Anheuser-Busch Inbev Sa (BUD) AI Stock Analysis

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Anheuser-Busch Inbev Sa

(NYSE:BUD)

Rating:79Outperform

Price Target:

$77.00

▲(8.21%Upside)

Anheuser-Busch Inbev exhibits a robust financial foundation with strong earnings growth and market expansion, particularly in the no-alcohol segment and digital platforms. While technical indicators are favorable, the high P/E ratio suggests caution regarding valuation. Earnings call insights reinforce a positive outlook despite minor challenges.

Positive Factors

Cash Returns

Anheuser-Busch InBev is seen as offering very attractive cash returns.

Dividend Increase

Management has signaled confidence with a 22% dividend increase, which currently yields 1.7%.

Sales Growth

Sales growth is being driven by higher and more targeted pricing, expansion into new product categories, and the company's 'premiumization' strategy.

Negative Factors

Earnings Growth

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 Opportunities

Growth and share price performance is likely to be H2 weighted, with better near-term opportunities elsewhere in Beverages.

Stock Recommendation

The stock has been removed from the Top Pick list.

Anheuser-Busch Inbev Sa (BUD) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$141.35B

Dividend Yield1.49%

Average Volume (3M)1.87M

Price to Earnings (P/E)24.1

Beta (1Y)0.37

Revenue Growth0.64%

EPS Growth10.02%

CountryUS

Employees144,000

SectorConsumer Defensive

Sector Strength63

IndustryBeverages - Alcoholic

Share Statistics

EPS (TTM)0.81

Shares Outstanding1,797,199,700

10 Day Avg. Volume1,852,031

30 Day Avg. Volume1,868,024

Financial Highlights & Ratios

PEG Ratio0.74

Price to Book (P/B)1.65

Price to Sales (P/S)0.00

P/FCF Ratio14.85

Enterprise Value/Market Cap1.35

Enterprise Value/Revenue0.80

Enterprise Value/Gross Profit5.78

Enterprise Value/Ebitda2.91

Forecast

1Y Price Target

$78.17

Price Target Upside9.85% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering6

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: 8.64%|

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

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
15.49B	13.97B	14.52B	13.82B	9.62B
	EBITDA
20.25B	18.97B	18.91B	17.39B	11.22B
	Net Income Common Stockholders
5.86B	5.34B	5.97B	4.67B	1.41B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.39B	10.40B	10.07B	12.47B	15.56B
	Total Assets
206.64B	219.34B	212.94B	217.63B	226.41B
	Total Debt
72.17B	78.17B	79.99B	88.83B	98.56B
	Net Debt
61.00B	67.84B	70.09B	76.81B	83.40B
	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

Technical Analysis Sentiment

Positive

Last Price71.16

Price Trends

50DMA

66.04

Positive

100DMA

60.72

Positive

200DMA

59.17

Positive

Market Momentum

MACD

1.48

Positive

RSI

65.83

Neutral

STOCH

45.96

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 71.16 is above the 20-day moving average (MA) of 69.69, above the 50-day MA of 66.04, and above the 200-day MA of 59.17, indicating a bullish trend. The MACD of 1.48 indicates Positive momentum. The RSI at 65.83 is Neutral, neither overbought nor oversold. The STOCH value of 45.96 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
BUD	79 Outperform	$141.35B	24.06	7.31%	1.49%	0.64%	10.02%
ABEV	78 Outperform	$39.28B	15.09	15.09%	3.58%	1.25%	-13.02%
FMX	73 Outperform	$21.88B	21.93	9.84%	1.73%	-0.37%	44.52%
CCU	72 Outperform	$2.45B	13.98	11.33%	3.28%	6.18%	61.39%
TAP	68 Neutral	$10.58B	10.50	7.90%	3.60%	-5.17%	-0.74%
Sector *	65 Neutral	$8.92B	15.03	4.68%	6.11%	3.59%	-2.49%
STZ	61 Neutral	$30.35B	49.10	-0.98%	2.38%	2.47%	-105.09%

* Consumer Defensive Sector Average

Performance Comparison

BUD

Anheuser-Busch Inbev Sa

71.16

11.42

19.12%

CCU

Compania Cervecerias Unidas SA

13.31

1.61

13.76%

STZ

Constellation Brands

169.04

-80.57

-32.28%

FMX

Fomento Economico Mexicano

106.31

3.48

3.38%

TAP

Molson Coors

51.76

3.05

6.26%

ABEV

Ambev SA

2.48

0.55

28.50%

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.