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. While BROS seems to be doing ok healthwise, there are quite some concerns on its profitability. BROS is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
BROS had positive earnings in the past year.
BROS had a positive operating cash flow in the past year.
In multiple years BROS reported negative net income over the last 5 years.
BROS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BROS (1.57%) is comparable to the rest of the industry.
The Return On Equity of BROS (7.27%) is better than 65.41% of its industry peers.
BROS has a Return On Invested Capital of 3.42%. This is in the lower half of the industry: BROS underperforms 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
BROS's Profit Margin of 3.20% is in line compared to the rest of the industry. BROS outperforms 51.13% of its industry peers.
BROS's Profit Margin has declined in the last couple of years.
BROS has a Operating Margin of 9.41%. This is comparable to the rest of the industry: BROS outperforms 49.62% of its industry peers.
In the last couple of years the Operating Margin of BROS has declined.
BROS's Gross Margin of 29.34% is on the low side compared to the rest of the industry. BROS is outperformed by 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.
The number of shares outstanding for BROS has been reduced compared to 1 year ago.
BROS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BROS has been reduced compared to a year ago.
2.2 Solvency
BROS has an Altman-Z score of 3.82. This indicates that BROS is financially healthy and has little risk of bankruptcy at the moment.
BROS's Altman-Z score of 3.82 is amongst the best of the industry. BROS outperforms 83.46% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 20.80, BROS is in line with its industry, outperforming 45.11% of the companies in the same industry.
A Debt/Equity ratio of 1.06 is on the high side and indicates that BROS has dependencies on debt financing.
BROS's Debt to Equity ratio of 1.06 is fine compared to the rest of the industry. BROS outperforms 60.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 20.8 | ||
| Altman-Z | 3.82 |
ROIC/WACC0.39
WACC8.75%
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's Quick ratio of 1.75 is amongst the best of the industry. BROS outperforms 81.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.00% over the past year.
Measured over the past years, BROS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.03% on average per year.
BROS shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.42%.
BROS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.97% yearly.
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
The Earnings Per Share is expected to grow by 30.74% on average over the next years. This is a very strong growth
BROS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.18% yearly.
EPS Next Y20.56%
EPS Next 2Y29.19%
EPS Next 3Y28.87%
EPS Next 5Y30.74%
Revenue Next Year26.13%
Revenue Next 2Y25.15%
Revenue Next 3Y23.98%
Revenue Next 5Y22.18%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 123.82, which means the current valuation is very expensive for BROS.
Compared to the rest of the industry, the Price/Earnings ratio of BROS indicates a slightly more expensive valuation: BROS is more expensive than 61.65% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BROS to the average of the S&P500 Index (26.92), we can say BROS is valued expensively.
With a Price/Forward Earnings ratio of 81.46, 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 67.67% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, BROS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 123.82 | ||
| Fwd PE | 81.46 |
4.2 Price Multiples
77.44% of the companies in the same industry are cheaper than BROS, based on the Enterprise Value to EBITDA ratio.
62.41% of the companies in the same industry are cheaper than BROS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 353.14 | ||
| EV/EBITDA | 50.62 |
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 28.87% in the coming years.
PEG (NY)6.02
PEG (5Y)N/A
EPS Next 2Y29.19%
EPS Next 3Y28.87%
5. Dividend
5.1 Amount
BROS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
69.34
+1.88 (+2.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners78.56%
Inst Owner Change-2.56%
Ins Owners0.9%
Ins Owner Change60.34%
Market Cap11.41B
Analysts86.36
Price Target80.22 (15.69%)
Short Float %6.02%
Short Ratio2.36
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)2.32%
PT rev (3m)-7.07%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-11.32%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 123.82 | ||
| Fwd PE | 81.46 | ||
| P/S | 8.38 | ||
| P/FCF | 353.14 | ||
| P/OCF | 47.1 | ||
| P/B | 19.04 | ||
| P/tB | 19.84 | ||
| EV/EBITDA | 50.62 |
EPS(TTM)0.56
EY0.81%
EPS(NY)0.85
Fwd EY1.23%
FCF(TTM)0.2
FCFY0.28%
OCF(TTM)1.47
OCFY2.12%
SpS8.27
BVpS3.64
TBVpS3.5
PEG (NY)6.02
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 | 3.82 |
F-Score6
WACC8.75%
ROIC/WACC0.39
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 Y20.56%
EPS Next 2Y29.19%
EPS Next 3Y28.87%
EPS Next 5Y30.74%
Revenue 1Y (TTM)30.42%
Revenue growth 3Y37.03%
Revenue growth 5Y39.97%
Sales Q2Q%29.1%
Revenue Next Year26.13%
Revenue Next 2Y25.15%
Revenue Next 3Y23.98%
Revenue Next 5Y22.18%
EBIT growth 1Y65.07%
EBIT growth 3YN/A
EBIT growth 5Y32.56%
EBIT Next Year177.23%
EBIT Next 3Y63.77%
EBIT Next 5Y46.44%
FCF growth 1Y125.34%
FCF growth 3YN/A
FCF growth 5Y7.46%
OCF growth 1Y279.98%
OCF growth 3Y45.27%
OCF growth 5Y34.16%