AMBEV SA-ADR (ABEV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ABEV - US02319V1035 - ADR
2.56 USD
+0.06 (+2.4%)
2.56 USD
0 (0%)
Taking everything into account, ABEV scores 6 out of 10 in our fundamental rating. 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. This makes ABEV very considerable 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.
Each year in the past 5 years ABEV had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ABEV (10.38%) is better than 81.82% of its industry peers.
ABEV has a Return On Equity of 15.95%. This is comparable to the rest of the industry: ABEV outperforms 54.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.27%, ABEV belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
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 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 84.85% 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 81.82% of the companies in the same industry.
In the last couple of years the Operating Margin of ABEV has declined.
Looking at the Gross Margin, with a value of 51.50%, ABEV is in the better half of the industry, outperforming 60.61% of the companies in the same 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
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.
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 4.41 indicates that ABEV is not in any danger for bankruptcy at the moment.
ABEV's Altman-Z score of 4.41 is amongst the best of the industry. ABEV outperforms 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.
A Debt/Equity ratio of 0.02 indicates that ABEV is not too dependend on debt financing.
ABEV's Debt to Equity ratio of 0.02 is amongst the best of the industry. ABEV outperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 4.41 |
ROIC/WACC1
WACC19.23%
2.3 Liquidity
A Current Ratio of 1.11 indicates that ABEV should not have too much problems paying its short term obligations.
ABEV has a Current ratio (1.11) which is in line with its industry peers.
A Quick Ratio of 0.80 indicates that ABEV may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.80, ABEV is in line with its industry, outperforming 51.52% of the companies in the same industry.
| 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%.
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.
Looking at the last year, ABEV shows a quite strong growth in Revenue. The Revenue has grown by 12.18% in the last year.
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
ABEV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.32% yearly.
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.
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
With a Price/Earnings ratio of 14.22, ABEV is valued correctly.
Based on the Price/Earnings ratio, ABEV is valued a bit cheaper than 72.73% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. ABEV is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.47, which indicates a correct valuation of ABEV.
ABEV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ABEV is cheaper than 72.73% of the companies in the same industry.
ABEV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 13.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABEV indicates a rather cheap valuation: ABEV is cheaper than 90.91% of the companies listed in the same industry.
ABEV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ABEV is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.93 | ||
| EV/EBITDA | 6.59 |
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)2.28
PEG (5Y)4.19
EPS Next 2Y5.78%
EPS Next 3Y6.58%
5. Dividend
5.1 Amount
ABEV has a Yearly Dividend Yield of 2.45%.
Compared to an average industry Dividend Yield of 1.77, ABEV pays a bit more dividend than its industry peers.
ABEV's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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%
2.56
+0.06 (+2.4%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners8.7%
Inst Owner Change-0.04%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap39.92B
Revenue(TTM)89.45B
Net Income(TTM)14.75B
Analysts53
Price Target2.49 (-2.73%)
Short Float %3.19%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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)-7.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 13.47 | ||
| P/S | 2.35 | ||
| P/FCF | 9.93 | ||
| P/OCF | 8.19 | ||
| P/B | 2.33 | ||
| P/tB | 5.45 | ||
| EV/EBITDA | 6.59 |
EPS(TTM)0.18
EY7.03%
EPS(NY)0.19
Fwd EY7.42%
FCF(TTM)0.26
FCFY10.07%
OCF(TTM)0.31
OCFY12.22%
SpS1.09
BVpS1.1
TBVpS0.47
PEG (NY)2.28
PEG (5Y)4.19
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 | 4.41 |
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%.