Dutch Bros Inc. (BROS) - Comprehensive Stock Analysis & Investment Research
Deep dive into Dutch Bros Inc.'s business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
Dutch Bros Inc. Investment Summary
When evaluating whether Dutch Bros Inc. (BROS) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
Dutch Bros Inc. (BROS) operates within the Trade & Services sector, specifically in the Retail-Eating & Drinking Places industry. The company employs approximately 4,190 people. With a market capitalization of $8 billion, the company is a mid-cap stock that typically offers a balance between growth potential and established business operations.
Financial Performance Analysis
Dutch Bros Inc. generates annual revenues of approximately $2 billion. The company currently reports a negative net margin of -3.2%, which investors should monitor closely.
From a profitability standpoint, the company has a Return on Equity (ROE) of -16.9%, suggesting room for improvement in capital efficiency. The Return on Assets (ROA) stands at -2.0%, suggesting potential for operational improvement. The gross margin of 27.3% suggests a competitive or commodity-driven business model.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 0.64x suggests potential liquidity constraints that warrant attention. The debt-to-equity ratio of 3.69x indicates significant leverage, which investors should evaluate carefully in the context of the company's cash flow generation.
Cash Flow Generation
Dutch Bros Inc. currently reports negative free cash flow of $-86 million, which may reflect heavy investment in growth or operational challenges. Operating cash flow stands at $64 million, demonstrating the company's ability to generate cash from its core business operations.
Valuation Analysis
The current P/E ratio of 130.0x suggests the market has high expectations for future earnings growth. This premium valuation means the stock is priced for perfection, and any earnings disappointments could lead to significant price corrections. The price-to-book ratio stands at 12.30x, reflecting significant intangible value and market expectations of future growth.
AI-Powered Price Predictions
Our AI models continuously analyze Dutch Bros Inc. to identify potential price movements. Subscribe to Intratio Premium to unlock detailed AI-powered price predictions for 7, 30, and 90-day horizons.
Investment Considerations
When determining whether Dutch Bros Inc. is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a mid-cap stock, Dutch Bros Inc. may offer a balance of growth potential and established business fundamentals.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
Dutch Bros Inc. (Stock Symbol: BROS) is a prominent company operating within the Trade & Services sector, with a specific focus on the Retail-Eating & Drinking Places industry. The company's shares are publicly traded on the NYSE exchange.
Leadership & Workforce
The organization employs approximately 4,190 professionals, indicating a well-established company with meaningful operational scale and the human resources necessary to compete effectively in its markets.
Market Classification
With a market capitalization of $8 billion, Dutch Bros Inc. is classified as a mid-cap stock. Mid-cap companies often represent businesses in a growth phase, having moved beyond the early startup stage but still possessing significant expansion potential. These stocks can offer an attractive balance between the growth potential of smaller companies and the stability of larger corporations.
Sector & Industry Context
Operating within the Trade & Services sector, Dutch Bros Inc. is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy.
Revenue & Growth Analysis
Dutch Bros Inc. generates annual revenues of $2 billion , indicating a well-established business with proven market demand for its products or services. This revenue base supports sustainable operations and provides capacity for continued growth investments.
Profitability Analysis
The company achieves a -3.2% net profit margin, indicating the company is currently operating at a loss. This could reflect heavy growth investments, restructuring costs, or fundamental business challenges that require careful evaluation.
Gross profit margin stands at 27.3%, a moderate margin common in manufacturing, retail, or distribution-heavy businesses where competition or cost structures limit pricing flexibility.
Operating margin is -22.5%, suggesting high operating expenses relative to revenues, which may reflect growth investments or operational inefficiencies.
Market Valuation
Current market capitalization stands at $8 billion . This mid-cap classification represents companies that have proven their business models but still have significant growth runway. Mid-caps often offer an attractive blend of growth potential and established operations.
Return on Investment Metrics
Return on Equity (ROE) measures -16.9%, indicating negative shareholder returns, typically resulting from operating losses or exceptional write-downs.
Return on Assets (ROA) stands at -2.0%, indicating lower asset efficiency that may reflect industry norms or opportunities for operational improvement.
Return on Invested Capital (ROIC) measures -1.8%, which may indicate returns below the cost of capital, potentially destroying shareholder value over time if sustained.
Cash Flow Generation
Free cash flow of $-86 million indicates the company is currently consuming more cash than it generates, which may reflect heavy growth investments, working capital needs, or operational challenges.
Operating cash flow reaches $64 million . Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
Strategic Market Position
Dutch Bros Inc. strategically competes in the highly dynamic Retail-Eating & Drinking Places marketplace. As a mid-cap company, it occupies an attractive position balancing growth potential with established operations. Mid-caps often represent the 'sweet spot' for investors seeking companies that have proven their business models but still have meaningful runway for expansion. These companies are large enough to have competitive advantages but nimble enough to adapt quickly to market changes.
Industry Competitive Landscape
Dutch Bros Inc. competes within the Trade & Services sector, navigating the competitive dynamics and market forces specific to this industry. The company's competitive position depends on its ability to differentiate through product quality, cost efficiency, customer relationships, or other strategic advantages relevant to its specific market segment.
Operational Efficiency
The company currently shows negative free cash flow of $-86 million . Negative free cash flow may reflect heavy investment in growth, working capital needs, or operational challenges. This is common for high-growth companies investing aggressively but warrants attention for mature businesses.
Margin & Pricing Power Analysis
The company maintains a 27.3% gross margin reflecting moderate pricing power typical of many manufacturing, retail, or service businesses. While not exceptionally high, these margins provide adequate room for operating expenses and profit generation. Competitive pressures or cost increases could impact profitability if margins compress.
Operating margin of -22.5% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. Operating margin compression relative to gross margin suggests high operating expenses that may warrant efficiency improvements or reflect necessary growth investments.
Asset Utilization Efficiency
Asset turnover ratio of 0.62x indicates moderate asset turnover common in capital-intensive industries such as utilities, real estate, or heavy manufacturing. Lower turnover in these sectors is expected due to the significant infrastructure required for operations.
Financial Strength & Leverage
Current ratio of 0.64 reflects potential liquidity concerns with current liabilities exceeding current assets. While some businesses operate successfully with negative working capital, this warrants understanding of the specific circumstances.