Anheuser-Busch Inbev Sa (BUD) AI Stock Analysis

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Anheuser-Busch Inbev Sa

(NYSE:BUD)

74Outperform

Anheuser-Busch Inbev is well-positioned with strong financial performance, positive earnings sentiment, and robust technical indicators. However, high debt levels and overbought technical signals pose potential risks. The company's solid market position and strategic initiatives support a positive outlook.

Positive Factors

Dividend increase

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

Sales growth strategy

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 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.

Market performance

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. S&P 500 (SPY)

Market Cap

$129.71B

Dividend Yield0.99%

Average Volume (3M)2.66M

Price to Earnings (P/E)22.5

Beta (1Y)0.39

Revenue Growth0.64%

EPS Growth10.02%

CountryUS

Employees143,885

SectorConsumer Defensive

Sector Strength90

IndustryBeverages - Alcoholic

Share Statistics

EPS (TTM)2.94

Shares Outstanding1,797,199,700

10 Day Avg. Volume2,463,627

30 Day Avg. Volume2,659,104

Financial Highlights & Ratios

PEG Ratio2.25

Price to Book (P/B)N/A

Price to Sales (P/S)1.89

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$73.25

Price Target Upside12.67% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering6

Anheuser-Busch Inbev Sa Business Overview & Revenue Model

Company DescriptionAnheuser-Busch InBev SA (BUD) is a global leader in the brewing industry, headquartered in Leuven, Belgium. The company is known for its extensive portfolio of over 500 beer brands, including globally recognized names such as Budweiser, Corona, and Stella Artois. Operating in various sectors of the beverage industry, Anheuser-Busch InBev focuses on the production, distribution, and sale of alcoholic and non-alcoholic beverages. With operations spanning across the Americas, Europe, Asia, and Africa, the company leverages its vast distribution network to cater to diverse markets worldwide.

How the Company Makes MoneyAnheuser-Busch InBev makes money primarily through the production and sale of its wide array of beer brands. The company's revenue model is built on key streams including direct sales to retailers, distributors, and through licensed establishments like bars and restaurants. Additionally, the company engages in strategic partnerships and acquisitions to expand its market presence and product offerings. Anheuser-Busch InBev also invests in marketing and brand promotions to enhance brand visibility and drive sales. The company's earnings are influenced by factors such as global beer consumption trends, pricing strategies, and operational efficiencies gained through its global supply chain and production capabilities.

Anheuser-Busch Inbev Sa Financial Statement Overview

Summary

Anheuser-Busch Inbev exhibits strong financial health with consistent revenue growth, improved profitability margins, and robust cash flow generation. The balance sheet is well-structured, although high debt remains a consideration. Overall, the financial statements reflect 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.

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	7.80B
	EBITDA
20.36B	19.13B	19.05B	19.30B	16.93B
	Net Income Common Stockholders
5.86B	5.34B	5.97B	4.67B	148.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.39B	10.40B	10.00B	12.39B	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	9.18B
	Operating Cash Flow
15.05B	13.27B	13.30B	14.80B	14.04B
	Investing Cash Flow
-3.26B	-4.35B	-4.62B	-5.88B	-4.93B
	Financing Cash Flow
-9.85B	-8.60B	-10.62B	-11.60B	-8.76B

Anheuser-Busch Inbev Sa Technical Analysis

Technical Analysis Sentiment

Positive

Last Price65.01

Price Trends

50DMA

61.00

Positive

100DMA

55.61

Positive

200DMA

58.56

Positive

Market Momentum

MACD

1.48

Negative

RSI

60.07

Neutral

STOCH

73.50

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 65.01 is above the 20-day moving average (MA) of 62.99, above the 50-day MA of 61.00, and above the 200-day MA of 58.56, indicating a bullish trend. The MACD of 1.48 indicates Negative momentum. The RSI at 60.07 is Neutral, neither overbought nor oversold. The STOCH value of 73.50 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 (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABEV	83 Outperform	$39.02B	14.51	16.55%	5.05%	3.69%	-8.13%
CCU	79 Outperform	$2.81B	16.67	11.55%	1.65%	0.15%	35.56%
BUD	74 Outperform	$129.71B	22.52	7.31%	0.99%	0.64%	10.02%
FMX	74 Outperform	$21.93B	30.78	9.63%	2.00%	3.83%	-56.84%
TAP	68 Neutral	$11.51B	10.62	8.54%	3.15%	-0.64%	22.45%
STZ	65 Neutral	$33.55B	49.10	-0.98%	2.18%	2.47%	-105.09%
Sector *	64 Neutral	$9.18B	14.52	4.32%	185.59%	3.96%	5.53%

* Consumer Defensive Sector Average

Performance Comparison

BUD

Anheuser-Busch Inbev Sa

65.01

5.36

8.99%

CCU

Compania Cervecerias Unidas SA

15.38

3.14

25.65%

STZ

Constellation Brands

185.35

-71.09

-27.72%

FMX

Fomento Economico Mexicano

106.41

-7.63

-6.69%

TAP

Molson Coors

56.80

-4.80

-7.79%

ABEV

Ambev SA

2.47

0.25

11.26%

Anheuser-Busch Inbev Sa Earnings Call Summary

Earnings Call Date: Feb 26, 2025 | % Change Since: 18.70% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive sentiment overall with record revenues, significant digital growth, and strategic advancements in deleveraging and dividend increases. However, challenges in China and Argentina, along with expected Q1 2025 constraints, add some balance to the otherwise strong performance narrative.

Highlights

Record High U.S. Dollar Revenues

AB InBev delivered all-time high U.S. dollar revenues with growth in 75% of markets, driven by strategic investments and brand momentum.

BEES Marketplace Growth

BEES marketplace accelerated, delivering $2.5 billion in GMV, marking a 57% increase compared to the previous year.

EBITDA and Margin Expansion

EBITDA reached nearly $21 billion with margin expansion across all 5 operating regions, growing at the top end of the outlook for the year.

Deleveraging Milestone

Net debt-to-EBITDA ratio reached 2.89x, below 3x for the first time since 2015, increasing flexibility in capital allocation choices.

Dividend Increase

The Board proposed a full year dividend of EUR 1 per share, a 22% increase versus last year.

Strong Performance in Key Regions

Record high volumes and market share gains in Mexico, Colombia, and South Africa, with Europe showing mid-teens EBITDA increase.

Digital Transformation

BEES captured $49 billion in gross merchandising value, a 19% increase with 124 million orders transacted, and digital channel transactions rose from 50% to 75%.

Lowlights

Volume Decline in China and Argentina

Total volume performance was constrained by a soft consumer environment in China and Argentina, leading to a total volume decline of 1.4%.

Underperformance in China

AB InBev underperformed the industry in China due to a soft consumer environment and challenges in the on-premise channel.

Q1 2025 Challenges

Technical factors such as fewer selling days, Easter timing, and shipment phasing comparables in the U.S. and China expected to impact Q1.

Company Guidance

In the AB InBev Full Year 2024 Earnings Conference Call, the company reported substantial growth in various metrics, highlighting a record high in U.S. dollar revenues with growth in 75% of its markets. The BEES marketplace achieved a significant 57% increase in GMV, totaling $2.5 billion. EBITDA reached nearly $21 billion, with margin expansion across all five operating regions. The company's net debt-to-EBITDA ratio improved to 2.89x, marking progress in their deleveraging journey. Additionally, AB InBev announced a proposed full-year dividend increase of 22% to EUR 1 per share. Revenue for the year grew by 2.7%, driven by a 4.3% increase in revenue per hectoliter, although overall volume declined by 1.4% due to challenges in China and Argentina. Despite these challenges, the company gained or maintained market share in two-thirds of its markets. Looking ahead to 2025, AB InBev forecasts an EBITDA growth of 4% to 8% on an organic basis, with net CapEx expected to be between $3.5 billion and $4 billion.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.