AMBEV SA-ADR (ABEV) Stock Fundamental Analysis
NYSE:ABEV - New York Stock Exchange, Inc. - US02319V1035 - ADR - Currency: USD
Taking everything into account, ABEV scores 6 out of 10 in our fundamental rating. ABEV was compared to 31 industry peers in the Beverages industry. ABEV has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on ABEV. ABEV also has an excellent dividend rating. With these ratings, ABEV could be worth investigating further for value and dividend 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.
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
The Return On Assets of ABEV (10.04%) is better than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 15.11%, ABEV is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
The Return On Invested Capital of ABEV (14.19%) is better than 78.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ABEV is in line with the industry average of 13.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.04% | ||
| ROE | 15.11% | ||
| ROIC | 14.19% |
ROA(3y)10.19%
ROA(5y)10.24%
ROE(3y)17.11%
ROE(5y)17.2%
ROIC(3y)14.9%
ROIC(5y)15.16%
1.3 Margins
Looking at the Profit Margin, with a value of 17.85%, ABEV belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of ABEV has declined.
Looking at the Operating Margin, with a value of 24.24%, ABEV is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ABEV has declined.
ABEV has a Gross Margin (50.83%) which is in line with its industry peers.
In the last couple of years the Gross Margin of ABEV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.24% | ||
| PM (TTM) | 17.85% | ||
| GM | 50.83% |
OM growth 3Y-5.32%
OM growth 5Y-7%
PM growth 3Y-2.28%
PM growth 5Y-3.64%
GM growth 3Y-1.84%
GM growth 5Y-3.84%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ABEV is destroying value.
The number of shares outstanding for ABEV remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ABEV has more shares outstanding
The debt/assets ratio for ABEV has been reduced compared to a year ago.
2.2 Solvency
ABEV has an Altman-Z score of 3.73. This indicates that ABEV is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.73, ABEV is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
ABEV has a debt to FCF ratio of 0.17. This is a very positive value and a sign of high solvency as it would only need 0.17 years to pay back of all of its debts.
ABEV's Debt to FCF ratio of 0.17 is amongst the best of the industry. ABEV outperforms 85.71% 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.
Looking at the Debt to Equity ratio, with a value of 0.02, ABEV belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.17 | ||
| Altman-Z | 3.73 |
ROIC/WACC0.87
WACC16.35%
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's Current ratio of 1.11 is in line compared to the rest of the industry. ABEV outperforms 42.86% of its industry peers.
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 (0.78) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
ABEV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.25%.
The Earnings Per Share has been growing slightly by 5.25% on average over the past years.
The Revenue has been growing slightly by 0.04% in the past year.
ABEV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.68% yearly.
EPS 1Y (TTM)-8.25%
EPS 3Y8.21%
EPS 5Y5.25%
EPS Q2Q%-12%
Revenue 1Y (TTM)0.04%
Revenue growth 3Y10.95%
Revenue growth 5Y9.68%
Sales Q2Q%8.76%
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 8.92% on average per year.
Based on estimates for the next years, ABEV will show a small growth in Revenue. The Revenue will grow by 6.00% on average per year.
EPS Next Y1.01%
EPS Next 2Y4.33%
EPS Next 3Y5.63%
EPS Next 5Y8.92%
Revenue Next Year4.55%
Revenue Next 2Y5.09%
Revenue Next 3Y5.64%
Revenue Next 5Y6%
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 12.00, the valuation of ABEV can be described as correct.
ABEV's Price/Earnings ratio is rather cheap when compared to the industry. ABEV is cheaper than 85.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of ABEV to the average of the S&P500 Index (29.63), we can say ABEV is valued rather cheaply.
The Price/Forward Earnings ratio is 10.76, which indicates a very decent valuation of ABEV.
Based on the Price/Forward Earnings ratio, ABEV is valued cheaper than 85.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ABEV to the average of the S&P500 Index (22.68), we can say ABEV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 10.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABEV is valued cheaper than 96.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABEV indicates a rather cheap valuation: ABEV is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.46 | ||
| EV/EBITDA | 6.06 |
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)11.83
PEG (5Y)2.28
EPS Next 2Y4.33%
EPS Next 3Y5.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.34%, ABEV is a good candidate for dividend investing.
ABEV's Dividend Yield is rather good when compared to the industry average which is at 3.28. ABEV pays more dividend than 92.86% of the companies in the same industry.
ABEV's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
5.2 History
The dividend of ABEV is nicely growing with an annual growth rate of 6.19%!
ABEV has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)6.19%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ABEV pays out 82.33% of its income as dividend. This is not a sustainable payout ratio.
ABEV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP82.33%
EPS Next 2Y4.33%
EPS Next 3Y5.63%
1.92
+0.01 (+0.52%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners8.92%
Inst Owner Change2.31%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap30.20B
Analysts76.52
Price Target2.55 (32.81%)
Short Float %0.72%
Short Ratio0.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
Yearly Dividend0.76
Dividend Growth(5Y)6.19%
DP82.33%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.72%
Min EPS beat(2)-11.29%
Max EPS beat(2)3.86%
EPS beat(4)2
Avg EPS beat(4)1.46%
Min EPS beat(4)-11.29%
Max EPS beat(4)15.58%
EPS beat(8)5
Avg EPS beat(8)6.63%
EPS beat(12)8
Avg EPS beat(12)11.76%
EPS beat(16)12
Avg EPS beat(16)17.49%
Revenue beat(2)1
Avg Revenue beat(2)-1.68%
Min Revenue beat(2)-3.38%
Max Revenue beat(2)0.03%
Revenue beat(4)1
Avg Revenue beat(4)-5.68%
Min Revenue beat(4)-12.33%
Max Revenue beat(4)0.03%
Revenue beat(8)1
Avg Revenue beat(8)-4.78%
Revenue beat(12)4
Avg Revenue beat(12)-2.59%
Revenue beat(16)7
Avg Revenue beat(16)-0.44%
PT rev (1m)0%
PT rev (3m)-6.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 10.76 | ||
| P/S | 2.13 | ||
| P/FCF | 8.46 | ||
| P/OCF | 6.63 | ||
| P/B | 1.81 | ||
| P/tB | 4.14 | ||
| EV/EBITDA | 6.06 |
EPS(TTM)0.16
EY8.33%
EPS(NY)0.18
Fwd EY9.3%
FCF(TTM)0.23
FCFY11.82%
OCF(TTM)0.29
OCFY15.07%
SpS0.9
BVpS1.06
TBVpS0.46
PEG (NY)11.83
PEG (5Y)2.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.04% | ||
| ROE | 15.11% | ||
| ROCE | 17.96% | ||
| ROIC | 14.19% | ||
| ROICexc | 16.52% | ||
| ROICexgc | 38.82% | ||
| OM | 24.24% | ||
| PM (TTM) | 17.85% | ||
| GM | 50.83% | ||
| FCFM | 25.24% |
ROA(3y)10.19%
ROA(5y)10.24%
ROE(3y)17.11%
ROE(5y)17.2%
ROIC(3y)14.9%
ROIC(5y)15.16%
ROICexc(3y)18.05%
ROICexc(5y)18.4%
ROICexgc(3y)48.25%
ROICexgc(5y)50.27%
ROCE(3y)18.87%
ROCE(5y)19.19%
ROICexcg growth 3Y2.5%
ROICexcg growth 5Y-5.19%
ROICexc growth 3Y3.93%
ROICexc growth 5Y-2.84%
OM growth 3Y-5.32%
OM growth 5Y-7%
PM growth 3Y-2.28%
PM growth 5Y-3.64%
GM growth 3Y-1.84%
GM growth 5Y-3.84%
F-Score7
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.17 | ||
| Debt/EBITDA | 0.08 | ||
| Cap/Depr | 85.63% | ||
| Cap/Sales | 6.94% | ||
| Interest Coverage | 30.11 | ||
| Cash Conversion | 99.49% | ||
| Profit Quality | 141.35% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 3.73 |
F-Score7
WACC16.35%
ROIC/WACC0.87
Cap/Depr(3y)115.16%
Cap/Depr(5y)108.95%
Cap/Sales(3y)8.75%
Cap/Sales(5y)8.81%
Profit Quality(3y)115.58%
Profit Quality(5y)116.84%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.25%
EPS 3Y8.21%
EPS 5Y5.25%
EPS Q2Q%-12%
EPS Next Y1.01%
EPS Next 2Y4.33%
EPS Next 3Y5.63%
EPS Next 5Y8.92%
Revenue 1Y (TTM)0.04%
Revenue growth 3Y10.95%
Revenue growth 5Y9.68%
Sales Q2Q%8.76%
Revenue Next Year4.55%
Revenue Next 2Y5.09%
Revenue Next 3Y5.64%
Revenue Next 5Y6%
EBIT growth 1Y8.21%
EBIT growth 3Y5.04%
EBIT growth 5Y2.01%
EBIT Next Year43.8%
EBIT Next 3Y17.18%
EBIT Next 5Y13.14%
FCF growth 1Y49.69%
FCF growth 3Y9.72%
FCF growth 5Y4.83%
OCF growth 1Y23.88%
OCF growth 3Y9.43%
OCF growth 5Y6.14%