AMBEV SA-ADR (ABEV) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ABEV • US02319V1035
2.78 USD
-0.02 (-0.71%)
At close: Jan 30, 2026
2.7715 USD
-0.01 (-0.31%)
After Hours: 1/30/2026, 8:04:00 PM
We assign a fundamental rating of 6 out of 10 to ABEV. ABEV was compared to 32 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. 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
- ABEV's Return On Assets of 10.38% is amongst the best of the industry. ABEV outperforms 81.25% of its industry peers.
- With a Return On Equity value of 15.95%, ABEV perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
- ABEV has a Return On Invested Capital of 19.27%. This is amongst the best in 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 11.62%.
- 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 84.38% of its industry peers.
- ABEV's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 25.18%, ABEV belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
- In the last couple of years the Operating Margin of ABEV has declined.
- The Gross Margin of ABEV (51.50%) is comparable to the rest of the industry.
- 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 just above the Cost of Capital (WACC), so ABEV is still creating some 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.
- ABEV has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.55 indicates that ABEV is not in any danger for bankruptcy at the moment.
- ABEV has a better Altman-Z score (4.55) than 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's Debt to FCF ratio of 0.15 is amongst the best of the industry. ABEV outperforms 87.50% of its industry peers.
- A Debt/Equity ratio of 0.02 indicates that ABEV is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.02, ABEV belongs to the top 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 | 4.55 |
ROIC/WACC1.06
WACC18.13%
2.3 Liquidity
- A Current Ratio of 1.11 indicates that ABEV should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.11, ABEV is doing worse than 62.50% 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.
- The Quick ratio of ABEV (0.80) 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.
- 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
- Based on estimates for the next years, ABEV will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.32% on average per year.
- The Revenue is expected to grow by 5.65% on average over the next years.
EPS Next Y8.56%
EPS Next 2Y5.65%
EPS Next 3Y6.55%
EPS Next 5Y10.32%
Revenue Next Year3.04%
Revenue Next 2Y3.71%
Revenue Next 3Y4.26%
Revenue Next 5Y5.65%
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 15.44, 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 75.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of ABEV to the average of the S&P500 Index (28.32), we can say ABEV is valued slightly cheaper.
- The Price/Forward Earnings ratio is 14.24, which indicates a correct valuation of ABEV.
- Based on the Price/Forward 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/Forward Earnings ratio is at 25.57. ABEV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 14.24 |
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 | 10.47 | ||
| EV/EBITDA | 6.97 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- ABEV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)4.55
EPS Next 2Y5.65%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
- ABEV has a Yearly Dividend Yield of 1.82%. Purely for dividend investing, there may be better candidates out there.
- ABEV's Dividend Yield is comparable with the industry average which is at 1.68.
- Compared to an average S&P500 Dividend Yield of 1.83, ABEV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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 2Y5.65%
EPS Next 3Y6.55%
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%.