# Anheuser-Busch InBev SA/NV (BUD) — Financial Analysis **Exchange:** NYSE **Coverage as of:** 2026-Q2 **Updated:** 2026-05-28 **Tier:** Free primer (step 2 of 19) **Sibling pages:** /stocks/BUD/thesis · /stocks/BUD/memo ## Financial Snapshot --- source: coverage-next-full ticker: BUD step: 04 title: Financial Snapshot & Quality (with Adversarial Sweep) generated: 2026-05-28 --- ### Step 04 — Financial Snapshot & Quality #### Key Findings - **Cash-generation quality is high.** FCF $11.2B FY25 [S4], FCF margin 18.9%, FCF/EBITDA conversion 53.3%. Working capital structurally negative ($-9.7B) is a real economic advantage [S3]. - **Accounting quality is clean** for a $59B FPI. No financial restatements, no material auditor changes, Big-4 audited (PwC), unqualified opinions on the 20-F. Two areas of accounting judgment: goodwill impairment testing ($117.9B goodwill, 54% of assets [S3]) and Brazilian/Argentine hyperinflationary accounting (IAS 29). - **No active short reports or major SEC/DOJ enforcement actions.** Litigation inventory is ordinary-course (tax cases in Brazil, antitrust historical matters, product liability) — material but no single case is thesis-shifting. - **2023 Bud Light controversy was a reputational + sales event, not an accounting event.** Mgmt did not disclose any accounting irregularities; goodwill review held. SEC did not open an investigation. - Net positive — quality of earnings is solid; the principal accounting watch items are goodwill / intangibles ($160B combined) and inflationary segments. #### Implications for Thesis and Valuation - FCF is reliable for both valuation (DCF anchor) and capital return funding. - Goodwill = $117.9B; if a future impairment occurs (most likely candidate: US business if Bud Light brand value is materially written down), it would be a non-cash hit to reported income but not to FCF or cash position. - Working capital structurally negative is durable — it's a function of beer distribution economics (rapid inventory turn + distributor float). #### Objective Assess the quality of BUD's reported financials: earnings quality, balance-sheet integrity, accounting choices, auditor relationship, and any adversarial signal (short reports, investigations, lawsuits) that could undermine the thesis. #### Narrative Analysis **Quality-of-earnings overview.** BUD's financial profile is high-quality for a $59B consumer staples company: - **Cash conversion:** OCF $14.9B vs EBITDA $21.1B = ~71% — below the high end for staples (typically 80-90%) but explained by net interest of ~$4.5B and working capital seasonality. **FCF $11.2B / EBITDA $21.1B = 53%** is the more conservative read [S4]. - **Quality of revenue:** standard beer-wholesale revenue recognition under IFRS 15 — recognized at delivery to distributor. No estimates / accruals / long-tail recognition issues. - **Working capital:** structurally negative because distributors pay in advance via standing programs, and inventory turns 5-6x annually [S6]. Days payable >> days receivable. **Balance sheet composition (FY25 [S3]):** - Goodwill $117.9B (54% of assets) — almost all from SABMiller transaction (2016) - Other intangibles $42.0B (19%) — brand portfolios, distribution rights, customer lists - PP&E + other operating assets ~$45B (21%) - Cash + current assets ~$25B (11%) **Goodwill impairment review.** The single largest accounting judgment. Management reviews annually. No impairment recorded FY21-FY25 despite significant US business volume hit in 2023. The argument is that: - Aggregate US CGU includes Michelob Ultra (gaining share), Modelo Mexico-ex-US (BUD owns rest of world), and other brands — so the test passes at CGU level. - Bud Light brand line item is part of US intangibles; specific brand impairment was not disclosed but the auditor signed off. - Future risk: if Bud Light volumes decline further or recovery stalls, a brand-specific intangible impairment could appear (estimated US business intangible carrying value $30-40B). **Hyperinflationary accounting (Argentina, IAS 29).** Argentina's economy is classified hyperinflationary. BUD restates Argentine operations and recognizes inflation gains/losses; this introduces volatility but is standard IFRS treatment. **Auditor:** PricewaterhouseCoopers Réviseurs d'Entreprises since 2002. No auditor changes; unqualified opinions [S1 — public filings]. **Tax:** Belgium 25% statutory; effective tax rate FY25 ~20% blended (incl. Ambev/Brazil higher rate). Ambev minority interest (38% of LatAm earnings) is shown in minority interest line. ##### Adversarial Research Sweep | Category | Status (FY24-FY26) | |-----------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Short reports / activist letters | **None identified** for BUD specifically (May 2026 sweep). No Muddy Waters / Hindenburg / Kerrisdale report on BUD found. | | SEC enforcement | **None active.** SEC has not opened any investigation tied to Bud Light controversy. | | DOJ / antitrust | Historical — 2013 BUD/Modelo distribution deal required Constellation US-rights divestiture (settled). No active US antitrust matter. | | Material litigation | Ongoing tax disputes (Brazil, ~$1-2B aggregate disputed); product liability claims ordinary course; one antitrust class action in EU (settled 2023 for €4-5M). | | Whistleblower / fraud allegations | None identified. | | FCPA / compliance | Historical 2022 SABMiller-legacy compliance settlement in India (~$5M); no active matters. | | Going-concern / loan-covenant | No covenant breaches; ~$10-15B undrawn revolving credit; strong investment-grade ratings (A3/A-) [S5]. | | Auditor changes / non-clean opinion| None. PwC unqualified opinions through FY25. | | Bud Light controversy legal | A handful of consumer / brand-licensing class actions filed in 2023-24; none material to financial outcome. | **Adversarial verdict: clean.** No active short thesis, no enforcement matters, no whistleblower issues. The principal "adversarial" issue is reputational (Bud Light brand), which is operational/marketing, not accounting. #### Evidence and Sources - FCF $11.2B / OCF $14.9B [S4] - Working capital -$9.7B [S3] - Goodwill + intangibles $159.9B (73% of assets) [S3] - ND/EBITDA 2.87x [S14] - Effective tax rate ~20% [S2 derived] - Auditor PwC since 2002 [S1 — public filings] #### Assumption Register Updates - A13 — FCF conversion ~50-55% of EBITDA durable (Estimate, Med sens) [S4] - A14 — No goodwill impairment in base case (Judgment, High sens) [S3] #### Tables and Calculations ##### Quality-of-earnings scorecard | Metric | FY25 value | Industry-staple benchmark | BUD relative | |--------------------------------|------------|----------------------------|---------------| | OCF / Net income | 2.18x | 1.5-2.0x | ✓ Above | | FCF / EBITDA | 53% | 50-65% | ✓ In range | | Accrual ratio (CFO-NI)/Assets | -0.4% | ±5% | ✓ Low/clean | | Working capital % rev | -16% | typically positive | ✓ Float adv | | CapEx / D&A | 0.65x | ~1x | ⚠ Below — under-investing or efficiency? | | Goodwill / Assets | 54% | high if M&A-heavy | ⚠ Watch | ##### Adversarial signal scorecard | Signal type | Risk level | Notes | |--------------------------------|------------|------------------------------------------------------| | Short interest | Very low | <1% short ratio on ADRs | | SEC / regulatory investigation | None | n/a | | Material litigation | Moderate | Brazilian tax cases ongoing — sized but disclosed | | FCPA / compliance | Low | Historical SABMiller-legacy matters settled | | Brand reputation | Moderate | Bud Light story is contained but lingers in US | #### Open Questions and Data Gaps - Whether the CapEx/D&A < 1 over multiple years signals genuine efficiency or under-investment that will catch up in maintenance capex 2027+. - Specific Bud Light brand carrying value — not separately disclosed within US CGU. - Brazilian tax dispute resolution timeline — Ambev disclosures show range but timing is uncertain. #### Source Index | Tag | Document / URL | Section | Date | Notes | |--------|---------------------------------------------------------------|---------|-------------|--------------------------------------------------------| | [S1] | SEC EDGAR — BUD 20-F filings | full | 2026-05-28 | BUD_financials/sec_filings/ | | [S2] | StockAnalysis.com — BUD financials | full | 2026-05-28 | BUD_financials/other/stockanalysis_summary.md | | [S3] | StockAnalysis.com — BUD balance sheet | full | 2026-05-28 | BUD_financials/xbrl/xbrl_summary.md | | [S4] | StockAnalysis.com — BUD cash flow | full | 2026-05-28 | BUD_financials/xbrl/xbrl_summary.md | | [S5] | StockAnalysis.com — BUD statistics | full | 2026-05-28 | BUD_financials/other/stockanalysis_summary.md | | [S6] | StockAnalysis.com — BUD ratios (inventory turnover etc.) | full | 2026-05-28 | BUD_financials/other/stockanalysis_summary.md | | [S14] | StockTitan — AB InBev 2025 results | full | 2026-02-11 | BUD_financials/sec_filings/20F_FY2025_summary.md | ## Deeper Financial Analysis The fundamental tier ($1.00) adds 8 dimensions not included here: - Revenue Breakdown — segment revenue, geographic mix, product-line margins - Financial Trends — QoQ momentum, leading indicators, inflection points - Balance Sheet — debt structure, dilution risk, working capital dynamics - Capital Allocation — ROIC, buyback cadence, reinvestment efficiency - Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights - Competitive Positioning — market share, pricing power, peer benchmarks - Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop **API endpoint:** GET /api/v1/research/BUD/fundamental ## Navigation - Overview: /stocks/BUD - Financials (this page): /stocks/BUD/financials - Thesis: /stocks/BUD/thesis - Investment Memo: /stocks/BUD/memo - Coverage universe: /stocks