COCA-COLA FEMSA SAB-SP ADR (KOF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KOF - US1912411089 - ADR
88.39 USD
+0.88 (+1.01%)
88.39 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to KOF. KOF was compared to 33 industry peers in the Beverages industry. While KOF belongs to the best of the industry regarding profitability, 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.
In the past year KOF had a positive cash flow from operations.
Each year in the past 5 years KOF has been profitable.
In the past 5 years KOF always reported a positive cash flow from operatings.
1.2 Ratios
KOF's Return On Assets of 7.50% is fine compared to the rest of the industry. KOF outperforms 69.70% of its industry peers.
KOF's Return On Equity of 16.72% is fine compared to the rest of the industry. KOF outperforms 63.64% of its industry peers.
KOF's Return On Invested Capital of 11.40% is fine compared to the rest 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 10.84%.
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 decent Profit Margin value of 8.12%, KOF is doing good in the industry, outperforming 63.64% of the companies in the same industry.
KOF's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.04%, KOF is in line with its industry, outperforming 57.58% of the companies in the same industry.
KOF's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 45.76%, KOF perfoms like the industry average, 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KOF 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.
KOF has a worse debt/assets ratio than last year.
2.2 Solvency
KOF has an Altman-Z score of 3.02. This indicates that KOF is financially healthy and has little risk of bankruptcy at the moment.
KOF has a better Altman-Z score (3.02) than 60.61% of its industry peers.
The Debt to FCF ratio of KOF is 12.08, which is on the high side as it means it would take KOF, 12.08 years of fcf income to pay off all of its debts.
KOF has a Debt to FCF ratio of 12.08. This is in the lower half of the industry: KOF underperforms 69.70% of its industry peers.
KOF has a Debt/Equity ratio of 0.54. This is a neutral value indicating 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 | 3.02 |
ROIC/WACC1.55
WACC7.36%
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.
Looking at the Current ratio, with a value of 1.10, KOF is doing worse than 63.64% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that KOF may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.90, KOF is doing good in the industry, outperforming 60.61% of the companies in the same industry.
| 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.
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.
Looking at the last year, KOF shows a very negative growth in Revenue. The Revenue has decreased by -12.34% in the last year.
KOF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.55% yearly.
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
The Earnings Per Share is expected to grow by 7.28% on average over the next years.
Based on estimates for the next years, KOF will show a small growth in Revenue. The Revenue will grow by 6.91% on average per year.
EPS Next Y3.17%
EPS Next 2Y7.45%
EPS Next 3Y7.28%
EPS Next 5YN/A
Revenue Next Year8.83%
Revenue Next 2Y7.93%
Revenue Next 3Y6.96%
Revenue Next 5Y6.91%
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
Based on the Price/Earnings ratio of 14.42, 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 69.70% of the companies listed in the same industry.
KOF is valuated rather cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
KOF is valuated correctly with a Price/Forward Earnings ratio of 12.45.
78.79% of the companies in the same industry are more expensive than KOF, based on the Price/Forward Earnings ratio.
KOF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
84.85% 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 a bit more expensive than the industry average as 60.61% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.2 | ||
| EV/EBITDA | 7.02 |
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)4.55
PEG (5Y)1
EPS Next 2Y7.45%
EPS Next 3Y7.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.76%, KOF has a reasonable but not impressive dividend return.
KOF's Dividend Yield is rather good when compared to the industry average which is at 3.04. 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 2.45.
| 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 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 2Y7.45%
EPS Next 3Y7.28%
88.39
+0.88 (+1.01%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners19.86%
Inst Owner Change-3.58%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap18.57B
Revenue(TTM)290.88B
Net Income(TTM)23.63B
Analysts79.05
Price Target93.94 (6.28%)
Short Float %4.83%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
Yearly Dividend0.42
Dividend Growth(5Y)11.58%
DP60.53%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.43%
Min EPS beat(2)-15.54%
Max EPS beat(2)4.69%
EPS beat(4)2
Avg EPS beat(4)-0.21%
Min EPS beat(4)-15.54%
Max EPS beat(4)13.99%
EPS beat(8)5
Avg EPS beat(8)-9.79%
EPS beat(12)7
Avg EPS beat(12)-0.98%
EPS beat(16)8
Avg EPS beat(16)-12.78%
Revenue beat(2)0
Avg Revenue beat(2)-2.43%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)-2.39%
Revenue beat(4)1
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)3.56%
Revenue beat(8)5
Avg Revenue beat(8)0.68%
Revenue beat(12)7
Avg Revenue beat(12)0.33%
Revenue beat(16)11
Avg Revenue beat(16)20.35%
PT rev (1m)5.92%
PT rev (3m)-15.48%
EPS NQ rev (1m)0.69%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)-1.31%
EPS NY rev (3m)-9.4%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 12.45 | ||
| P/S | 1.17 | ||
| P/FCF | 51.2 | ||
| P/OCF | 10.5 | ||
| P/B | 2.41 | ||
| P/tB | 8.95 | ||
| EV/EBITDA | 7.02 |
EPS(TTM)6.13
EY6.94%
EPS(NY)7.1
Fwd EY8.03%
FCF(TTM)1.73
FCFY1.95%
OCF(TTM)8.42
OCFY9.53%
SpS75.37
BVpS36.63
TBVpS9.88
PEG (NY)4.55
PEG (5Y)1
Graham Number71.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | 16.72% | ||
| ROCE | 16.67% | ||
| ROIC | 11.4% | ||
| ROICexc | 13.35% | ||
| ROICexgc | 26.36% | ||
| OM | 14.04% | ||
| PM (TTM) | 8.12% | ||
| GM | 45.76% | ||
| 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%
ROICexgc growth 3Y0.34%
ROICexgc 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 | 0.54 | ||
| Debt/FCF | 12.08 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 191.16% | ||
| Cap/Sales | 8.88% | ||
| Interest Coverage | 7.95 | ||
| Cash Conversion | 59.8% | ||
| Profit Quality | 28.19% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 3.02 |
F-Score4
WACC7.36%
ROIC/WACC1.55
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)38.16%
EPS 3Y23.13%
EPS 5Y14.46%
EPS Q2Q%1.08%
EPS Next Y3.17%
EPS Next 2Y7.45%
EPS Next 3Y7.28%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.34%
Revenue growth 3Y12.83%
Revenue growth 5Y7.55%
Sales Q2Q%3.28%
Revenue Next Year8.83%
Revenue Next 2Y7.93%
Revenue Next 3Y6.96%
Revenue Next 5Y6.91%
EBIT growth 1Y-11.11%
EBIT growth 3Y12.85%
EBIT growth 5Y8.96%
EBIT Next Year52.88%
EBIT Next 3Y20.95%
EBIT Next 5Y13.38%
FCF growth 1Y-73.43%
FCF growth 3Y-9.86%
FCF growth 5Y-3.15%
OCF growth 1Y-25.71%
OCF growth 3Y9.06%
OCF growth 5Y6.29%
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 of COCA-COLA FEMSA SAB-SP ADR (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.
What is the financial health of COCA-COLA FEMSA SAB-SP ADR (KOF) stock?
The financial health rating of COCA-COLA FEMSA SAB-SP ADR (KOF) is 3 / 10.
How sustainable is the dividend of COCA-COLA FEMSA SAB-SP ADR (KOF) stock?
The dividend rating of COCA-COLA FEMSA SAB-SP ADR (KOF) is 6 / 10 and the dividend payout ratio is 60.53%.