ANHEUSER-BUSCH INBEV SA/NV (ABI.BR)
BE0974293251 - Common Stock
Overall ABI gets a fundamental rating of 3 out of 10. We evaluated ABI against 24 industry peers in the Beverages industry. ABI has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
ABI had a positive operating cash flow in the past year.
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 (2.43%) is worse than 69.57% of its industry peers.
ABI's Return On Equity of 6.52% is on the low side compared to the rest of the industry. ABI is outperformed by 69.57% of its industry peers.
The Return On Invested Capital of ABI (6.22%) is worse than 69.57% of its industry peers.
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 7.98%.
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 Rank | Sector 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
Looking at the Profit Margin, with a value of 8.99%, ABI is in line with its industry, outperforming 47.83% of the companies in the same industry.
ABI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 24.57%, ABI is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
In the last couple of years the Operating Margin of ABI has declined.
ABI's Gross Margin of 53.86% is in line compared to the rest of the industry. ABI outperforms 56.52% of its industry peers.
ABI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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. 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 about the same amout of shares outstanding than it did 1 year ago.
ABI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ABI has an improved debt to assets ratio.
2.2 Solvency
ABI has an Altman-Z score of 1.56. This is a bad value and indicates that ABI is not financially healthy and even has some risk of bankruptcy.
ABI has a worse Altman-Z score (1.56) than 78.26% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 9.06, ABI is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
A Debt/Equity ratio of 0.91 indicates that ABI is somewhat dependend on debt financing.
The Debt to Equity ratio of ABI (0.91) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 9.06 | ||
| Altman-Z | 1.56 |
ROIC/WACC1
WACC6.19%
2.3 Liquidity
A Current Ratio of 0.63 indicates that ABI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.63, ABI is doing worse than 95.65% of the companies in the same industry.
ABI has a Quick 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.
ABI's Quick ratio of 0.48 is on the low side compared to the rest of the industry. ABI is outperformed by 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for ABI have decreased by -1.56% in the last year.
ABI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.43% yearly.
The Revenue has been growing slightly by 1.62% in the past year.
Measured over the past years, ABI shows a small growth in Revenue. The Revenue has been growing by 2.28% on average per year.
EPS 1Y (TTM)-1.56%
EPS 3Y16.68%
EPS 5Y-2.43%
EPS Q2Q%15.38%
Revenue 1Y (TTM)1.62%
Revenue growth 3Y8.2%
Revenue growth 5Y2.28%
Sales Q2Q%2.35%
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 13.81% on average per year.
ABI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.22% yearly.
EPS Next Y11.66%
EPS Next 2Y12.95%
EPS Next 3Y16.61%
EPS Next 5Y13.81%
Revenue Next Year2.63%
Revenue Next 2Y6.19%
Revenue Next 3Y3.81%
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.
4. Valuation
4.1 Price/Earnings Ratio
ABI is valuated rather expensively with a Price/Earnings ratio of 19.37.
ABI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.41, ABI is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.66 indicates a correct valuation of ABI.
Based on the Price/Forward Earnings ratio, ABI is valued a bit cheaper than 65.22% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.59. ABI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.37 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
ABI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ABI is cheaper than 69.57% of the companies in the same industry.
ABI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ABI is cheaper than 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.93 | ||
| EV/EBITDA | 9.15 |
4.3 Compensation for Growth
The 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 16.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.66
PEG (5Y)N/A
EPS Next 2Y12.95%
EPS Next 3Y16.61%
5. Dividend
5.1 Amount
ABI has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.51, ABI's dividend is way lower than its industry peers. On top of this 82.61% of the companies listed in the same industry pay a better dividend than ABI!
Compared to an average S&P500 Dividend Yield of 2.30, ABI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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
56.42% of the earnings are spent on dividend by ABI. This is a bit on the high side, but may be sustainable.
DP56.42%
EPS Next 2Y12.95%
EPS Next 3Y16.61%
ANHEUSER-BUSCH INBEV SA/NV
EBR:ABI (7/26/2024, 7:00:00 PM)
56.16
+0.3 (+0.54%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
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Market Cap110.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Dividend Growth(5Y)
DP
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Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.37 | ||
| Fwd PE | 15.66 | ||
| 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)1.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-1.56%
EPS 3Y16.68%
EPS 5Y
EPS Q2Q%
EPS Next Y11.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.62%
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