DUTCH BROS INC-CLASS A (BROS)
US26701L1008 - Common Stock
Overall BROS gets a fundamental rating of 3 out of 10. We evaluated BROS against 135 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and financial health of BROS have multiple concerns. BROS shows excellent growth, but is valued quite expensive already.
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.
Each year in the past 5 years BROS had a positive operating cash flow.
1.2 Ratios
BROS has a Return On Assets of 0.10%. This is in the lower half of the industry: BROS underperforms 67.91% of its industry peers.
BROS has a Return On Equity of 0.49%. This is comparable to the rest of the industry: BROS outperforms 48.51% of its industry peers.
BROS's Return On Invested Capital of 1.77% is on the low side compared to the rest of the industry. BROS is outperformed by 70.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.1% | ||
| ROE | 0.49% | ||
| ROIC | 1.77% |
ROA(3y)-0.87%
ROA(5y)2.85%
ROE(3y)-5.56%
ROE(5y)3.94%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BROS has a worse Profit Margin (0.19%) than 67.91% of its industry peers.
BROS has a Operating Margin of 5.06%. This is in the lower half of the industry: BROS underperforms 61.94% of its industry peers.
In the last couple of years the Operating Margin of BROS has grown nicely.
Looking at the Gross Margin, with a value of 28.25%, BROS is doing worse than 80.60% of the companies in the same industry.
BROS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.06% | ||
| PM (TTM) | 0.19% | ||
| GM | 28.25% |
OM growth 3Y16.51%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.23%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BROS is destroying value.
BROS has more shares outstanding than it did 1 year 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 2.37. This is not the best score and indicates that BROS is in the grey zone with still only limited risk for bankruptcy at the moment.
BROS has a better Altman-Z score (2.37) than 71.64% of its industry peers.
BROS has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
BROS's Debt to Equity ratio of 1.27 is fine compared to the rest of the industry. BROS outperforms 61.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.37 |
ROIC/WACC0.2
WACC8.79%
2.3 Liquidity
A Current Ratio of 1.49 indicates that BROS should not have too much problems paying its short term obligations.
The Current ratio of BROS (1.49) is better than 70.15% of its industry peers.
BROS has a Quick Ratio of 1.15. 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 (1.15) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 106.67% over the past year.
Looking at the last year, BROS shows a very strong growth in Revenue. The Revenue has grown by 30.69%.
Measured over the past years, BROS shows a very strong growth in Revenue. The Revenue has been growing by 43.42% on average per year.
EPS 1Y (TTM)106.67%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q33.33%
Revenue 1Y (TTM)30.69%
Revenue growth 3Y43.42%
Revenue growth 5YN/A
Revenue growth Q2Q25.93%
3.2 Future
BROS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.66% yearly.
The Revenue is expected to grow by 18.64% on average over the next years. This is quite good.
EPS Next Y9.11%
EPS Next 2Y18.04%
EPS Next 3Y23.32%
EPS Next 5Y21.66%
Revenue Next Year24.85%
Revenue Next 2Y23.41%
Revenue Next 3Y21.77%
Revenue Next 5Y18.64%
3.3 Evolution
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 91.45, which means the current valuation is very expensive for BROS.
66.42% of the companies in the same industry are cheaper than BROS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.84, BROS is valued quite expensively.
The Price/Forward Earnings ratio is 83.82, which means the current valuation is very expensive for BROS.
Based on the Price/Forward Earnings ratio, BROS is valued a bit more expensive than 61.94% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BROS to the average of the S&P500 Index (21.35), we can say BROS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 91.45 | ||
| Fwd PE | 83.82 |
4.2 Price Multiples
79.10% of the companies in the same industry are cheaper than BROS, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 36.48 |
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 23.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)10.04
PEG (5Y)N/A
EPS Next 2Y18.04%
EPS Next 3Y23.32%
5. Dividend
5.1 Amount
BROS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DUTCH BROS INC-CLASS A
NYSE:BROS (4/29/2024, 4:05:01 PM)
After market: 28.69 +0.34 (+1.2%)28.35
-0.24 (-0.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 91.45 | ||
| Fwd PE | 83.82 | ||
| 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)10.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.1% | ||
| ROE | 0.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.06% | ||
| PM (TTM) | 0.19% | ||
| GM | 28.25% | ||
| 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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.15 | ||
| 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)
Growth
EPS 1Y (TTM)106.67%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y9.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)30.69%
Revenue growth 3Y43.42%
Revenue growth 5Y
Revenue growth 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