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Anheuser-Busch Inbev Sa (BUD)
NYSE:BUD
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Anheuser-Busch Inbev Sa
(NYSE:BUD)
74Outperform
Positive Factors
Cash Returns
Anheuser-Busch InBev is seen as offering very attractive cash returns.
Profitability
At the profitability level, ABI will beat guidance of +4-8% organic EBITDA growth, given that the company delivered +7.8% in H1 and has a substantially easier base of comparison in H2.
Negative Factors
Earnings Per Share
EPS is broadly flat for FY24, but reduced by 4% in FY25 and 3% for FY26, reflecting a modest offset from slightly lower below the line financial charges.
Market Environment
Lowering our OSG for FY24 from +4.2% to +3.7%, primarily reflecting a tougher industry environment in the US.
Stock Recommendation
The stock has been removed from the Top Pick list.
Anheuser-Busch Inbev Sa (BUD) vs. S&P 500 (SPY)
Market Cap
$125.49B
Dividend Yield1.02%
Average Volume (3M)2.39M
Price to Earnings (P/E)21.7
Beta (1Y)0.56
Revenue Growth0.64%
EPS Growth10.02%
CountryUS
Employees155,000
SectorConsumer Defensive
Sector Strength65
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)2.94
Shares Outstanding1,797,198,500
10 Day Avg. Volume2,251,776
30 Day Avg. Volume2,389,350
Financial Highlights & Ratios
PEG Ratio2.17
Price to Book (P/B)N/A
Price to Sales (P/S)1.90
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$69.60Price Target Upside10.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Anheuser-Busch Inbev Sa Business Overview & Revenue Model
Company DescriptionFounded in 2008, Belgium-based Anheuser-Busch InBev SA/NV, commonly known as AB InBev, is America's leading brewing company, which is engaged in the production and distribution of alcoholic and non-alcoholic beverages worldwide. It has over 400 iconic beer brands, some of which include Budweiser, Corona, Stella Artois, Castle, Hoegaarden, Aguila, Antarctica, Bud Light, Cristal, Harbin, Modelo Especial, Quilmes, Sibirskaya Korona, and Skol among others.
How the Company Makes MoneyAnheuser-Busch InBev makes money primarily through the production and sale of its wide array of beer brands. The company's revenue model is built on key streams including direct sales to retailers, distributors, and through licensed establishments like bars and restaurants. Additionally, the company engages in strategic partnerships and acquisitions to expand its market presence and product offerings. Anheuser-Busch InBev also invests in marketing and brand promotions to enhance brand visibility and drive sales. The company's earnings are influenced by factors such as global beer consumption trends, pricing strategies, and operational efficiencies gained through its global supply chain and production capabilities.
Anheuser-Busch Inbev Sa Financial Statement Overview
Summary
Anheuser-Busch Inbev displays strong financial health, with consistent revenue growth and improved profitability margins. The balance sheet is well-structured with a manageable debt level, although the high debt remains a consideration. Cash flow generation is robust, supporting operational and investment needs, reflecting a stable and growing company with a solid foundation for future growth.Income Statement
Anheuser-Busch Inbev has demonstrated consistent revenue growth with a Revenue Growth Rate of 0.65% from 2023 to 2024. The Gross Profit Margin for 2024 was 55.27%, indicating strong cost control. Net Profit Margin improved to 9.80% in 2024, signifying enhanced profitability. EBIT and EBITDA Margins were also robust at 24.56% and 32.37% respectively, reflecting operational efficiency. However, the slower growth in total revenue compared to historical highs is a minor concern.82
Very Positive
Balance Sheet
The company maintains a stable Debt-to-Equity Ratio of 0.92, indicating a balanced approach to leveraging. The Return on Equity (ROE) is healthy at 7.48%, showcasing effective utilization of shareholder funds. The Equity Ratio stands at 37.86%, suggesting a solid equity base. Despite these strengths, the total debt level remains significant, posing a potential risk if not managed well.75
Positive
Cash Flow
Operating Cash Flow to Net Income Ratio is strong at 2.57, indicating efficient cash generation relative to net income. Free Cash Flow grew substantially by 29.73% from 2023 to 2024, which is a positive indicator for financial flexibility. The Free Cash Flow to Net Income Ratio was also favorable at 1.91, illustrating effective cash management. The consistency in generating free cash flow supports the company's ability to sustain operations and invest in growth.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 59.77B | 59.38B | 57.79B | 54.30B | 46.88B | Gross Profit |
| 33.02B | 31.98B | 31.48B | 31.21B | 27.25B | EBIT |
| 15.49B | 13.97B | 14.52B | 13.82B | 7.80B | EBITDA |
| 20.36B | 19.13B | 18.91B | 17.39B | 11.22B | Net Income Common Stockholders |
| 5.86B | 5.34B | 5.97B | 4.67B | 148.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 11.39B | 10.40B | 10.00B | 12.39B | 15.56B | Total Assets |
| 206.64B | 219.34B | 212.94B | 217.63B | 226.41B | Total Debt |
| 72.17B | 78.17B | 79.99B | 88.83B | 98.56B | Net Debt |
| 61.00B | 67.84B | 70.09B | 76.81B | 83.40B | Total Liabilities |
| 117.94B | 126.66B | 128.66B | 138.29B | 148.06B | Stockholders Equity |
| 78.24B | 81.85B | 73.40B | 68.67B | 68.02B |
| Cash Flow | Free Cash Flow | |||
| 11.19B | 8.63B | 8.14B | 9.16B | 9.18B | Operating Cash Flow |
| 15.05B | 13.27B | 13.30B | 14.80B | 14.04B | Investing Cash Flow |
| -3.26B | -4.35B | -4.62B | -5.88B | -4.93B | Financing Cash Flow |
| -9.85B | -8.60B | -10.62B | -11.60B | -8.76B |
Anheuser-Busch Inbev Sa Technical Analysis
Positive
62.78
Price Trends
54.28
Positive
54.39
Positive
58.25
Positive
Market Momentum
2.51
Positive
72.54
Negative
70.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BUD, the sentiment is Positive. The current price of 62.78 is above the 20-day moving average (MA) of 61.19, above the 50-day MA of 54.28, and above the 200-day MA of 58.25, indicating a bullish trend. The MACD of 2.51 indicates Positive momentum. The RSI at 72.54 is Negative, neither overbought nor oversold. The STOCH value of 70.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BUD.
Anheuser-Busch Inbev Sa Risk Analysis
Anheuser-Busch Inbev Sa disclosed 44 risk factors in its most recent earnings report. Anheuser-Busch Inbev Sa reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Anheuser-Busch Inbev Sa Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $47.74B | 44.58 | 4.99% | 1.73% | -1.73% | -57.46% | |
74 Outperform | $125.49B | 21.73 | 7.31% | 1.02% | 0.64% | 10.02% | |
74 Outperform | $11.95B | 11.02 | 8.54% | 3.03% | -0.64% | 22.45% | |
72 Outperform | $16.39B | 16.70 | 27.99% | 2.52% | -5.11% | 3.64% | |
62 Neutral | $20.53B | 13.72 | -10.76% | 7.35% | 1.61% | 5.95% | |
61 Neutral | $2.49B | 44.45 | 5.99% | ― | 0.21% | -20.69% | |
61 Neutral | $32.33B | 47.89 | 7.94% | 2.26% | 3.69% | -55.78% |
* Consumer Defensive Sector Average
Performance Comparison
BUD
Anheuser-Busch Inbev Sa
62.78
3.65
6.17%
SAM
Boston Beer
227.96
-82.17
-26.50%
STZ
Constellation Brands
177.42
-88.10
-33.18%
TAP
Molson Coors
58.89
-6.69
-10.20%
HEINY
Heineken
41.93
-4.27
-9.24%
BF.B
Brown-Forman B
34.65
-15.15
-30.42%
Anheuser-Busch Inbev Sa Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: 14.62% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment overall with record revenues, significant digital growth, and strategic advancements in deleveraging and dividend increases. However, challenges in China and Argentina, along with expected Q1 2025 constraints, add some balance to the otherwise strong performance narrative.Highlights
Record High U.S. Dollar Revenues
AB InBev delivered all-time high U.S. dollar revenues with growth in 75% of markets, driven by strategic investments and brand momentum.
BEES Marketplace Growth
BEES marketplace accelerated, delivering $2.5 billion in GMV, marking a 57% increase compared to the previous year.
EBITDA and Margin Expansion
EBITDA reached nearly $21 billion with margin expansion across all 5 operating regions, growing at the top end of the outlook for the year.
Deleveraging Milestone
Net debt-to-EBITDA ratio reached 2.89x, below 3x for the first time since 2015, increasing flexibility in capital allocation choices.
Dividend Increase
The Board proposed a full year dividend of EUR 1 per share, a 22% increase versus last year.
Strong Performance in Key Regions
Record high volumes and market share gains in Mexico, Colombia, and South Africa, with Europe showing mid-teens EBITDA increase.
Digital Transformation
BEES captured $49 billion in gross merchandising value, a 19% increase with 124 million orders transacted, and digital channel transactions rose from 50% to 75%.
Lowlights
Volume Decline in China and Argentina
Total volume performance was constrained by a soft consumer environment in China and Argentina, leading to a total volume decline of 1.4%.
Underperformance in China
AB InBev underperformed the industry in China due to a soft consumer environment and challenges in the on-premise channel.
Q1 2025 Challenges
Technical factors such as fewer selling days, Easter timing, and shipment phasing comparables in the U.S. and China expected to impact Q1.
Company Guidance
In the AB InBev Full Year 2024 Earnings Conference Call, the company reported substantial growth in various metrics, highlighting a record high in U.S. dollar revenues with growth in 75% of its markets. The BEES marketplace achieved a significant 57% increase in GMV, totaling $2.5 billion. EBITDA reached nearly $21 billion, with margin expansion across all five operating regions. The company's net debt-to-EBITDA ratio improved to 2.89x, marking progress in their deleveraging journey. Additionally, AB InBev announced a proposed full-year dividend increase of 22% to EUR 1 per share. Revenue for the year grew by 2.7%, driven by a 4.3% increase in revenue per hectoliter, although overall volume declined by 1.4% due to challenges in China and Argentina. Despite these challenges, the company gained or maintained market share in two-thirds of its markets. Looking ahead to 2025, AB InBev forecasts an EBITDA growth of 4% to 8% on an organic basis, with net CapEx expected to be between $3.5 billion and $4 billion.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.