AMBEV SA-ADR (ABEV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABEV - US02319V1035 - ADR
2.35 USD
+0.05 (+2.17%)
We assign a fundamental rating of 6 out of 10 to ABEV. ABEV was compared to 33 industry peers in the Beverages industry. ABEV scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ABEV is not valued too expensively and it also shows a decent growth rate. These ratings would make ABEV suitable for quality investing!
1. Profitability
1.1 Basic Checks
ABEV had positive earnings in the past year.
ABEV had a positive operating cash flow in the past year.
In the past 5 years ABEV has always been profitable.
ABEV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.38%, ABEV belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
With a Return On Equity value of 15.95%, ABEV perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
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 Profit Margin of 16.08%. This is amongst the best in the industry. ABEV outperforms 84.85% of its industry peers.
ABEV's Profit Margin has declined in the last couple of years.
ABEV's Operating Margin of 25.18% is amongst the best of the industry. ABEV outperforms 81.82% of its industry peers.
In the last couple of years the Operating Margin of ABEV has declined.
ABEV has a better Gross Margin (51.50%) 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.
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.
The debt/assets ratio for ABEV has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.21 indicates that ABEV is not in any danger for bankruptcy at the moment.
The Altman-Z score of ABEV (4.21) is better 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.
Looking at the Debt to FCF ratio, with a value of 0.15, ABEV belongs to the top 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.
ABEV has a better Debt to Equity ratio (0.02) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 4.21 |
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.
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 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%.
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
Based on the Price/Earnings ratio of 13.82, the valuation of ABEV can be described as correct.
ABEV's Price/Earnings ratio is a bit cheaper when compared to the industry. ABEV is cheaper than 75.76% of the companies in the same industry.
When comparing the Price/Earnings ratio of ABEV to the average of the S&P500 Index (26.61), we can say ABEV is valued slightly cheaper.
ABEV is valuated correctly with a Price/Forward Earnings ratio of 12.69.
ABEV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ABEV is cheaper than 78.79% of the companies in the same industry.
ABEV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.82 | ||
| Fwd PE | 12.69 |
4.2 Price Multiples
ABEV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ABEV is cheaper than 96.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABEV is valued cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.36 | ||
| EV/EBITDA | 6.04 |
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.
The decent profitability rating of ABEV may justify a higher PE ratio.
PEG (NY)2.22
PEG (5Y)4.07
EPS Next 2Y5.78%
EPS Next 3Y6.58%
5. Dividend
5.1 Amount
ABEV has a Yearly Dividend Yield of 2.42%.
ABEV's Dividend Yield is a higher than the industry average which is at 1.77.
Compared to an average S&P500 Dividend Yield of 1.87, ABEV pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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%
NYSE:ABEV (12/23/2025, 9:51:05 AM)
2.35
+0.05 (+2.17%)
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 Cap36.64B
Revenue(TTM)89.45B
Net Income(TTM)14.75B
Analysts53
Price Target2.58 (9.79%)
Short Float %3.5%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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)0.55%
PT rev (3m)-1.35%
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)-3.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.82 | ||
| Fwd PE | 12.69 | ||
| P/S | 2.21 | ||
| P/FCF | 9.36 | ||
| P/OCF | 7.71 | ||
| P/B | 2.19 | ||
| P/tB | 5.14 | ||
| EV/EBITDA | 6.04 |
EPS(TTM)0.17
EY7.23%
EPS(NY)0.19
Fwd EY7.88%
FCF(TTM)0.25
FCFY10.69%
OCF(TTM)0.3
OCFY12.97%
SpS1.06
BVpS1.07
TBVpS0.46
PEG (NY)2.22
PEG (5Y)4.07
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 | 4.21 |
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 13.82 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 3 / 10 and the dividend payout ratio is 85.75%.