What Our Analysts Know About Anheuser-Busch Inbev SA Sponsored

Anheuser-Busch Inbev SA Sponsored logged a 0.8% change during today's morning session, and is now trading at a price of $55.51 per share.

As of April 2023, Anheuser-Busch Inbev SA Sponsored shares had a 50-day average price of $56.82. Anheuser-Busch InBev SA/NV produces, distributes, markets, and sells beer and beverages. Based in Leuven, Belgium, the large-cap Consumer Staples company has 167,000 full time employees. Anheuser-Busch Inbev SA Sponsored has offered a 1.5% dividend yield over the last 12 months.

Exceptional Profitability Overshadowed by Excessive Leverage:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $52,329 $46,881 $54,304 $57,786
Gross Margins 61.1% 58.1% 57.5% 54.5%
Operating Margins 30.1% 27.1% 25.7% 24.7%
Net Margins 17.53% 3.0% 8.6% 10.33%
Net Income (MM) $9,171 $1,406 $4,670 $5,969
Net Interest Expense (MM) -$3,720 -$5,245 -$5,609 -$4,480
Depreciation & Amort. (MM) -$4,657 -$4,829 -$5,052 -$5,078
Earnings Per Share $4.53 $0.7 $2.28 $3.67
EPS Growth n/a -84.55% 225.71% 60.96%
Diluted Shares (MM) 2,026 1,984 2,045 5,697
Free Cash Flow (MM) $8,222 $9,182 $9,159 $8,138
Capital Expenditures (MM) -$5,174 -$4,854 -$5,640 -$5,160
Net Current Assets (MM) -$123,281 -$121,540 -$114,338 -$105,479
Current Ratio 0.83 0.82 0.7 0.67
Long Term Debt (MM) $95,872 $93,642 $85,539 $76,917
Net Debt / EBITDA 4.63 6.08 4.24 3.9

Anheuser-Busch Inbev SA Sponsored has strong margins with a stable trend, a steady stream of strong cash flows, and stable revenues and a flat capital expenditure trend. However, Anheuser-Busch Inbev SA Sponsored has slimmer gross margins than its peers, declining EPS growth, and a highly leveraged balance sheet.

A Very Low P/E Ratio but Trades Above Its Graham Number:

Anheuser-Busch Inbev SA Sponsored has a trailing twelve month P/E ratio of 15.5, compared to an average of 24.36 for the Consumer Staples sector. Based on its EPS guidance of $3.73, the company has a forward P/E ratio of 15.2. The -3.8% compound average growth rate of Anheuser-Busch Inbev SA Sponsored's historical and projected earnings per share yields a PEG ratio of -4.06. This indicates that its shares are overvalued.Furthermore, Anheuser-Busch Inbev SA Sponsored is likely overvalued compared to the book value of its equity, since its P/B ratio of 8.53 is higher than the sector average of 4.29. The company's shares are currently trading 174.6% above their Graham number. Ultimately, Anheuser-Busch Inbev SA Sponsored's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.

Anheuser-Busch Inbev SA Sponsored Has No Average Rating Visible In Our Data:

The 6 analysts following Anheuser-Busch Inbev SA Sponsored have set target prices ranging from $63.0 to $70.0 per share, for an average of $67.08 with a buy rating. As of April 2023, the company is trading -15.3% away from its average target price, indicating that there is an analyst consensus of some upside potential.

The largest shareholder is Dodge & Cox Inc, whose 1% stake in the company is worth $1,403,610,718.

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.