DUTCH BROS INC-CLASS A (BROS) Stock Fundamental Analysis
NYSE:BROS - New York Stock Exchange, Inc. - US26701L1008 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to BROS. BROS was compared to 131 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.
BROS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BROS's Return On Assets of 2.04% is in line compared to the rest of the industry. BROS outperforms 45.80% of its industry peers.
BROS has a better Return On Equity (9.00%) than 65.65% of its industry peers.
BROS's Return On Invested Capital of 3.82% is in line compared to the rest of the industry. BROS outperforms 40.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 9% | ||
| ROIC | 3.82% |
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
BROS's Profit Margin of 3.94% is in line compared to the rest of the industry. BROS outperforms 54.20% of its industry peers.
BROS's Profit Margin has declined in the last couple of years.
BROS has a Operating Margin of 10.03%. This is comparable to the rest of the industry: BROS outperforms 54.20% of its industry peers.
BROS's Operating Margin has declined in the last couple of years.
BROS has a Gross Margin of 29.77%. This is in the lower half of the industry: BROS underperforms 77.86% of its industry peers.
In the last couple of years the Gross Margin of BROS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.03% | ||
| PM (TTM) | 3.94% | ||
| GM | 29.77% |
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
The debt/assets ratio for BROS has been reduced compared to a year ago.
2.2 Solvency
BROS has an Altman-Z score of 3.83. 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 3.83, BROS belongs to the top of the industry, outperforming 81.68% of the companies in the same industry.
The Debt to FCF ratio of BROS is 8.16, which is on the high side as it means it would take BROS, 8.16 years of fcf income to pay off all of its debts.
BROS's Debt to FCF ratio of 8.16 is fine compared to the rest of the industry. BROS outperforms 67.94% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that BROS is somewhat dependend on debt financing.
BROS has a better Debt to Equity ratio (0.91) than 60.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 8.16 | ||
| Altman-Z | 3.83 |
ROIC/WACC0.41
WACC9.35%
2.3 Liquidity
A Current Ratio of 1.64 indicates that BROS should not have too much problems paying its short term obligations.
BROS has a better Current ratio (1.64) than 75.57% of its industry peers.
A Quick Ratio of 1.42 indicates that BROS should not have too much problems paying its short term obligations.
BROS has a Quick ratio of 1.42. This is in the better half of the industry: BROS outperforms 74.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
BROS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.96%, which is quite impressive.
The earnings per share for BROS have been decreasing by -11.03% on average. This is quite bad
Looking at the last year, BROS shows a very strong growth in Revenue. The Revenue has grown by 29.80%.
The Revenue has been growing by 39.97% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)36.96%
EPS 3YN/A
EPS 5Y-11.03%
EPS Q2Q%36.84%
Revenue 1Y (TTM)29.8%
Revenue growth 3Y37.03%
Revenue growth 5Y39.97%
Sales Q2Q%27.97%
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 30.74% on average per year.
BROS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.12% yearly.
EPS Next Y18.86%
EPS Next 2Y28.37%
EPS Next 3Y28.34%
EPS Next 5Y30.74%
Revenue Next Year26.21%
Revenue Next 2Y25.21%
Revenue Next 3Y23.89%
Revenue Next 5Y22.12%
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
With a Price/Earnings ratio of 109.24, BROS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of BROS indicates a slightly more expensive valuation: BROS is more expensive than 61.83% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.41. BROS is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 81.89, the valuation of BROS can be described as expensive.
BROS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BROS is more expensive than 66.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BROS to the average of the S&P500 Index (33.87), we can say BROS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 109.24 | ||
| Fwd PE | 81.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BROS is valued a bit more expensive than 76.34% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as BROS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 155.29 | ||
| EV/EBITDA | 45.89 |
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.
BROS's earnings are expected to grow with 28.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.79
PEG (5Y)N/A
EPS Next 2Y28.37%
EPS Next 3Y28.34%
5. Dividend
5.1 Amount
BROS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
68.82
+1.34 (+1.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners79.61%
Inst Owner Change1.67%
Ins Owners0.91%
Ins Owner Change-37.36%
Market Cap11.32B
Analysts85
Price Target80.2 (16.54%)
Short Float %6.59%
Short Ratio2.86
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)34.69%
Min EPS beat(2)27.51%
Max EPS beat(2)41.87%
EPS beat(4)4
Avg EPS beat(4)81.27%
Min EPS beat(4)27.51%
Max EPS beat(4)224.17%
EPS beat(8)8
Avg EPS beat(8)125.99%
EPS beat(12)11
Avg EPS beat(12)96.33%
EPS beat(16)13
Avg EPS beat(16)58.61%
Revenue beat(2)2
Avg Revenue beat(2)1.06%
Min Revenue beat(2)1.02%
Max Revenue beat(2)1.09%
Revenue beat(4)4
Avg Revenue beat(4)2.46%
Min Revenue beat(4)1.02%
Max Revenue beat(4)5.75%
Revenue beat(8)7
Avg Revenue beat(8)1.84%
Revenue beat(12)8
Avg Revenue beat(12)0.41%
Revenue beat(16)12
Avg Revenue beat(16)0.72%
PT rev (1m)-0.02%
PT rev (3m)2.3%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)-13.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 109.24 | ||
| Fwd PE | 81.89 | ||
| P/S | 7.8 | ||
| P/FCF | 155.29 | ||
| P/OCF | 41.54 | ||
| P/B | 17.79 | ||
| P/tB | 18.48 | ||
| EV/EBITDA | 45.89 |
EPS(TTM)0.63
EY0.92%
EPS(NY)0.84
Fwd EY1.22%
FCF(TTM)0.44
FCFY0.64%
OCF(TTM)1.66
OCFY2.41%
SpS8.83
BVpS3.87
TBVpS3.72
PEG (NY)5.79
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 9% | ||
| ROCE | 5.57% | ||
| ROIC | 3.82% | ||
| ROICexc | 4.23% | ||
| ROICexgc | 4.27% | ||
| OM | 10.03% | ||
| PM (TTM) | 3.94% | ||
| GM | 29.77% | ||
| FCFM | 5.02% |
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-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 8.16 | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | 192.42% | ||
| Cap/Sales | 13.75% | ||
| Interest Coverage | 3.6 | ||
| Cash Conversion | 109.3% | ||
| Profit Quality | 127.36% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 3.83 |
F-Score7
WACC9.35%
ROIC/WACC0.41
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)36.96%
EPS 3YN/A
EPS 5Y-11.03%
EPS Q2Q%36.84%
EPS Next Y18.86%
EPS Next 2Y28.37%
EPS Next 3Y28.34%
EPS Next 5Y30.74%
Revenue 1Y (TTM)29.8%
Revenue growth 3Y37.03%
Revenue growth 5Y39.97%
Sales Q2Q%27.97%
Revenue Next Year26.21%
Revenue Next 2Y25.21%
Revenue Next 3Y23.89%
Revenue Next 5Y22.12%
EBIT growth 1Y53.82%
EBIT growth 3YN/A
EBIT growth 5Y32.56%
EBIT Next Year174.33%
EBIT Next 3Y64.53%
EBIT Next 5Y46.41%
FCF growth 1Y162.13%
FCF growth 3YN/A
FCF growth 5Y7.46%
OCF growth 1Y206.13%
OCF growth 3Y45.27%
OCF growth 5Y34.16%