ENXTBR:ABI

Stock Analysis Report

Executive Summary

Anheuser-Busch InBev SA/NV, a brewing company, engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks.

Snowflake

Fundamentals

Second-rate dividend payer and slightly overvalued.


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


Market Performance


7 Day Return

-0.7%

ABI

-1.5%

BE Beverage

1.5%

BE Market


1 Year Return

14.9%

ABI

20.3%

BE Beverage

7.1%

BE Market

Return vs Industry: ABI underperformed the Belgian Beverage industry which returned 20.3% over the past year.

Return vs Market: ABI exceeded the Belgian Market which returned 7.1% over the past year.


Shareholder returns

ABIIndustryMarket
7 Day-0.7%-1.5%1.5%
30 Day-3.8%-1.1%-0.6%
90 Day5.6%1.0%5.0%
1 Year16.9%14.9%22.7%20.3%9.6%7.1%
3 Year-23.5%-28.7%12.0%4.8%-5.9%-12.5%
5 Year10.5%-1.7%54.2%37.9%27.6%11.9%

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?

47.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ABI (€83.66) is trading below our estimate of fair value (€160.14)

Significantly Undervalued: ABI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ABI is poor value based on its PE Ratio (24.5x) compared to the Beverage industry average (22.6x).

PE vs Market: ABI is poor value based on its PE Ratio (24.5x) compared to the Belgian market (16.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: ABI is poor value based on its PEG Ratio (7.1x)


Price to Book Ratio

PB vs Industry: ABI is overvalued based on its PB Ratio (2.6x) compared to the XE Beverage industry average (1.8x).


Next Steps

Future Growth

How is Anheuser-Busch InBev forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?

3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABI's forecast earnings growth (3.5% per year) is above the savings rate (0.8%).

Earnings vs Market: ABI's earnings (3.5% per year) are forecast to grow slower than the Belgian market (6.4% per year).

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

Revenue vs Market: ABI's revenue (3.8% per year) is forecast to grow faster than the Belgian market (3.5% per year).

High Growth Revenue: ABI's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ABI's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

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

-9.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ABI's earnings have declined by -9.3% per year over the past 5 years.

Accelerating Growth: ABI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ABI had negative earnings growth (-7.1%) over the past year, making it difficult to compare to the Beverage industry average (3.3%).


Return on Equity

High ROE: ABI's Return on Equity (11.2%) is considered low.


Return on Assets

ROA vs Industry: ABI's Return on Assets is below or equal to the Beverage industry average last year.


Return on Capital Employed

ROCE Improving: ABI has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Anheuser-Busch InBev's financial position?


Financial Position Analysis

Short Term Liabilities: ABI's short term assets ($20.1B) do not cover its short term liabilities ($37.3B)

Long Term Liabilities: ABI's short term assets (20.1B) do not cover its long term liabilities (121.9B)


Debt to Equity History and Analysis

Debt Level: ABI's debt to equity ratio (141.6%) is considered high

Reducing Debt: ABI's debt to equity ratio has increased from 96.7% to 141.6% over the past 5 years.

Debt Coverage: ABI's debt is not well covered by operating cash flow (14.6%).

Interest Coverage: ABI's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet

Inventory Level: ABI has a low level of unsold assets or inventory.

Debt Coverage by Assets: ABI's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

2.12%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%2.1%markettop25%4.5%industryaverage2.0%forecastin3Years2.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ABI's dividend (2.12%) isn’t notable compared to the bottom 25% of dividend payers in the Belgian market (2.13%).

High Dividend: ABI's dividend (2.12%) is low compared to the top 25% of dividend payers in the Belgian market (4.48%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.1%), 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 (43.3% payout ratio).


Next Steps

Management

What is the CEO of Anheuser-Busch InBev's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Carlos de Brito (59yo)

13.8yrs

Tenure

US$2,600,000

Compensation

Mr. Carlos Alves de Brito has been the Chief Executive Officer of Anheuser-Busch InBev SA/NV since December 2005 and serves as its Member of Executive Board of Management. Mr. de Brito served as Sales Dire ...


CEO Compensation Analysis

Compensation vs. Market: Carlos's total compensation ($USD2.60M) is about average for companies of similar size in the Belgian market ($USD2.54M).

Compensation vs Earnings: Carlos's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.8yrs

Average Tenure

48.5yo

Average Age

Experienced Management: ABI's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

56.5yo

Average Age

Experienced Board: ABI's board of directors are considered experienced (5 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Carlos de Brito (59yo)

    CEO & Member of Executive Management Board

    • Tenure: 13.8yrs
    • Compensation: US$2.60m
  • Felipe Dutra (54yo)

    CTO, Chief Financial & Solutions Officer and Member of Executive Management Board

    • Tenure: 5.8yrs
  • Bernardo Pinto Paiva (51yo)

    Member of Executive Management Board

    • Tenure: 0yrs
  • Michel Doukeris (46yo)

    Member of Executive Management Board

    • Tenure: 0yrs
  • David Almeida (43yo)

    Chief People & Transformation Officer and Member of Executive Management Board

    • Tenure: 3.8yrs
  • Pedro De Sá Earp (42yo)

    Chief Marketing & ZX Ventures Officer and Member of Executive Management Board

    • Tenure: 4.7yrs
  • Tony Milikin (58yo)

    Chief Procurement & Sustainability Officer and Member of Executive Management Board

    • Tenure: 0yrs
  • Pete Kraemer (54yo)

    Chief Supply Officer & Member of Executive Management Board

    • Tenure: 0yrs
  • Ricardo Tadeu (43yo)

    Chief Sales Officer & Member of Executive Management Board

    • Tenure: 6.3yrs
  • Jan Craps (42yo)

    Member of Executive Management Board

    • Tenure: 0yrs

Board Members

  • Martha Burns (61yo)

    Non-Executive Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$160.50k
  • Marcel Telles (69yo)

    Non-Executive Director

    • Tenure: 15.8yrs
    • Compensation: US$105.00k
  • Alexandre Van Damme (57yo)

    Non-Executive Director

    • Tenure: 27.8yrs
    • Compensation: US$93.00k
  • Arthur Cornet de Ways-Ruart (51yo)

    Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: US$75.00k
  • Jabu Mabuza (61yo)

    Chairman of Africa Board

    • Tenure: 3yrs
  • Sabine Chalmers (54yo)

    Independent Director

    • Tenure: 0.5yrs
  • Claudio Moniz Garcia (51yo)

    Director

    • Tenure: 0.5yrs
  • María Asunción Aramburuzabala Larregu (56yo)

    Non-Executive Non-Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$75.00k
  • Grégoire de Spoelberch (53yo)

    Non-Executive Director

    • Tenure: 12.8yrs
    • Compensation: US$81.00k
  • Marty Barrington (66yo)

    Independent Chairman

    • Tenure: 0.5yrs
    • Compensation: US$53.87k

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: 1366
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: €163.922b
  • Shares outstanding: 1.96b
  • Website: https://www.ab-inbev.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANHJSE (The Johannesburg Securities Exchange)YesNew Ordinary SharesZAZARDec 2000
ABINWBAG (Wiener Boerse AG)YesNew Ordinary SharesATEURDec 2000
ABIBIT (Borsa Italiana)YesNew Ordinary SharesITEURDec 2000
ABIENXTBR (Euronext Brussels)YesNew Ordinary SharesBEEURDec 2000
ABITSWX (SIX Swiss Exchange)YesNew Ordinary SharesCHCHFDec 2000
0RJILSE (London Stock Exchange)YesNew Ordinary SharesGBEURDec 2000
BUDF.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDDec 2000
1NBADB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURDec 2000
1NBAXTRA (XETRA Trading Platform)YesNew Ordinary SharesDEEURDec 2000
ANB *BMV (Bolsa Mexicana de Valores)YesNew Ordinary SharesMXMXNDec 2000
ABIBBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBEURDec 2000
ITKADB (Deutsche Boerse AG)ADR EAH REP 1 ORD NPVDEEURJul 2009
BUDNYSE (New York Stock Exchange)ADR EAH REP 1 ORD NPVUSUSDJul 2009

Biography

Anheuser-Busch InBev SA/NV, a brewing company, engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks. The company offers a portfolio of approximately 500 beer bran ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 21:54
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.