COCA-COLA FEMSA SAB-SP ADR (KOF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KOF - US1912411089 - ADR
107.02 USD
-1.56 (-1.44%)
107.02 USD
0 (0%)
Overall KOF gets a fundamental rating of 4 out of 10. We evaluated KOF against 32 industry peers in the Beverages industry. There are concerns on the financial health of KOF while its profitability can be described as average. KOF has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year KOF was profitable.
- KOF had a positive operating cash flow in the past year.
- KOF had positive earnings in each of the past 5 years.
- Each year in the past 5 years KOF had a positive operating cash flow.
1.2 Ratios
- KOF has a Return On Assets of 7.50%. This is in the better half of the industry: KOF outperforms 65.63% of its industry peers.
- KOF has a Return On Equity of 16.72%. This is comparable to the rest of the industry: KOF outperforms 59.38% of its industry peers.
- KOF has a better Return On Invested Capital (11.40%) than 68.75% of its industry peers.
- KOF had an Average Return On Invested Capital over the past 3 years of 10.37%. This is in line with the industry average of 11.62%.
- The 3 year average ROIC (10.37%) for KOF is below the current ROIC(11.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 16.72% | ||
| ROIC | 11.4% |
ROA(3y)7.23%
ROA(5y)6.28%
ROE(3y)15.7%
ROE(5y)13.77%
ROIC(3y)10.37%
ROIC(5y)9.3%
1.3 Margins
- With a Profit Margin value of 8.12%, KOF perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
- In the last couple of years the Profit Margin of KOF has grown nicely.
- KOF has a Operating Margin (14.04%) which is comparable to the rest of the industry.
- KOF's Operating Margin has been stable in the last couple of years.
- KOF's Gross Margin of 45.76% is in line compared to the rest of the industry. KOF outperforms 46.88% of its industry peers.
- In the last couple of years the Gross Margin of KOF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.04% | ||
| PM (TTM) | 8.12% | ||
| GM | 45.76% |
OM growth 3Y0.02%
OM growth 5Y1.31%
PM growth 3Y1.7%
PM growth 5Y6.39%
GM growth 3Y0.39%
GM growth 5Y0.45%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KOF is creating some value.
- The number of shares outstanding for KOF remains at a similar level compared to 1 year ago.
- KOF has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for KOF is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.22 indicates that KOF is not in any danger for bankruptcy at the moment.
- KOF has a better Altman-Z score (3.22) than 62.50% of its industry peers.
- The Debt to FCF ratio of KOF is 12.08, which is on the high side as it means it would take KOF, 12.08 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of KOF (12.08) is worse than 68.75% of its industry peers.
- A Debt/Equity ratio of 0.54 indicates that KOF is somewhat dependend on debt financing.
- KOF has a Debt to Equity ratio (0.54) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 12.08 | ||
| Altman-Z | 3.22 |
ROIC/WACC1.5
WACC7.61%
2.3 Liquidity
- KOF has a Current Ratio of 1.10. This is a normal value and indicates that KOF is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.10, KOF is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
- KOF has a Quick Ratio of 1.10. This is a bad value and indicates that KOF is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 0.90, KOF is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 38.16% over the past year.
- Measured over the past years, KOF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.46% on average per year.
- Looking at the last year, KOF shows a very negative growth in Revenue. The Revenue has decreased by -12.34% in the last year.
- Measured over the past years, KOF shows a small growth in Revenue. The Revenue has been growing by 7.55% on average per year.
EPS 1Y (TTM)38.16%
EPS 3Y23.13%
EPS 5Y14.46%
EPS Q2Q%1.08%
Revenue 1Y (TTM)-12.34%
Revenue growth 3Y12.83%
Revenue growth 5Y7.55%
Sales Q2Q%3.28%
3.2 Future
- Based on estimates for the next years, KOF will show a small growth in Earnings Per Share. The EPS will grow by 6.59% on average per year.
- Based on estimates for the next years, KOF will show a small growth in Revenue. The Revenue will grow by 6.12% on average per year.
EPS Next Y2.68%
EPS Next 2Y6.04%
EPS Next 3Y6.59%
EPS Next 5YN/A
Revenue Next Year8.37%
Revenue Next 2Y7.38%
Revenue Next 3Y6.65%
Revenue Next 5Y6.12%
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 decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- KOF is valuated correctly with a Price/Earnings ratio of 16.44.
- Compared to the rest of the industry, the Price/Earnings ratio of KOF indicates a somewhat cheap valuation: KOF is cheaper than 68.75% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, KOF is valued a bit cheaper.
- KOF is valuated correctly with a Price/Forward Earnings ratio of 14.57.
- KOF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KOF is cheaper than 71.88% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, KOF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 14.57 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KOF is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KOF indicates a slightly more expensive valuation: KOF is more expensive than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.37 | ||
| EV/EBITDA | 8.07 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- KOF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.13
PEG (5Y)1.14
EPS Next 2Y6.04%
EPS Next 3Y6.59%
5. Dividend
5.1 Amount
- KOF has a Yearly Dividend Yield of 3.76%. Purely for dividend investing, there may be better candidates out there.
- KOF's Dividend Yield is rather good when compared to the industry average which is at 1.66. KOF pays more dividend than 87.50% of the companies in the same industry.
- KOF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
5.2 History
- On average, the dividend of KOF grows each year by 11.58%, which is quite nice.
- KOF has paid a dividend for at least 10 years, which is a reliable track record.
- KOF has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)11.58%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- KOF pays out 60.53% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of KOF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.53%
EPS Next 2Y6.04%
EPS Next 3Y6.59%
COCA-COLA FEMSA SAB-SP ADR / KOF FAQ
What is the fundamental rating for KOF stock?
ChartMill assigns a fundamental rating of 4 / 10 to KOF.
What is the valuation status for KOF stock?
ChartMill assigns a valuation rating of 4 / 10 to COCA-COLA FEMSA SAB-SP ADR (KOF). This can be considered as Fairly Valued.
Can you provide the profitability details for COCA-COLA FEMSA SAB-SP ADR?
COCA-COLA FEMSA SAB-SP ADR (KOF) has a profitability rating of 6 / 10.
How financially healthy is COCA-COLA FEMSA SAB-SP ADR?
The financial health rating of COCA-COLA FEMSA SAB-SP ADR (KOF) is 3 / 10.
Can you provide the dividend sustainability for KOF stock?
The dividend rating of COCA-COLA FEMSA SAB-SP ADR (KOF) is 6 / 10 and the dividend payout ratio is 60.53%.