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1876

Budweiser Brewing Company APACSEHK:1876 Stock Report

Market Cap

HK$245.6b

7D

-5.3%

1Y

-23.1%

Updated

25 Oct, 2021

Data

Company Financials +
1876 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends2/6

1876 Overview

Budweiser Brewing Company APAC Limited, an investment holding company, produces, imports, markets, distributes, sells, and exports beer primarily in China, South Korea, India, Vietnam, and other Asia Pacific regions.

Budweiser Brewing Company APAC Competitors

Tsingtao Brewery

SEHK:168

HK$112.0b

Heineken Holding

ENXTAM:HEIO

€22.2b

Carlsberg

CPSE:CARL B

kr.155.6b

Asahi Group Holdings

TSE:2502

JP¥2.5t

Price History & Performance

Summary of all time highs, changes and price drops for Budweiser Brewing Company APAC
Historical stock prices
Current Share PriceHK$18.58
52 Week HighHK$18.18
52 Week LowHK$29.50
Beta0.84
1 Month Change-3.43%
3 Month Change-19.22%
1 Year Change-23.06%
3 Year Changen/a
5 Year Changen/a
Change since IPO-34.11%

Recent News & Updates

Sep 20
These 4 Measures Indicate That Budweiser Brewing Company APAC (HKG:1876) Is Using Debt Safely

These 4 Measures Indicate That Budweiser Brewing Company APAC (HKG:1876) Is Using Debt Safely

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Aug 25
Returns At Budweiser Brewing Company APAC (HKG:1876) Appear To Be Weighed Down

Returns At Budweiser Brewing Company APAC (HKG:1876) Appear To Be Weighed Down

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...

May 30
Budweiser Brewing Company APAC (HKG:1876) Has A Pretty Healthy Balance Sheet

Budweiser Brewing Company APAC (HKG:1876) Has A Pretty Healthy Balance Sheet

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Shareholder Returns

1876HK BeverageHK Market
7D-5.3%-0.7%0.4%
1Y-23.1%-1.8%6.7%

Return vs Industry: 1876 underperformed the Hong Kong Beverage industry which returned -1.5% over the past year.

Return vs Market: 1876 underperformed the Hong Kong Market which returned 5.9% over the past year.

Price Volatility

Is 1876's price volatile compared to industry and market?
1876 volatility
1876 Beta0.84
Industry Beta0.82
Market Beta1

Stable Share Price: 1876 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1876's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188825,737Jan Eli B. Crapshttps://www.budweiserapac.com

Budweiser Brewing Company APAC Limited, an investment holding company, produces, imports, markets, distributes, sells, and exports beer primarily in China, South Korea, India, Vietnam, and other Asia Pacific regions. It offers a portfolio of approximately 50 beer brands, including Budweiser, Stella Artois, Corona, Hoegaarden, Cass, and Harbin. The company also produces, markets, distributes, and sells other non-beer beverages.

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 CapUS$31.60b
Earnings (TTM)US$832.00m
Revenue (TTM)US$6.49b

38.0x

P/E Ratio

4.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1876 income statement (TTM)
RevenueUS$6.49b
Cost of RevenueUS$3.03b
Gross ProfitUS$3.46b
ExpensesUS$2.63b
EarningsUS$832.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 27, 2021

Earnings per share (EPS)0.063
Gross Margin53.28%
Net Profit Margin12.82%
Debt/Equity Ratio1.8%

How did 1876 perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

45%

Payout Ratio

Valuation

Is Budweiser Brewing Company APAC undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1876 (HK$18.58) is trading below our estimate of fair value (HK$56.18)

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


Price To Earnings Ratio

PE vs Industry: 1876 is poor value based on its PE Ratio (38x) compared to the Hong Kong Beverage industry average (26.6x).

PE vs Market: 1876 is poor value based on its PE Ratio (38x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: 1876 is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: 1876 is overvalued based on its PB Ratio (2.9x) compared to the HK Beverage industry average (0.9x).


Future Growth

How is Budweiser Brewing Company APAC forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1876's forecast earnings growth (15.2% per year) is above the savings rate (1.5%).

Earnings vs Market: 1876's earnings (15.2% per year) are forecast to grow slower than the Hong Kong market (17.7% per year).

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

Revenue vs Market: 1876's revenue (7.1% per year) is forecast to grow slower than the Hong Kong market (12.5% per year).

High Growth Revenue: 1876's revenue (7.1% 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 (10.8%).


Past Performance

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

-6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1876 has high quality earnings.

Growing Profit Margin: 1876's current net profit margins (12.8%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: 1876's earnings have declined by 6.8% per year over the past 5 years.

Accelerating Growth: 1876's earnings growth over the past year (74.4%) exceeds its 5-year average (-6.8% per year).

Earnings vs Industry: 1876 earnings growth over the past year (74.4%) exceeded the Beverage industry 49.8%.


Return on Equity

High ROE: 1876's Return on Equity (7.9%) is considered low.


Financial Health

How is Budweiser Brewing Company APAC's financial position?


Financial Position Analysis

Short Term Liabilities: 1876's short term assets ($2.7B) do not cover its short term liabilities ($4.7B).

Long Term Liabilities: 1876's short term assets ($2.7B) exceed its long term liabilities ($810.0M).


Debt to Equity History and Analysis

Debt Level: 1876's debt to equity ratio (1.8%) is considered satisfactory.

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 (827%).

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


Balance Sheet


Dividend

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

1.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1876's dividend (1.18%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 1876's dividend (1.18%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1876 has been paying a dividend for less than 10 years.

Growing Dividend: 1876's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45%), 1876's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1876's dividends in 3 years are forecast to be well covered by earnings (30.4% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Jan Eli B. Craps (44 yo)

2.42yrs

Tenure

US$1,898,000

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 ($USD1.90M) is above average for companies of similar size in the Hong Kong market ($USD1.05M).

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


Leadership Team

Experienced Management: 1876's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: 1876's board of directors are not considered experienced ( 1.3 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.


Top Shareholders

Company Information

Budweiser Brewing Company APAC Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Budweiser Brewing Company APAC Limited
  • Ticker: 1876
  • Exchange: SEHK
  • Founded: 1888
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$245.638b
  • Shares outstanding: 13.22b
  • Website: https://www.budweiserapac.com

Number of Employees


Location

  • Budweiser Brewing Company APAC Limited
  • Tower Two, Times Square
  • Suites 3012-16
  • Causeway Bay
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:59
End of Day Share Price2021/10/25 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.