BUD  Anheuser-Busch InBev

Exchange

NYSE

Sector

Consumer Non-Durables

Industry

Beverages (Production/Distribution)

Market Cap.

219.71B

Vuru Grade

48.53/100

Current Price

$113.62
-0.30 (-0.26%)

Growth Price

$71.12
Overvalued by 37.41%

Company Metrics

  • P/E 82.99
  • P/S 4.49
  • P/B 3.09
  • EPS 1.37
  • Cash ROIC 8.37%
  • Cash Ratio 0.35
  • Dividend 3.90 / 3.44 %
  • Avg. Vol. 1.51M
  • Shares 1.76B
  • Market Cap. 219.71B

Company Description

Anheuser-Busch InBev (AB InBev), together with its subsidiaries, engages in brewing and selling beer in North America, Latin America, Europe, and the Asia Pacific. It manages a portfolio of approximately 200 brands that primarily includes Budweiser, Stella Artois, Beck's, Leffe, Hoegaarden, Bud Light, Skol, Brahma, Quilmes, Michelob, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske, and ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Anheuser Busch Inbev NV (ADR)(BUD) Buys Wicked Weed Brewing
Investorplace.com - May 4, 2017
The brand will be part of Anheuser Busch's The High End, which includes brands such as Stella Artois and Shock Top, craft partners Goose Island, Blue Point, 10 Barrel, Elysian, Golden Road, Virtue Cider, Four Peaks, Breckenridge Brewery, Devils ...
Friday's Vital Data: Bank of America Corp (BAC), Anheuser Busch Inbev NV (ADR ...
Investorplace.com - May 5, 2017
U.S. stock futures are mixed this morning, as Wall Street watches oil prices plunge and waits on key April jobs data. In overnight trading, crude futures plunge nearly 5% to tag a nearly five-month low on global oversupply concerns.
Anheuser Busch Inbev Shares Rise As Q1 Revenues Beat Expectations - StockNews.com (blog)
Najarian Brothers See Unusually Activity In Anheuser Busch And Snap - Benzinga
Anheuser Busch Inbev SA NV (ADR): BUD Selling Off Brands for $7.8B
Investorplace.com - Dec 13, 2016
Anheuser Busch Inbev SA NV (ADR) Japanese company Asahi Group is acquiring a slate of brews that belong to the company for 7.3 billion euros, amounting to about $7.8 billion.
Is Anheuser Busch Inbev SA NV (ADR) (BUD) A Good Stock To Buy? - Insider Monkey (blog)
AB InBev (BUD) to Sell SABMiller's Eastern Europe Assets - Nasdaq
Anheuser Busch Inbev SA NV (ADR) (BUD) Is the King of Sin Stocks
Investorplace.com - Nov 16, 2016
When buying a stock to fund your retirement, the single biggest factor is longevity. Ask yourself if that stock has proven the test of time, and how likely is it that the stock will still be around in another 20 to 30 years.
Down 20% In One Month, Is Anheuser-Busch InBev A Buy? - Seeking Alpha
AB InBev Wins US Antitrust Approval for SABMiller Deal
Bloomberg - Jul 20, 2016
Anheuser-Busch InBev NV won U.S. antitrust approval for its takeover of SABMiller Plc, after the maker of Budweiser agreed to give up ownership of the Miller brand and open the door to greater competition from craft beers.
Anheuser-Busch InBev Makes Yet Another Craft Beer Acquisition
Motley Fool - May 20, 2017
Maybe the Justice Department does need to rein in Anheuser-Busch InBev (NYSE:BUD) and its voracious appetite for craft breweries.
Were Analysts Bullish Anheuser Busch Inbev NV (ADR) (NYSE:BUD) This Week?
Weekly Register - Jun 13, 2017
Investors sentiment decreased to 1 in Q4 2016. Its down 0.02, from 1.02 in 2016Q3. It turned negative, as 66 investors sold Anheuser Busch Inbev NV (ADR) shares while 144 reduced holdings. 61 funds opened positions while 150 raised stakes. 78.58 ...
Boston Advisors Has Trimmed Its Anheuser Busch Inbev Sa/Nv Spo (BUD) Stake ... - Wolcott Daily
As Anheuser Busch Inbev Sa/Nv (BUD) Share Price Rose, Shareholder Emerging ...
BZ Weekly - 21 hours ago
As Anheuser Busch Inbev Sa/Nv (BUD) Share Price Rose, Shareholder Emerging Sovereign Group Upped Position; Delta Air Lines Del (DAL) Stock Price Declined While Psagot Investment House LTD Has Cut Stake by $735,000 .... More interesting news about ...
Anheuser Busch Inbev (BUD) Share Value Rose While First Manhattan Company ... - Weekly Register
Howe & Rusling Has Trimmed By $1.23 Million Its Anheuser Busch Inbev Sa/N (BUD ... - HuronReport
Does Anheuser Busch Inbev SA/NV (NYSE:BUD) Have Gas After Even Less Sellers ...
Weekly Register - Jun 19, 2017
Investors sentiment decreased to 1 in 2016 Q4. Its down 0.02, from 1.02 in 2016Q3. It dropped, as 66 investors sold Anheuser Busch Inbev NV (ADR) shares while 144 reduced holdings. 61 funds opened positions while 150 raised stakes. 78.58 million shares ...
Anheuser Busch Inbev NV (ADR) (BUD) Reaches $114.85 After 9.00% Up Move ... - UtahHerald.com
Anheuser Busch Inbev (BUD) Share Price Rose While First Manhattan Company ... - WeeklyHub
A Reversal for Anheuser Busch Inbev SA/NV (NYSE:BUD) Is Near. The Stock Has ...
WeeklyHub - Jun 15, 2017
Investors sentiment decreased to 1 in 2016 Q4. Its down 0.02, from 1.02 in 2016Q3. It turned negative, as 66 investors sold Anheuser Busch Inbev NV (ADR) shares while 144 reduced holdings. 61 funds opened positions while 150 raised stakes. 78.58 ...
Anheuser Busch Inbev Sa/Nv (BUD) Shareholder Jgp Global Gestao De Recursos ... - Weekly Register
Cim Increased Holding in Novo (NVO) by $1.22 Million; Anheuser Busch Inbev Sa ... - BZ Weekly
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for BUD to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate BUD's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$113.62 Current Price

$71.12 Growth Price (DCF)

Overvalued by 37.41%


Growth Rate Assumed by Market: 33.04%


Future Free Cash Flow Growth Rate: 12.2%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$137.99 Book Price

Undervalued by 21.45%


Poor Cash Return on Invested Capital over the past 5 years

BUD has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

BUD has only created $8.37 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 10.00B 10.00B 9.75B 9.37B 5.13B
divided by
Invested Capital 88.34B 106.08B 106.68B 99.20B 204.03B
Cash ROIC 11.33% 9.42% 9.14% 9.45% 2.51%

Excellent Return on Equity over the past 5 years

Over the past 5 years, BUD has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

BUD has generated $21.11 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 9.43B 16.52B 11.30B 9.87B 2.72B
divided by
Stockholders' Equity 41.14B 50.37B 49.97B 42.14B 71.34B
Return on Equity 22.93% 32.80% 22.62% 23.42% 3.81%

Excellent Business Performance over the past 10 years

BUD has been able to maintain profitability in good times and bad. This could mean BUD has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

BUD has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 3.78B 3.51B 7.41B 7.56B 9.11B 10.00B 10.00B 9.75B 9.37B 5.13B

Weak Balance Sheet

BUD's financial position is not ideal. The key is to check whether BUD is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 2.20B 3.21B 3.74B 5.15B 5.42B 13.88B 9.96B 8.66B 6.98B 14.24B
Current Assets 8.10B 11.36B 10.85B 12.60B 12.32B 20.63B 18.69B 18.54B 18.29B 43.06B
Total Assets 41.96B 113.16B 112.53B 114.34B 112.43B 122.62B 141.67B 142.55B 134.64B 258.38B
Current Liabilities 9.77B 24.42B 14.25B 15.72B 19.64B 20.41B 25.63B 27.21B 28.46B 40.12B
Total Liabilities 20.16B 90.72B 82.21B 79.08B 74.94B 81.48B 91.30B 92.58B 92.50B 187.04B
Stockholder' Equity 19.92B 22.44B 30.32B 35.26B 37.49B 41.14B 50.37B 49.97B 42.14B 71.34B
Current Ratio 0.83 0.47 0.76 0.80 0.63 1.01 0.73 0.68 0.64 1.07
TL-to-TA 0.48 0.80 0.73 0.69 0.67 0.66 0.64 0.65 0.69 0.72

Consistent Reinvestment of Profits over the past 10 years

BUD has consistently retained profits. This may put BUD in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, BUD can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 7.91B 6.48B 10.45B 13.66B 17.82B 21.68B 31.00B 35.17B 35.95B 28.21B
Retained Earnings Growth - -18.03% 61.18% 30.70% 30.49% 21.64% 43.03% 13.45% 2.20% -21.52%

Inconsistent Net Profit Margins over the past 10 years

BUD potentially has a competitive advantage, however inconsistent profit margins are a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$18.25 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 4.46B 1.93B 4.61B 4.03B 5.86B 9.43B 16.52B 11.30B 9.87B 2.72B
divided by
Revenue 21.10B 23.51B 36.76B 36.30B 39.05B 39.76B 43.20B 47.06B 43.60B 45.52B
Net Profit Margin 21.12% 8.20% 12.55% 11.09% 15.00% 23.73% 38.24% 24.01% 22.63% 5.98%

Strong Pricing Power over the past 10 years

BUD has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$58.06 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 12.42B 13.17B 19.56B 20.15B 22.41B 23.31B 25.60B 28.31B 26.47B 27.71B
divided by
Revenue 21.10B 23.51B 36.76B 36.30B 39.05B 39.76B 43.20B 47.06B 43.60B 45.52B
Gross Margin 58.86% 56.03% 53.21% 55.50% 57.40% 58.63% 59.27% 60.15% 60.70% 60.89%

High Capital Intensity over the past 10 years

BUD spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

66.73% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 2.17B 2.65B 1.71B 2.34B 3.38B 3.26B 3.87B 4.40B 4.75B 4.98B
divided by
Net Income 4.46B 1.93B 4.61B 4.03B 5.86B 9.43B 16.52B 11.30B 9.87B 2.72B
Capital Expenditure Ratio 48.59% 137.62% 37.13% 58.22% 57.66% 34.60% 23.42% 38.89% 48.13% 182.98%

Very Strong Dividend History over the past 10 years

BUD has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests BUD is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 1.12B 2.92B 1.31B 1.92B 3.09B 3.63B 6.25B 7.40B 7.97B 8.45B
divided by
Shares Outstanding 613.00M 1.00B 1.59B 1.61B 1.61B 1.63B 1.65B 1.67B 1.67B 1.76B
Dividend Paid Per Share 1.83 2.92 0.82 1.19 1.91 2.23 3.79 4.44 4.78 4.81
Price at Year End - - 50.60 56.26 60.99 86.81 105.36 113.00 126.13 105.44
Dividend Yield - - 1.63% 2.12% 3.14% 2.57% 3.60% 3.93% 3.79% 4.57%

No History of Stock Buybacks over the past 10 years

We're neutral on this. It's not necessarily good or bad that BUD hasn't initiated a stock buyback.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 613.00M 1.00B 1.59B 1.61B 1.61B 1.63B 1.65B 1.67B 1.67B 1.76B
Stock Bought Back - -38.70% -37.23% -1.12% -0.19% -0.86% -1.33% -0.90% -0.18% -4.96%
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