COCA-COLA FEMSA SAB-SP ADR (KOF) Stock Fundamental Analysis
NYSE:KOF - New York Stock Exchange, Inc. - US1912411089 - ADR - Currency: USD
Overall KOF gets a fundamental rating of 5 out of 10. We evaluated KOF against 33 industry peers in the Beverages industry. While KOF is still in line with the averages on profitability rating, there are concerns on its financial health. KOF is not valued too expensively and it also shows a decent growth rate. KOF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KOF was profitable.
KOF had a positive operating cash flow in the past year.
Each year in the past 5 years KOF has been profitable.
KOF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.52%, KOF is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Equity value of 17.23%, KOF is doing good in the industry, outperforming 63.64% of the companies in the same industry.
KOF's Return On Invested Capital of 11.33% is fine compared to the rest of the industry. KOF outperforms 63.64% of its industry peers.
KOF had an Average Return On Invested Capital over the past 3 years of 10.37%. This is in line with the industry average of 11.01%.
The 3 year average ROIC (10.37%) for KOF is below the current ROIC(11.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 17.23% | ||
| ROIC | 11.33% |
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
Looking at the Profit Margin, with a value of 8.18%, KOF is in line with its industry, outperforming 57.58% of the companies in the same industry.
In the last couple of years the Profit Margin of KOF has grown nicely.
With a Operating Margin value of 13.97%, KOF perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
In the last couple of years the Operating Margin of KOF has remained more or less at the same level.
KOF has a Gross Margin (46.02%) which is comparable to the rest of the industry.
KOF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.97% | ||
| PM (TTM) | 8.18% | ||
| GM | 46.02% |
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.
Compared to 1 year ago, KOF has about the same amount of shares outstanding.
KOF has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for KOF is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.94 indicates that KOF is not a great score, but indicates only limited risk for bankruptcy at the moment.
KOF has a Altman-Z score (2.94) which is comparable to the rest of the industry.
The Debt to FCF ratio of KOF is 12.76, which is on the high side as it means it would take KOF, 12.76 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KOF (12.76) is worse than 63.64% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that KOF is somewhat dependend on debt financing.
KOF has a Debt to Equity ratio (0.58) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 12.76 | ||
| Altman-Z | 2.94 |
ROIC/WACC1.49
WACC7.59%
2.3 Liquidity
KOF has a Current Ratio of 1.12. This is a normal value and indicates that KOF is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.12, KOF perfoms like the industry average, outperforming 42.42% 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.
KOF's Quick ratio of 0.90 is fine compared to the rest of the industry. KOF outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.61% 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 -11.22% in the last year.
The Revenue has been growing slightly by 7.55% on average over the past years.
EPS 1Y (TTM)41.61%
EPS 3Y23.13%
EPS 5Y14.46%
EPS Q2Q%-5.24%
Revenue 1Y (TTM)-11.22%
Revenue growth 3Y12.83%
Revenue growth 5Y7.55%
Sales Q2Q%4.98%
3.2 Future
Based on estimates for the next years, KOF will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.88% on average per year.
KOF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.89% yearly.
EPS Next Y13.87%
EPS Next 2Y12.96%
EPS Next 3Y11.88%
EPS Next 5YN/A
Revenue Next Year10.83%
Revenue Next 2Y9.75%
Revenue Next 3Y8.62%
Revenue Next 5Y6.89%
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 stable.
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
KOF is valuated correctly with a Price/Earnings ratio of 13.99.
Based on the Price/Earnings ratio, KOF is valued cheaper than 81.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.85. KOF is valued slightly cheaper when compared to this.
KOF is valuated reasonably with a Price/Forward Earnings ratio of 10.89.
90.91% of the companies in the same industry are more expensive than KOF, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.98. KOF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 10.89 |
4.2 Price Multiples
KOF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KOF is cheaper than 90.91% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KOF is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.82 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KOF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.01
PEG (5Y)0.97
EPS Next 2Y12.96%
EPS Next 3Y11.88%
5. Dividend
5.1 Amount
KOF has a Yearly Dividend Yield of 3.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.79, KOF pays a better dividend. On top of this KOF pays more dividend than 90.91% of the companies listed in the same industry.
KOF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
5.2 History
On average, the dividend of KOF grows each year by 11.58%, which is quite nice.
KOF has been paying a dividend for at least 10 years, so it has 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
58.19% of the earnings are spent on dividend by KOF. This is a bit on the high side, but may be sustainable.
KOF's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP58.19%
EPS Next 2Y12.96%
EPS Next 3Y11.88%
83.54
+0.45 (+0.54%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners15.86%
Inst Owner Change-1.4%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap17.55B
Analysts79
Price Target111.15 (33.05%)
Short Float %5.61%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
Yearly Dividend0.41
Dividend Growth(5Y)11.58%
DP58.19%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.76%
Min EPS beat(2)-15.54%
Max EPS beat(2)-3.97%
EPS beat(4)2
Avg EPS beat(4)-0.76%
Min EPS beat(4)-15.54%
Max EPS beat(4)13.99%
EPS beat(8)5
Avg EPS beat(8)-8.66%
EPS beat(12)6
Avg EPS beat(12)-8.3%
EPS beat(16)7
Avg EPS beat(16)-18.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.24%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)-0.03%
Revenue beat(4)2
Avg Revenue beat(4)0.53%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)3.56%
Revenue beat(8)6
Avg Revenue beat(8)1.1%
Revenue beat(12)8
Avg Revenue beat(12)17.35%
Revenue beat(16)12
Avg Revenue beat(16)32.49%
PT rev (1m)14.02%
PT rev (3m)15.9%
EPS NQ rev (1m)-8.14%
EPS NQ rev (3m)-7.07%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.93%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 10.89 | ||
| P/S | 1.14 | ||
| P/FCF | 49.82 | ||
| P/OCF | 10 | ||
| P/B | 2.41 | ||
| P/tB | 9.76 | ||
| EV/EBITDA | 7 |
EPS(TTM)5.97
EY7.15%
EPS(NY)7.67
Fwd EY9.18%
FCF(TTM)1.68
FCFY2.01%
OCF(TTM)8.36
OCFY10%
SpS73.08
BVpS34.68
TBVpS8.56
PEG (NY)1.01
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 17.23% | ||
| ROCE | 16.56% | ||
| ROIC | 11.33% | ||
| ROICexc | 13.4% | ||
| ROICexgc | 26.87% | ||
| OM | 13.97% | ||
| PM (TTM) | 8.18% | ||
| GM | 46.02% | ||
| 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%
ROICexcg growth 3Y0.34%
ROICexcg 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 | 0.58 | ||
| Debt/FCF | 12.76 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 199.77% | ||
| Cap/Sales | 9.14% | ||
| Interest Coverage | 7.68 | ||
| Cash Conversion | 61.66% | ||
| Profit Quality | 28.07% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 2.94 |
F-Score4
WACC7.59%
ROIC/WACC1.49
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)41.61%
EPS 3Y23.13%
EPS 5Y14.46%
EPS Q2Q%-5.24%
EPS Next Y13.87%
EPS Next 2Y12.96%
EPS Next 3Y11.88%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.22%
Revenue growth 3Y12.83%
Revenue growth 5Y7.55%
Sales Q2Q%4.98%
Revenue Next Year10.83%
Revenue Next 2Y9.75%
Revenue Next 3Y8.62%
Revenue Next 5Y6.89%
EBIT growth 1Y-9.75%
EBIT growth 3Y12.85%
EBIT growth 5Y8.96%
EBIT Next Year58.37%
EBIT Next 3Y22.48%
EBIT Next 5Y13.66%
FCF growth 1Y-63.3%
FCF growth 3Y-9.86%
FCF growth 5Y-3.15%
OCF growth 1Y-7.02%
OCF growth 3Y9.06%
OCF growth 5Y6.29%