ANHEUSER-BUSCH INBEV SA/NV (ABI.BR) Stock Fundamental Analysis
EBR:ABI - Euronext Brussels - BE0974293251 - Common Stock - Currency: EUR
Overall ABI gets a fundamental rating of 4 out of 10. We evaluated ABI against 25 industry peers in the Beverages industry. While ABI is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, ABI is valued expensive at the moment.
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.
Each year in the past 5 years ABI had a positive operating cash flow.
1.2 Ratios
ABI has a Return On Assets (2.83%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 7.48%, ABI is in line with its industry, outperforming 60.00% of the companies in the same industry.
ABI has a Return On Invested Capital (6.49%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for ABI is in line with the industry average of 7.46%.
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
ABI has a better Profit Margin (9.80%) than 64.00% of its industry peers.
In the last couple of years the Profit Margin of ABI has declined.
ABI has a better Operating Margin (25.87%) than 76.00% 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 55.25%, ABI is in line with its industry, outperforming 60.00% of the companies in the same industry.
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
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.
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 1.76. This is a bad value and indicates that ABI is not financially healthy and even has some risk of bankruptcy.
ABI has a Altman-Z score of 1.76. This is in the lower half of the industry: ABI underperforms 64.00% 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.
ABI has a Debt to FCF ratio of 6.45. This is in the better half of the industry: ABI outperforms 68.00% of its industry peers.
A Debt/Equity ratio of 0.90 indicates that ABI is somewhat dependend on debt financing.
The Debt to Equity ratio of ABI (0.90) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.45 | ||
| Altman-Z | 1.76 |
ROIC/WACC1.03
WACC6.32%
2.3 Liquidity
ABI has a Current Ratio of 0.70. 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 Current ratio, with a value of 0.70, ABI is doing worse than 88.00% 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 worse Quick ratio (0.54) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.08% over the past year.
The Earnings Per Share has been decreasing by -1.83% on average over the past years.
The Revenue has been growing slightly by 0.65% in the past year.
ABI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.69% yearly.
EPS 1Y (TTM)15.08%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%7.32%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%2.54%
3.2 Future
The Earnings Per Share is expected to grow by 12.11% on average over the next years. This is quite good.
Based on estimates for the next years, ABI will show a small growth in Revenue. The Revenue will grow by 4.38% on average per year.
EPS Next Y4.12%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
EPS Next 5Y12.11%
Revenue Next Year1.73%
Revenue Next 2Y3.13%
Revenue Next 3Y3.49%
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
The Price/Earnings ratio is 18.64, 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 28.88. ABI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.92, which indicates a rather expensive current valuation of ABI.
ABI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.20. ABI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 17.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABI indicates a somewhat cheap valuation: ABI is cheaper than 72.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABI indicates a somewhat cheap valuation: ABI is cheaper than 76.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.39 | ||
| EV/EBITDA | 8.63 |
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)4.52
PEG (5Y)N/A
EPS Next 2Y8.45%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
ABI has a yearly dividend return of 0.99%, which is pretty low.
Compared to an average industry Dividend Yield of 2.72, ABI is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.45, ABI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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 (4/30/2025, 7:00:00 PM)
57.6
+0.82 (+1.44%)
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 Cap112.11B
Analysts83.13
Price Target71.02 (23.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend1.19
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)0.21%
PT rev (3m)2.03%
EPS NQ rev (1m)-1.4%
EPS NQ rev (3m)-8.37%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-4.11%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 17.92 | ||
| P/S | 2.13 | ||
| P/FCF | 11.39 | ||
| P/OCF | 8.47 | ||
| P/B | 1.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.63 |
EPS(TTM)3.09
EY5.36%
EPS(NY)3.21
Fwd EY5.58%
FCF(TTM)5.06
FCFY8.78%
OCF(TTM)6.8
OCFY11.81%
SpS27
BVpS35.34
TBVpS-32.65
PEG (NY)4.52
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 | 1.76 |
F-Score8
WACC6.32%
ROIC/WACC1.03
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)15.08%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%7.32%
EPS Next Y4.12%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
EPS Next 5Y12.11%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%2.54%
Revenue Next Year1.73%
Revenue Next 2Y3.13%
Revenue Next 3Y3.49%
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%