Anheuser-Busch Stock Analysis (NYSE:BUD)

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$110.86 $0.12 (0.11%) BUD stock closing price Mar 24, 2017 (Closing)
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Anheuser-Busch
Updated on : Mar 24, 2017
previous close
BUD 110.9 (0%)
S&P 500 2344 (0%)
Closing Price On: Mar 24, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Beverages-Alcoholic
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
28.5%
Sector Average:
9%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
122.74B
Debt/Equity Ratio:
 1.51
Compared to the industry
Cash Flow
Operating cash flow:
$10.11B
Net Income:
$400M
Dividend Yield
BUD dividend yield:
2.88%
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Cash Flow
ROIC
High Debt Burden
ROE
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
BUD PS :
4.7
Industry PS :
1.8
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
10.9%
Return on Equity:
3.8%
Free Cash Flow Margin:
9.4%
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Anheuser-Busch Analysis Video

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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.

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