BUD  Anheuser-Busch InBev

Exchange

NYSE

Sector

Consumer Non-Durables

Industry

Beverages (Production/Distribution)

Market Cap.

214.37B

Vuru Grade

63.18/100

Current Price

$110.86
-0.12 (-0.11%)

Growth Price

$91.49
Overvalued by 17.47%

Stability Price

$8.02
Overvalued by 92.76%

Company Metrics

  • P/E 156.8
  • P/S 4.71
  • P/B 3.01
  • EPS 0.71
  • Cash ROIC 9.95%
  • Cash Ratio 0.25
  • Dividend 3.41 / 3.05%
  • Avg. Vol. 1.57M
  • Shares 1.67B
  • Market Cap. 214.37B

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

Is Anheuser-Busch InBev SA (ADR) Trying to Snuff Out Craft Beer Competition?
Motley Fool - Oct 25, 2015
The beer battle for shelf space is under regulatory scrutiny as the Department of Justice reviews Anheuser-Busch InBev's distributor acquisitions over fears it may wield too much power. Even though Anheuser-Busch InBev (NYSE:BUD) sold almost half of ...
News Anheuser-Busch InBev SA ADRBUD
Wall Street Journal - Feb 11, 2011
News Anheuser-Busch InBev S.A. ADRBUD. Significant News Only. 03/20/17; WSJ Blogs. Will Beer Sales Get “Canna-balized?
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
The Coca-Cola Co. or Anheuser Busch Inbev SA (ADR): Better Dividend Investment?
Motley Fool - Apr 14, 2016
The world's biggest soft drink company, Coca-Cola (NYSE:KO), and the world's largest beer conglomerate, Anheuser-Busch InBev (NYSE:BUD) both benefit from immense brand power and scale. However, Coca-Cola is beginning to implement some ...
Anheuser-Busch InBev SA ADR
MarketWatch - Oct 2, 2009
Anheuser-Busch InBev S.A. ADR. NYSE: BUD. GO. Set Alerts · Find a Broker · Join TD Ameritrade · Market Index · Overview Profile News Charts Financials Historical Quotes Analyst Estimates Options SEC Filings Insiders.
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
Brazil Not Enough To Save Anheuser Busch, According To Investec Securities - Benzinga
Jon Najarian Sees Unusual Options Activity In Anheuser Busch
Benzinga - Mar 8, 2017
Jon Najarian spoke on CNBC's Fast Money Halftime Report about a bullish options activity in Anheuser Busch Inbev NV (ADR) (NYSE: BUD). He noticed that traders were buying the May 110 calls and the May 115 calls on Tuesday and he decided to make a ...
Stock Market Movers- Transocean LTD (NYSE:RIG), Anheuser Busch Inbev NV (ADR ... - Wall Street Times (press release)
Bank of America Downgrades Anheuser Busch Inbev SA (ADR) to Neutral with Price ... - Money Flow Index & Trends
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.
Feds give OK to InBev's $108 billion acquisition of SABMiller - MarketWatch
Stock Earnings Estimations under Radar: Anheuser Busch Inbev NV (ADR) (NYSE:BUD)
Post Registrar - Mar 2, 2017
Anheuser Busch Inbev NV (ADR) (NYSE:BUD) soared 0.44% or +0.48 points during previous trade after opening at the price of $109.71, a total of 2,410,800 shares exchanged hands compared with its average trading volume of 1.55M shares.
Anheuser Busch Inbev NV's Q4 Profit Badly Misses The Mark - StockNews.com (blog)
Why Anheuser Busch Inbev NV (ADR)(NYSE: BUD) stock could fall - FX Daily Report
Stocks to Watch Paramount Group Inc (NYSE:PGRE), Anheuser Busch Inbev NV (ADR ...
Daily News Journal - Mar 20, 2017
On Friday, Paramount Group Inc (NYSE:PGRE) stock opened its trade at $16.71 and after floating in a range of $16.55 to $16.78, settled at $16.66.
United States Lime & Minerals (USLM) Is At $78.00 Formed Wedge; Btg Pactual ... - Herald KS
Stock Price of Anheuser-Busch Inbev SA (BUD) Increases 3.85% - Highland Mirror
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.

$110.86 Current Price

$91.49 Growth Price (DCF)

Overvalued by 17.47%


Growth Rate Assumed by Market: 21.14%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$8.02 Stability Price (EPV)

Overvalued by 92.76%


Discount Rate: 15.0%

$87.09 Book Price

Overvalued by 21.44%


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 $9.95 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 9.11B 10.00B 10.00B 9.75B 9.37B
divided by
Invested Capital 87.36B 88.34B 106.08B 106.68B 99.20B
Cash ROIC 10.43% 11.33% 9.42% 9.14% 9.45%

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 $23.48 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 5.86B 9.43B 16.52B 11.30B 9.87B
divided by
Stockholders' Equity 37.49B 41.14B 50.37B 49.97B 42.14B
Return on Equity 15.62% 22.93% 32.80% 22.62% 23.42%

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
2006200720082009201020112012201320142015
Free Cash Flow 2.66B 3.78B 3.51B 7.41B 7.56B 9.11B 10.00B 10.00B 9.75B 9.37B

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
2006200720082009201020112012201320142015
Cash 1.12B 2.20B 3.21B 3.74B 5.15B 5.42B 13.88B 9.96B 8.66B 6.98B
Current Assets 6.28B 8.10B 11.36B 10.85B 12.60B 12.32B 20.63B 18.69B 18.54B 18.29B
Total Assets 34.61B 41.96B 113.16B 112.53B 114.34B 112.43B 122.62B 141.67B 142.55B 134.64B
Current Liabilities 7.75B 9.77B 24.42B 14.25B 15.72B 19.64B 20.41B 25.63B 27.21B 28.46B
Total Liabilities 17.28B 20.16B 90.72B 82.21B 79.08B 74.94B 81.48B 91.30B 92.58B 92.50B
Stockholder' Equity 16.17B 19.92B 22.44B 30.32B 35.26B 37.49B 41.14B 50.37B 49.97B 42.14B
Current Ratio 0.81 0.83 0.47 0.76 0.80 0.63 1.01 0.73 0.68 0.64
TL-to-TA 0.50 0.48 0.80 0.73 0.69 0.67 0.66 0.64 0.65 0.69

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
2006200720082009201020112012201320142015
Retained Earnings 4.83B 7.91B 6.48B 10.45B 13.66B 17.82B 21.68B 31.00B 35.17B 35.95B
Retained Earnings Growth - 63.77% -18.03% 61.18% 30.70% 30.49% 21.64% 43.03% 13.45% 2.20%

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.

$19.25 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 2.80B 4.46B 1.93B 4.61B 4.03B 5.86B 9.43B 16.52B 11.30B 9.87B
divided by
Revenue 17.55B 21.10B 23.51B 36.76B 36.30B 39.05B 39.76B 43.20B 47.06B 43.60B
Net Profit Margin 15.98% 21.12% 8.20% 12.55% 11.09% 15.00% 23.73% 38.24% 24.01% 22.63%

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.

$57.86 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
2006200720082009201020112012201320142015
Gross Profit 10.33B 12.42B 13.17B 19.56B 20.15B 22.41B 23.31B 25.60B 28.31B 26.47B
divided by
Revenue 17.55B 21.10B 23.51B 36.76B 36.30B 39.05B 39.76B 43.20B 47.06B 43.60B
Gross Margin 58.84% 58.86% 56.03% 53.21% 55.50% 57.40% 58.63% 59.27% 60.15% 60.70%

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.

54.38% 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
2006200720082009201020112012201320142015
Capital Expenditure 1.67B 2.17B 2.65B 1.71B 2.34B 3.38B 3.26B 3.87B 4.40B 4.75B
divided by
Net Income 2.80B 4.46B 1.93B 4.61B 4.03B 5.86B 9.43B 16.52B 11.30B 9.87B
Capital Expenditure Ratio 59.55% 48.59% 137.62% 37.13% 58.22% 57.66% 34.60% 23.42% 38.89% 48.13%

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
2006200720082009201020112012201320142015
Dividend Paid 813.61M 1.12B 2.92B 1.31B 1.92B 3.09B 3.63B 6.25B 7.40B 7.97B
divided by
Shares Outstanding 613.00M 613.00M 1.00B 1.59B 1.61B 1.61B 1.63B 1.65B 1.67B 1.67B
Dividend Paid Per Share 1.33 1.83 2.92 0.82 1.19 1.91 2.23 3.79 4.44 4.78
Price at Year End - - - 50.60 56.26 60.99 86.81 105.36 113.00 126.13
Dividend Yield - - - 1.63% 2.12% 3.14% 2.57% 3.60% 3.93% 3.79%

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
2006200720082009201020112012201320142015
Shares Outstanding 613.00M 613.00M 1.00B 1.59B 1.61B 1.61B 1.63B 1.65B 1.67B 1.67B
Stock Bought Back - - -38.70% -37.23% -1.12% -0.19% -0.86% -1.33% -0.90% -0.18%
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