Anheuser-Busch Stock Analysis (NYSE:BUD)
Anheuser-Busch Analysis Video
View Anheuser-Busch stock analysis video. This is our BUD analyst opinion covering the buy and sell arguments for BUD stock.
Anheuser Busch Inbev SA (ADR) Stock Rating (2.4/5)
Our Anheuser-Busch stock opinion is based on fundamentals of the company. This Anheuser-Busch stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy BUD stock?
- Anheuser-Busch sales grew by 32.4% year on year in 2016 Q4.
- Anheuser-Busch's average operating margin of 28.5% was exceptional.
- LTM Net margins were good at 2.7% for Anheuser-Busch.
- The company has an operating cash flow which is 25.3 times the net income. We see this as a positive signal.
- Anheuser-Busch has an attractive ROIC (Return on Invested Capital) of 10.9%
Should you sell BUD stock?
- With a debt/equity ratio of 1.51, Anheuser-Busch is highly leveraged in comparison to Consumer Staples peers.
- Trading at a PE ratio of 39.2, BUD stock is overvalued in comparison to industry average multiple of 24.1.
- The company is trading at a price to sales multiple of 4.7, which is higher in comparison to the Beverages-Alcoholic industry average of 1.8, making BUD stock expensive.
- Anheuser-Busch has a low return on equity of 3.8% over the last twelve months.