Anheuser-Busch Inbev Sa (BUD) AI Stock Analysis

• Market Cap: $116.70B
• Dividend Yield: 1.78%
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.42
• Revenue Growth: -2.06%
• EPS Growth: 21.03%
• Country: US
• Employees: 144,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.98
• Shares Outstanding: 1,797,200,000
• 10 Day Avg. Volume: 2,400,939
• 30 Day Avg. Volume: 2,177,117
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 3.73
• Enterprise Value/Gross Profit: 6.69
• Enterprise Value/Ebitda: 12.73
• 1Y Price Target: $86.33
• Price Target Upside: 46.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: $70.00 ▲(18.44% Upside)

Anheuser-Busch Inbev's strong financial performance and positive earnings call are the most significant factors driving the score. While technical analysis shows mixed signals, the company's strategic focus on premium brands and digital platforms supports its growth outlook. Valuation metrics indicate a reasonably priced stock with moderate income potential.

Positive Factors

Strong Cash Flow Generation

Robust cash flow growth enhances financial flexibility, enabling investments in growth initiatives and debt reduction, supporting long-term stability.

Premium Brand Focus

Emphasizing premium brands can drive higher margins and customer loyalty, positioning the company well in competitive markets.

Digital Platform Expansion

Growth in digital platform revenue reflects successful adaptation to digital trends, offering new revenue streams and customer engagement opportunities.

Negative Factors

High Debt Levels

High debt can limit financial flexibility and increase risk, especially if economic conditions worsen, impacting long-term financial health.

Volume Decline in Key Markets

Declining volumes in major markets can hinder revenue growth and market share, challenging the company's ability to sustain its competitive position.

Challenges in China

Continued weakness in China poses a risk to growth, as it is a significant market with potential for high demand, impacting overall performance.

Anheuser-Busch Inbev Sa Business Overview & Revenue Model

Company Description

Anheuser-Busch InBev SA (BUD) is a global leader in the beverage and brewing industry, headquartered in Leuven, Belgium. The company operates in the alcoholic and non-alcoholic beverage sectors, producing a diverse range of products that include a wide variety of beer brands, soft drinks, and other beverages. Anheuser-Busch InBev's portfolio features well-known brands such as Budweiser, Stella Artois, Corona, and Michelob, among others. The company has a significant international presence, with operations in numerous countries worldwide, focusing on both mass-market and premium segments.

How the Company Makes Money

Anheuser-Busch InBev primarily generates revenue through the sale of alcoholic beverages, with beer being its main product category. The company's revenue model is based on the production, distribution, and sale of its extensive portfolio of beer brands, which cater to different consumer preferences across various markets. Key revenue streams include the sale of packaged beer (cans and bottles), draft beer served in bars and restaurants, and the licensing of its brands. Additionally, Anheuser-Busch InBev benefits from economies of scale in production and distribution, allowing it to optimize costs and enhance profitability. The company also engages in partnerships with distributors and retailers, ensuring broad market access and promotional opportunities for its products. Seasonal promotions, sponsorships of sporting events, and marketing campaigns further contribute to driving sales and brand loyalty, thereby enhancing overall earnings.

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. Robust cash flow generation supports operational and investment needs, reflecting a stable and growing company.

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	58.52B	59.77B	59.38B	57.79B	54.30B	46.88B
Gross Profit	32.59B	33.02B	31.98B	31.48B	31.21B	27.25B
EBITDA	17.14B	20.25B	18.97B	18.91B	17.39B	11.22B
Net Income	7.12B	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: Negative
• Last Price: 59.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BUD, the sentiment is Negative. The current price of 59.1 is below the 20-day moving average (MA) of 59.86, below the 50-day MA of 62.30, and below the 200-day MA of 60.43, indicating a bearish trend. The MACD of -1.07 indicates Negative momentum. The RSI at 42.50 is Neutral, neither overbought nor oversold. The STOCH value of 67.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BUD.

Anheuser-Busch Inbev Sa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCU	75 Outperform	2.21B	13.90	10.55%	3.82%	13.92%	32.69%
ABEV	75 Outperform	36.87B	13.85	15.95%	1.96%	-0.79%	-10.83%
BUD	75 Outperform	$116.70B	16.49	8.97%	1.78%	-2.06%	21.03%
FMX	72 Outperform	20.01B	35.59	8.99%	4.59%	-2.73%	-37.93%
TAP	66 Neutral	8.95B	8.88	7.72%	4.20%	-5.48%	-6.99%
STZ	60 Neutral	23.53B	-55.19	-6.09%	3.08%	-0.47%	-117.62%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%