AMBEV SA-ADR (ABEV)
US02319V1035 - ADR
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 has a decent growth rate and is not valued too expensively. Finally ABEV also has an excellent dividend rating. With these ratings, ABEV could be worth investigating further for dividend 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.
In the past 5 years ABEV has always been profitable.
In the past 5 years ABEV always reported a positive cash flow from operatings.
1.2 Ratios
ABEV has a Return On Assets of 10.93%. This is in the better half of the industry: ABEV outperforms 75.00% of its industry peers.
ABEV has a Return On Equity (18.36%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 16.41%, ABEV belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
ABEV had an Average Return On Invested Capital over the past 3 years of 14.90%. This is above the industry average of 12.50%.
The 3 year average ROIC (14.90%) for ABEV is below the current ROIC(16.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.93% | ||
| ROE | 18.36% | ||
| ROIC | 16.41% |
ROA(3y)10.19%
ROA(5y)10.24%
ROE(3y)17.11%
ROE(5y)17.2%
ROIC(3y)14.9%
ROIC(5y)15.16%
1.3 Margins
ABEV has a Profit Margin of 18.19%. This is amongst the best in the industry. ABEV outperforms 84.38% of its industry peers.
In the last couple of years the Profit Margin of ABEV has declined.
Looking at the Operating Margin, with a value of 23.88%, ABEV is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
ABEV's Operating Margin has declined in the last couple of years.
ABEV has a Gross Margin of 50.72%. This is in the better half of the industry: ABEV outperforms 62.50% of its industry peers.
In the last couple of years the Gross Margin of ABEV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.88% | ||
| PM (TTM) | 18.19% | ||
| GM | 50.72% |
OM growth 3Y-5.32%
OM growth 5Y-7%
PM growth 3Y-2.28%
PM growth 5Y-3.64%
GM growth 3Y-1.84%
GM growth 5Y-3.84%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABEV is creating some value.
ABEV has about the same amout of shares outstanding than it did 1 year ago.
ABEV has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ABEV has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.60 indicates that ABEV is not in any danger for bankruptcy at the moment.
ABEV's Altman-Z score of 3.60 is in line compared to the rest of the industry. ABEV outperforms 59.38% of its industry peers.
ABEV has a debt to FCF ratio of 0.19. This is a very positive value and a sign of high solvency as it would only need 0.19 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.19, ABEV belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
ABEV has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
ABEV's Debt to Equity ratio of 0.03 is amongst the best of the industry. ABEV outperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.19 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.1
WACC14.86%
2.3 Liquidity
A Current Ratio of 0.89 indicates that ABEV may have some problems paying its short term obligations.
ABEV's Current ratio of 0.89 is on the low side compared to the rest of the industry. ABEV is outperformed by 71.88% of its industry peers.
A Quick Ratio of 0.66 indicates that ABEV may have some problems paying its short term obligations.
ABEV has a Quick ratio of 0.66. This is comparable to the rest of the industry: ABEV outperforms 40.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The earnings per share for ABEV have decreased by -1.17% in the last year.
The Earnings Per Share has been growing slightly by 5.25% on average over the past years.
ABEV shows a small growth in Revenue. In the last year, the Revenue has grown by 0.04%.
The Revenue has been growing by 9.68% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.17%
EPS 3Y8.21%
EPS 5Y5.25%
EPS growth Q2Q-12.12%
Revenue 1Y (TTM)0.04%
Revenue growth 3Y10.95%
Revenue growth 5Y9.68%
Revenue growth Q2Q-11.91%
3.2 Future
ABEV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.47% yearly.
The Revenue is expected to grow by 6.51% on average over the next years.
EPS Next Y0.73%
EPS Next 2Y4.31%
EPS Next 3Y3.91%
EPS Next 5Y12.47%
Revenue Next Year1.36%
Revenue Next 2Y3.2%
Revenue Next 3Y4.21%
Revenue Next 5Y6.51%
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
Based on the Price/Earnings ratio of 12.56, the valuation of ABEV can be described as correct.
96.88% of the companies in the same industry are more expensive than ABEV, based on the Price/Earnings ratio.
ABEV is valuated rather cheaply when we compare the Price/Earnings ratio to 24.83, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.55 indicates a correct valuation of ABEV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ABEV indicates a rather cheap valuation: ABEV is cheaper than 90.63% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.32. ABEV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 12.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABEV is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
96.88% of the companies in the same industry are more expensive than ABEV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.95 | ||
| EV/EBITDA | 6.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ABEV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)17.11
PEG (5Y)2.39
EPS Next 2Y4.31%
EPS Next 3Y3.91%
5. Dividend
5.1 Amount
ABEV has a Yearly Dividend Yield of 6.11%, which is a nice return.
Compared to an average industry Dividend Yield of 2.49, ABEV pays a better dividend. On top of this ABEV pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ABEV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
5.2 History
The dividend of ABEV is nicely growing with an annual growth rate of 6.19%!
ABEV has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)6.19%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ABEV pays out 82.21% of its income as dividend. This is not a sustainable payout ratio.
ABEV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP82.21%
EPS Next 2Y4.31%
EPS Next 3Y3.91%
AMBEV SA-ADR
NYSE:ABEV (4/17/2024, 7:04:00 PM)
After market: 2.2799 +0.02 (+0.88%)2.26
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap35.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 12.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)17.11
PEG (5Y)2.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.93% | ||
| ROE | 18.36% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.88% | ||
| PM (TTM) | 18.19% | ||
| GM | 50.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.17%
EPS 3Y8.21%
EPS 5Y
EPS growth Q2Q
EPS Next Y0.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.04%
Revenue growth 3Y10.95%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y