 3Y0.57%
OCF growth 5Y1.41%