Dutch Bros Inc.
Dutch Bros Inc. Fundamental Analysis
Dutch Bros Inc. (BROS) shows moderate financial fundamentals with a PE ratio of 74.81, profit margin of 4.87%, and ROE of 12.41%. The company generates $1.6B in annual revenue with strong year-over-year growth of 32.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BROS's fundamental strength across five key dimensions:
Efficiency Score
WeakBROS struggles to generate sufficient returns from assets.
Valuation Score
WeakBROS trades at a premium to fair value.
Growth Score
ExcellentBROS delivers strong and consistent growth momentum.
Financial Health Score
ModerateBROS shows balanced financial health with some risks.
Profitability Score
WeakBROS struggles to sustain strong margins.
Key Financial Metrics
Is BROS Expensive or Cheap?
P/E Ratio
BROS trades at 74.81 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BROS's PEG of 2.67 indicates potential overvaluation.
Price to Book
The market values Dutch Bros Inc. at 8.77 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 25.88 times EBITDA. This signals the market has high growth expectations.
How Well Does BROS Make Money?
Net Profit Margin
For every $100 in sales, Dutch Bros Inc. keeps $4.87 as profit after all expenses.
Operating Margin
Core operations generate 9.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.41 in profit for every $100 of shareholder equity.
ROA
Dutch Bros Inc. generates $2.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dutch Bros Inc. produces operating cash flow of $295.56M, showing steady but balanced cash generation.
Free Cash Flow
Dutch Bros Inc. produces free cash flow of $54.41M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.43 in free cash annually.
FCF Yield
BROS converts 0.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
74.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How BROS Stacks Against Its Sector Peers
| Metric | BROS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 74.81 | 24.85 | Worse (Expensive) |
| ROE | 12.41% | 1165.00% | Weak |
| Net Margin | 4.87% | 749.00% | Weak |
| Debt/Equity | 2.26 | 0.76 | Weak (High Leverage) |
| Current Ratio | 1.49 | 9.23 | Neutral |
| ROA | 2.65% | 1271.00% | Weak |
BROS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dutch Bros Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
119.91%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-49.17%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
77.84%
Industry Style: Cyclical, Growth, Discretionary
High Growth