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. KOF has only an average score on both its financial health and profitability. KOF has a decent growth rate and is not valued too expensively. KOF also has an excellent dividend rating.
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.
In the past 5 years KOF has always been profitable.
KOF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KOF's Return On Assets of 9.25% is fine compared to the rest of the industry. KOF outperforms 75.76% of its industry peers.
KOF has a Return On Equity of 19.03%. This is in the better half of the industry: KOF outperforms 66.67% of its industry peers.
KOF's Return On Invested Capital of 13.32% is fine compared to the rest of the industry. KOF outperforms 78.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KOF is in line with the industry average of 11.44%.
The last Return On Invested Capital (13.32%) for KOF is above the 3 year average (10.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.25% | ||
| ROE | 19.03% | ||
| ROIC | 13.32% |
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
KOF has a Profit Margin (8.25%) which is in line with its industry peers.
In the last couple of years the Profit Margin of KOF has grown nicely.
The Operating Margin of KOF (14.02%) is comparable to the rest of the 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 (45.88%) which is in line with its industry peers.
KOF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.02% | ||
| PM (TTM) | 8.25% | ||
| GM | 45.88% |
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
KOF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
KOF has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.63 indicates that KOF is not in any danger for bankruptcy at the moment.
KOF has a better Altman-Z score (3.63) than 66.67% of its industry peers.
The Debt to FCF ratio of KOF is 8.61, which is on the high side as it means it would take KOF, 8.61 years of fcf income to pay off all of its debts.
KOF has a Debt to FCF ratio of 8.61. This is comparable to the rest of the industry: KOF outperforms 48.48% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that KOF is not too dependend on debt financing.
KOF has a Debt to Equity ratio of 0.48. This is comparable to the rest of the industry: KOF outperforms 57.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 8.61 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.07
WACC12.45%
2.3 Liquidity
A Current Ratio of 1.21 indicates that KOF should not have too much problems paying its short term obligations.
KOF has a Current ratio (1.21) which is in line with its industry peers.
A Quick Ratio of 0.96 indicates that KOF may have some problems paying its short term obligations.
KOF has a Quick ratio of 0.96. This is in the better half of the industry: KOF outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.61% 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 quite strong growth in Revenue. The Revenue has grown by 13.14% in the last year.
The Revenue has been growing slightly by 7.55% on average over the past years.
EPS 1Y (TTM)49.61%
EPS 3Y23.13%
EPS 5Y14.46%
EPS Q2Q%2.94%
Revenue 1Y (TTM)13.14%
Revenue growth 3Y12.83%
Revenue growth 5Y7.55%
Sales Q2Q%9.96%
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.
Based on estimates for the next years, KOF will show a quite strong growth in Revenue. The Revenue will grow by 8.47% on average per year.
EPS Next Y13.87%
EPS Next 2Y12.96%
EPS Next 3Y11.88%
EPS Next 5YN/A
Revenue Next Year11.57%
Revenue Next 2Y9.93%
Revenue Next 3Y8.76%
Revenue Next 5Y8.47%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.13, which indicates a correct valuation of KOF.
Compared to the rest of the industry, the Price/Earnings ratio of KOF indicates a somewhat cheap valuation: KOF is cheaper than 72.73% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KOF to the average of the S&P500 Index (26.25), we can say KOF is valued slightly cheaper.
KOF is valuated correctly with a Price/Forward Earnings ratio of 12.71.
Based on the Price/Forward Earnings ratio, KOF is valued cheaply inside the industry as 87.88% of the companies are valued more expensively.
KOF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 12.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KOF is valued cheaper than 84.85% of the companies in the same industry.
KOF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.74 | ||
| EV/EBITDA | 6.96 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of KOF may justify a higher PE ratio.
PEG (NY)1.16
PEG (5Y)1.12
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 2.90. KOF pays more dividend than 87.88% of the companies in the same industry.
KOF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| 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
44.58% 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.
DP44.58%
EPS Next 2Y12.96%
EPS Next 3Y11.88%
95
-1.5 (-1.55%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners18.2%
Inst Owner Change0.55%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap19.96B
Analysts79
Price Target95.89 (0.94%)
Short Float %2.9%
Short Ratio1.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
Yearly Dividend0.38
Dividend Growth(5Y)11.77%
DP44.58%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.01%
Min EPS beat(2)-3.97%
Max EPS beat(2)13.99%
EPS beat(4)3
Avg EPS beat(4)3.64%
Min EPS beat(4)-3.97%
Max EPS beat(4)13.99%
EPS beat(8)5
Avg EPS beat(8)-6.75%
EPS beat(12)6
Avg EPS beat(12)-13.93%
EPS beat(16)8
Avg EPS beat(16)-17.24%
Revenue beat(2)1
Avg Revenue beat(2)1.77%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)3.56%
Revenue beat(4)3
Avg Revenue beat(4)1.6%
Min Revenue beat(4)-0.03%
Max Revenue beat(4)3.56%
Revenue beat(8)6
Avg Revenue beat(8)1.26%
Revenue beat(12)9
Avg Revenue beat(12)26.66%
Revenue beat(16)13
Avg Revenue beat(16)38.95%
PT rev (1m)-3.42%
PT rev (3m)18.5%
EPS NQ rev (1m)-2.28%
EPS NQ rev (3m)-3.19%
EPS NY rev (1m)0%
EPS NY rev (3m)2.33%
Revenue NQ rev (1m)-1.44%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 12.71 | ||
| P/S | 1.1 | ||
| P/FCF | 42.74 | ||
| P/OCF | 10.48 | ||
| P/B | 2.54 | ||
| P/tB | 8.13 | ||
| EV/EBITDA | 6.96 |
EPS(TTM)5.89
EY6.2%
EPS(NY)7.47
Fwd EY7.87%
FCF(TTM)2.22
FCFY2.34%
OCF(TTM)9.07
OCFY9.54%
SpS86.34
BVpS37.42
TBVpS11.69
PEG (NY)1.16
PEG (5Y)1.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.25% | ||
| ROE | 19.03% | ||
| ROCE | 19.48% | ||
| ROIC | 13.32% | ||
| ROICexc | 15.24% | ||
| ROICexgc | 28.94% | ||
| OM | 14.02% | ||
| PM (TTM) | 8.25% | ||
| GM | 45.88% | ||
| FCFM | 2.57% |
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-Score8
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 8.61 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 217.56% | ||
| Cap/Sales | 7.93% | ||
| Interest Coverage | 9.5 | ||
| Cash Conversion | 59.45% | ||
| Profit Quality | 31.2% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 3.63 |
F-Score8
WACC12.45%
ROIC/WACC1.07
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)49.61%
EPS 3Y23.13%
EPS 5Y14.46%
EPS Q2Q%2.94%
EPS Next Y13.87%
EPS Next 2Y12.96%
EPS Next 3Y11.88%
EPS Next 5YN/A
Revenue 1Y (TTM)13.14%
Revenue growth 3Y12.83%
Revenue growth 5Y7.55%
Sales Q2Q%9.96%
Revenue Next Year11.57%
Revenue Next 2Y9.93%
Revenue Next 3Y8.76%
Revenue Next 5Y8.47%
EBIT growth 1Y16.34%
EBIT growth 3Y12.85%
EBIT growth 5Y8.96%
EBIT Next Year58.37%
EBIT Next 3Y22.48%
EBIT Next 5Y15.78%
FCF growth 1Y-48.99%
FCF growth 3Y-9.86%
FCF growth 5Y-3.15%
OCF growth 1Y3.49%
OCF growth 3Y9.06%
OCF growth 5Y6.29%