AMBEV SA-ADR (ABEV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABEV - US02319V1035 - ADR
2.515 USD
+0.01 (+0.2%)
ABEV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 has a correct valuation and a medium 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.
In the past year ABEV had a positive cash flow from operations.
ABEV had positive earnings in each of the past 5 years.
In the past 5 years ABEV always reported a positive cash flow from operatings.
1.2 Ratios
ABEV has a better Return On Assets (10.38%) than 81.82% of its industry peers.
ABEV's Return On Equity of 15.95% is in line compared to the rest of the industry. ABEV outperforms 54.55% of its industry peers.
ABEV has a better Return On Invested Capital (19.27%) than 93.94% of its industry peers.
ABEV had an Average Return On Invested Capital over the past 3 years of 17.11%. This 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 better Profit Margin (16.08%) than 84.85% of its industry peers.
In the last couple of years the Profit Margin of ABEV has declined.
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 Gross Margin of 51.50%. This is in the better half of the industry: ABEV outperforms 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.
ABEV has about the same amout of shares outstanding than it did 1 year ago.
ABEV has about the same amout of shares outstanding than it did 5 years ago.
ABEV has a better debt/assets ratio than last year.
2.2 Solvency
ABEV has an Altman-Z score of 4.40. This indicates that ABEV is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.40, ABEV belongs to the best of the industry, outperforming 84.85% 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.
With an excellent Debt to FCF ratio value of 0.15, ABEV belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
ABEV has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ABEV (0.02) is better than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 4.4 |
ROIC/WACC1
WACC19.23%
2.3 Liquidity
A Current Ratio of 1.11 indicates that ABEV should not have too much problems paying its short term obligations.
ABEV has a Current ratio of 1.11. This is comparable to the rest of the industry: ABEV outperforms 42.42% of 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.
Looking at the Quick ratio, with a value of 0.80, ABEV is in line with its industry, outperforming 51.52% of the companies in the same industry.
| 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.
Measured over the past 5 years, ABEV shows a small growth in Earnings Per Share. The EPS has been growing by 3.40% on average per year.
ABEV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.18%.
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.
ABEV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.70% yearly.
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 13.97 indicates a correct valuation of ABEV.
Based on the Price/Earnings ratio, ABEV is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.87. ABEV is valued slightly cheaper when compared to this.
ABEV is valuated correctly with a Price/Forward Earnings ratio of 13.46.
ABEV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ABEV is cheaper than 69.70% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.46. ABEV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 13.46 |
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.
ABEV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ABEV is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.92 | ||
| EV/EBITDA | 6.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ABEV may justify a higher PE ratio.
PEG (NY)2.24
PEG (5Y)4.11
EPS Next 2Y5.78%
EPS Next 3Y6.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.48%, ABEV has a reasonable but not impressive dividend return.
ABEV's Dividend Yield is a higher than the industry average which is at 1.80.
Compared to an average S&P500 Dividend Yield of 1.94, ABEV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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%
NYSE:ABEV (1/6/2026, 2:51:08 PM)
2.515
+0.01 (+0.2%)
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 Cap39.22B
Revenue(TTM)89.45B
Net Income(TTM)14.75B
Analysts53
Price Target2.49 (-0.99%)
Short Float %3.19%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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 | 13.97 | ||
| Fwd PE | 13.46 | ||
| P/S | 2.34 | ||
| P/FCF | 9.92 | ||
| P/OCF | 8.17 | ||
| P/B | 2.32 | ||
| P/tB | 5.45 | ||
| EV/EBITDA | 6.57 |
EPS(TTM)0.18
EY7.16%
EPS(NY)0.19
Fwd EY7.43%
FCF(TTM)0.25
FCFY10.08%
OCF(TTM)0.31
OCFY12.23%
SpS1.07
BVpS1.08
TBVpS0.46
PEG (NY)2.24
PEG (5Y)4.11
Graham Number2.09
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 | 4.4 |
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%.