Budweiser Brewing Company APAC (SEHK:1876) - Share price, News & Analysis

1876 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	5/6
Financial Health	4/6
Dividends	0/6

1876 Stock Overview

Rewards

Trading at 22% below our estimate of its fair value

Earnings are forecast to grow 14.32% per year

Earnings grew by 29.3% over the past year

Risk Analysis

No risks detected for 1876 from our risk checks.

Budweiser Brewing Company APAC Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Budweiser Brewing Company APAC
Historical stock prices
Current Share Price	HK$22.60
52 Week High	HK$25.95
52 Week Low	HK$18.18
Beta	0.76
1 Month Change	17.71%
3 Month Change	11.33%
1 Year Change	-11.55%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-19.86%

Recent News & Updates

Jun 12

Budweiser Brewing Company APAC's (HKG:1876) Returns On Capital Are Heading Higher

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

May 25

Budweiser Brewing Company APAC Limited (HKG:1876) Shares Could Be 29% Below Their Intrinsic Value Estimate

Today we will run through one way of estimating the intrinsic value of Budweiser Brewing Company APAC Limited...

Shareholder Returns

	1876	HK Beverage	HK Market
7D	11.6%	8.7%	2.1%
1Y	-11.5%	-7.5%	-23.3%

Return vs Industry: 1876 underperformed the Hong Kong Beverage industry which returned -7.5% over the past year.

Return vs Market: 1876 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 1876's price volatile compared to industry and market?
1876 volatility
1876 Average Weekly Movement	5.8%
Beverage Industry Average Movement	6.6%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 1876 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 1876's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2019	26,038	Jan Eli B. Craps	https://www.budweiserapac.com

Budweiser Brewing Company APAC Limited, an investment holding company, produces, imports, markets, distributes, and sells beer primarily in China, South Korea, India, Vietnam, and the other Asia Pacific regions. The company offers a portfolio of approximately more than 50 beer brands, including Budweiser, Stella Artois, Corona, Hoegaarden, Cass, and Harbin. It also produces, markets, distributes, and sells ready-to-drink products, energy drinks, and spirits.

Budweiser Brewing Company APAC Fundamentals Summary

How do Budweiser Brewing Company APAC's earnings and revenue compare to its market cap?
1876 fundamental statistics
Market Cap	US$38.07b
Earnings (TTM)	US$1.02b
Revenue (TTM)	US$6.79b

37.4x

P/E Ratio

5.6x

P/S Ratio

Is 1876 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1876 income statement (TTM)
Revenue	US$6.79b
Cost of Revenue	US$3.16b
Gross Profit	US$3.63b
Other Expenses	US$2.61b
Earnings	US$1.02b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.077
Gross Margin	53.44%
Net Profit Margin	15.00%
Debt/Equity Ratio	1.8%

How did 1876 perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

39%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 1876 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1876?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1876. This is calculated by dividing 1876's market cap by their current preferred multiple.
What is 1876's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$38.07b

1876 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.3x
Enterprise Value/EBITDA	17.1x
PEG Ratio	2.6x

Price to Earnings Ratio vs Peers

How does 1876's PE Ratio compare to its peers?

1876 PE Ratio vs Peers

The above table shows the PE ratio for 1876 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	35.9x

Forward PE

Price-To-Earnings vs Peers: 1876 is expensive based on its Price-To-Earnings Ratio (37.4x) compared to the peer average (35.9x).

Price to Earnings Ratio vs Industry

How does 1876's PE Ratio compare vs other companies in the Beverage Industry?

Price-To-Earnings vs Industry: 1876 is expensive based on its Price-To-Earnings Ratio (37.4x) compared to the Hong Kong Beverage industry average (23.6x)

Price to Earnings Ratio vs Fair Ratio

What is 1876's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1876 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	37.4x
Fair PE Ratio	19.8x

Price-To-Earnings vs Fair Ratio: 1876 is expensive based on its Price-To-Earnings Ratio (37.4x) compared to the estimated Fair Price-To-Earnings Ratio (19.8x).

Share Price vs Fair Value

What is the Fair Price of 1876 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1876 (HK$22.6) is trading below our estimate of fair value (HK$28.97)

Significantly Below Fair Value: 1876 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 1876 is poor value based on its PEG Ratio (2.6x)

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Future Growth

How is Budweiser Brewing Company APAC forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

14.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1876's forecast earnings growth (14.3% per year) is above the savings rate (1.5%).

Earnings vs Market: 1876's earnings (14.3% per year) are forecast to grow slower than the Hong Kong market (17% per year).

High Growth Earnings: 1876's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1876's revenue (7.8% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 1876's revenue (7.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 1876's Return on Equity is forecast to be low in 3 years time (11.4%).

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Past Performance

How has Budweiser Brewing Company APAC performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

1.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1876 has high quality earnings.

Growing Profit Margin: 1876's current net profit margins (15%) are higher than last year (12.6%).

Past Earnings Growth Analysis

Earnings Trend: 1876's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: 1876's earnings growth over the past year (29.3%) exceeds its 5-year average (1.9% per year).

Earnings vs Industry: 1876 earnings growth over the past year (29.3%) exceeded the Beverage industry 17.9%.

Return on Equity

High ROE: 1876's Return on Equity (9.5%) is considered low.

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Financial Health

How is Budweiser Brewing Company APAC's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1876's short term assets ($3.2B) do not cover its short term liabilities ($4.7B).

Long Term Liabilities: 1876's short term assets ($3.2B) exceed its long term liabilities ($851.0M).

Debt to Equity History and Analysis

Debt Level: 1876 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 1876's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1876's debt is well covered by operating cash flow (937.4%).

Interest Coverage: 1876 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Budweiser Brewing Company APAC current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.05%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1876's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 1876's dividend (1.05%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).

Stability and Growth of Payments

Stable Dividend: 1876 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1876 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 1876 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: 1876 is not paying a notable dividend for the Hong Kong market.

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Management

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

1.4yrs

Average management tenure

CEO

Jan Eli B. Craps (44 yo)

3.08yrs

Tenure

US$3,840,000

Compensation

Mr. Jan Eli B. Craps serves as Chief Executive Officer since May 9, 2019 and Co-Chair of the Board of Directors since February 19, 2020 at Budweiser Brewing Company APAC Limited and has been its Executive...

CEO Compensation Analysis

Compensation vs Market: Jan Eli B.'s total compensation ($USD3.84M) is above average for companies of similar size in the Hong Kong market ($USD1.03M).

Compensation vs Earnings: Jan Eli B.'s compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: 1876's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.

Board Members

Experienced Board: 1876's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.

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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31