Anheuser-Busch Inbev Sa (BUD) AI Stock Analysis

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Anheuser-Busch Inbev Sa

(NYSE:BUD)

Rating:75Outperform

Price Target:

$70.00

▲(14.06% 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

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

$123.20B

Dividend Yield1.71%

Average Volume (3M)2.56M

Price to Earnings (P/E)17.0

Beta (1Y)0.42

Revenue Growth-2.06%

EPS Growth21.03%

CountryUS

Employees144,000

SectorConsumer Defensive

Sector Strength50

IndustryBeverages - Alcoholic

Share Statistics

EPS (TTM)0.98

Shares Outstanding1,797,199,800

10 Day Avg. Volume1,833,930

30 Day Avg. Volume2,561,492

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.77

Enterprise Value/Revenue3.73

Enterprise Value/Gross Profit6.69

Enterprise Value/Ebitda12.73

Forecast

1Y Price Target

$86.33

Price Target Upside40.67% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

Anheuser-Busch Inbev Sa Business Overview & Revenue Model

Company DescriptionAnheuser-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 MoneyAnheuser-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 Key Performance Indicators (KPIs)

Any

Beer Volume by Geography

Beer Volume by Geography
Shows the distribution of beer sales volume in various regions, highlighting market penetration and potential growth areas based on consumer demand and regional preferences.

Chart InsightsAnheuser-Busch InBev's beer volumes in North America have been declining, with a notable drop in late 2023. However, the earnings call highlighted gains in U.S. market share, driven by Michelob ULTRA and Busch Light. Middle Americas and EMEA show resilience, maintaining stable volumes. South America and APAC face challenges, with APAC seeing significant fluctuations. Despite a 1.9% overall volume decline, strategic investments in premium brands and digital marketplace expansion are bolstering revenue growth, indicating a strategic pivot towards value over volume.

Data provided by:

Main Street Data

Anheuser-Busch Inbev Sa Earnings Call Summary

Earnings Call Date:Jul 31, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 30, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial metrics and growth in key markets like the U.S. and Europe, while also addressing challenges in China and Brazil. The consistent execution of strategic priorities, particularly in premium brands and digital platforms, contributed to positive results. Despite some volume declines, the overall business demonstrated resilience and growth potential.

Q2-2025 Updates

Positive Updates

EBITDA and Margin Expansion

EBITDA increased by 6.5% with continued margin expansion, marking solid financial performance.

U.S. Market Momentum

The U.S. portfolio continued to build momentum, gaining share with a focus on premium brands like Michelob ULTRA and Busch Light.

Non-Alcohol Beer Growth

The non-alcohol beer portfolio outperformed globally with revenues increasing by 33%, led by Corona Cero.

BEES Marketplace Growth

The growth of the BEES marketplace accelerated, with GMV increasing by 63% to reach $785 million.

Strong EPS and Free Cash Flow

Underlying U.S. dollar EPS increased by 8.7%, with a $0.5 billion increase in free cash flow.

European Market Resilience

Improved industry conditions, continued premiumization, and margin recovery led to top- and bottom-line growth in Europe.

Leadership in Beer Brands

AB InBev owns 8 of the top 10 most valuable beer brands globally, with Michelob Ultra and Stella Artois moving up in rankings.

Digital Platform Revenue Growth

Digital platforms generated $134 million in revenue, marking a 6% increase.

Negative Updates

Volume Decline

Overall volumes declined by 1.9%, impacted by soft industry performance in China and Brazil.

Challenges in China

Revenue in China declined by 6.2% with volumes underperforming the industry amid continued weakness.

Brazil Revenue Decline

In Brazil, revenue declined by 1.9% due to volume performance and adverse weather conditions.

Mixed Performance in Mexico

While volumes grew by low single digits, growth was negatively impacted by adverse weather in June.

Company Guidance

During AB InBev's Second Quarter 2025 Earnings Conference Call, the company reported a robust performance despite challenges in certain markets. Key metrics highlighted include a 6.5% increase in EBITDA, a 4.9% growth in revenue per hectoliter, and a 63% increase in GMV for the BEES marketplace, reaching $785 million. Although overall volumes declined by 1.9% due to soft industries in China and Brazil, North America and Europe showed resilience, with top and bottom-line growth. Notably, the non-alcohol beer portfolio saw a 33% revenue increase, highlighting its global outperformance. While the company achieved an 8.7% increase in underlying U.S. dollar EPS and a $0.5 billion rise in free cash flow, its debt-to-EBITDA ratio improved to 3.27x. AB InBev reaffirmed its 2025 outlook of 4% to 8% EBITDA growth, leveraging its diversified geographic footprint and strategic focus on premium brands and innovation.

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

Very Positive

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

Positive

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

Positive

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 Price61.37

Price Trends

50DMA

64.97

Negative

100DMA

66.27

Negative

200DMA

60.11

Negative

Market Momentum

MACD

-0.82

Negative

RSI

33.18

Neutral

STOCH

17.43

Positive

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 61.37 is below the 20-day moving average (MA) of 61.91, below the 50-day MA of 64.97, and above the 200-day MA of 60.11, indicating a bearish trend. The MACD of -0.82 indicates Negative momentum. The RSI at 33.18 is Neutral, neither overbought nor oversold. The STOCH value of 17.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCU	75 Outperform	$2.27B	14.46	10.15%	3.70%	13.92%	32.69%
BUD	75 Outperform	$123.20B	17.04	8.97%	1.71%	-2.06%	21.03%
ABEV	74 Outperform	$35.77B	13.67	15.08%	2.07%	-0.79%	-10.83%
TAP	68 Neutral	$10.02B	9.94	7.79%	3.62%	-5.48%	-6.99%
FMX	67 Neutral	$17.98B	31.89	6.88%	5.19%	-2.73%	-37.93%
Sector *	63 Neutral	$20.41B	14.67	-2.93%	3.10%	2.04%	-6.12%
STZ	60 Neutral	$28.55B	49.10	-5.05%	2.68%	-0.47%	-117.62%

* Consumer Defensive Sector Average

Performance Comparison

BUD

Anheuser-Busch Inbev Sa

61.37

-0.48

-0.78%

CCU

Compania Cervecerias Unidas SA

12.27

1.68

15.86%

STZ

Constellation Brands

151.26

-90.11

-37.33%

FMX

Fomento Economico Mexicano

83.67

-13.99

-14.33%

TAP

Molson Coors

49.81

-4.62

-8.49%

ABEV

Ambev SA

2.19

0.05

2.34%

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.Date of analysis: Aug 30, 2025