Anheuser-Busch Inbev Sa (BUD) AI Stock Analysis

• Market Cap: $125.26B
• Dividend Yield: 1.83%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.26
• Revenue Growth: -2.06%
• EPS Growth: 21.03%
• Country: US
• Employees: 144,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.99
• Shares Outstanding: 1,797,200,200
• 10 Day Avg. Volume: 1,092,494
• 30 Day Avg. Volume: 1,658,724
• PEG Ratio: 1.68
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 1.68
• P/FCF Ratio: 8.96
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 3.43
• Enterprise Value/Gross Profit: 6.14
• Enterprise Value/Ebitda: 11.54
• 1Y Price Target: $71.67
• Price Target Upside: 15.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $68.00 ▲(9.61% Upside)

Anheuser-Busch Inbev's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The technical analysis suggests a neutral trend, and the valuation indicates the stock is fairly priced. Challenges in China and weather impacts are noted risks.

Positive Factors

Strategic Partnerships

The partnership with Netflix enhances AB InBev's brand visibility and engagement through co-marketing campaigns, potentially driving long-term growth and innovation.

Investment in Production

Investments in brewing facilities indicate a commitment to increasing production capacity, supporting long-term growth and market demand for premium brands like Michelob ULTRA.

Cash Flow Generation

Strong free cash flow growth enhances financial flexibility, allowing for strategic investments and debt reduction, supporting sustainable long-term operations.

Negative Factors

High Debt Levels

High debt levels can strain financial resources and limit strategic options, potentially impacting long-term financial stability if not managed effectively.

Volume Decline

Declining volumes in key markets like China and Brazil could signal challenges in maintaining market share, affecting long-term revenue growth and profitability.

Revenue Decline in China

Continued revenue decline in China due to industry weakness could hinder growth prospects in a significant market, impacting overall financial performance.

Anheuser-Busch Inbev Sa Business Overview & Revenue Model

Company Description

Anheuser-Busch InBev SA/NV engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks worldwide. It offers a portfolio of approximately 500 beer brands, which primarily include Budweiser, Corona, and Stella Artois; Beck's, Hoegaarden, Leffe, and Michelob Ultra; and Aguila, Antarctica, Bud Light, Brahma, Cass, Castle, Castle Lite, Cristal, Harbin, Jupiler, Modelo Especial, Quilmes, Victoria, Sedrin, and Skol brands. The company was founded in 1366 and is headquartered in Leuven, Belgium.

How the Company Makes Money

Anheuser-Busch InBev primarily generates revenue through the sale of beer and other alcoholic beverages. Its revenue model is based on selling both packaged and draught beer to wholesalers, retailers, and directly to consumers. Key revenue streams include sales from its extensive portfolio of brands, which cater to various consumer preferences and regional tastes. Additionally, the company benefits from economies of scale, allowing it to optimize production and distribution costs. Significant partnerships with distributors, retailers, and hospitality businesses enhance its market reach and contribute to earnings. Seasonal promotions and marketing campaigns also play a crucial role in driving sales, particularly during peak consumption periods. Furthermore, Anheuser-Busch InBev invests in innovation and product development, introducing new flavors and alternative beverages, which helps to capture a broader market audience and sustain revenue growth.

Anheuser-Busch Inbev Sa Financial Statement Overview

Summary

Anheuser-Busch Inbev exhibits strong financial health with consistent revenue growth and improved profitability margins. The balance sheet is well-structured with a manageable debt level, although high debt remains a consideration. Cash flow generation is robust, supporting operational and investment needs.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.90B	59.77B	59.38B	57.79B	54.30B	46.88B
Gross Profit	33.45B	33.02B	31.98B	31.48B	31.21B	27.25B
EBITDA	17.81B	20.30B	19.07B	18.98B	17.79B	11.56B
Net Income	6.64B	5.86B	5.34B	5.97B	4.67B	1.41B
Balance Sheet
Total Assets	211.11B	206.64B	219.34B	212.94B	217.63B	226.41B
Cash, Cash Equivalents and Short-Term Investments	7.27B	11.39B	10.40B	10.07B	12.47B	15.56B
Total Debt	75.58B	72.17B	78.17B	79.99B	88.83B	98.56B
Total Liabilities	119.69B	117.94B	126.66B	128.66B	138.29B	148.06B
Stockholders Equity	80.67B	78.24B	81.85B	73.40B	68.67B	68.02B
Cash Flow
Free Cash Flow	11.66B	11.19B	8.63B	8.14B	9.16B	7.11B
Operating Cash Flow	15.20B	15.05B	13.27B	13.30B	14.80B	10.89B
Investing Cash Flow	-3.18B	-3.26B	-4.35B	-4.62B	-5.88B	6.34B
Financing Cash Flow	-12.08B	-9.85B	-8.60B	-10.62B	-11.60B	-8.47B

Anheuser-Busch Inbev Sa Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 62.04 is below the 20-day moving average (MA) of 63.66, below the 50-day MA of 62.68, and below the 200-day MA of 63.70, indicating a bullish trend. The MACD of 0.41 indicates Positive momentum. The RSI at 52.91 is Neutral, neither overbought nor oversold. The STOCH value of 38.04 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABEV	80 Outperform	$40.20B	13.94	15.97%	8.22%	-0.68%	4.29%
BUD	75 Outperform	$125.26B	17.57	8.97%	1.83%	-2.06%	21.03%
CCU	70 Outperform	$2.46B	17.13	9.07%	2.53%	16.59%	1.72%
STZ	67 Neutral	$24.81B	20.80	15.91%	2.92%	-5.57%	119.49%
FMX	65 Neutral	$21.02B	45.73	5.48%	4.33%	1.44%	-38.87%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TAP	53 Neutral	$9.17B	-4.33	-17.66%	4.08%	-4.01%	-339.22%