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

BE0974293251 - Common Stock

53.96  -1.18 (-2.14%)

Fundamental Rating

4

Overall ABI gets a fundamental rating of 4 out of 10. We evaluated ABI against 23 industry peers in the Beverages industry. There are concerns on the financial health of ABI while its profitability can be described as average. ABI has a correct valuation and a medium growth rate.



5

1. Profitability

1.1 Basic Checks

ABI had positive earnings in the past year.
ABI had a positive operating cash flow in the past year.
In the past 5 years ABI has always been profitable.
In the past 5 years ABI always reported a positive cash flow from operatings.

1.2 Ratios

With a Return On Assets value of 2.81%, ABI is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
ABI has a Return On Equity (7.55%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 6.49%, ABI is in line with its industry, outperforming 45.45% of the companies in the same industry.
ABI had an Average Return On Invested Capital over the past 3 years of 6.15%. This is in line with the industry average of 8.07%.
The 3 year average ROIC (6.15%) for ABI is below the current ROIC(6.49%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.81%
ROE 7.55%
ROIC 6.49%
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 (9.89%) which is comparable to the rest of the industry.
ABI's Profit Margin has improved in the last couple of years.
ABI has a Operating Margin of 25.14%. This is in the better half of the industry: ABI outperforms 68.18% 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 54.48%, ABI is in line with its industry, outperforming 59.09% of the companies in the same industry.
In the last couple of years the Gross Margin of ABI has declined.
Industry RankSector Rank
OM 25.14%
PM (TTM) 9.89%
GM 54.48%
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.
Compared to 1 year ago, ABI has about the same amount of shares outstanding.
The number of shares outstanding for ABI has been increased compared to 5 years ago.
The debt/assets ratio for ABI has been reduced compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.66, we must say that ABI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.66, ABI is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
The Debt to FCF ratio of ABI is 7.84, which is on the high side as it means it would take ABI, 7.84 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ABI (7.84) is better than 72.73% of its industry peers.
ABI has a Debt/Equity ratio of 0.97. This is a neutral value indicating ABI is somewhat dependend on debt financing.
ABI has a Debt to Equity ratio of 0.97. This is comparable to the rest of the industry: ABI outperforms 50.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF 7.84
Altman-Z 1.66
ROIC/WACC1.09
WACC5.96%

2.3 Liquidity

ABI has a Current Ratio of 0.69. This is a bad value and indicates that ABI is not financially healthy enough and could expect problems in meeting its short term obligations.
ABI has a worse Current ratio (0.69) than 90.91% of its industry peers.
ABI has a Quick Ratio of 0.69. 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 Quick ratio of ABI (0.51) is worse than 68.18% of its industry peers.
Industry RankSector Rank
Current Ratio 0.69
Quick Ratio 0.51

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 7.48% over the past year.
The Earnings Per Share has been decreasing by -2.43% on average over the past years.
The Revenue has been growing slightly by 2.76% in the past 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)7.48%
EPS 3Y16.68%
EPS 5Y-2.43%
EPS Q2Q%13.95%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y8.2%
Revenue growth 5Y2.28%
Sales Q2Q%-3.39%

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 13.81% yearly.
ABI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.22% yearly.
EPS Next Y11.08%
EPS Next 2Y11.78%
EPS Next 3Y12.09%
EPS Next 5Y13.81%
Revenue Next Year0.21%
Revenue Next 2Y1.89%
Revenue Next 3Y2.78%
Revenue Next 5Y4.22%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 17.02, which indicates a rather expensive current valuation of ABI.
Based on the Price/Earnings ratio, ABI is valued a bit cheaper than 68.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of ABI to the average of the S&P500 Index (30.20), we can say ABI is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.41 indicates a correct valuation of ABI.
ABI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.28, ABI is valued a bit cheaper.
Industry RankSector Rank
PE 17.02
Fwd PE 15.41

4.2 Price Multiples

ABI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ABI is cheaper than 68.18% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABI is valued cheaper than 81.82% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.62
EV/EBITDA 9.01

4.3 Compensation for Growth

ABI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ABI's earnings are expected to grow with 12.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.54
PEG (5Y)N/A
EPS Next 2Y11.78%
EPS Next 3Y12.09%

2

5. Dividend

5.1 Amount

ABI has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.60, ABI's dividend is way lower than its industry peers. On top of this 86.36% of the companies listed in the same industry pay a better dividend than ABI!
With a Dividend Yield of 1.04, ABI pays less dividend than the S&P500 average, which is at 2.26.
Industry RankSector Rank
Dividend Yield 1.04%

5.2 History

The dividend of ABI decreases each year by -17.56%.
Dividend Growth(5Y)-17.56%
Div Incr Years2
Div Non Decr Years3

5.3 Sustainability

ABI pays out 54.53% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP54.53%
EPS Next 2Y11.78%
EPS Next 3Y12.09%

ANHEUSER-BUSCH INBEV SA/NV

EBR:ABI (11/4/2024, 7:00:00 PM)

53.96

-1.18 (-2.14%)

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 Cap106.41B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.04%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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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 17.02
Fwd PE 15.41
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)1.54
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.81%
ROE 7.55%
ROCE
ROIC
ROICexc
ROICexgc
OM 25.14%
PM (TTM) 9.89%
GM 54.48%
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 Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.69
Quick Ratio 0.51
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)
High Growth Momentum
Growth
EPS 1Y (TTM)7.48%
EPS 3Y16.68%
EPS 5Y
EPS Q2Q%
EPS Next Y11.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.76%
Revenue growth 3Y8.2%
Revenue growth 5Y
Sales 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