COCA-COLA FEMSA SAB-SP ADR (KOF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KOF - US1912411089 - ADR
106.53 USD
+1.75 (+1.67%)
106.53 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. KOF scores excellent on profitability, but there are concerns on its financial health. KOF has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- KOF had positive earnings in the past year.
- KOF had a positive operating cash flow in the past year.
- In the past 5 years KOF has always been profitable.
- In the past 5 years KOF always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 7.50%, KOF is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- KOF has a Return On Equity of 16.72%. This is in the better half of the industry: KOF outperforms 60.61% of its industry peers.
- KOF has a Return On Invested Capital of 11.40%. This is in the better half of the industry: KOF outperforms 69.70% 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 11.62%.
- 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
- KOF's Profit Margin of 8.12% is fine compared to the rest of the industry. KOF outperforms 60.61% of its industry peers.
- KOF's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 14.04%, KOF perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
- KOF's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 45.76%, KOF is in line with its industry, outperforming 48.48% of the companies in the same 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 | 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KOF is still creating some value.
- Compared to 1 year ago, KOF has about the same amount of shares outstanding.
- The number of shares outstanding for KOF remains at a similar level compared to 5 years ago.
- Compared to 1 year ago, KOF has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.20 indicates that KOF is not in any danger for bankruptcy at the moment.
- KOF has a Altman-Z score of 3.20. This is in the better half of the industry: KOF outperforms 63.64% of its industry peers.
- KOF has a debt to FCF ratio of 12.08. This is a negative value and a sign of low solvency as KOF would need 12.08 years to pay back of all of its debts.
- KOF has a worse Debt to FCF ratio (12.08) than 69.70% of its industry peers.
- A Debt/Equity ratio of 0.54 indicates that KOF is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.54, KOF is in line with its industry, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 12.08 | ||
| Altman-Z | 3.2 |
ROIC/WACC1.52
WACC7.52%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that KOF should not have too much problems paying its short term obligations.
- KOF has a Current ratio of 1.10. This is in the lower half of the industry: KOF underperforms 63.64% of its industry peers.
- A Quick Ratio of 0.90 indicates that KOF may have some problems paying its short term obligations.
- KOF's Quick ratio of 0.90 is fine compared to the rest of the industry. KOF outperforms 63.64% of its industry peers.
| 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.
- KOF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.46% yearly.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 16.49, the valuation of KOF can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of KOF indicates a somewhat cheap valuation: KOF is cheaper than 66.67% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of KOF to the average of the S&P500 Index (27.21), we can say KOF is valued slightly cheaper.
- KOF is valuated correctly with a Price/Forward Earnings ratio of 14.62.
- KOF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KOF is cheaper than 69.70% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, KOF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 14.62 |
4.2 Price Multiples
- KOF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KOF is cheaper than 84.85% of the companies in the same industry.
- KOF's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. KOF is more expensive than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.59 | ||
| EV/EBITDA | 7.99 |
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)6.15
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%.
- KOF's Dividend Yield is rather good when compared to the industry average which is at 1.66. KOF pays more dividend than 84.85% of the companies in the same industry.
- KOF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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 5 / 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 7 / 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%.