South African bank Capitec has shown stronger share price growth than global brewer AB InBev over the past five years, despite differing price/earnings multiples. Recent earnings updates highlight Capitec's ongoing expansion and AB InBev's challenges with declining beer volumes. Investors are weighing the value in each company's strategy amid shifting market dynamics.
In recent earnings reports, Capitec Bank demonstrated robust growth, with its share price rising 230% over the past five years. The bank's headline earnings per share (Heps) for the year ending February 2026 are projected to increase by 20% to 25%. Capitec's market capitalization has reached R540 billion, surpassing major peers FirstRand and Standard Bank. Gerrie Fourie retired as CEO in mid-2025, passing leadership to Graham Lee, who oversees a company with untapped growth areas like business banking, Capitec Connect, and insurance services. The bank's price/earnings multiple stands at around 35x, reflecting market confidence in its disruptive model focused on simplicity and low fees.
In contrast, AB InBev reported a 36% share price increase over the same period. The company faced a 2.6% decline in beer volumes for fiscal year 2025 (FY25), attributed to consumer shifts toward healthier options like kombucha. Revenue per hectolitre rose 4.4%, but overall strategy relies on pricing amid shrinking demand. Profit margins reached 35.8% for FY25, though the fourth quarter dipped to 35.2%, down 10 basis points year-on-year. Heps grew 19%, but underlying earnings per share increased only 6%, with Q4 at 7.5%. AB InBev guides for EBITDA growth of 4% to 8%, tempered by debt levels. Its price/earnings multiple is 19.7x, positioning it as a defensive play similar to retailer Shoprite.
The comparison underscores that investment value extends beyond multiples to underlying performance and growth potential. Capitec's flywheels drive expansion in a consolidating banking sector, while AB InBev navigates a maturing beer market with limited upside.
