Anheuser-Busch Inbev SA Sponsored ADR (Belgium) (BUD)

FairStock Score: 48/100 — MIXED

Key Financials

Strengths

• Generates $10.5 billion in annual free cash flow (7.5% yield on market cap)
• Established organization with 1,31,000 employees providing operational scale

Concerns

• Altman Z-Score of 1.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Anheuser-Busch Inbev SA Sponsored ADR (Belgium) is a large-cap consumer defensive company valued at $140.4 billion. The business generates $59.3 billion in annual revenue with a 3.3% net margin and $10.5 billion in free cash flow. From a quality standpoint, Anheuser-Busch shows distressed Altman Z-Score of 1.1 warrants caution and modest 9% ROE. On valuation, the stock is reasonably priced at 21.3x earnings, with trades above its Graham Number with a negative 24% margin. Growth dynamics show revenue growing at 4.8% and profit growth of 60.6%. The 1.8% dividend yield adds an income component for patient holders. Our composite FairStock Score of 52/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Anheuser-Busch's dominant market position and scale advantages create a durable moat that supports premium valuation over time. With $10.5 billion in annual free cash flow (7.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer defensive space. Sluggish 5% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer