AMBEV SA-ADR (ABEV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABEV - US02319V1035 - ADR
2.46 USD
-0.12 (-4.65%)
2.46 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. ABEV gets an excellent profitability rating and is at the same time showing great financial health properties. ABEV has a correct valuation and a medium growth rate. These ratings could make ABEV a good candidate 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.
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
ABEV's Return On Assets of 10.38% is amongst the best of the industry. ABEV outperforms 84.85% of its industry peers.
ABEV has a Return On Equity (15.95%) which is comparable to the rest of the industry.
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 11.60%.
The last Return On Invested Capital (19.27%) for ABEV is above the 3 year average (17.11%), which is a sign of increasing profitability.
| 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's Profit Margin of 16.08% is amongst the best of the industry. ABEV outperforms 87.88% 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.
The Gross Margin of ABEV (51.50%) is better than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ABEV is destroying value.
The number of shares outstanding for ABEV remains at a similar level compared to 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
An Altman-Z score of 4.27 indicates that ABEV is not in any danger for bankruptcy at the moment.
ABEV has a better Altman-Z score (4.27) than 81.82% 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.
ABEV has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
ABEV has a better Debt to Equity ratio (0.02) than 84.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 4.27 |
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.
With a Current ratio value of 1.11, ABEV perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
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 has a Quick ratio (0.80) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
ABEV shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.30%.
ABEV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.40% yearly.
ABEV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.18%.
The Revenue has been growing by 11.46% on average over the past years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.67 indicates a correct valuation of ABEV.
Based on the Price/Earnings ratio, ABEV is valued a bit cheaper than 75.76% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, ABEV is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.76, ABEV is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABEV indicates a somewhat cheap valuation: ABEV is cheaper than 78.79% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. ABEV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 12.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABEV is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
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 | 9.41 | ||
| EV/EBITDA | 6.22 |
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)2.2
PEG (5Y)4.02
EPS Next 2Y5.78%
EPS Next 3Y6.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.40%, ABEV has a reasonable but not impressive dividend return.
ABEV's Dividend Yield is a higher than the industry average which is at 3.07.
ABEV's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
The dividend of ABEV decreases each year by -12.44%.
ABEV has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-12.44%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ABEV pays out 85.75% of its income as dividend. This is not a sustainable payout ratio.
DP85.75%
EPS Next 2Y5.78%
EPS Next 3Y6.58%
2.46
-0.12 (-4.65%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners8.54%
Inst Owner Change-14.87%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap38.36B
Revenue(TTM)89.45B
Net Income(TTM)14.75B
Analysts53
Price Target2.58 (4.88%)
Short Float %3.14%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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)2.38%
PT rev (3m)-0.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.25%
EPS NY rev (1m)0.92%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.06%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 12.76 | ||
| P/S | 2.22 | ||
| P/FCF | 9.41 | ||
| P/OCF | 7.75 | ||
| P/B | 2.2 | ||
| P/tB | 5.17 | ||
| EV/EBITDA | 6.22 |
EPS(TTM)0.18
EY7.32%
EPS(NY)0.19
Fwd EY7.84%
FCF(TTM)0.26
FCFY10.63%
OCF(TTM)0.32
OCFY12.9%
SpS1.11
BVpS1.12
TBVpS0.48
PEG (NY)2.2
PEG (5Y)4.02
Graham Number2.13
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 | 4.27 |
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 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 Year39%
EBIT Next 3Y15.07%
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.
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 13.67 and the Price/Book (PB) ratio is 2.2.
Is the dividend of AMBEV SA-ADR sustainable?
The dividend rating of AMBEV SA-ADR (ABEV) is 3 / 10 and the dividend payout ratio is 85.75%.