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NOTE: BUD was purchased recently by InBev resulting in a good profit for our readers and as a result we are no longer covering this issue. Profiled originally at $ 46.50/share on Feb. 1, 2008, readers who purchased this issue have profited.
Scorecard
Anheuser-Busch Symbol: BUD
Anheuser-Busch Companies, Inc., through its subsidiaries, engages in the production and distribution of beer.
A quick look at the numbers:
Cash Flows As originally reported
Cash Flows From Operating Activities $Mil 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 TTM Net Income 1,169.2 1,233.3 1,402.2 1,551.6 1,704.5 1,933.8 2,075.9 2,240.3 1,839.2 1,965.2 2,091.9 Depr & Amort 683.7 738.4 777.0 803.5 834.5 847.3 877.2 932.7 979.0 988.7 996.7
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 TTM Cap Ex (1,199.3) (817.5) (865.3) (1,074.5) (1,022.0) (834.7) (993.0) (1,089.6) (1,136.7) (812.5) (890.8) Cash Flow 653.60 1154.2 1313.9 1280.6 1517 1946.4 1960.1 2083.4 1681.5 2141.4 2197.8 Dividends (492.6) (521.0) (544.7) (571) (614.10) (649.5) (685.4) (742.8) (800.8) (871.6) (918.4) DTCF 75.37 % 45.14 % 41.46 % 44.59 % 40.48 % 33.14 % 34.97 % 35.65 % 47.62 % 40.70 % 41.79 %
Net Income 1,169.2 1,233.3 1,402.2 1,551.6 1,704.5 1,933.8 2,075.9 2,240.3 1,839.2 1,965.2 2,091.9 Diluted EPS, Cont Ops$ --- 1.27 1.47 1.69 1.89 2.20 2.48 2.77 2.35 2.53 2.74 Diluted EPS$ --- 1.27 1.47 1.69 1.89 2.20 2.48 2.77 2.35 2.53 2.74 Shares --- 961 926 893 869 834 802 783 767 746 ---
Current snapshot on Feb. 1, 2008
Last Trade: 46.50 Trade Time: 4:04PM ET Change: 0.76 (1.61%)
Prev Close: 47.26 Open: 47.59 Bid: N/A Ask: N/A 1y Target Est: 55.10
Day's Range: 46.09 - 47.59 52wk Range: 46.51 - 55.19 Volume: 8,011,746 Avg Vol (3m): 4,319,300 Market Cap: 34.12B P/E (ttm): 17.02 EPS (ttm): 2.73 Div & Yield: 1.32 (2.80%) Dividends as a percentage of overall cash flow has hovered between 34% and 45%. 2006 saw some improvements
over the 2005 results. Cash flow remains string, and capital expenditures remain under control. And a quick look below
at the income chart reveals another important factor for my rating. The SHARES section indicates that the number
of shares outstanding has been falling each and every year. This is the direct result of the very strong cash flow
generated by BUD. This also returns wealth to shareholders, and ultimately will lead to a higher share price over time.The company operates in four segments: Domestic Beer, International Beer, Packaging, and Entertainment.
The Domestic Beer segment offers beer under the Budweiser, Michelob, Busch, and Natural brand names. The segment
also offers specialty beers, non-alcohol brews, malt liquors, specialty malt beverages, energy drinks, ale, and malt-based products, such as caffeine,
gingseng, and guarana. Anheuser-Busch's dominant market share and distribution exclusivity give it a wide economic moat. BUD faces challenges ahead as
domestic bear consumption is falling. However, BUD dominates the distribution channel and can aggressively compete with higher growth brands. Furthermore,
as the competition heats up in the bear industry, fewer players will be left standing allowing profit margins to improve.The International Beer segment markets and sells Budweiser and various brands outside the United States; and operates breweries in the United Kingdom and China.
This segment also negotiates and administers license and contract brewing agreements with various foreign brewers; and negotiates and manages equity investments
in foreign brewing partners.Anheuser-Busch dominates the U.S. beer industry with 48% market share. Sure I see challenges ahead, but is beer going to go
away soon, and who will dominate this industry in the years to come......? I believe the answer is BUD !
Company Name Anheuser Busch BUD NYSE Year Dividend Paid Dividend Growth Rate Stock Price 1 $1.32 8.00% $46.50 2.8387% Yield Year 1 2 $1.43 8.00% $46.50 3.0658% Yield Year 2 3 $1.54 8.00% $46.50 3.3111% Yield Year 3 4 $1.66 8.00% $46.50
