AMBEV SA-ADR (ABEV) Stock Fundamental Analysis
USA - NYSE:ABEV - US02319V1035 - ADR
2.43 USD
+0.03 (+1.25%)
2.43 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ABEV. ABEV was compared to 33 industry peers in the Beverages industry. While ABEV belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ABEV has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ABEV had positive earnings in the past year.
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
The Return On Assets of ABEV (10.38%) is better than 84.85% of its industry peers.
ABEV has a Return On Equity of 15.95%. This is comparable to the rest of the industry: ABEV outperforms 57.58% of its industry peers.
The Return On Invested Capital of ABEV (19.27%) is better 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 10.75%.
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
Looking at the Profit Margin, with a value of 16.08%, ABEV belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
In the last couple of years the Profit Margin of ABEV has declined.
Looking at the Operating Margin, with a value of 25.18%, ABEV belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
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.
In the last couple of years the Gross Margin of ABEV has declined.
| 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) below the Cost of Capital (WACC), ABEV is destroying 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.
The debt/assets ratio for ABEV has been reduced compared to a year ago.
2.2 Solvency
ABEV has an Altman-Z score of 4.22. This indicates that ABEV is financially healthy and has little risk of bankruptcy at the moment.
ABEV has a Altman-Z score of 4.22. This is in the better half of the industry: ABEV outperforms 72.73% of its industry peers.
ABEV has a debt to FCF ratio of 0.15. This is a very positive value and a sign of high solvency as it would only need 0.15 years to pay back of 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 has a Debt to Equity ratio of 0.02. This is amongst the best in the industry. ABEV outperforms 84.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 4.22 |
ROIC/WACC1
WACC19.36%
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 of 1.11. This is in the lower half of the industry: ABEV underperforms 63.64% 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.
ABEV's Quick ratio of 0.80 is in line compared to the rest of the industry. ABEV outperforms 48.48% 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.
ABEV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.46% yearly.
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
Based on estimates for the next years, ABEV will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.33% on average per year.
The Revenue is expected to grow by 5.29% on average over the next years.
EPS Next Y5.26%
EPS Next 2Y6.39%
EPS Next 3Y6.61%
EPS Next 5Y10.33%
Revenue Next Year3.45%
Revenue Next 2Y3.96%
Revenue Next 3Y4.37%
Revenue Next 5Y5.29%
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
With a Price/Earnings ratio of 13.50, ABEV is valued correctly.
Based on the Price/Earnings ratio, ABEV is valued a bit cheaper than 75.76% of the companies in the same industry.
ABEV is valuated rather cheaply when we compare the Price/Earnings ratio to 25.67, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.53, which indicates a correct valuation of ABEV.
ABEV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ABEV is cheaper than 72.73% of the companies in the same industry.
ABEV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 31.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABEV is valued cheaper than 90.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABEV is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.34 | ||
| EV/EBITDA | 6.09 |
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)2.57
PEG (5Y)3.97
EPS Next 2Y6.39%
EPS Next 3Y6.61%
5. Dividend
5.1 Amount
ABEV has a Yearly Dividend Yield of 1.57%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.06, ABEV has a dividend in line with its industry peers.
ABEV's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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 2Y6.39%
EPS Next 3Y6.61%
2.43
+0.03 (+1.25%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners7.95%
Inst Owner Change-8.09%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap37.89B
Revenue(TTM)89.45B
Net Income(TTM)14.75B
Analysts53
Price Target2.52 (3.7%)
Short Float %2.89%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
Yearly Dividend0.05
Dividend Growth(5Y)-12.44%
DP85.75%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-3.65%
PT rev (3m)-3.29%
EPS NQ rev (1m)-7.25%
EPS NQ rev (3m)-11.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.36%
Revenue NQ rev (1m)-5.64%
Revenue NQ rev (3m)-7.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 12.53 | ||
| P/S | 2.21 | ||
| P/FCF | 9.34 | ||
| P/OCF | 7.7 | ||
| P/B | 2.19 | ||
| P/tB | 5.13 | ||
| EV/EBITDA | 6.09 |
EPS(TTM)0.18
EY7.41%
EPS(NY)0.19
Fwd EY7.98%
FCF(TTM)0.26
FCFY10.71%
OCF(TTM)0.32
OCFY12.99%
SpS1.1
BVpS1.11
TBVpS0.47
PEG (NY)2.57
PEG (5Y)3.97
Graham Number2.12
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 | 4.22 |
F-Score8
WACC19.36%
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 Y5.26%
EPS Next 2Y6.39%
EPS Next 3Y6.61%
EPS Next 5Y10.33%
Revenue 1Y (TTM)12.18%
Revenue growth 3Y7.08%
Revenue growth 5Y11.46%
Sales Q2Q%-5.65%
Revenue Next Year3.45%
Revenue Next 2Y3.96%
Revenue Next 3Y4.37%
Revenue Next 5Y5.29%
EBIT growth 1Y18.16%
EBIT growth 3Y7.82%
EBIT growth 5Y5.86%
EBIT Next Year40.65%
EBIT Next 3Y16.07%
EBIT Next 5Y11.87%
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.
What is the valuation status for ABEV stock?
ChartMill assigns a valuation rating of 6 / 10 to AMBEV SA-ADR (ABEV). This can be considered as Fairly Valued.
How profitable is AMBEV SA-ADR (ABEV) stock?
AMBEV SA-ADR (ABEV) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for ABEV stock?
The Price/Earnings (PE) ratio for AMBEV SA-ADR (ABEV) is 13.5 and the Price/Book (PB) ratio is 2.19.
Is the dividend of AMBEV SA-ADR sustainable?
The dividend rating of AMBEV SA-ADR (ABEV) is 2 / 10 and the dividend payout ratio is 85.75%.