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Anheuser-Busch Inbev Sa (BUD)
NYSE:BUD
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Anheuser-Busch Inbev Sa
(NYSE:BUD)
74Outperform
Positive Factors
Dividend Increase
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 Pressure
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 Outlook
Growth and share price performance is likely to be H2 weighted, with better near-term opportunities elsewhere in Beverages.
Market Environment
Lowering our OSG for FY24 from +4.2% to +3.7%, primarily reflecting a tougher industry environment in the US.
Anheuser-Busch Inbev Sa (BUD) vs. S&P 500 (SPY)
Market Cap
$124.80B
Dividend Yield1.03%
Average Volume (3M)2.52M
Price to Earnings (P/E)21.5
Beta (1Y)0.43
Revenue Growth0.64%
EPS Growth10.02%
CountryUS
Employees143,885
SectorConsumer Defensive
Sector Strength93
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)2.94
Shares Outstanding1,797,198,600
10 Day Avg. Volume2,378,106
30 Day Avg. Volume2,522,689
Financial Highlights & Ratios
PEG Ratio2.15
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
$69.67Price Target Upside14.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
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 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
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 | 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
Neutral
60.92
Price Trends
57.17
Positive
54.51
Positive
58.27
Positive
Market Momentum
1.36
Positive
59.84
Neutral
21.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BUD, the sentiment is Neutral. The current price of 60.92 is below the 20-day moving average (MA) of 62.27, above the 50-day MA of 57.17, and above the 200-day MA of 58.27, indicating a neutral trend. The MACD of 1.36 indicates Positive momentum. The RSI at 59.84 is Neutral, neither overbought nor oversold. The STOCH value of 21.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $37.34B | 14.22 | 16.55% | 5.14% | 3.69% | -8.13% | |
75 Outperform | $2.79B | 16.91 | 11.55% | 1.63% | 0.15% | 35.56% | |
74 Outperform | $124.80B | 21.52 | 7.31% | 1.03% | 0.64% | 10.02% | |
74 Outperform | $20.42B | 13.59 | 9.61% | 1.55% | 3.83% | -49.90% | |
74 Outperform | $12.39B | 11.44 | 8.54% | 2.93% | -0.64% | 22.45% | |
68 Neutral | $32.80B | 48.59 | 7.94% | 2.23% | 3.69% | -55.78% | |
62 Neutral | $20.22B | 14.00 | -15.99% | 3.22% | 1.17% | 3.32% |
* Consumer Defensive Sector Average
Performance Comparison
BUD
Anheuser-Busch Inbev Sa
60.92
1.37
2.30%
CCU
Compania Cervecerias Unidas SA
14.68
2.70
22.54%
STZ
Constellation Brands
173.86
-87.30
-33.43%
FMX
Fomento Economico Mexicano
96.81
-27.43
-22.08%
TAP
Molson Coors
61.15
-3.42
-5.30%
ABEV
Ambev SA
2.31
0.04
1.76%
Anheuser-Busch Inbev Sa Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: 11.23% | 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.