AMBEV SA-ADR (ABEV) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ABEV • US02319V1035
2.835 USD
+0.06 (+1.98%)
Last: Feb 2, 2026, 03:46 PM
ABEV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. Both the health and profitability get an excellent rating, making ABEV a very profitable company, without any liquidiy or solvency issues. ABEV has a decent growth rate and is not valued too expensively. These ratings could make ABEV a good candidate for quality 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.
- Each year in the past 5 years ABEV had a positive operating cash flow.
1.2 Ratios
- ABEV has a Return On Assets of 10.38%. This is amongst the best in the industry. ABEV outperforms 81.82% of its industry peers.
- ABEV has a Return On Equity of 15.95%. This is comparable to the rest of the industry: ABEV outperforms 57.58% of its industry peers.
- ABEV has a better Return On Invested Capital (19.27%) than 93.94% 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 11.45%.
- 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
- ABEV has a better Profit Margin (16.08%) than 84.85% of its industry peers.
- ABEV's Profit Margin has declined in the last couple of years.
- ABEV has a better Operating Margin (25.18%) than 81.82% of its industry peers.
- In the last couple of years the Operating Margin of ABEV has declined.
- ABEV has a better Gross Margin (51.50%) than 60.61% of its industry peers.
- ABEV's Gross Margin has declined in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ABEV is still creating some value.
- Compared to 1 year ago, ABEV has about the same amount of shares outstanding.
- The number of shares outstanding for ABEV remains at a similar level compared to 5 years ago.
- The debt/assets ratio for ABEV has been reduced compared to a year ago.
2.2 Solvency
- ABEV has an Altman-Z score of 4.55. This indicates that ABEV is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.55, ABEV belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- The Debt to FCF ratio of ABEV is 0.15, which is an excellent value as it means it would take ABEV, only 0.15 years of fcf income to pay off all of its debts.
- ABEV has a better Debt to FCF ratio (0.15) than 87.88% of its industry peers.
- A Debt/Equity ratio of 0.02 indicates that ABEV is not too dependend on debt financing.
- ABEV's Debt to Equity ratio of 0.02 is amongst the best of the industry. ABEV outperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 4.55 |
ROIC/WACC1.06
WACC18.13%
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.
- ABEV has a Current ratio of 1.11. This is in the lower half of the industry: ABEV underperforms 60.61% of its industry peers.
- A Quick Ratio of 0.80 indicates that ABEV may have some problems paying its short term obligations.
- ABEV has a Quick ratio (0.80) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.30% over the past year.
- 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.
- ABEV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.18%.
- ABEV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.46% yearly.
EPS 1Y (TTM)7.3%
EPS 3Y3.53%
EPS 5Y3.4%
EPS Q2Q%9.09%
Revenue 1Y (TTM)12.18%
Revenue growth 3Y7.08%
Revenue growth 5Y11.46%
Sales Q2Q%-5.65%
3.2 Future
- The Earnings Per Share is expected to grow by 10.32% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.65% on average over the next years.
EPS Next Y8.56%
EPS Next 2Y5.65%
EPS Next 3Y6.55%
EPS Next 5Y10.32%
Revenue Next Year3.04%
Revenue Next 2Y3.71%
Revenue Next 3Y4.26%
Revenue Next 5Y5.65%
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 accelerating.
- 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
- A Price/Earnings ratio of 15.75 indicates a correct valuation of ABEV.
- 72.73% of the companies in the same industry are more expensive than ABEV, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.32. ABEV is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 14.52, the valuation of ABEV can be described as correct.
- Based on the Price/Forward Earnings ratio, ABEV is valued a bit cheaper than 69.70% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ABEV to the average of the S&P500 Index (25.57), we can say ABEV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 14.52 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ABEV is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ABEV is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.67 | ||
| EV/EBITDA | 6.97 |
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)1.84
PEG (5Y)4.64
EPS Next 2Y5.65%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.82%, ABEV has a reasonable but not impressive dividend return.
- ABEV's Dividend Yield is comparable with the industry average which is at 1.74.
- Compared to an average S&P500 Dividend Yield of 1.83, ABEV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
- The dividend of ABEV decreases each year by -12.44%.
- ABEV has paid a dividend for at least 10 years, which is 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 2Y5.65%
EPS Next 3Y6.55%
AMBEV SA-ADR / ABEV FAQ
What is the ChartMill fundamental rating of AMBEV SA-ADR (ABEV) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ABEV.
Can you provide the valuation status for AMBEV SA-ADR?
ChartMill assigns a valuation rating of 6 / 10 to AMBEV SA-ADR (ABEV). This can be considered as Fairly Valued.
What is the profitability of ABEV stock?
AMBEV SA-ADR (ABEV) has a profitability rating of 7 / 10.
What is the financial health of AMBEV SA-ADR (ABEV) stock?
The financial health rating of AMBEV SA-ADR (ABEV) is 7 / 10.
How sustainable is the dividend of AMBEV SA-ADR (ABEV) stock?
The dividend rating of AMBEV SA-ADR (ABEV) is 3 / 10 and the dividend payout ratio is 85.75%.