COCA-COLA FEMSA SAB-SP ADR (KOF) Stock Fundamental Analysis
NYSE:KOF - New York Stock Exchange, Inc. - US1912411089 - ADR
We assign a fundamental rating of 6 out of 10 to KOF. KOF was compared to 31 industry peers in the Beverages industry. KOF has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on KOF. Finally KOF also has an excellent dividend rating. With these ratings, KOF could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year KOF was profitable.
In the past year KOF had a positive cash flow from operations.
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 better Return On Assets (8.69%) than 64.29% of its industry peers.
KOF's Return On Equity of 19.07% is fine compared to the rest of the industry. KOF outperforms 67.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.96%, KOF is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KOF is below the industry average of 13.61%.
The 3 year average ROIC (9.93%) for KOF is below the current ROIC(13.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 19.07% | ||
| ROIC | 13.96% |
ROA(3y)6.59%
ROA(5y)5.68%
ROE(3y)14.49%
ROE(5y)12.43%
ROIC(3y)9.93%
ROIC(5y)9.24%
1.3 Margins
KOF has a Profit Margin of 8.06%. This is comparable to the rest of the industry: KOF outperforms 50.00% of its industry peers.
KOF's Profit Margin has been stable in the last couple of years.
KOF has a Operating Margin (13.84%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KOF has remained more or less at the same level.
KOF's Gross Margin of 45.48% is in line compared to the rest of the industry. KOF outperforms 50.00% of its industry peers.
KOF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.84% | ||
| PM (TTM) | 8.06% | ||
| GM | 45.48% |
OM growth 3Y3.05%
OM growth 5Y1.05%
PM growth 3Y12.4%
PM growth 5Y0.88%
GM growth 3Y0.1%
GM growth 5Y-0.35%
2. Health
2.1 Basic Checks
KOF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
KOF has about the same amout of shares outstanding than it did 1 year ago.
KOF has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for KOF has been reduced compared to a year ago.
2.2 Solvency
KOF has an Altman-Z score of 3.24. This indicates that KOF is financially healthy and has little risk of bankruptcy at the moment.
KOF's Altman-Z score of 3.24 is in line compared to the rest of the industry. KOF outperforms 53.57% of its industry peers.
The Debt to FCF ratio of KOF is 3.99, which is a good value as it means it would take KOF, 3.99 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.99, KOF is doing good in the industry, outperforming 75.00% of the companies in the same industry.
KOF has a Debt/Equity ratio of 0.51. This is a neutral value indicating KOF is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.51, KOF is doing good in the industry, outperforming 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.99 | ||
| Altman-Z | 3.24 |
ROIC/WACC1.06
WACC13.16%
2.3 Liquidity
KOF has a Current Ratio of 1.14. 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 1.14, KOF perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
KOF has a Quick Ratio of 1.14. This is a bad value and indicates that KOF is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.94, KOF is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
KOF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.78%.
KOF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.41% yearly.
The Revenue has grown by 10.68% in the past year. This is quite good.
KOF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.09% yearly.
EPS 1Y (TTM)-19.78%
EPS 3Y13.05%
EPS 5Y6.41%
EPS Q2Q%8.59%
Revenue 1Y (TTM)10.68%
Revenue growth 3Y10.1%
Revenue growth 5Y6.09%
Sales Q2Q%10.74%
3.2 Future
The Earnings Per Share is expected to grow by 24.60% on average over the next years. This is a very strong growth
KOF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.75% yearly.
EPS Next Y55.46%
EPS Next 2Y32.97%
EPS Next 3Y24.6%
EPS Next 5YN/A
Revenue Next Year9.06%
Revenue Next 2Y9.99%
Revenue Next 3Y9.07%
Revenue Next 5Y8.75%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.19 indicates a rather expensive valuation of KOF.
64.29% of the companies in the same industry are more expensive than KOF, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KOF to the average of the S&P500 Index (28.29), we can say KOF is valued slightly cheaper.
KOF is valuated correctly with a Price/Forward Earnings ratio of 12.50.
82.14% of the companies in the same industry are more expensive than KOF, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.44. KOF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.19 | ||
| Fwd PE | 12.5 |
4.2 Price Multiples
92.86% of the companies in the same industry are more expensive than KOF, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KOF is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.5 | ||
| EV/EBITDA | 6.28 |
4.3 Compensation for Growth
KOF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KOF has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as KOF's earnings are expected to grow with 24.60% in the coming years.
PEG (NY)0.35
PEG (5Y)2.99
EPS Next 2Y32.97%
EPS Next 3Y24.6%
5. Dividend
5.1 Amount
KOF has a Yearly Dividend Yield of 3.76%.
KOF's Dividend Yield is rather good when compared to the industry average which is at 3.21. KOF pays more dividend than 89.29% of the companies in the same industry.
KOF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
5.2 History
On average, the dividend of KOF grows each year by 11.77%, 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)11.77%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
47.31% of the earnings are spent on dividend by KOF. This is a bit on the high side, but may be sustainable.
The dividend of KOF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP47.31%
EPS Next 2Y32.97%
EPS Next 3Y24.6%
COCA-COLA FEMSA SAB-SP ADR
NYSE:KOF (1/22/2025, 3:39:51 PM)
75.42
-0.13 (-0.17%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners17.11%
Inst Owner Change-0.6%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap15.84B
Analysts81.9
Price Target83.03 (10.09%)
Short Float %3.5%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
Yearly Dividend0.73
Dividend Growth(5Y)11.77%
DP47.31%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.27%
Min EPS beat(2)2.07%
Max EPS beat(2)2.47%
EPS beat(4)3
Avg EPS beat(4)-19.37%
Min EPS beat(4)-88.41%
Max EPS beat(4)6.39%
EPS beat(8)5
Avg EPS beat(8)-1.36%
EPS beat(12)6
Avg EPS beat(12)-16.98%
EPS beat(16)9
Avg EPS beat(16)-16.41%
Revenue beat(2)2
Avg Revenue beat(2)1.44%
Min Revenue beat(2)1.06%
Max Revenue beat(2)1.82%
Revenue beat(4)4
Avg Revenue beat(4)1.68%
Min Revenue beat(4)0.23%
Max Revenue beat(4)3.63%
Revenue beat(8)6
Avg Revenue beat(8)0.65%
Revenue beat(12)10
Avg Revenue beat(12)27.24%
Revenue beat(16)12
Avg Revenue beat(16)38.29%
PT rev (1m)0.17%
PT rev (3m)-10.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.46%
EPS NY rev (1m)0%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.97%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.19 | ||
| Fwd PE | 12.5 | ||
| P/S | 0.99 | ||
| P/FCF | 17.5 | ||
| P/OCF | 7.59 | ||
| P/B | 2.34 | ||
| P/tB | 9.03 | ||
| EV/EBITDA | 6.28 |
EPS(TTM)3.93
EY5.21%
EPS(NY)6.03
Fwd EY8%
FCF(TTM)4.31
FCFY5.71%
OCF(TTM)9.94
OCFY13.18%
SpS76.13
BVpS32.19
TBVpS8.35
PEG (NY)0.35
PEG (5Y)2.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 19.07% | ||
| ROCE | 19.37% | ||
| ROIC | 13.96% | ||
| ROICexc | 17.03% | ||
| ROICexgc | 36.6% | ||
| OM | 13.84% | ||
| PM (TTM) | 8.06% | ||
| GM | 45.48% | ||
| FCFM | 5.66% |
ROA(3y)6.59%
ROA(5y)5.68%
ROE(3y)14.49%
ROE(5y)12.43%
ROIC(3y)9.93%
ROIC(5y)9.24%
ROICexc(3y)12.07%
ROICexc(5y)11.09%
ROICexgc(3y)27.58%
ROICexgc(5y)25.96%
ROCE(3y)13.8%
ROCE(5y)12.85%
ROICexcg growth 3Y7.68%
ROICexcg growth 5Y5.1%
ROICexc growth 3Y11.46%
ROICexc growth 5Y8.05%
OM growth 3Y3.05%
OM growth 5Y1.05%
PM growth 3Y12.4%
PM growth 5Y0.88%
GM growth 3Y0.1%
GM growth 5Y-0.35%
F-Score5
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.99 | ||
| Debt/EBITDA | 1.25 | ||
| Cap/Depr | 215.41% | ||
| Cap/Sales | 7.4% | ||
| Interest Coverage | 9.49 | ||
| Cash Conversion | 75.59% | ||
| Profit Quality | 70.2% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 3.24 |
F-Score5
WACC13.16%
ROIC/WACC1.06
Cap/Depr(3y)155.87%
Cap/Depr(5y)135.42%
Cap/Sales(3y)7.12%
Cap/Sales(5y)6.56%
Profit Quality(3y)116.29%
Profit Quality(5y)150.98%
High Growth Momentum
Growth
EPS 1Y (TTM)-19.78%
EPS 3Y13.05%
EPS 5Y6.41%
EPS Q2Q%8.59%
EPS Next Y55.46%
EPS Next 2Y32.97%
EPS Next 3Y24.6%
EPS Next 5YN/A
Revenue 1Y (TTM)10.68%
Revenue growth 3Y10.1%
Revenue growth 5Y6.09%
Sales Q2Q%10.74%
Revenue Next Year9.06%
Revenue Next 2Y9.99%
Revenue Next 3Y9.07%
Revenue Next 5Y8.75%
EBIT growth 1Y13.19%
EBIT growth 3Y13.46%
EBIT growth 5Y7.21%
EBIT Next Year52.6%
EBIT Next 3Y22.13%
EBIT Next 5Y16.33%
FCF growth 1Y3.27%
FCF growth 3Y-4.93%
FCF growth 5Y5.86%
OCF growth 1Y39.71%
OCF growth 3Y6.36%
OCF growth 5Y8.92%