AMBEV SA-ADR (ABEV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABEV - US02319V1035 - ADR
2.56 USD
+0.06 (+2.4%)
2.56 USD
0 (0%)
Taking everything into account, ABEV scores 6 out of 10 in our fundamental rating. ABEV was compared to 33 industry peers in the Beverages industry. Both the health and profitability get an excellent rating, making ABEV a very profitable company, without any liquidiy or solvency issues. ABEV is not valued too expensively and it also shows a decent growth rate. With these ratings, ABEV could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year ABEV was profitable.
ABEV had a positive operating cash flow in the past year.
In the past 5 years ABEV has always been profitable.
In the past 5 years ABEV always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.38%, ABEV belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
ABEV has a Return On Equity (15.95%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 19.27%, ABEV belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABEV is significantly above the industry average of 11.47%.
The 3 year average ROIC (17.11%) for ABEV is below the current ROIC(19.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.38% | ||
| ROE | 15.95% | ||
| ROIC | 19.27% |
ROA(3y)10.1%
ROA(5y)9.71%
ROE(3y)16.88%
ROE(5y)16.28%
ROIC(3y)17.11%
ROIC(5y)16.49%
1.3 Margins
ABEV has a Profit Margin of 16.08%. This is amongst the best in the industry. ABEV outperforms 84.85% of its industry peers.
ABEV's Profit Margin has declined in the last couple of years.
ABEV has a better Operating Margin (25.18%) than 81.82% of its industry peers.
ABEV's Operating Margin has declined in the last couple of years.
ABEV has a better Gross Margin (51.50%) than 60.61% of its industry peers.
ABEV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.18% | ||
| PM (TTM) | 16.08% | ||
| GM | 51.5% |
OM growth 3Y0.69%
OM growth 5Y-5.02%
PM growth 3Y-2.46%
PM growth 5Y-6.55%
GM growth 3Y0.12%
GM growth 5Y-2.55%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABEV is creating some value.
The number of shares outstanding for ABEV remains at a similar level compared to 1 year ago.
The number of shares outstanding for ABEV remains at a similar level compared to 5 years ago.
The debt/assets ratio for ABEV has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.34 indicates that ABEV is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.34, ABEV belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
The Debt to FCF ratio of ABEV is 0.15, which is an excellent value as it means it would take ABEV, only 0.15 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ABEV (0.15) is better than 87.88% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that ABEV is not too dependend on debt financing.
ABEV's Debt to Equity ratio of 0.02 is amongst the best of the industry. ABEV outperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 4.34 |
ROIC/WACC1
WACC19.23%
2.3 Liquidity
ABEV has a Current Ratio of 1.11. This is a normal value and indicates that ABEV is financially healthy and should not expect problems in meeting its short term obligations.
ABEV has a Current ratio (1.11) which is in line with its industry peers.
ABEV has a Quick Ratio of 1.11. This is a bad value and indicates that ABEV is not financially healthy enough and could expect problems in meeting its short term obligations.
ABEV's Quick ratio of 0.80 is in line compared to the rest of the industry. ABEV outperforms 51.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.30% over the past year.
The Earnings Per Share has been growing slightly by 3.40% on average over the past years.
The Revenue has grown by 12.18% in the past year. This is quite good.
Measured over the past years, ABEV shows a quite strong growth in Revenue. The Revenue has been growing by 11.46% on average per year.
EPS 1Y (TTM)7.3%
EPS 3Y3.53%
EPS 5Y3.4%
EPS Q2Q%9.09%
Revenue 1Y (TTM)12.18%
Revenue growth 3Y7.08%
Revenue growth 5Y11.46%
Sales Q2Q%-5.65%
3.2 Future
The Earnings Per Share is expected to grow by 11.05% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.70% on average over the next years.
EPS Next Y6.23%
EPS Next 2Y5.78%
EPS Next 3Y6.58%
EPS Next 5Y11.05%
Revenue Next Year3.04%
Revenue Next 2Y3.71%
Revenue Next 3Y4.26%
Revenue Next 5Y5.7%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.22 indicates a correct valuation of ABEV.
Based on the Price/Earnings ratio, ABEV is valued a bit cheaper than 72.73% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. ABEV is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.45, ABEV is valued correctly.
72.73% of the companies in the same industry are more expensive than ABEV, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, ABEV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 13.45 |
4.2 Price Multiples
90.91% of the companies in the same industry are more expensive than ABEV, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABEV indicates a rather cheap valuation: ABEV is cheaper than 90.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.92 | ||
| EV/EBITDA | 6.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABEV does not grow enough to justify the current Price/Earnings ratio.
ABEV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.28
PEG (5Y)4.19
EPS Next 2Y5.78%
EPS Next 3Y6.58%
5. Dividend
5.1 Amount
ABEV has a Yearly Dividend Yield of 2.45%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.78, ABEV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.90, ABEV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
The dividend of ABEV decreases each year by -12.44%.
ABEV has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-12.44%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
85.75% of the earnings are spent on dividend by ABEV. This is not a sustainable payout ratio.
DP85.75%
EPS Next 2Y5.78%
EPS Next 3Y6.58%
2.56
+0.06 (+2.4%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners8.7%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap39.92B
Revenue(TTM)89.45B
Net Income(TTM)14.75B
Analysts53
Price Target2.49 (-2.73%)
Short Float %3.19%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend0.05
Dividend Growth(5Y)-12.44%
DP85.75%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.95%
Min EPS beat(2)-9.56%
Max EPS beat(2)-4.34%
EPS beat(4)1
Avg EPS beat(4)-3.44%
Min EPS beat(4)-9.56%
Max EPS beat(4)7.94%
EPS beat(8)3
Avg EPS beat(8)-0.99%
EPS beat(12)6
Avg EPS beat(12)3.27%
EPS beat(16)9
Avg EPS beat(16)7.96%
Revenue beat(2)0
Avg Revenue beat(2)-6%
Min Revenue beat(2)-8.64%
Max Revenue beat(2)-3.37%
Revenue beat(4)1
Avg Revenue beat(4)-3.56%
Min Revenue beat(4)-8.64%
Max Revenue beat(4)1.61%
Revenue beat(8)2
Avg Revenue beat(8)-4.62%
Revenue beat(12)2
Avg Revenue beat(12)-4.37%
Revenue beat(16)5
Avg Revenue beat(16)-2.84%
PT rev (1m)-4.22%
PT rev (3m)-5.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 13.45 | ||
| P/S | 2.34 | ||
| P/FCF | 9.92 | ||
| P/OCF | 8.17 | ||
| P/B | 2.32 | ||
| P/tB | 5.45 | ||
| EV/EBITDA | 6.41 |
EPS(TTM)0.18
EY7.03%
EPS(NY)0.19
Fwd EY7.43%
FCF(TTM)0.26
FCFY10.08%
OCF(TTM)0.31
OCFY12.24%
SpS1.09
BVpS1.1
TBVpS0.47
PEG (NY)2.28
PEG (5Y)4.19
Graham Number2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.38% | ||
| ROE | 15.95% | ||
| ROCE | 21.93% | ||
| ROIC | 19.27% | ||
| ROICexc | 23.11% | ||
| ROICexgc | 58.42% | ||
| OM | 25.18% | ||
| PM (TTM) | 16.08% | ||
| GM | 51.5% | ||
| FCFM | 23.61% |
ROA(3y)10.1%
ROA(5y)9.71%
ROE(3y)16.88%
ROE(5y)16.28%
ROIC(3y)17.11%
ROIC(5y)16.49%
ROICexc(3y)21.47%
ROICexc(5y)20.62%
ROICexgc(3y)60.94%
ROICexgc(5y)58.16%
ROCE(3y)19.48%
ROCE(5y)18.77%
ROICexgc growth 3Y12.62%
ROICexgc growth 5Y3.42%
ROICexc growth 3Y6.91%
ROICexc growth 5Y0.69%
OM growth 3Y0.69%
OM growth 5Y-5.02%
PM growth 3Y-2.46%
PM growth 5Y-6.55%
GM growth 3Y0.12%
GM growth 5Y-2.55%
F-Score8
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.15 | ||
| Debt/EBITDA | 0.07 | ||
| Cap/Depr | 64.28% | ||
| Cap/Sales | 5.04% | ||
| Interest Coverage | 27.15 | ||
| Cash Conversion | 86.78% | ||
| Profit Quality | 146.79% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 4.34 |
F-Score8
WACC19.23%
ROIC/WACC1
Cap/Depr(3y)89.96%
Cap/Depr(5y)100.59%
Cap/Sales(3y)7.01%
Cap/Sales(5y)7.92%
Profit Quality(3y)124.82%
Profit Quality(5y)123.82%
High Growth Momentum
Growth
EPS 1Y (TTM)7.3%
EPS 3Y3.53%
EPS 5Y3.4%
EPS Q2Q%9.09%
EPS Next Y6.23%
EPS Next 2Y5.78%
EPS Next 3Y6.58%
EPS Next 5Y11.05%
Revenue 1Y (TTM)12.18%
Revenue growth 3Y7.08%
Revenue growth 5Y11.46%
Sales Q2Q%-5.65%
Revenue Next Year3.04%
Revenue Next 2Y3.71%
Revenue Next 3Y4.26%
Revenue Next 5Y5.7%
EBIT growth 1Y18.16%
EBIT growth 3Y7.82%
EBIT growth 5Y5.86%
EBIT Next Year38.94%
EBIT Next 3Y15.01%
EBIT Next 5Y12.13%
FCF growth 1Y50.18%
FCF growth 3Y11.93%
FCF growth 5Y9.91%
OCF growth 1Y26.58%
OCF growth 3Y4.45%
OCF growth 5Y7.26%
AMBEV SA-ADR / ABEV FAQ
What is the ChartMill fundamental rating of AMBEV SA-ADR (ABEV) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ABEV.
Can you provide the valuation status for AMBEV SA-ADR?
ChartMill assigns a valuation rating of 6 / 10 to AMBEV SA-ADR (ABEV). This can be considered as Fairly Valued.
What is the profitability of ABEV stock?
AMBEV SA-ADR (ABEV) has a profitability rating of 7 / 10.
What is the financial health of AMBEV SA-ADR (ABEV) stock?
The financial health rating of AMBEV SA-ADR (ABEV) is 7 / 10.
How sustainable is the dividend of AMBEV SA-ADR (ABEV) stock?
The dividend rating of AMBEV SA-ADR (ABEV) is 3 / 10 and the dividend payout ratio is 85.75%.