AMBEV SA-ADR (ABEV) Stock Fundamental Analysis
USA - NYSE:ABEV - US02319V1035 - ADR
2.22 USD
-0.05 (-2.2%)
2.22 USD
0 (0%)
Taking everything into account, ABEV scores 6 out of 10 in our fundamental rating. ABEV was compared to 32 industry peers in the Beverages industry. While ABEV has a great profitability rating, there are some minor concerns on its financial health. ABEV is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, ABEV could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year ABEV was profitable.
In the past year ABEV had a positive cash flow from operations.
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 better Return On Assets (10.38%) than 84.38% of its industry peers.
ABEV has a Return On Equity (15.95%) which is comparable to the rest of the industry.
With an excellent Return On Invested Capital value of 19.27%, ABEV belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ABEV is significantly above the industry average of 10.90%.
The last Return On Invested Capital (19.27%) for ABEV is above the 3 year average (17.11%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 16.08%, ABEV belongs to the top 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.
In the last couple of years the Operating Margin of ABEV has declined.
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.
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 below the Cost of Capital (WACC), so ABEV is destroying value.
Compared to 1 year ago, ABEV has about the same amount of shares outstanding.
ABEV has about the same amout of 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
ABEV has an Altman-Z score of 4.12. This indicates that ABEV is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.12, ABEV is doing good in the industry, outperforming 75.00% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 0.15, ABEV belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
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 | 4.12 |
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.
ABEV's Current ratio of 1.11 is on the low side compared to the rest of the industry. ABEV is outperformed by 65.63% of its industry peers.
A Quick Ratio of 0.80 indicates that ABEV may have some problems paying its short term obligations.
The Quick ratio of ABEV (0.80) 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 1.63% 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 13.76%.
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 10.96% on average over the next years. This is quite good.
ABEV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.80% yearly.
EPS Next Y6.32%
EPS Next 2Y7.7%
EPS Next 3Y7.7%
EPS Next 5Y10.96%
Revenue Next Year5.32%
Revenue Next 2Y5.14%
Revenue Next 3Y5.3%
Revenue Next 5Y5.8%
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
With a Price/Earnings ratio of 13.06, ABEV is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of ABEV indicates a rather cheap valuation: ABEV is cheaper than 84.38% of the companies listed in the same industry.
ABEV is valuated cheaply when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.31, which indicates a very decent valuation of ABEV.
Based on the Price/Forward Earnings ratio, ABEV is valued cheaply inside the industry as 84.38% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.23. ABEV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.06 | ||
| Fwd PE | 11.31 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than ABEV, based on the Enterprise Value to EBITDA ratio.
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 | 8.64 | ||
| EV/EBITDA | 5.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABEV does not grow enough to justify the current Price/Earnings ratio.
ABEV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.07
PEG (5Y)3.84
EPS Next 2Y7.7%
EPS Next 3Y7.7%
5. Dividend
5.1 Amount
ABEV has a Yearly Dividend Yield of 3.16%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.99, ABEV pays a bit more dividend than its industry peers.
ABEV's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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
85.75% of the earnings are spent on dividend by ABEV. This is not a sustainable payout ratio.
DP85.75%
EPS Next 2Y7.7%
EPS Next 3Y7.7%
2.22
-0.05 (-2.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners7.95%
Inst Owner Change0.13%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap34.62B
Analysts54.29
Price Target2.64 (18.92%)
Short Float %2.38%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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)0.92%
PT rev (3m)-0.05%
EPS NQ rev (1m)-7.25%
EPS NQ rev (3m)-12.89%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-6.22%
Revenue NQ rev (1m)-5.64%
Revenue NQ rev (3m)-9.32%
Revenue NY rev (1m)-1.09%
Revenue NY rev (3m)-3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.06 | ||
| Fwd PE | 11.31 | ||
| P/S | 2.04 | ||
| P/FCF | 8.64 | ||
| P/OCF | 7.12 | ||
| P/B | 2.02 | ||
| P/tB | 4.75 | ||
| EV/EBITDA | 5.81 |
EPS(TTM)0.17
EY7.66%
EPS(NY)0.2
Fwd EY8.84%
FCF(TTM)0.26
FCFY11.57%
OCF(TTM)0.31
OCFY14.04%
SpS1.09
BVpS1.1
TBVpS0.47
PEG (NY)2.07
PEG (5Y)3.84
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 | 4.12 |
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 Y6.32%
EPS Next 2Y7.7%
EPS Next 3Y7.7%
EPS Next 5Y10.96%
Revenue 1Y (TTM)13.76%
Revenue growth 3Y7.08%
Revenue growth 5Y11.46%
Sales Q2Q%0.23%
Revenue Next Year5.32%
Revenue Next 2Y5.14%
Revenue Next 3Y5.3%
Revenue Next 5Y5.8%
EBIT growth 1Y18.16%
EBIT growth 3Y7.82%
EBIT growth 5Y5.86%
EBIT Next Year40.65%
EBIT Next 3Y16.07%
EBIT Next 5Y11.8%
FCF growth 1Y50.18%
FCF growth 3Y11.93%
FCF growth 5Y9.91%
OCF growth 1Y26.58%
OCF growth 3Y4.45%
OCF growth 5Y7.26%