COCA-COLA FEMSA SAB-SP ADR (KOF) Stock Fundamental Analysis
USA - NYSE:KOF - US1912411089 - ADR
85.74 USD
-1.56 (-1.79%)
85.74 USD
0 (0%)
Overall KOF gets a fundamental rating of 5 out of 10. We evaluated KOF against 32 industry peers in the Beverages industry. While KOF is still in line with the averages on profitability rating, there are concerns on its financial health. KOF has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years KOF has 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 7.52% is fine compared to the rest of the industry. KOF outperforms 68.75% of its industry peers.
KOF has a better Return On Equity (17.23%) than 62.50% of its industry peers.
KOF has a Return On Invested Capital of 11.33%. This is in the better half of the industry: KOF outperforms 65.63% 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 11.08%.
The 3 year average ROIC (10.37%) for KOF is below the current ROIC(11.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 17.23% | ||
| ROIC | 11.33% |
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
Looking at the Profit Margin, with a value of 8.18%, KOF is in line with its industry, outperforming 59.38% of the companies in the same industry.
KOF's Profit Margin has improved in the last couple of years.
KOF has a Operating Margin of 13.97%. This is comparable to the rest of the industry: KOF outperforms 59.38% of its industry peers.
KOF's Operating Margin has been stable in the last couple of years.
KOF has a Gross Margin (46.02%) which is comparable to the rest of the industry.
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 | 13.97% | ||
| PM (TTM) | 8.18% | ||
| GM | 46.02% |
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.
The number of shares outstanding for KOF remains at a similar level compared to 5 years ago.
The debt/assets ratio for KOF is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.96 indicates that KOF is not a great score, but indicates only limited risk for bankruptcy at the moment.
KOF has a Altman-Z score (2.96) which is comparable to the rest of the industry.
KOF has a debt to FCF ratio of 12.76. This is a negative value and a sign of low solvency as KOF would need 12.76 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.76, KOF is doing worse than 62.50% of the companies in the same industry.
KOF has a Debt/Equity ratio of 0.58. This is a neutral value indicating KOF is somewhat dependend on debt financing.
KOF has a Debt to Equity ratio (0.58) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 12.76 | ||
| Altman-Z | 2.96 |
ROIC/WACC1.47
WACC7.69%
2.3 Liquidity
A Current Ratio of 1.12 indicates that KOF should not have too much problems paying its short term obligations.
KOF has a Current ratio of 1.12. This is comparable to the rest of the industry: KOF outperforms 40.63% of its industry peers.
A Quick Ratio of 0.90 indicates that KOF may have some problems paying its short term obligations.
KOF has a better Quick ratio (0.90) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.61% 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.
KOF shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.22%.
The Revenue has been growing slightly by 7.55% on average over the past years.
EPS 1Y (TTM)41.61%
EPS 3Y23.13%
EPS 5Y14.46%
EPS Q2Q%-5.24%
Revenue 1Y (TTM)-11.22%
Revenue growth 3Y12.83%
Revenue growth 5Y7.55%
Sales Q2Q%4.98%
3.2 Future
KOF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.54% yearly.
The Revenue is expected to grow by 6.82% on average over the next years.
EPS Next Y7.23%
EPS Next 2Y10.45%
EPS Next 3Y9.54%
EPS Next 5YN/A
Revenue Next Year9.52%
Revenue Next 2Y8.96%
Revenue Next 3Y7.94%
Revenue Next 5Y6.82%
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.
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
The Price/Earnings ratio is 14.13, which indicates a correct valuation of KOF.
Based on the Price/Earnings ratio, KOF is valued cheaper than 81.25% of the companies in the same industry.
KOF is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.50, the valuation of KOF can be described as reasonable.
Based on the Price/Forward Earnings ratio, KOF is valued cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. KOF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
KOF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KOF is cheaper than 93.75% of the companies in the same industry.
KOF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.29 | ||
| EV/EBITDA | 7.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KOF does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of KOF may justify a higher PE ratio.
PEG (NY)1.95
PEG (5Y)0.98
EPS Next 2Y10.45%
EPS Next 3Y9.54%
5. Dividend
5.1 Amount
KOF has a Yearly Dividend Yield of 3.76%.
Compared to an average industry Dividend Yield of 2.83, KOF pays a better dividend. On top of this KOF pays more dividend than 87.50% of the companies listed in the same industry.
KOF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
5.2 History
The dividend of KOF is nicely growing with an annual growth rate of 11.58%!
KOF has been paying a dividend for at least 10 years, so it has 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
58.19% of the earnings are spent on dividend by KOF. This is a bit on the high side, but may be sustainable.
KOF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP58.19%
EPS Next 2Y10.45%
EPS Next 3Y9.54%
85.74
-1.56 (-1.79%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners15.86%
Inst Owner Change-1.4%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap18.01B
Analysts79.05
Price Target91.46 (6.67%)
Short Float %6.66%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
Yearly Dividend0.41
Dividend Growth(5Y)11.58%
DP58.19%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.76%
Min EPS beat(2)-15.54%
Max EPS beat(2)-3.97%
EPS beat(4)2
Avg EPS beat(4)-0.76%
Min EPS beat(4)-15.54%
Max EPS beat(4)13.99%
EPS beat(8)5
Avg EPS beat(8)-8.66%
EPS beat(12)6
Avg EPS beat(12)-8.3%
EPS beat(16)7
Avg EPS beat(16)-18.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.24%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)-0.03%
Revenue beat(4)2
Avg Revenue beat(4)0.53%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)3.56%
Revenue beat(8)6
Avg Revenue beat(8)1.1%
Revenue beat(12)8
Avg Revenue beat(12)17.35%
Revenue beat(16)12
Avg Revenue beat(16)32.49%
PT rev (1m)-17.71%
PT rev (3m)-6.75%
EPS NQ rev (1m)-3.68%
EPS NQ rev (3m)-10.49%
EPS NY rev (1m)-5.83%
EPS NY rev (3m)-5.83%
Revenue NQ rev (1m)-1.7%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)-1.18%
Revenue NY rev (3m)-1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 11.5 | ||
| P/S | 1.15 | ||
| P/FCF | 50.29 | ||
| P/OCF | 10.09 | ||
| P/B | 2.43 | ||
| P/tB | 9.85 | ||
| EV/EBITDA | 7.09 |
EPS(TTM)6.07
EY7.08%
EPS(NY)7.46
Fwd EY8.7%
FCF(TTM)1.7
FCFY1.99%
OCF(TTM)8.5
OCFY9.91%
SpS74.3
BVpS35.26
TBVpS8.7
PEG (NY)1.95
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 17.23% | ||
| ROCE | 16.56% | ||
| ROIC | 11.33% | ||
| ROICexc | 13.4% | ||
| ROICexgc | 26.87% | ||
| OM | 13.97% | ||
| PM (TTM) | 8.18% | ||
| GM | 46.02% | ||
| FCFM | 2.29% |
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-Score4
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 12.76 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 199.77% | ||
| Cap/Sales | 9.14% | ||
| Interest Coverage | 7.68 | ||
| Cash Conversion | 61.66% | ||
| Profit Quality | 28.07% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 2.96 |
F-Score4
WACC7.69%
ROIC/WACC1.47
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)41.61%
EPS 3Y23.13%
EPS 5Y14.46%
EPS Q2Q%-5.24%
EPS Next Y7.23%
EPS Next 2Y10.45%
EPS Next 3Y9.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.22%
Revenue growth 3Y12.83%
Revenue growth 5Y7.55%
Sales Q2Q%4.98%
Revenue Next Year9.52%
Revenue Next 2Y8.96%
Revenue Next 3Y7.94%
Revenue Next 5Y6.82%
EBIT growth 1Y-9.75%
EBIT growth 3Y12.85%
EBIT growth 5Y8.96%
EBIT Next Year58.37%
EBIT Next 3Y22.48%
EBIT Next 5Y13.59%
FCF growth 1Y-63.3%
FCF growth 3Y-9.86%
FCF growth 5Y-3.15%
OCF growth 1Y-7.02%
OCF growth 3Y9.06%
OCF growth 5Y6.29%