COCA-COLA FEMSA SAB-SP ADR (KOF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KOF - US1912411089 - ADR
104.01 USD
-3.01 (-2.81%)
104.01 USD
0 (0%)
Taking everything into account, KOF scores 5 out of 10 in our fundamental rating. KOF was compared to 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 correct valuation and a medium growth rate.
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
- With a decent Return On Assets value of 7.50%, KOF is doing good in the industry, outperforming 65.63% of the companies in the same industry.
- KOF has a Return On Equity (16.72%) which is comparable to the rest of the industry.
- KOF's Return On Invested Capital of 11.40% is fine compared to the rest of the industry. KOF outperforms 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 last Return On Invested Capital (11.40%) for KOF is above the 3 year average (10.37%), which is a sign of increasing profitability.
| 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.
- The Operating Margin of KOF (14.04%) 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
- 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.
- Compared to 5 years ago, KOF has about the same amount of shares outstanding.
- The debt/assets ratio for KOF is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.19 indicates that KOF is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.19, KOF is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 12.08, KOF is doing worse than 68.75% of the companies in the same industry.
- 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 | 3.19 |
ROIC/WACC1.5
WACC7.58%
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.
- KOF's Current ratio of 1.10 is on the low side compared to the rest of the industry. KOF is outperformed by 65.63% 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 Quick ratio of 0.90. This is in the better half of the industry: KOF outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- KOF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.16%, 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 a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.34%.
- The Revenue has been growing slightly by 7.55% on average over the past years.
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
- KOF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.59% yearly.
- The Revenue is expected to grow by 6.12% on average over the next years.
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 15.86.
- Based on the Price/Earnings ratio, KOF is valued a bit cheaper than 68.75% of the companies in the same industry.
- When comparing the Price/Earnings ratio of KOF to the average of the S&P500 Index (28.39), we can say KOF is valued slightly cheaper.
- The Price/Forward Earnings ratio is 14.04, which indicates a correct valuation of KOF.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KOF indicates a somewhat cheap valuation: KOF is cheaper than 71.88% of the companies listed in the same industry.
- KOF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.86 | ||
| Fwd PE | 14.04 |
4.2 Price Multiples
- 87.50% of the companies in the same industry are more expensive than KOF, based on the Enterprise Value to EBITDA ratio.
- The rest of the industry has a similar Price/Free Cash Flow ratio as KOF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.26 | ||
| EV/EBITDA | 7.91 |
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)5.92
PEG (5Y)1.1
EPS Next 2Y6.04%
EPS Next 3Y6.59%
5. Dividend
5.1 Amount
- KOF has a Yearly Dividend Yield of 3.76%.
- Compared to an average industry Dividend Yield of 1.66, KOF pays a better dividend. On top of this KOF pays more dividend than 87.50% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, KOF pays a better dividend.
| 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 5 / 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%.