COCA-COLA FEMSA SAB-SP ADR (KOF) Stock Fundamental Analysis
NYSE:KOF - New York Stock Exchange, Inc. - US1912411089 - ADR - Currency: USD
We assign a fundamental rating of 5 out of 10 to KOF. KOF was compared to 32 industry peers in the Beverages industry. KOF has an average financial health and profitability rating. KOF has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
KOF had positive earnings in the past year.
KOF had a positive operating cash flow in the past year.
KOF had positive earnings in each of the past 5 years.
Each year in the past 5 years KOF had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 9.32%, KOF is doing good in the industry, outperforming 75.00% of the companies in the same industry.
KOF's Return On Equity of 20.02% is fine compared to the rest of the industry. KOF outperforms 71.88% of its industry peers.
The Return On Invested Capital of KOF (13.72%) is better than 78.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KOF is in line with the industry average of 12.18%.
The 3 year average ROIC (10.37%) for KOF is below the current ROIC(13.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 20.02% | ||
| ROIC | 13.72% |
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
The Profit Margin of KOF (8.35%) is comparable to the rest of the industry.
KOF's Profit Margin has improved in the last couple of years.
KOF has a Operating Margin of 14.13%. This is comparable to the rest of the industry: KOF outperforms 53.13% of its industry peers.
KOF's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 45.73%, KOF is in line with its industry, outperforming 53.13% of the companies in the same industry.
KOF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.13% | ||
| PM (TTM) | 8.35% | ||
| GM | 45.73% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KOF is still creating some value.
Compared to 1 year ago, KOF has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.63 indicates that KOF is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.63, KOF is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
The Debt to FCF ratio of KOF is 4.62, which is a neutral value as it means it would take KOF, 4.62 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KOF (4.62) is better than 78.13% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that KOF is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.52, KOF is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 4.62 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.05
WACC13.01%
2.3 Liquidity
A Current Ratio of 1.12 indicates that KOF should not have too much problems paying its short term obligations.
KOF has a Current ratio of 1.12. This is comparable to the rest of the industry: KOF outperforms 50.00% of its industry peers.
KOF has a Quick Ratio of 1.12. This is a bad value and indicates that KOF is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of KOF (0.91) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
KOF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 59.60%, which is quite impressive.
The Earnings Per Share has been growing by 14.46% on average over the past years. This is quite good.
Looking at the last year, KOF shows a quite strong growth in Revenue. The Revenue has grown by 13.80% in the last year.
Measured over the past years, KOF shows a small growth in Revenue. The Revenue has been growing by 7.55% on average per year.
EPS 1Y (TTM)59.6%
EPS 3Y23.13%
EPS 5Y14.46%
EPS Q2Q%984.38%
Revenue 1Y (TTM)13.8%
Revenue growth 3Y12.83%
Revenue growth 5Y7.55%
Sales Q2Q%14.3%
3.2 Future
KOF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.88% yearly.
The Revenue is expected to grow by 8.47% on average over the next years. This is quite good.
EPS Next Y13.87%
EPS Next 2Y12.96%
EPS Next 3Y11.88%
EPS Next 5YN/A
Revenue Next Year10.28%
Revenue Next 2Y8.38%
Revenue Next 3Y9.38%
Revenue Next 5Y8.47%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KOF is valuated correctly with a Price/Earnings ratio of 16.85.
KOF's Price/Earnings ratio is rather cheap when compared to the industry. KOF is cheaper than 84.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. KOF is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.78 indicates a correct valuation of KOF.
Based on the Price/Forward Earnings ratio, KOF is valued cheaper than 87.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KOF to the average of the S&P500 Index (21.32), we can say KOF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.85 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KOF is valued cheaper than 87.50% of the companies in the same industry.
KOF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KOF is cheaper than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24 | ||
| EV/EBITDA | 7.32 |
4.3 Compensation for Growth
KOF's 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)1.21
PEG (5Y)1.17
EPS Next 2Y12.96%
EPS Next 3Y11.88%
5. Dividend
5.1 Amount
KOF has a Yearly Dividend Yield of 3.76%.
KOF's Dividend Yield is rather good when compared to the industry average which is at 3.00. KOF pays more dividend than 84.38% of the companies in the same industry.
KOF's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
5.2 History
On average, the dividend of KOF grows each year by 11.77%, which is quite nice.
KOF has paid a dividend for at least 10 years, which is a reliable track record.
KOF has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)11.77%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
KOF pays out 44.81% of its income as dividend. 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.
DP44.81%
EPS Next 2Y12.96%
EPS Next 3Y11.88%
NYSE:KOF (4/21/2025, 1:01:01 PM)
95.52
-0.98 (-1.02%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners18.2%
Inst Owner Change-0.09%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap20.07B
Analysts80
Price Target93.76 (-1.84%)
Short Float %4.14%
Short Ratio1.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
Yearly Dividend0.37
Dividend Growth(5Y)11.77%
DP44.81%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.23%
Min EPS beat(2)2.47%
Max EPS beat(2)13.99%
EPS beat(4)4
Avg EPS beat(4)6.23%
Min EPS beat(4)2.07%
Max EPS beat(4)13.99%
EPS beat(8)5
Avg EPS beat(8)-6.61%
EPS beat(12)6
Avg EPS beat(12)-21%
EPS beat(16)9
Avg EPS beat(16)-16.12%
Revenue beat(2)2
Avg Revenue beat(2)2.31%
Min Revenue beat(2)1.06%
Max Revenue beat(2)3.56%
Revenue beat(4)4
Avg Revenue beat(4)2.52%
Min Revenue beat(4)1.06%
Max Revenue beat(4)3.63%
Revenue beat(8)7
Avg Revenue beat(8)1.28%
Revenue beat(12)10
Avg Revenue beat(12)27.28%
Revenue beat(16)13
Avg Revenue beat(16)38.67%
PT rev (1m)2.42%
PT rev (3m)12.92%
EPS NQ rev (1m)-4.26%
EPS NQ rev (3m)-0.88%
EPS NY rev (1m)2.33%
EPS NY rev (3m)2.79%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.85 | ||
| Fwd PE | 14.78 | ||
| P/S | 1.16 | ||
| P/FCF | 24 | ||
| P/OCF | 9.42 | ||
| P/B | 2.79 | ||
| P/tB | 9.62 | ||
| EV/EBITDA | 7.32 |
EPS(TTM)5.67
EY5.94%
EPS(NY)6.46
Fwd EY6.76%
FCF(TTM)3.98
FCFY4.17%
OCF(TTM)10.14
OCFY10.62%
SpS82.22
BVpS34.28
TBVpS9.93
PEG (NY)1.21
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 20.02% | ||
| ROCE | 20.18% | ||
| ROIC | 13.72% | ||
| ROICexc | 15.94% | ||
| ROICexgc | 31.17% | ||
| OM | 14.13% | ||
| PM (TTM) | 8.35% | ||
| GM | 45.73% | ||
| FCFM | 4.84% |
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-Score7
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 4.62 | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 212.68% | ||
| Cap/Sales | 7.5% | ||
| Interest Coverage | 9.7 | ||
| Cash Conversion | 69.89% | ||
| Profit Quality | 57.98% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 3.63 |
F-Score7
WACC13.01%
ROIC/WACC1.05
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)59.6%
EPS 3Y23.13%
EPS 5Y14.46%
EPS Q2Q%984.38%
EPS Next Y13.87%
EPS Next 2Y12.96%
EPS Next 3Y11.88%
EPS Next 5YN/A
Revenue 1Y (TTM)13.8%
Revenue growth 3Y12.83%
Revenue growth 5Y7.55%
Sales Q2Q%14.3%
Revenue Next Year10.28%
Revenue Next 2Y8.38%
Revenue Next 3Y9.38%
Revenue Next 5Y8.47%
EBIT growth 1Y18.49%
EBIT growth 3Y12.85%
EBIT growth 5Y8.96%
EBIT Next Year58.94%
EBIT Next 3Y23.28%
EBIT Next 5Y15.78%
FCF growth 1Y-23.12%
FCF growth 3Y-9.86%
FCF growth 5Y-3.15%
OCF growth 1Y0.36%
OCF growth 3Y9.06%
OCF growth 5Y6.29%