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.