What Are the Fundamentals Of BUD?

Anheuser-Busch Inbev logged a 1.62% change Friday, and is now trading at a price of $62.08 per share. The S&P 500 index moved 1.6%.

Anheuser-Busch Inbev shares moved 12.15% over the last 52 weeks, with a high of $63.0 and a low of $44.51. During this time, the stock outperformed the S&P 500 index by 15.85%. As of January 2022, the company's 50-day average price is $60.0. Anheuser-Busch InBev SA / NV is engaged in the production, distribution and sale of beer, alcoholic beverages and soft drinks worldwide. The large-cap Consumer Cyclical company is based in Leuven, Netherlands. Anheuser-Busch Inbev SA Sponsored has returned a 0.9% dividend yield over the last 12 months.

Stagnant Top Line Growth With a Highly Leveraged Balance Sheet:

2018-12-31 2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $54,619 $52,329 $46,881 $54,304
Revenue Growth n/a -4.19% -10.41% 15.83%
Gross Margins 62.73% 61.09% 58.12% 57.47%
Gross Margins Growth n/a -2.61% -4.86% -1.12%
Operating Margins 31.32% 30.76% 20.52% 25.46%
Operating Margins Growth n/a -1.79% -33.29% 24.07%
Earnings Per Share $2.17 $4.53 $0.69 $2.28
EPS Growth n/a 108.76% -84.77% 230.43%
Diluted Shares (MM) 2,011 2,025 2,037 2,045
Free Cash Flow (MM) $9,577 $8,222 $7,110 $9,159
FCF Growth n/a -14.15% -13.52% 28.82%
Capital Expenditures (MM) $5,086 $5,174 $3,781 $5,640
Net Debt / EBITDA 6.39 4.38 6.36 4.56

Anheuser-Busch Inbev Is Overpriced:

Compared to the Consumer Cyclical sector's average of 22.33, Anheuser-Busch Inbev has a trailing twelve month P/E ratio of 24.63 and, according to its EPS guidance of 3.83, an expected P/E ratio of 16.21.

However, Anheuser-Busch Inbev is likely undervalued in terms of its equity because its P/B ratio is 1.652 compared to its sector average of 3.12. The company's shares are currently trading 222.49% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 5-year average EPS * book value per share) = √(22.5 * 2.73 * 6.03) = $19.25

7 analysts are following Anheuser-Busch Inbevand have set target prices ranging from $59.0 to $80.0 per share. On average, they have given the company a rating of hold. At the current price of $62.08, BUD is trading -5.32% away from its average analyst target price of $65.57 per share, implying an analyst consensus of some upside potential for the stock.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.