ENXTBR:ABI

Stock Analysis Report

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Market Cap

€105.7b

Last Updated

2021/08/01 17:49 UTC

Data Sources

Company Financials +

Executive Summary

Anheuser-Busch InBev SA/NV engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks worldwide. More Details


Snowflake Analysis

Good value with questionable track record.


Similar Companies

Share Price & News

How has Anheuser-Busch InBev's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ABI is not significantly more volatile than the rest of Belgian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ABI's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-8.1%

ABI

-1.9%

BE Beverage

-2.3%

BE Market


1 Year Return

15.8%

ABI

23.8%

BE Beverage

23.9%

BE Market

Return vs Industry: ABI underperformed the Belgian Beverage industry which returned 23.8% over the past year.

Return vs Market: ABI underperformed the Belgian Market which returned 23.9% over the past year.


Shareholder returns

ABIIndustryMarket
7 Day-8.1%-1.9%-2.3%
30 Day-11.5%-2.7%-1.9%
90 Day-9.7%2.1%0.9%
1 Year16.5%15.8%25.7%23.8%25.6%23.9%
3 Year-36.1%-38.5%4.1%-1.0%-2.9%-7.5%
5 Year-47.7%-52.3%10.1%0.2%-3.1%-12.1%

Long-Term Price Volatility Vs. Market

How volatile is Anheuser-Busch InBev's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Anheuser-Busch InBev undervalued compared to its fair value and its price relative to the market?

47.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABI (€53.4) is trading below our estimate of fair value (€101.54)

Significantly Below Fair Value: ABI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ABI is good value based on its PE Ratio (22x) compared to the European Beverage industry average (28x).

PE vs Market: ABI is poor value based on its PE Ratio (22x) compared to the Belgian market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: ABI is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: ABI is good value based on its PB Ratio (1.8x) compared to the XE Beverage industry average (2.4x).


Future Growth

How is Anheuser-Busch InBev forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABI's forecast earnings growth (13% per year) is above the savings rate (1.2%).

Earnings vs Market: ABI's earnings (13% per year) are forecast to grow slower than the Belgian market (14.3% per year).

High Growth Earnings: ABI's earnings are forecast to grow, but not significantly.

Revenue vs Market: ABI's revenue (4.3% per year) is forecast to grow slower than the Belgian market (4.4% per year).

High Growth Revenue: ABI's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABI's Return on Equity is forecast to be low in 3 years time (9.7%).


Past Performance

How has Anheuser-Busch InBev performed over the past 5 years?

-8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABI has high quality earnings.

Growing Profit Margin: ABI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ABI's earnings have declined by 8.1% per year over the past 5 years.

Accelerating Growth: ABI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ABI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Beverage industry (-8.7%).


Return on Equity

High ROE: ABI's Return on Equity (8.8%) is considered low.


Financial Health

How is Anheuser-Busch InBev's financial position?


Financial Position Analysis

Short Term Liabilities: ABI's short term assets ($19.5B) do not cover its short term liabilities ($30.1B).

Long Term Liabilities: ABI's short term assets ($19.5B) do not cover its long term liabilities ($107.8B).


Debt to Equity History and Analysis

Debt Level: ABI's debt to equity ratio (110.9%) is considered high.

Reducing Debt: ABI's debt to equity ratio has reduced from 287.7% to 110.9% over the past 5 years.

Debt Coverage: ABI's debt is not well covered by operating cash flow (15.5%).

Interest Coverage: ABI's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Dividend

What is Anheuser-Busch InBev current dividend yield, its reliability and sustainability?

0.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABI's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the Belgian market (1.44%).

High Dividend: ABI's dividend (0.93%) is low compared to the top 25% of dividend payers in the Belgian market (4.44%).


Stability and Growth of Payments

Stable Dividend: ABI's dividend payments have been volatile in the past 10 years.

Growing Dividend: ABI's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.3%), ABI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABI's dividends in 3 years are forecast to be well covered by earnings (37.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Michel Doukeris (48 yo)

no data

Tenure

Mr. Michel Dimitrios Doukeris serves as Non-Executive Co-Chair of the Board at Budweiser Brewing Company APAC Limited since July 22, 2021. He serves as the Chief Executive Officer at Anheuser-Busch Inbev S...


Leadership Team

Experienced Management: ABI's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: ABI's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Anheuser-Busch InBev SA/NV's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Anheuser-Busch InBev SA/NV
  • Ticker: ABI
  • Exchange: ENXTBR
  • Founded: NaN
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: €105.718b
  • Shares outstanding: 1.98b
  • Website: https://www.ab-inbev.com

Number of Employees


Location

  • Anheuser-Busch InBev SA/NV
  • Brouwerijplein 1
  • Leuven
  • Flemish Brabant
  • 3000
  • Belgium

Listings


Biography

Anheuser-Busch InBev SA/NV engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks worldwide. It offers a portfolio of approximately 500 beer brands, which primarily...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 17:49
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.