What Can We Learn From Dutch Bros Inc. (BROS)’s Valuation Ratios?


Dutch Bros Inc. (NYSE:BROS) finished Wednesday with a subtraction of -$0.54 to close at $27.79, a downside of -1.91 percent. An average of 932,580 shares of common stock have been traded in the last five days. There was a fall of -$2.28 in the past week, and it reached a new high 6 times over the past 12 months. The last 20 days have seen an average of 1,145,550 shares traded, while the 50-day average volume stands at 1,227,152.

BROS stock has decreased by -21.74% in the last month. The company shares reached their 1-month lowest point of $27.28 on 12/28/22. With the stock rallying to its 52-week high on 03/30/22, shares of the company touched a low of $20.05 and a high of $66.00 in 52 weeks. It has reached a new high 6 times so far this year and lost -45.41% or -$23.12 in price. In spite of this, the price is down -57.89% from the 52-week high.

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Insider Transactions

BROS stock investors should be aware that Dutch Bros Inc. (BROS) stock had its last reported insider trading activity 15 days ago on Dec 14. In this transaction, the insider spent $250,480. Chief Operating Officer, Maxwell Brian, disposed of 6,000 shares at a price of $40.00 on Aug 30. The insider now owns more than $240,000 worth of shares. Prior to that, Chief Operating Officer Maxwell Brian went on to Sale 12,000 shares at $44.81 each on Aug 16. An amount of $537,759 was transacted.

Valuation Metrics

Dutch Bros Inc. (BROS) has a trailing price-to-sales (P/S) ratio at 6.75, the price-to-book (PB) ratio at 11.73.

Financial Health

The quick ratio of Dutch Bros Inc. for the three months ended June 29 was 0.30, and the current ratio was 0.50, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 2.44 and a total debt to equity ratio of 3.19 for the quarter ending June 29. Its gross profit as reported stood at $151.76 million compared to revenue of $497.88 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Dutch Bros Inc.’s return on assets was -1.20%.

Earnings Surprise

For the three-month period that ended June 29, Dutch Bros Inc. had $96.88 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $1.76 million in the quarter, while revenues were grew 482.95%. The analyst consensus anticipated Dutch Bros Inc.’s latest quarter earnings to come in at $0.07 per share, but it turned out to be $0.05, a -28.60% surprise. For the quarter, EBITDA amounted to $16.99 million. Shareholders own equity worth $163.71 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Dutch Bros Inc. (BROS) price momentum. RSI 9-day as of the close on 28 December was 23.54%, suggesting the stock is oversold, with historical volatility in this time frame at 38.23%.

As of today, BROS’s price is $29.32 -7.58% or -$2.28 from its 5-day moving average. BROS is currently trading -20.92% lower than its 20-day SMA and -37.06% lower than its 100-day SMA. However, the stock’s current price level is -15.22% below the SMA50 and -42.44% below the SMA200.

The stochastic %K and %D were 9.36% and 14.58%, respectively, and the average true range (ATR) was 1.54. With the 14-day stochastic at 6.47% and the average true range at 1.66, the RSI (14) stands at 31.09%. The stock has reached -1.01 on the 9-day MACD Oscillator while the 14-day reading was at -1.93.

Analyst Ratings

JP Morgan upgraded Dutch Bros Inc. (NYSE: BROS) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as a Neutral.


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