Anheuser-Busch Inbev Sa (BUD) AI Stock Analysis

• Market Cap: $121.90B
• Dividend Yield: 1.72%
• Average Volume (3M): 2.48M
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.42
• Revenue Growth: -2.06%
• EPS Growth: 21.03%
• Country: US
• Employees: 144,000
• Sector: Consumer Defensive
• Sector Strength: 67
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.98
• Shares Outstanding: 1,797,199,800
• 10 Day Avg. Volume: 3,654,591
• 30 Day Avg. Volume: 2,480,831
• 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: 1.79
• Enterprise Value/Revenue: 3.73
• Enterprise Value/Gross Profit: 6.69
• Enterprise Value/Ebitda: 12.73
• 1Y Price Target: $78.83
• Price Target Upside: 28.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: $64.00 ▲(4.68% Upside)

Anheuser-Busch Inbev's overall stock score reflects its strong financial performance and positive earnings call, which highlight robust EBITDA growth and strategic investments. However, the technical analysis indicates bearish momentum, which is a concern. The valuation is fair, providing some support to the stock price. The primary strengths are its financial health and strategic initiatives, while the technical indicators point to potential short-term risks.

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 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 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 across its income statement, balance sheet, and cash flow metrics. The company has maintained steady revenue growth and improved profitability margins. Its 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. Overall, the financial statements reflect 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.

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: 61.14
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 61.14 is below the 20-day moving average (MA) of 64.20, below the 50-day MA of 67.46, and above the 200-day MA of 59.92, indicating a neutral trend. The MACD of -2.05 indicates Positive momentum. The RSI at 37.97 is Neutral, neither overbought nor oversold. The STOCH value of 70.88 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	76 Outperform	$2.26B	14.55	10.15%	3.60%	13.92%	32.69%
ABEV	73 Outperform	$35.67B	13.67	15.08%	2.05%	-0.79%	-10.83%
BUD	71 Outperform	$121.90B	17.05	8.97%	1.72%	-2.06%	21.03%
STZ	67 Neutral	$29.97B	49.10	-5.05%	2.38%	-0.47%	-117.62%
FMX	67 Neutral	$17.77B	31.61	6.88%	5.27%	-2.73%	-37.93%
TAP	67 Neutral	$10.60B	10.05	7.79%	3.52%	-5.48%	-6.99%
Sector *	63 Neutral	$21.01B	14.53	-7.26%	3.13%	3.36%	-7.91%