Not a surprising move Anheuser-Busch InBev SA/NV (EBR:ABI) shares are up 23% over the past three months. But if you look at the last five years, the returns are not good. After all, the stock has fallen 39% in the meantime, well below the market.
Now let’s look at the company’s fundamentals and see if long-term shareholder returns are aligned with the performance of the underlying business.
See the latest analysis from Anheuser-Busch InBev
Markets are powerful pricing mechanisms, but stock prices reflect investor sentiment, not just underlying performance. One way to look at how market sentiment has changed over time is to look at the interaction between a company’s stock price and his earnings per share (EPS).
Looking back five years, both Anheuser-Busch InBev’s stock price and EPS have declined. The latter is 1.0% per annum. This EPS decline is less than the 10% annual decline in the stock price. This means the market has become more cautious about business these days.
Here’s how the EPS changed over time (click the image to see the exact values).
Get a closer look at Anheuser-Busch InBev’s key metrics by checking out this interactive graph of Anheuser-Busch InBev’s earnings, earnings, and cash flow.
Dividend
It is important to consider total shareholder return and share price return for a particular stock. TSR incorporates the value of spin-off or discounted capital raising along with dividends, based on the assumption that dividends are reinvested. As such, for companies that pay large dividends, the TSR is often much higher than the stock price return. As it happens, Anheuser-Busch InBev’s TSR has been -36% over the last five years, beating the stock return mentioned above. And there are no prizes to speculate that dividend payouts account for the difference primarily!
another point of view
Anheuser-Busch InBev’s shareholders are pleased to report that they achieved a total shareholder return of 4.2% for the year. Including dividends, of course. There is no question that these recent returns are far superior to the TSR’s 6% annual loss over five years. This leaves us a little alarmed, but the business may have turned its fortunes around. It is well worth considering the various effects of market conditions on stock prices, but there are other factors that are even more important. I have.For example we discovered Anheuser-Busch InBev One Warning Sign Things to know before investing here.
If you want to check out another company – one with potentially great financials – don’t miss freedom A list of companies that have proven they can grow their revenue.
Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently traded on the BE exchange.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price sensitive company announcements or qualitative materials. Is not …
