AMBEV SA-ADR (ABEV) Stock Fundamental Analysis
NYSE:ABEV - US02319V1035 - ADR
2.2 USD
0 (0%)
ABEV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 32 industry peers in the Beverages industry. ABEV has an excellent profitability rating, but there are some minor concerns on its financial health. ABEV may be a bit undervalued, certainly considering the very reasonable score on growth This makes ABEV very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year ABEV was profitable.
ABEV had a positive operating cash flow in the past year.
Each year in the past 5 years ABEV has been profitable.
In the past 5 years ABEV always reported a positive cash flow from operatings.
1.2 Ratios
ABEV has a better Return On Assets (10.38%) than 78.13% of its industry peers.
ABEV has a Return On Equity (15.95%) which is in line with its industry peers.
ABEV has a Return On Invested Capital of 19.27%. This is amongst the best in the industry. ABEV outperforms 93.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ABEV is significantly above the industry average of 11.07%.
The 3 year average ROIC (17.11%) for ABEV is below the current ROIC(19.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.38% | ||
| ROE | 15.95% | ||
| ROIC | 19.27% |
ROA(3y)10.1%
ROA(5y)9.71%
ROE(3y)16.88%
ROE(5y)16.28%
ROIC(3y)17.11%
ROIC(5y)16.49%
1.3 Margins
With an excellent Profit Margin value of 16.08%, ABEV belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of ABEV has declined.
ABEV's Operating Margin of 25.18% is amongst the best of the industry. ABEV outperforms 81.25% of its industry peers.
ABEV's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 51.50%, ABEV is in line with its industry, outperforming 59.38% of the companies in the same industry.
In the last couple of years the Gross Margin of ABEV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.18% | ||
| PM (TTM) | 16.08% | ||
| GM | 51.5% |
OM growth 3Y0.69%
OM growth 5Y-5.02%
PM growth 3Y-2.46%
PM growth 5Y-6.55%
GM growth 3Y0.12%
GM growth 5Y-2.55%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ABEV is destroying value.
The number of shares outstanding for ABEV remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ABEV has about the same amount of shares outstanding.
Compared to 1 year ago, ABEV has an improved debt to assets ratio.
2.2 Solvency
ABEV has an Altman-Z score of 4.05. This indicates that ABEV is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ABEV (4.05) is better than 68.75% of its industry peers.
ABEV has a debt to FCF ratio of 0.15. This is a very positive value and a sign of high solvency as it would only need 0.15 years to pay back of all of its debts.
ABEV has a Debt to FCF ratio of 0.15. This is amongst the best in the industry. ABEV outperforms 87.50% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that ABEV is not too dependend on debt financing.
The Debt to Equity ratio of ABEV (0.02) is better than 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 4.05 |
ROIC/WACC1
WACC19.36%
2.3 Liquidity
ABEV has a Current Ratio of 1.11. This is a normal value and indicates that ABEV is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.11, ABEV is doing worse than 62.50% of the companies in the same industry.
ABEV has a Quick Ratio of 1.11. This is a bad value and indicates that ABEV is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.80, ABEV perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
ABEV shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.63%.
Measured over the past 5 years, ABEV shows a small growth in Earnings Per Share. The EPS has been growing by 3.40% on average per year.
The Revenue has grown by 13.76% in the past year. This is quite good.
The Revenue has been growing by 11.46% on average over the past years. This is quite good.
EPS 1Y (TTM)1.63%
EPS 3Y3.53%
EPS 5Y3.4%
EPS Q2Q%13.33%
Revenue 1Y (TTM)13.76%
Revenue growth 3Y7.08%
Revenue growth 5Y11.46%
Sales Q2Q%0.23%
3.2 Future
The Earnings Per Share is expected to grow by 10.54% on average over the next years. This is quite good.
Based on estimates for the next years, ABEV will show a small growth in Revenue. The Revenue will grow by 5.76% on average per year.
EPS Next Y6.23%
EPS Next 2Y7.82%
EPS Next 3Y7.84%
EPS Next 5Y10.54%
Revenue Next Year6.63%
Revenue Next 2Y5.96%
Revenue Next 3Y5.94%
Revenue Next 5Y5.76%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ABEV is valuated correctly with a Price/Earnings ratio of 12.94.
ABEV's Price/Earnings ratio is rather cheap when compared to the industry. ABEV is cheaper than 87.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, ABEV is valued rather cheaply.
ABEV is valuated reasonably with a Price/Forward Earnings ratio of 11.18.
ABEV's Price/Forward Earnings ratio is rather cheap when compared to the industry. ABEV is cheaper than 90.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.67. ABEV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 11.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABEV indicates a rather cheap valuation: ABEV is cheaper than 100.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABEV indicates a rather cheap valuation: ABEV is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.56 | ||
| EV/EBITDA | 5.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ABEV may justify a higher PE ratio.
PEG (NY)2.08
PEG (5Y)3.81
EPS Next 2Y7.82%
EPS Next 3Y7.84%
5. Dividend
5.1 Amount
ABEV has a Yearly Dividend Yield of 1.63%.
Compared to an average industry Dividend Yield of 2.73, ABEV has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.34, ABEV is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
The dividend of ABEV decreases each year by -12.44%.
ABEV has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-12.44%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ABEV pays out 85.75% of its income as dividend. This is not a sustainable payout ratio.
DP85.75%
EPS Next 2Y7.82%
EPS Next 3Y7.84%
NYSE:ABEV (8/27/2025, 9:52:06 AM)
2.2
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners7.42%
Inst Owner Change11.5%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap34.30B
Analysts71.3
Price Target2.6 (18.18%)
Short Float %1.74%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend0.05
Dividend Growth(5Y)-12.44%
DP85.75%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.95%
Min EPS beat(2)-9.56%
Max EPS beat(2)-4.34%
EPS beat(4)1
Avg EPS beat(4)-3.44%
Min EPS beat(4)-9.56%
Max EPS beat(4)7.94%
EPS beat(8)3
Avg EPS beat(8)-0.99%
EPS beat(12)6
Avg EPS beat(12)3.27%
EPS beat(16)9
Avg EPS beat(16)7.96%
Revenue beat(2)0
Avg Revenue beat(2)-6%
Min Revenue beat(2)-8.64%
Max Revenue beat(2)-3.37%
Revenue beat(4)1
Avg Revenue beat(4)-3.56%
Min Revenue beat(4)-8.64%
Max Revenue beat(4)1.61%
Revenue beat(8)2
Avg Revenue beat(8)-4.62%
Revenue beat(12)2
Avg Revenue beat(12)-4.37%
Revenue beat(16)5
Avg Revenue beat(16)-2.84%
PT rev (1m)-0.18%
PT rev (3m)2.36%
EPS NQ rev (1m)-4.69%
EPS NQ rev (3m)-6.89%
EPS NY rev (1m)-6.44%
EPS NY rev (3m)-6.11%
Revenue NQ rev (1m)-1.47%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)-2.29%
Revenue NY rev (3m)-2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 11.18 | ||
| P/S | 2.02 | ||
| P/FCF | 8.56 | ||
| P/OCF | 7.05 | ||
| P/B | 2 | ||
| P/tB | 4.7 | ||
| EV/EBITDA | 5.61 |
EPS(TTM)0.17
EY7.73%
EPS(NY)0.2
Fwd EY8.95%
FCF(TTM)0.26
FCFY11.68%
OCF(TTM)0.31
OCFY14.17%
SpS1.09
BVpS1.1
TBVpS0.47
PEG (NY)2.08
PEG (5Y)3.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.38% | ||
| ROE | 15.95% | ||
| ROCE | 21.93% | ||
| ROIC | 19.27% | ||
| ROICexc | 23.11% | ||
| ROICexgc | 58.42% | ||
| OM | 25.18% | ||
| PM (TTM) | 16.08% | ||
| GM | 51.5% | ||
| FCFM | 23.61% |
ROA(3y)10.1%
ROA(5y)9.71%
ROE(3y)16.88%
ROE(5y)16.28%
ROIC(3y)17.11%
ROIC(5y)16.49%
ROICexc(3y)21.47%
ROICexc(5y)20.62%
ROICexgc(3y)60.94%
ROICexgc(5y)58.16%
ROCE(3y)19.48%
ROCE(5y)18.77%
ROICexcg growth 3Y12.62%
ROICexcg growth 5Y3.42%
ROICexc growth 3Y6.91%
ROICexc growth 5Y0.69%
OM growth 3Y0.69%
OM growth 5Y-5.02%
PM growth 3Y-2.46%
PM growth 5Y-6.55%
GM growth 3Y0.12%
GM growth 5Y-2.55%
F-Score8
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.15 | ||
| Debt/EBITDA | 0.07 | ||
| Cap/Depr | 64.28% | ||
| Cap/Sales | 5.04% | ||
| Interest Coverage | 27.15 | ||
| Cash Conversion | 86.78% | ||
| Profit Quality | 146.79% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 4.05 |
F-Score8
WACC19.36%
ROIC/WACC1
Cap/Depr(3y)89.96%
Cap/Depr(5y)100.59%
Cap/Sales(3y)7.01%
Cap/Sales(5y)7.92%
Profit Quality(3y)124.82%
Profit Quality(5y)123.82%
High Growth Momentum
Growth
EPS 1Y (TTM)1.63%
EPS 3Y3.53%
EPS 5Y3.4%
EPS Q2Q%13.33%
EPS Next Y6.23%
EPS Next 2Y7.82%
EPS Next 3Y7.84%
EPS Next 5Y10.54%
Revenue 1Y (TTM)13.76%
Revenue growth 3Y7.08%
Revenue growth 5Y11.46%
Sales Q2Q%0.23%
Revenue Next Year6.63%
Revenue Next 2Y5.96%
Revenue Next 3Y5.94%
Revenue Next 5Y5.76%
EBIT growth 1Y18.16%
EBIT growth 3Y7.82%
EBIT growth 5Y5.86%
EBIT Next Year42.35%
EBIT Next 3Y16.28%
EBIT Next 5Y11.16%
FCF growth 1Y50.18%
FCF growth 3Y11.93%
FCF growth 5Y9.91%
OCF growth 1Y26.58%
OCF growth 3Y4.45%
OCF growth 5Y7.26%