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DUTCH BROS INC-CLASS A (BROS) Stock Fundamental Analysis

NYSE:BROS - New York Stock Exchange, Inc. - US26701L1008 - Common Stock - Currency: USD

59.96  +0.22 (+0.37%)

After market: 59.85 -0.11 (-0.18%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to BROS. BROS was compared to 136 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.


Dividend Valuation Growth Profitability Health

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3

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.
In the past 5 years BROS always reported a positive cash flow from operatings.
BROS Yearly Net Income VS EBIT VS OCF VS FCFBROS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 100M -100M 200M

1.2 Ratios

BROS has a Return On Assets of 1.41%. This is comparable to the rest of the industry: BROS outperforms 47.79% of its industry peers.
BROS has a better Return On Equity (6.56%) than 65.44% of its industry peers.
BROS's Return On Invested Capital of 3.70% is in line compared to the rest of the industry. BROS outperforms 42.65% of its industry peers.
Industry RankSector Rank
ROA 1.41%
ROE 6.56%
ROIC 3.7%
ROA(3y)0.37%
ROA(5y)-0.24%
ROE(3y)1.1%
ROE(5y)-2.02%
ROIC(3y)N/A
ROIC(5y)N/A
BROS Yearly ROA, ROE, ROICBROS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

1.3 Margins

BROS's Profit Margin of 2.75% is in line compared to the rest of the industry. BROS outperforms 52.21% of its industry peers.
In the last couple of years the Profit Margin of BROS has declined.
BROS has a Operating Margin (9.68%) which is in line with its industry peers.
In the last couple of years the Operating Margin of BROS has declined.
Looking at the Gross Margin, with a value of 29.52%, BROS is doing worse than 77.94% of the companies in the same industry.
BROS's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 9.68%
PM (TTM) 2.75%
GM 29.52%
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%
BROS Yearly Profit, Operating, Gross MarginsBROS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 20 -20 40

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6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BROS is destroying value.
Compared to 1 year ago, BROS has less shares outstanding
Compared to 5 years ago, BROS has less shares outstanding
Compared to 1 year ago, BROS has an improved debt to assets ratio.
BROS Yearly Shares OutstandingBROS Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 50M 100M 150M
BROS Yearly Total Debt VS Total AssetsBROS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.2 Solvency

An Altman-Z score of 3.73 indicates that BROS is not in any danger for bankruptcy at the moment.
BROS has a better Altman-Z score (3.73) than 86.03% of its industry peers.
BROS has a debt to FCF ratio of 25.09. This is a negative value and a sign of low solvency as BROS would need 25.09 years to pay back of all of its debts.
BROS has a Debt to FCF ratio (25.09) which is comparable to the rest of the industry.
BROS has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
BROS has a Debt to Equity ratio of 1.10. This is in the better half of the industry: BROS outperforms 62.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.1
Debt/FCF 25.09
Altman-Z 3.73
ROIC/WACC0.43
WACC8.62%
BROS Yearly LT Debt VS Equity VS FCFBROS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 200M 400M

2.3 Liquidity

A Current Ratio of 1.76 indicates that BROS should not have too much problems paying its short term obligations.
BROS's Current ratio of 1.76 is amongst the best of the industry. BROS outperforms 81.62% of its industry peers.
BROS has a Quick Ratio of 1.58. This is a normal value and indicates that BROS is financially healthy and should not expect problems in meeting its short term obligations.
BROS has a Quick ratio of 1.58. This is in the better half of the industry: BROS outperforms 78.68% of its industry peers.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.58
BROS Yearly Current Assets VS Current LiabilitesBROS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 100M 200M 300M

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9

3. Growth

3.1 Past

BROS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 64.52%, which is quite impressive.
The earnings per share for BROS have been decreasing by -11.03% on average. This is quite bad
BROS shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.63%.
BROS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.97% yearly.
EPS 1Y (TTM)64.52%
EPS 3YN/A
EPS 5Y-11.03%
EPS Q2Q%75%
Revenue 1Y (TTM)32.63%
Revenue growth 3Y37.03%
Revenue growth 5Y39.97%
Sales Q2Q%34.89%

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.
BROS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.70% yearly.
EPS Next Y20.78%
EPS Next 2Y29.4%
EPS Next 3Y29.07%
EPS Next 5Y27.28%
Revenue Next Year25.98%
Revenue Next 2Y24.75%
Revenue Next 3Y23.37%
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.
BROS Yearly Revenue VS EstimatesBROS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1B 2B 3B 4B
BROS Yearly EPS VS EstimatesBROS Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1 2 3

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1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 117.57, BROS can be considered very expensive at the moment.
62.50% of the companies in the same industry are cheaper than BROS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BROS to the average of the S&P500 Index (27.85), we can say BROS is valued expensively.
BROS is valuated quite expensively with a Price/Forward Earnings ratio of 97.34.
BROS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BROS is more expensive than 64.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BROS to the average of the S&P500 Index (20.77), we can say BROS is valued expensively.
Industry RankSector Rank
PE 117.57
Fwd PE 97.34
BROS Price Earnings VS Forward Price EarningsBROS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, BROS is valued a bit more expensive than 77.21% of the companies in the same industry.
66.91% of the companies in the same industry are cheaper than BROS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 395.13
EV/EBITDA 46.3
BROS Per share dataBROS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

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 29.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.66
PEG (5Y)N/A
EPS Next 2Y29.4%
EPS Next 3Y29.07%

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0

5. Dividend

5.1 Amount

BROS does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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DUTCH BROS INC-CLASS A

NYSE:BROS (5/1/2025, 8:47:54 PM)

After market: 59.85 -0.11 (-0.18%)

59.96

+0.22 (+0.37%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-12 2025-02-12/amc
Earnings (Next)05-07 2025-05-07/amc
Inst Owners85.36%
Inst Owner Change0.02%
Ins Owners0.94%
Ins Owner Change60.02%
Market Cap9.76B
Analysts87.62
Price Target79.13 (31.97%)
Short Float %5.01%
Short Ratio1.72
Dividend
Industry RankSector 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)127.85%
Min EPS beat(2)31.52%
Max EPS beat(2)224.17%
EPS beat(4)4
Avg EPS beat(4)182.16%
Min EPS beat(4)31.52%
Max EPS beat(4)427.41%
EPS beat(8)8
Avg EPS beat(8)141.46%
EPS beat(12)9
Avg EPS beat(12)52.58%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.86%
Min Revenue beat(2)1.98%
Max Revenue beat(2)5.75%
Revenue beat(4)4
Avg Revenue beat(4)3.4%
Min Revenue beat(4)0.46%
Max Revenue beat(4)5.75%
Revenue beat(8)5
Avg Revenue beat(8)0.22%
Revenue beat(12)8
Avg Revenue beat(12)0.48%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-8.34%
PT rev (3m)37.51%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)3.07%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)8.15%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)3.9%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)3.59%
Valuation
Industry RankSector Rank
PE 117.57
Fwd PE 97.34
P/S 7.62
P/FCF 395.13
P/OCF 39.59
P/B 18.16
P/tB 19.03
EV/EBITDA 46.3
EPS(TTM)0.51
EY0.85%
EPS(NY)0.62
Fwd EY1.03%
FCF(TTM)0.15
FCFY0.25%
OCF(TTM)1.51
OCFY2.53%
SpS7.87
BVpS3.3
TBVpS3.15
PEG (NY)5.66
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.41%
ROE 6.56%
ROCE 5.4%
ROIC 3.7%
ROICexc 4.24%
ROICexgc 4.29%
OM 9.68%
PM (TTM) 2.75%
GM 29.52%
FCFM 1.93%
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 Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 1.1
Debt/FCF 25.09
Debt/EBITDA 2.71
Cap/Depr 238.42%
Cap/Sales 17.31%
Interest Coverage 3.17
Cash Conversion 113.56%
Profit Quality 70.04%
Current Ratio 1.76
Quick Ratio 1.58
Altman-Z 3.73
F-Score7
WACC8.62%
ROIC/WACC0.43
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)64.52%
EPS 3YN/A
EPS 5Y-11.03%
EPS Q2Q%75%
EPS Next Y20.78%
EPS Next 2Y29.4%
EPS Next 3Y29.07%
EPS Next 5Y27.28%
Revenue 1Y (TTM)32.63%
Revenue growth 3Y37.03%
Revenue growth 5Y39.97%
Sales Q2Q%34.89%
Revenue Next Year25.98%
Revenue Next 2Y24.75%
Revenue Next 3Y23.37%
Revenue Next 5Y20.7%
EBIT growth 1Y153.7%
EBIT growth 3YN/A
EBIT growth 5Y32.56%
EBIT Next Year179.07%
EBIT Next 3Y65.02%
EBIT Next 5Y45.07%
FCF growth 1Y127.89%
FCF growth 3YN/A
FCF growth 5Y7.46%
OCF growth 1Y76.13%
OCF growth 3Y45.27%
OCF growth 5Y34.16%