COCA-COLA FEMSA SAB-SP ADR (KOF) Stock Fundamental Analysis
NYSE:KOF - New York Stock Exchange, Inc. - US1912411089 - ADR - Currency: USD
KOF gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. KOF has only an average score on both its financial health and profitability. KOF is not valued too expensively and it also shows a decent growth rate. KOF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KOF was profitable.
KOF had a positive operating cash flow in the past year.
In the past 5 years KOF has always been profitable.
Each year in the past 5 years KOF had a positive operating cash flow.
1.2 Ratios
KOF's Return On Assets of 9.25% is fine compared to the rest of the industry. KOF outperforms 75.76% of its industry peers.
Looking at the Return On Equity, with a value of 19.03%, KOF is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
KOF's Return On Invested Capital of 13.32% is fine compared to the rest of the industry. KOF outperforms 78.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KOF is in line with the industry average of 11.23%.
The last Return On Invested Capital (13.32%) for KOF is above the 3 year average (10.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.25% | ||
| ROE | 19.03% | ||
| ROIC | 13.32% |
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
KOF's Profit Margin of 8.25% is in line compared to the rest of the industry. KOF outperforms 57.58% of its industry peers.
In the last couple of years the Profit Margin of KOF has grown nicely.
KOF has a Operating Margin (14.02%) which is in line with its industry peers.
KOF's Operating Margin has been stable in the last couple of years.
The Gross Margin of KOF (45.88%) is comparable to the rest of the industry.
KOF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.02% | ||
| PM (TTM) | 8.25% | ||
| GM | 45.88% |
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
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 a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.51 indicates that KOF is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.51, KOF is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
KOF has a debt to FCF ratio of 8.61. This is a slightly negative value and a sign of low solvency as KOF would need 8.61 years to pay back of all of its debts.
KOF's Debt to FCF ratio of 8.61 is in line compared to the rest of the industry. KOF outperforms 48.48% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that KOF is not too dependend on debt financing.
KOF has a Debt to Equity ratio (0.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 8.61 | ||
| Altman-Z | 3.51 |
ROIC/WACC1.77
WACC7.54%
2.3 Liquidity
A Current Ratio of 1.21 indicates that KOF should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.21, KOF is in line with its industry, outperforming 48.48% of the companies in the same industry.
A Quick Ratio of 0.96 indicates that KOF may have some problems paying its short term obligations.
The Quick ratio of KOF (0.96) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
KOF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.61%, which is quite impressive.
The Earnings Per Share has been growing by 14.46% on average over the past years. This is quite good.
KOF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.14%.
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)49.61%
EPS 3Y23.13%
EPS 5Y14.46%
EPS Q2Q%2.94%
Revenue 1Y (TTM)13.14%
Revenue growth 3Y12.83%
Revenue growth 5Y7.55%
Sales Q2Q%9.96%
3.2 Future
The Earnings Per Share is expected to grow by 11.88% on average over the next years. This is quite good.
KOF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.19% yearly.
EPS Next Y13.87%
EPS Next 2Y12.96%
EPS Next 3Y11.88%
EPS Next 5YN/A
Revenue Next Year11.57%
Revenue Next 2Y9.93%
Revenue Next 3Y8.76%
Revenue Next 5Y7.19%
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 stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.70, the valuation of KOF can be described as correct.
KOF's Price/Earnings ratio is a bit cheaper when compared to the industry. KOF is cheaper than 78.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of KOF to the average of the S&P500 Index (27.52), we can say KOF is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 11.59, the valuation of KOF can be described as reasonable.
Based on the Price/Forward Earnings ratio, KOF is valued cheaper than 90.91% of the companies in the same industry.
KOF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.7 | ||
| Fwd PE | 11.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KOF indicates a rather cheap valuation: KOF is cheaper than 93.94% of the companies listed in the same industry.
KOF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.98 | ||
| EV/EBITDA | 6.43 |
4.3 Compensation for Growth
KOF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of KOF may justify a higher PE ratio.
PEG (NY)1.06
PEG (5Y)1.02
EPS Next 2Y12.96%
EPS Next 3Y11.88%
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 3.08. KOF pays more dividend than 81.82% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, KOF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
5.2 History
The dividend of KOF is nicely growing with an annual growth rate of 11.77%!
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
44.58% 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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP44.58%
EPS Next 2Y12.96%
EPS Next 3Y11.88%
89.21
-0.35 (-0.39%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners15.86%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap18.74B
Analysts79
Price Target97.48 (9.27%)
Short Float %4.01%
Short Ratio1.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
Yearly Dividend0.39
Dividend Growth(5Y)11.77%
DP44.58%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.01%
Min EPS beat(2)-3.97%
Max EPS beat(2)13.99%
EPS beat(4)3
Avg EPS beat(4)3.64%
Min EPS beat(4)-3.97%
Max EPS beat(4)13.99%
EPS beat(8)5
Avg EPS beat(8)-6.75%
EPS beat(12)6
Avg EPS beat(12)-13.93%
EPS beat(16)8
Avg EPS beat(16)-17.24%
Revenue beat(2)1
Avg Revenue beat(2)1.77%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)3.56%
Revenue beat(4)3
Avg Revenue beat(4)1.6%
Min Revenue beat(4)-0.03%
Max Revenue beat(4)3.56%
Revenue beat(8)6
Avg Revenue beat(8)1.26%
Revenue beat(12)9
Avg Revenue beat(12)26.66%
Revenue beat(16)13
Avg Revenue beat(16)38.95%
PT rev (1m)-0.62%
PT rev (3m)3.96%
EPS NQ rev (1m)-1.21%
EPS NQ rev (3m)-6.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.7 | ||
| Fwd PE | 11.59 | ||
| P/S | 1 | ||
| P/FCF | 38.98 | ||
| P/OCF | 9.56 | ||
| P/B | 2.31 | ||
| P/tB | 7.41 | ||
| EV/EBITDA | 6.43 |
EPS(TTM)6.07
EY6.8%
EPS(NY)7.7
Fwd EY8.63%
FCF(TTM)2.29
FCFY2.57%
OCF(TTM)9.33
OCFY10.46%
SpS88.9
BVpS38.54
TBVpS12.03
PEG (NY)1.06
PEG (5Y)1.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.25% | ||
| ROE | 19.03% | ||
| ROCE | 19.48% | ||
| ROIC | 13.32% | ||
| ROICexc | 15.24% | ||
| ROICexgc | 28.94% | ||
| OM | 14.02% | ||
| PM (TTM) | 8.25% | ||
| GM | 45.88% | ||
| FCFM | 2.57% |
ROA(3y)7.23%
ROA(5y)6.28%
ROE(3y)15.7%
ROE(5y)13.77%
ROIC(3y)10.37%
ROIC(5y)9.3%
ROICexc(3y)12.23%
ROICexc(5y)11.22%
ROICexgc(3y)26.27%
ROICexgc(5y)24.99%
ROCE(3y)15.19%
ROCE(5y)13.64%
ROICexcg growth 3Y0.34%
ROICexcg growth 5Y1.42%
ROICexc growth 3Y6.85%
ROICexc growth 5Y6.54%
OM growth 3Y0.02%
OM growth 5Y1.31%
PM growth 3Y1.7%
PM growth 5Y6.39%
GM growth 3Y0.39%
GM growth 5Y0.45%
F-Score8
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 8.61 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 217.56% | ||
| Cap/Sales | 7.93% | ||
| Interest Coverage | 9.5 | ||
| Cash Conversion | 59.45% | ||
| Profit Quality | 31.2% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 3.51 |
F-Score8
WACC7.54%
ROIC/WACC1.77
Cap/Depr(3y)192.91%
Cap/Depr(5y)155.89%
Cap/Sales(3y)8.49%
Cap/Sales(5y)7.2%
Profit Quality(3y)91.44%
Profit Quality(5y)132.71%
High Growth Momentum
Growth
EPS 1Y (TTM)49.61%
EPS 3Y23.13%
EPS 5Y14.46%
EPS Q2Q%2.94%
EPS Next Y13.87%
EPS Next 2Y12.96%
EPS Next 3Y11.88%
EPS Next 5YN/A
Revenue 1Y (TTM)13.14%
Revenue growth 3Y12.83%
Revenue growth 5Y7.55%
Sales Q2Q%9.96%
Revenue Next Year11.57%
Revenue Next 2Y9.93%
Revenue Next 3Y8.76%
Revenue Next 5Y7.19%
EBIT growth 1Y16.34%
EBIT growth 3Y12.85%
EBIT growth 5Y8.96%
EBIT Next Year58.37%
EBIT Next 3Y22.48%
EBIT Next 5Y14.17%
FCF growth 1Y-48.99%
FCF growth 3Y-9.86%
FCF growth 5Y-3.15%
OCF growth 1Y3.49%
OCF growth 3Y9.06%
OCF growth 5Y6.29%