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Anheuser-Busch Inbev Sa (BUD)
NYSE:BUD
Top Page
Anheuser-Busch Inbev Sa
(NYSE:BUD)
Rating:79Outperform
Price Target:
$77.00
â–²(11.05%Upside)
Positive Factors
Dividend Policy
Management has signaled confidence with a 22% dividend increase, which currently yields 1.7%.
Financial Performance
The company recently reported 4Q24 results that beat consensus expectations.
Stock Performance
BUD shares have outperformed over the past quarter, rising 23% compared to gains of 9% for the MSCI EAFE index and 6% for the industry ETF IYK.
Negative Factors
Earnings Outlook
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.
Growth Expectations
Growth and share price performance is likely to be H2 weighted, with better near-term opportunities elsewhere in Beverages.
Stock Listing
The stock has been removed from the Top Pick list.
Anheuser-Busch Inbev Sa (BUD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$138.55B
Dividend Yield1.51%
Average Volume (3M)2.22M
Price to Earnings (P/E)23.7
Beta (1Y)0.31
Revenue Growth0.64%
EPS Growth10.02%
CountryUS
Employees144,000
SectorConsumer Defensive
Sector Strength56
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)0.81
Shares Outstanding1,797,199,800
10 Day Avg. Volume2,757,496
30 Day Avg. Volume2,215,705
Financial Highlights & Ratios
PEG Ratio1.28
Price to Book (P/B)1.81
Price to Sales (P/S)0.00
P/FCF Ratio13.31
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue0.83
Enterprise Value/Gross Profit6.02
Enterprise Value/Ebitda3.03
Forecast
1Y Price Target
$79.80Price Target Upside15.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Anheuser-Busch Inbev Sa Business Overview & Revenue Model
Company DescriptionAnheuser-Busch InBev SA, commonly known as AB InBev, is a multinational beverage and brewing company headquartered in Leuven, Belgium. As one of the world's largest beer producers, AB InBev operates in various sectors, including beer, soft drinks, and other beverages. The company's extensive portfolio features globally recognized beer brands such as Budweiser, Stella Artois, and Corona, alongside regional and local brands catering to diverse consumer preferences.
How the Company Makes MoneyAB InBev generates revenue primarily through the production, distribution, and sale of alcoholic and non-alcoholic beverages. The company's revenue model is driven by its vast portfolio of beer brands, which are marketed across different price segments, from premium to value offerings. AB InBev also benefits from strategic partnerships and acquisitions, enabling it to expand its market reach and leverage economies of scale. Additional revenue streams include licensing and distribution agreements, particularly in regions where the company collaborates with local breweries and distributors to enhance its global footprint. The company's earnings are further supported by its focus on innovation, marketing strategies, and cost management to optimize profitability.
Anheuser-Busch Inbev Sa Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 5.86%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant growth in EBITDA, the no-alcohol beer segment, and digital platforms. While there were challenges such as volume decline due to calendar factors and underperformance in China, the positive aspects, including market share gains in the U.S. and digital growth, outweighed the negatives.Q1-2025 Updates
Positive Updates
Strong EBITDA Growth
EBITDA grew by 7.9% at the top end of the outlook range with continued margin expansion.
No-Alcohol Beer Portfolio Outperformance
The no-alcohol beer portfolio increased revenues by 34% globally, demonstrating a strong market performance.
Marketplace GMV Increase
The beers marketplace GMV increased by 53% versus last year to reach $645 million.
U.S. Market Share Gains
The U.S. portfolio gained volume market share in both the beer industry and spirits-based ready-to-drink category.
Record High Volumes in South America
Brazil delivered record high volumes for both beer and non-beer, with a total volume increase of 1.4%.
Corona's Global Growth
Corona grew revenue by 11.2% outside of Mexico and was named the most valuable beer brand in the world in 2025.
Strong Digital Platform Performance
BEES captured $11.6 billion in GMV, a 10% increase versus last year, with 32 million orders transacted through the platform.
Optimized Business Operations
EBITDA margins improved by 218 basis points, with expansion in four of five operating regions.
Negative Updates
Volume Decline
Overall volume performance was impacted by calendar-related factors, resulting in a decline of 2.2%.
Adverse Weather Impact in the U.S.
Adverse weather and the later timing of Easter negatively impacted the overall industry performance in the first quarter.
Underperformance in China
AB InBev underperformed in China, primarily driven by softness in key regions and the on-trade channel.
Company Guidance
During the AB InBev First Quarter 2025 Earnings Call, the company provided guidance focusing on reliable growth and strategic priorities. AB InBev reported a 7.9% increase in EBITDA, reaching the top end of their outlook range, alongside a 7% rise in underlying U.S. dollar EPS and 20% growth in constant currency terms. Revenue increased by 1.5%, driven by a 3.7% rise in revenue per hectoliter, despite a 2.2% decline in volume due to calendar-related factors. The no-alcohol beer portfolio saw a 34% revenue increase, and Beer’s marketplace GMV grew by 53% to $645 million. The diversified geographic footprint supported consistent results, with approximately 50% of markets experiencing revenue growth and double-digit bottom-line growth in regions like Middle Americas, South America, Africa, and Europe. The company maintained its 2025 outlook of 4% to 8% EBITDA growth and emphasized ongoing optimization efforts, contributing to a 218 basis point improvement in EBITDA margins.Anheuser-Busch Inbev Sa Financial Statement Overview
Summary
Anheuser-Busch Inbev demonstrates strong financial health with consistent revenue growth, robust profitability margins, and effective cash flow generation. Balanced debt levels, despite being significant, are well-managed.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 |
| EBITDA | 20.25B | 18.97B | 18.91B | 17.39B | 11.22B |
| Net Income | 5.86B | 5.34B | 5.97B | 4.67B | 1.41B |
Balance Sheet | |||||
| Total Assets | 206.64B | 219.34B | 212.94B | 217.63B | 226.41B |
| Cash, Cash Equivalents and Short-Term Investments | 11.39B | 10.40B | 10.07B | 12.47B | 15.56B |
| Total Debt | 72.17B | 78.17B | 79.99B | 88.83B | 98.56B |
| 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 | 7.11B |
| Operating Cash Flow | 15.05B | 13.27B | 13.30B | 14.80B | 10.89B |
| Investing Cash Flow | -3.26B | -4.35B | -4.62B | -5.88B | 6.34B |
| Financing Cash Flow | -9.85B | -8.60B | -10.62B | -11.60B | -8.47B |
Anheuser-Busch Inbev Sa Technical Analysis
Positive
69.34
Price Trends
68.44
Positive
63.77
Positive
59.75
Positive
Market Momentum
0.11
Positive
48.88
Neutral
29.82
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 69.34 is below the 20-day moving average (MA) of 70.40, above the 50-day MA of 68.44, and above the 200-day MA of 59.75, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 48.88 is Neutral, neither overbought nor oversold. The STOCH value of 29.82 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $138.55B | 23.69 | 7.31% | 1.51% | 0.64% | 10.02% | |
78 Outperform | $38.62B | 14.90 | 15.09% | 3.62% | 1.25% | -13.02% | |
73 Outperform | $21.27B | 21.51 | 9.84% | 1.77% | -0.37% | 44.52% | |
71 Outperform | $2.40B | 13.69 | 11.33% | 3.35% | 6.18% | 61.39% | |
65 Neutral | $9.96B | 9.87 | 7.90% | 3.83% | -5.17% | -0.74% | |
65 Neutral | $27.28B | 15.30 | -4.01% | 3.16% | 1.00% | 1.98% | |
61 Neutral | $29.44B | 49.10 | -5.05% | 2.45% | -0.47% | -117.62% |
* Consumer Defensive Sector Average
Performance Comparison
BUD
Anheuser-Busch Inbev Sa
69.34
9.99
16.83%
CCU
Compania Cervecerias Unidas SA
13.20
2.19
19.89%
STZ
Constellation Brands
173.87
-71.57
-29.16%
FMX
Fomento Economico Mexicano
106.19
5.02
4.96%
TAP
Molson Coors
49.54
0.51
1.04%
ABEV
Ambev SA
2.49
0.55
28.35%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.