Anheuser-Busch InBev SA/NV
Anheuser-Busch InBev SA/NV Fundamental Analysis
Anheuser-Busch InBev SA/NV (ABI.BR) shows weak financial fundamentals with a PE ratio of 21.27, profit margin of 11.53%, and ROE of 8.17%. The company generates $58.2B in annual revenue with weak year-over-year growth of 0.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ABI.BR's fundamental strength across five key dimensions:
Efficiency Score
WeakABI.BR struggles to generate sufficient returns from assets.
Valuation Score
ModerateABI.BR shows balanced valuation metrics.
Growth Score
ModerateABI.BR shows steady but slowing expansion.
Financial Health Score
ModerateABI.BR shows balanced financial health with some risks.
Profitability Score
WeakABI.BR struggles to sustain strong margins.
Key Financial Metrics
Is ABI.BR Expensive or Cheap?
P/E Ratio
ABI.BR trades at 21.27 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ABI.BR's PEG of 2.04 indicates potential overvaluation.
Price to Book
The market values Anheuser-Busch InBev SA/NV at 1.67 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.08 times EBITDA. This is generally considered low.
How Well Does ABI.BR Make Money?
Net Profit Margin
For every $100 in sales, Anheuser-Busch InBev SA/NV keeps $11.53 as profit after all expenses.
Operating Margin
Core operations generate 26.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.17 in profit for every $100 of shareholder equity.
ROA
Anheuser-Busch InBev SA/NV generates $3.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Anheuser-Busch InBev SA/NV generates strong operating cash flow of $15.20B, reflecting robust business health.
Free Cash Flow
Anheuser-Busch InBev SA/NV generates strong free cash flow of $11.46B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.91 in free cash annually.
FCF Yield
ABI.BR converts 8.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.67
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.84
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How ABI.BR Stacks Against Its Sector Peers
| Metric | ABI.BR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.27 | 22.84 | Neutral |
| ROE | 8.17% | 1207.00% | Weak |
| Net Margin | 11.53% | -5556.00% (disorted) | Strong |
| Debt/Equity | 0.84 | 0.80 | Neutral |
| Current Ratio | 0.72 | 2.50 | Weak Liquidity |
| ROA | 3.12% | -193136.00% (disorted) | Weak |
ABI.BR outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Anheuser-Busch InBev SA/NV's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.13%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-36.76%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
6.24%
Industry Style: Defensive, Dividend, Low Volatility
Growing