Anheuser-Busch InBev SA/NV Fundamental Analysis (NYSE: BUD)
Anheuser-Busch InBev SA/NV Fundamental Analysis (NYSE: BUD)
Anheuser-Busch InBev SA/NV (NYSE: BUD) shows moderate financial fundamentals with a PE ratio of 16.79, profit margin of 14.90%, and ROE of 10.31%. The company generates $62.3B in annual revenue with weak year-over-year growth of -0.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BUD's fundamental strength across five key dimensions:
Efficiency Score
WeakBUD struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBUD trades at attractive valuation levels.
Growth Score
ModerateBUD shows steady but slowing expansion.
Financial Health Score
ModerateBUD shows balanced financial health with some risks.
Profitability Score
WeakBUD struggles to sustain strong margins.
Key Financial Metrics
Is BUD Expensive or Cheap?
P/E Ratio
BUD trades at 16.79 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BUD's PEG of 0.40 indicates potential undervaluation.
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 3.69 times EBITDA. This is generally considered low.
How Well Does BUD Make Money?
Net Profit Margin
For every $100 in sales, Anheuser-Busch InBev SA/NV keeps $14.90 as profit after all expenses.
Operating Margin
Core operations generate 26.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.31 in profit for every $100 of shareholder equity.
ROA
Anheuser-Busch InBev SA/NV generates $4.27 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 $17.29B, reflecting robust business health.
Free Cash Flow
Anheuser-Busch InBev SA/NV generates strong free cash flow of $13.67B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.94 in free cash annually.
FCF Yield
BUD converts 8.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.67
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.77
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How BUD Stacks Against Its Sector Peers
| Metric | BUD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.79 | 20.62 | Better (Cheaper) |
| ROE | 10.31% | 702.00% | Weak |
| Net Margin | 14.90% | -2242.00% (disorted) | Strong |
| Debt/Equity | 0.77 | 0.79 | Neutral |
| Current Ratio | 0.66 | 2.31 | Weak Liquidity |
| ROA | 4.27% | 319.00% | Weak |
BUD outperforms its industry in 2 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
25.62%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
383.11%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
41.20%
Industry Style: Defensive, Dividend, Low Volatility
High Growth