AMBEV SA-ADR (ABEV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABEV - US02319V1035 - ADR
2.43 USD
+0.06 (+2.53%)
2.44 USD
+0.01 (+0.41%)
We assign a fundamental rating of 6 out of 10 to ABEV. ABEV was compared to 32 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. This makes ABEV very considerable 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 81.25% of the companies in the same industry.
The Return On Equity of ABEV (15.95%) is comparable to the rest of the industry.
ABEV's Return On Invested Capital of 19.27% is amongst the best of the industry. ABEV outperforms 93.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABEV is significantly above the industry average of 11.65%.
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 has a Profit Margin of 16.08%. This is amongst the best in the industry. ABEV outperforms 84.38% of its industry peers.
ABEV's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 25.18%, ABEV belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
ABEV's Operating Margin has declined in the last couple of years.
ABEV has a Gross Margin (51.50%) which is in line with 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.
The number of shares outstanding for ABEV remains at a similar level compared to 5 years ago.
Compared to 1 year ago, ABEV has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.34 indicates that ABEV is not in any danger for bankruptcy at the moment.
ABEV has a Altman-Z score of 4.34. This is amongst the best in the industry. ABEV outperforms 81.25% of its industry peers.
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.
ABEV has a better Debt to FCF ratio (0.15) than 87.50% 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.
With an excellent Debt to Equity ratio value of 0.02, ABEV belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
| 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.
With a Current ratio value of 1.11, ABEV perfoms like the industry average, outperforming 40.63% 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
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.
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
ABEV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.05% yearly.
Based on estimates for the next years, ABEV will show a small growth in Revenue. The Revenue will grow by 5.70% on average per year.
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.
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
Based on the Price/Earnings ratio of 14.29, the valuation of ABEV can be described as correct.
Based on the Price/Earnings ratio, ABEV is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.92. ABEV is valued slightly cheaper when compared to this.
ABEV is valuated correctly with a Price/Forward Earnings ratio of 13.11.
Based on the Price/Forward Earnings ratio, ABEV is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
ABEV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 13.11 |
4.2 Price Multiples
93.75% of the companies in the same industry are more expensive than ABEV, based on the Enterprise Value to EBITDA ratio.
93.75% of the companies in the same industry are more expensive than ABEV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.66 | ||
| EV/EBITDA | 6.4 |
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)2.3
PEG (5Y)4.21
EPS Next 2Y5.78%
EPS Next 3Y6.58%
5. Dividend
5.1 Amount
ABEV has a Yearly Dividend Yield of 1.69%.
ABEV's Dividend Yield is comparable with the industry average which is at 1.69.
ABEV's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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%
2.43
+0.06 (+2.53%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners8.54%
Inst Owner Change-6.66%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap37.89B
Revenue(TTM)89.45B
Net Income(TTM)14.75B
Analysts53
Price Target2.49 (2.47%)
Short Float %3.5%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)-4.22%
PT rev (3m)-4.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.25%
EPS NY rev (1m)0.92%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.06%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-3.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 13.11 | ||
| P/S | 2.28 | ||
| P/FCF | 9.66 | ||
| P/OCF | 7.96 | ||
| P/B | 2.26 | ||
| P/tB | 5.3 | ||
| EV/EBITDA | 6.4 |
EPS(TTM)0.17
EY7%
EPS(NY)0.19
Fwd EY7.63%
FCF(TTM)0.25
FCFY10.35%
OCF(TTM)0.31
OCFY12.56%
SpS1.07
BVpS1.07
TBVpS0.46
PEG (NY)2.3
PEG (5Y)4.21
Graham Number2.03
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.
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 14.29 and the Price/Book (PB) ratio is 2.26.
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%.