Anheuser Busch InBev is a multinational brewing company based in Leuven, Belgium. It was formed through InBev (which was created through a merger between Interbrew from Belgium and AmBev from Brazil), acquiring Anheuser Busch from the United States. AB Inbev has about 180,000 employees based in nearly 50 different countries worldwide. The company has more than 500 different brands, which are sold in more than 100 countries.
Here you can get a detailed investment analysis of Anheuser Busch InBev as well as the investment analysis of other companies listed on the stock market.
Here are 10 facts that show, that AB InBev could be a good long-term investment:
- The worldwide demand for beer is relatively constant over time. However, for 2020 and 2021, the demand for beer is estimated to be lower due to the effects of COVID-19.
- Since the demand for beer has been constant over time and the price per liter of beer could be raised, the revenue in the beer segment has grown slowly over time.
- Anheuser Busch InBev has currently more than 18 different brands creating revenue of more than $1 billion for each of them.
- Eight of the world’s top 10 most valuable beer brands are from Anheuser Busch InBev.
- Different financial ratios show the enormous attractiveness of an Anheuser Busch InBev investment.
- Compared to its competitors, Anheuser Busch InBev has currently the highest operating margin and the highest free cash flow yield. A high free cash flow yield means that a company is generating cash to satisfy its debt and dividend payouts.
- Compared to its competitors, Anheuser Busch InBev has currently the lowest price earning ratio, which shows that the price of the company is very attractive.
- Anheuser Busch InBev has currently the lowest dividend payout ratio (43.58%) compared to all its competitors, which shows that there are possibilities for increasing the dividend in the future.
- AB InBev has a market share of 27% of the global beer market.
- With its 18 different brands creating a revenue of more than $1 billion each year for each of the brands and its 27% global market share, Anheuser Busch InBev creates an enormous economic moat.
Here you can find the complete AB InBev investment analysis and the investment analysis of other companies listed on the stock market.