AMBEV SA-ADR (ABEV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABEV - US02319V1035 - ADR
2.59 USD
-0.01 (-0.38%)
2.6 USD
+0.01 (+0.39%)
We assign a fundamental rating of 6 out of 10 to ABEV. ABEV was compared to 33 industry peers in the Beverages industry. ABEV has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
- Each year in the past 5 years ABEV had a positive operating cash flow.
1.2 Ratios
- ABEV has a Return On Assets of 10.38%. This is amongst the best in the industry. ABEV outperforms 81.82% of its industry peers.
- 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 93.94% 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 11.45%.
- 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
- The Profit Margin of ABEV (16.08%) is better 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 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.
- Compared to 1 year ago, ABEV has about the same amount of shares outstanding.
- Compared to 5 years ago, ABEV has about the same amount of shares outstanding.
- ABEV has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.43 indicates that ABEV is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.43, ABEV belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- 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.
- ABEV has a better Debt to FCF ratio (0.15) 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.
- 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 | 4.43 |
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 worse Current ratio (1.11) than 60.61% of its industry peers.
- A Quick Ratio of 0.80 indicates that ABEV may have some problems paying its short term obligations.
- ABEV has a Quick ratio (0.80) which is comparable to the rest of the 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.
- 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.
- 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 10.32% 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 5.65% yearly.
EPS Next Y6.23%
EPS Next 2Y5.78%
EPS Next 3Y6.58%
EPS Next 5Y10.32%
Revenue Next Year3.04%
Revenue Next 2Y3.71%
Revenue Next 3Y4.26%
Revenue Next 5Y5.65%
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
- The Price/Earnings ratio is 14.39, which indicates a correct valuation of ABEV.
- ABEV's Price/Earnings ratio is a bit cheaper when compared to the industry. ABEV is cheaper than 72.73% of the companies in the same industry.
- When comparing the Price/Earnings ratio of ABEV to the average of the S&P500 Index (27.47), we can say ABEV is valued slightly cheaper.
- A Price/Forward Earnings ratio of 13.59 indicates a correct valuation of ABEV.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ABEV indicates a somewhat cheap valuation: ABEV is cheaper than 75.76% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. ABEV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.39 | ||
| Fwd PE | 13.59 |
4.2 Price Multiples
- ABEV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ABEV is cheaper than 90.91% of the companies in the same industry.
- 90.91% 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 | 10.02 | ||
| EV/EBITDA | 6.65 |
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)2.31
PEG (5Y)4.24
EPS Next 2Y5.78%
EPS Next 3Y6.58%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.92%, ABEV has a reasonable but not impressive dividend return.
- ABEV's Dividend Yield is comparable with the industry average which is at 1.73.
- Compared to an average S&P500 Dividend Yield of 1.87, ABEV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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
- 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%
2.59
-0.01 (-0.38%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-12 2026-02-12/bmo
Inst Owners8.7%
Inst Owner Change-0.04%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap40.38B
Revenue(TTM)89.45B
Net Income(TTM)14.75B
Analysts53
Price Target2.49 (-3.86%)
Short Float %3.19%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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)-3.53%
PT rev (3m)-5.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.39 | ||
| Fwd PE | 13.59 | ||
| P/S | 2.37 | ||
| P/FCF | 10.02 | ||
| P/OCF | 8.26 | ||
| P/B | 2.35 | ||
| P/tB | 5.5 | ||
| EV/EBITDA | 6.65 |
EPS(TTM)0.18
EY6.95%
EPS(NY)0.19
Fwd EY7.36%
FCF(TTM)0.26
FCFY9.98%
OCF(TTM)0.31
OCFY12.11%
SpS1.09
BVpS1.1
TBVpS0.47
PEG (NY)2.31
PEG (5Y)4.24
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 | 4.43 |
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 5Y10.32%
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 5Y5.65%
EBIT growth 1Y18.16%
EBIT growth 3Y7.82%
EBIT growth 5Y5.86%
EBIT Next Year38.94%
EBIT Next 3Y15.01%
EBIT Next 5Y12.21%
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%.