DUTCH BROS INC-CLASS A (BROS) Stock Fundamental Analysis
NYSE:BROS - New York Stock Exchange, Inc. - US26701L1008 - Common Stock - Currency: USD
BROS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. The financial health of BROS is average, but there are quite some concerns on its profitability. BROS is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year BROS was profitable.
BROS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BROS reported negative net income in multiple years.
Each year in the past 5 years BROS had a positive operating cash flow.
1.2 Ratios
BROS has a Return On Assets (1.57%) which is comparable to the rest of the industry.
BROS has a better Return On Equity (7.27%) than 65.41% of its industry peers.
BROS has a worse Return On Invested Capital (3.42%) than 63.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.57% | ||
| ROE | 7.27% | ||
| ROIC | 3.42% |
ROA(3y)0.37%
ROA(5y)-0.24%
ROE(3y)1.1%
ROE(5y)-2.02%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of BROS (3.20%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BROS has declined.
Looking at the Operating Margin, with a value of 9.41%, BROS is in line with its industry, outperforming 48.87% of the companies in the same industry.
In the last couple of years the Operating Margin of BROS has declined.
The Gross Margin of BROS (29.34%) is worse than 78.95% of its industry peers.
BROS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.41% | ||
| PM (TTM) | 3.2% | ||
| GM | 29.34% |
OM growth 3YN/A
OM growth 5Y-5.29%
PM growth 3YN/A
PM growth 5Y-25.4%
GM growth 3Y-0.28%
GM growth 5Y-4.98%
2. Health
2.1 Basic Checks
BROS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BROS has less shares outstanding
Compared to 5 years ago, BROS has less shares outstanding
BROS has a better debt/assets ratio than last year.
2.2 Solvency
BROS has an Altman-Z score of 4.07. This indicates that BROS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.07, BROS belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
BROS has a debt to FCF ratio of 20.80. This is a negative value and a sign of low solvency as BROS would need 20.80 years to pay back of all of its debts.
BROS has a Debt to FCF ratio of 20.80. This is comparable to the rest of the industry: BROS outperforms 44.36% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that BROS has dependencies on debt financing.
The Debt to Equity ratio of BROS (1.06) is better than 62.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 20.8 | ||
| Altman-Z | 4.07 |
ROIC/WACC0.37
WACC9.27%
2.3 Liquidity
A Current Ratio of 1.95 indicates that BROS should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.95, BROS belongs to the best of the industry, outperforming 81.95% of the companies in the same industry.
A Quick Ratio of 1.75 indicates that BROS should not have too much problems paying its short term obligations.
BROS has a better Quick ratio (1.75) than 81.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
BROS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.00%, which is quite impressive.
The earnings per share for BROS have been decreasing by -11.03% on average. This is quite bad
The Revenue has grown by 30.42% in the past year. This is a very strong growth!
Measured over the past years, BROS shows a very strong growth in Revenue. The Revenue has been growing by 39.97% on average per year.
EPS 1Y (TTM)40%
EPS 3YN/A
EPS 5Y-11.03%
EPS Q2Q%55.56%
Revenue 1Y (TTM)30.42%
Revenue growth 3Y37.03%
Revenue growth 5Y39.97%
Sales Q2Q%29.1%
3.2 Future
Based on estimates for the next years, BROS will show a very strong growth in Earnings Per Share. The EPS will grow by 27.28% on average per year.
Based on estimates for the next years, BROS will show a very strong growth in Revenue. The Revenue will grow by 20.70% on average per year.
EPS Next Y21.37%
EPS Next 2Y28.56%
EPS Next 3Y29.32%
EPS Next 5Y27.28%
Revenue Next Year26.21%
Revenue Next 2Y25.03%
Revenue Next 3Y23.91%
Revenue Next 5Y20.7%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 130.50, the valuation of BROS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of BROS indicates a slightly more expensive valuation: BROS is more expensive than 63.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.52, BROS is valued quite expensively.
With a Price/Forward Earnings ratio of 86.70, BROS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, BROS is valued a bit more expensive than the industry average as 68.42% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.25, BROS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 130.5 | ||
| Fwd PE | 86.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BROS indicates a slightly more expensive valuation: BROS is more expensive than 78.20% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BROS is valued a bit more expensive than the industry average as 63.91% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 372.19 | ||
| EV/EBITDA | 54.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BROS does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as BROS's earnings are expected to grow with 29.32% in the coming years.
PEG (NY)6.11
PEG (5Y)N/A
EPS Next 2Y28.56%
EPS Next 3Y29.32%
5. Dividend
5.1 Amount
BROS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
73.08
+0.06 (+0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners85.36%
Inst Owner Change-2.56%
Ins Owners0.94%
Ins Owner Change60.34%
Market Cap12.02B
Analysts86.36
Price Target79.64 (8.98%)
Short Float %6.24%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)125.84%
Min EPS beat(2)27.51%
Max EPS beat(2)224.17%
EPS beat(4)4
Avg EPS beat(4)82.18%
Min EPS beat(4)27.51%
Max EPS beat(4)224.17%
EPS beat(8)8
Avg EPS beat(8)132.4%
EPS beat(12)10
Avg EPS beat(12)90.44%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.38%
Min Revenue beat(2)1.02%
Max Revenue beat(2)5.75%
Revenue beat(4)4
Avg Revenue beat(4)2.3%
Min Revenue beat(4)0.46%
Max Revenue beat(4)5.75%
Revenue beat(8)6
Avg Revenue beat(8)1.29%
Revenue beat(12)8
Avg Revenue beat(12)0.36%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.92%
PT rev (3m)-8.1%
EPS NQ rev (1m)-11.89%
EPS NQ rev (3m)-12.02%
EPS NY rev (1m)0.49%
EPS NY rev (3m)1.74%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 130.5 | ||
| Fwd PE | 86.7 | ||
| P/S | 8.83 | ||
| P/FCF | 372.19 | ||
| P/OCF | 49.65 | ||
| P/B | 20.07 | ||
| P/tB | 20.91 | ||
| EV/EBITDA | 54.66 |
EPS(TTM)0.56
EY0.77%
EPS(NY)0.84
Fwd EY1.15%
FCF(TTM)0.2
FCFY0.27%
OCF(TTM)1.47
OCFY2.01%
SpS8.27
BVpS3.64
TBVpS3.5
PEG (NY)6.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.57% | ||
| ROE | 7.27% | ||
| ROCE | 4.98% | ||
| ROIC | 3.42% | ||
| ROICexc | 3.9% | ||
| ROICexgc | 3.94% | ||
| OM | 9.41% | ||
| PM (TTM) | 3.2% | ||
| GM | 29.34% | ||
| FCFM | 2.37% |
ROA(3y)0.37%
ROA(5y)-0.24%
ROE(3y)1.1%
ROE(5y)-2.02%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-28.12%
ROICexc growth 3YN/A
ROICexc growth 5Y-24.54%
OM growth 3YN/A
OM growth 5Y-5.29%
PM growth 3YN/A
PM growth 5Y-25.4%
GM growth 3Y-0.28%
GM growth 5Y-4.98%
F-Score6
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 20.8 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 213.71% | ||
| Cap/Sales | 15.42% | ||
| Interest Coverage | 3.16 | ||
| Cash Conversion | 107.04% | ||
| Profit Quality | 74.16% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | 4.07 |
F-Score6
WACC9.27%
ROIC/WACC0.37
Cap/Depr(3y)329.63%
Cap/Depr(5y)343.93%
Cap/Sales(3y)22.13%
Cap/Sales(5y)20.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)40%
EPS 3YN/A
EPS 5Y-11.03%
EPS Q2Q%55.56%
EPS Next Y21.37%
EPS Next 2Y28.56%
EPS Next 3Y29.32%
EPS Next 5Y27.28%
Revenue 1Y (TTM)30.42%
Revenue growth 3Y37.03%
Revenue growth 5Y39.97%
Sales Q2Q%29.1%
Revenue Next Year26.21%
Revenue Next 2Y25.03%
Revenue Next 3Y23.91%
Revenue Next 5Y20.7%
EBIT growth 1Y65.07%
EBIT growth 3YN/A
EBIT growth 5Y32.56%
EBIT Next Year177.23%
EBIT Next 3Y63.77%
EBIT Next 5Y45.07%
FCF growth 1Y125.34%
FCF growth 3YN/A
FCF growth 5Y7.46%
OCF growth 1Y279.98%
OCF growth 3Y45.27%
OCF growth 5Y34.16%