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Anheuser-Busch InBev (BUD) Stock Analysis

Here is a fundamental analysis of Anheuser-Busch InBev (BUD), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

BUD
GSPC
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Anheuser-Busch InBev (BUD) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Anheuser-Busch InBev (BUD) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Anheuser-Busch InBev (BUD) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: BUDIndustry group median
1-Year Return17.35%-0.69%

Risk

Drawdown

BUD
GSPC
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Anheuser-Busch InBev (BUD) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Anheuser-Busch InBev (BUD) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: BUDIndustry group median
1-Year Volatility26.43%31.22%
Beta0.590.45

Company Profile

Anheuser-Busch InBev (BUD) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile fields for Anheuser-Busch InBev (BUD)
Profile ItemBUD
NameAnheuser-Busch InBev S.A. ADR
Country/RegionBelgium
GICS SectorConsumer Staples
GICS Industry GroupFood, Beverage & Tobacco
GICS IndustryBeverages
GICS Sub-IndustryBrewers
Market Capitalization160.41 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJuly 1, 2009
Security TypeADR

Valuation

Price-to-Earnings Ratio (TTM)

Anheuser-Busch InBev (BUD) trades at P/E ratio of 22.97, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

BUD

Food, Beverage & Tobacco industry group

22.97

Group distribution
Max
45.22
Q3
29.15
BUD
22.97
Median
18.76
Q1
11.63
Min
5.43
Largest peers
MNST
44.85
KO
25.98
PM
25.96
BUD
22.97
PEP
22.61
MO
15.02
BTI
13.37
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Where Anheuser-Busch InBev (BUD) stands on P/E ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Anheuser-Busch InBev (BUD) trades at 2.63 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

BUD

Food, Beverage & Tobacco industry group

2.63

Group distribution
Max
3.97
BUD
2.63
Q3
2.30
Median
1.00
Q1
0.57
Min
0.00
Largest peers
MNST
10.32
KO
7.21
PM
6.92
MO
5.90
BTI
5.26
BUD
2.63
PEP
2.07
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Where Anheuser-Busch InBev (BUD) stands on P/S ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Anheuser-Busch InBev (BUD) trades at 11.10 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

BUD

Food, Beverage & Tobacco industry group

11.10

Group distribution
BUD
11.10
Max
5.99
Q3
3.21
Median
1.70
Q1
0.96
Min
0.00
Largest peers
BUD
11.10
BTI
11.01
KO
10.57
MNST
10.40
PEP
9.23
PM
-30.95
MO
-37.43
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Where Anheuser-Busch InBev (BUD) stands on P/B ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Anheuser-Busch InBev (BUD) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: BUDIndustry group median
Price-to-Earnings Ratio (TTM)22.9718.76
Price-to-Sales Ratio (TTM)2.631.00
Price-to-Book Ratio (MRQ)11.101.70
Free Cash Flow Yield--4.46%

Profitability

Return on Equity (TTM)

No usable ROE is available for Anheuser-Busch InBev (BUD) this period, so the shareholder-equity return read is skipped.

BUD

Food, Beverage & Tobacco industry group

--

Group distribution
Max
37.95%
Q3
18.99%
Median
14.93%
Q1
3.88%
Min
-18.08%
BUD
--
Largest peers
PEP
43.88%
KO
43.37%
MNST
26.65%
BTI
15.82%
BUD
--
PM
--
MO
--
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Anheuser-Busch InBev (BUD) doesn’t report ROE this period; the box shows the Food, Beverage & Tobacco group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Anheuser-Busch InBev (BUD) keeps 11.90% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

BUD

Food, Beverage & Tobacco industry group

11.90%

Group distribution
Max
27.80%
Q3
12.29%
BUD
11.90%
Median
6.11%
Q1
1.28%
Min
-7.46%
Largest peers
MO
39.52%
BTI
30.32%
KO
27.80%
PM
26.74%
MNST
23.11%
BUD
11.90%
PEP
9.15%
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Where Anheuser-Busch InBev (BUD) stands on net margin within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Anheuser-Busch InBev (BUD) turns 26.69% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

BUD

Food, Beverage & Tobacco industry group

26.69%

Group distribution
Max
36.04%
BUD
26.69%
Q3
17.34%
Median
10.44%
Q1
3.65%
Min
-7.33%
Largest peers
MO
62.30%
PM
36.04%
KO
35.06%
BTI
34.58%
MNST
31.02%
BUD
26.69%
PEP
16.96%
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Where Anheuser-Busch InBev (BUD) stands on operating margin within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Anheuser-Busch InBev (BUD) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: BUDIndustry group median
Return on Equity (TTM)--14.93%
Return on Assets (TTM)--5.50%
Net Profit Margin (TTM)11.90%6.11%
Operating Profit Margin (TTM)26.69%10.44%
Gross Profit Margin (TTM)56.17%34.44%

Financial Strength

Current Ratio (MRQ)

No usable current ratio is available for Anheuser-Busch InBev (BUD) this period, so the short-term liquidity read is skipped.

BUD

Food, Beverage & Tobacco industry group

--

Group distribution
Max
5.06
Q3
2.66
Median
1.60
Q1
1.05
Min
0.54
BUD
--
Largest peers
MNST
3.26
KO
1.36
PM
0.98
PEP
0.90
BTI
0.87
MO
0.62
BUD
--
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Anheuser-Busch InBev (BUD) doesn’t report current ratio this period; the box shows the Food, Beverage & Tobacco group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

Anheuser-Busch InBev (BUD) has debt-to-equity ratio of 0.75, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

BUD

Food, Beverage & Tobacco industry group

0.75

Group distribution
Max
2.20
Q3
1.12
BUD
0.75
Median
0.70
Q1
0.35
Min
0.00
Largest peers
PEP
2.45
KO
1.25
BUD
0.75
BTI
0.73
MNST
0.01
PM
--
MO
--
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Where Anheuser-Busch InBev (BUD) stands on debt-to-equity ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Anheuser-Busch InBev (BUD) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: BUDIndustry group median
Current Ratio (MRQ)--1.60
Debt-to-Equity Ratio (MRQ)0.750.70
Net Debt / EBITDA3.112.24

Dividends

Dividend Yield (TTM)

Anheuser-Busch InBev (BUD) has dividend yield of 1.62%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

BUD

Food, Beverage & Tobacco industry group

1.62%

Group distribution
Max
10.71%
Q3
4.63%
Median
3.19%
BUD
1.62%
Q1
0.00%
Min
0.00%
Largest peers
MO
5.89%
BTI
5.36%
PEP
4.10%
PM
3.19%
KO
2.57%
BUD
1.62%
MNST
0.00%
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Where Anheuser-Busch InBev (BUD) stands on dividend yield within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Anheuser-Busch InBev (BUD) has payout ratio of 36.02%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

BUD

Food, Beverage & Tobacco industry group

36.02%

Group distribution
Max
159.06%
Q3
86.47%
Median
45.18%
BUD
36.02%
Q1
0.00%
Min
0.00%
Largest peers
PEP
89.32%
MO
87.68%
PM
81.09%
BTI
68.73%
KO
64.78%
BUD
36.02%
MNST
0.00%
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Where Anheuser-Busch InBev (BUD) stands on payout ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Anheuser-Busch InBev (BUD) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: BUDIndustry group median
Dividend Yield (TTM)1.62%3.19%
Dividend Payout Ratio (TTM)36.02%45.18%