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 6 out of 10. We evaluated KOF against 32 industry peers in the Beverages industry. While KOF belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. KOF has a decent growth rate and is not valued too expensively. Finally KOF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KOF was profitable.
In the past year KOF had a positive cash flow from operations.
In the past 5 years KOF has always been profitable.
Each year in the past 5 years KOF had a positive operating cash flow.
1.2 Ratios
The Return On Assets of KOF (9.32%) is better than 71.88% of its industry peers.
With a decent Return On Equity value of 20.02%, KOF is doing good in the industry, outperforming 65.63% of the companies in the same industry.
With a decent Return On Invested Capital value of 13.72%, KOF is doing good in the industry, outperforming 71.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KOF is in line with the industry average of 12.19%.
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
KOF has a Profit Margin of 8.35%. This is in the better half of the industry: KOF outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of KOF has grown nicely.
KOF has a Operating Margin (14.13%) which is in line with its industry peers.
KOF's Operating Margin has been stable in the last couple of years.
The Gross Margin of KOF (45.73%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of KOF has remained more or less at the same level.
| 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
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 a worse debt to assets ratio.
2.2 Solvency
KOF has an Altman-Z score of 3.55. This indicates that KOF is financially healthy and has little risk of bankruptcy at the moment.
KOF's Altman-Z score of 3.55 is in line compared to the rest of the industry. KOF outperforms 59.38% of its industry peers.
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.
With a decent Debt to FCF ratio value of 4.62, KOF is doing good in the industry, outperforming 78.13% of the companies in the same industry.
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 | 3.55 |
ROIC/WACC1.06
WACC12.93%
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.
KOF has a Current ratio of 1.12. This is comparable to the rest of the industry: KOF outperforms 43.75% 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
The Earnings Per Share has grown by an impressive 59.60% over the past year.
KOF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.46% yearly.
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
The Earnings Per Share is expected to grow by 11.88% on average over the next years. This is quite good.
KOF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.47% yearly.
EPS Next Y13.87%
EPS Next 2Y12.96%
EPS Next 3Y11.88%
EPS Next 5YN/A
Revenue Next Year11.6%
Revenue Next 2Y9.79%
Revenue Next 3Y9.14%
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.
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 16.10.
Based on the Price/Earnings ratio, KOF is valued cheaply inside the industry as 84.38% of the companies are valued more expensively.
KOF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.21.
KOF is valuated correctly with a Price/Forward Earnings ratio of 14.13.
90.63% of the companies in the same industry are more expensive than KOF, based on the Price/Forward Earnings ratio.
KOF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 14.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KOF indicates a rather cheap valuation: KOF is cheaper than 87.50% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KOF is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.95 | ||
| EV/EBITDA | 6.96 |
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)1.16
PEG (5Y)1.11
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 3.05. KOF pays more dividend than 87.50% of the companies in the same industry.
KOF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
5.2 History
The dividend of KOF is nicely growing with an annual growth rate of 11.77%!
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
44.81% 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.
DP44.81%
EPS Next 2Y12.96%
EPS Next 3Y11.88%
92.92
+0.05 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners18.2%
Inst Owner Change0.61%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap19.52B
Analysts79
Price Target99.29 (6.86%)
Short Float %3.8%
Short Ratio1.61
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)7.89%
PT rev (3m)22.7%
EPS NQ rev (1m)-4.26%
EPS NQ rev (3m)-0.63%
EPS NY rev (1m)0.01%
EPS NY rev (3m)2.1%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)1.2%
Revenue NY rev (3m)2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 14.13 | ||
| P/S | 1.11 | ||
| P/FCF | 22.95 | ||
| P/OCF | 9 | ||
| P/B | 2.66 | ||
| P/tB | 9.2 | ||
| EV/EBITDA | 6.96 |
EPS(TTM)5.77
EY6.21%
EPS(NY)6.57
Fwd EY7.08%
FCF(TTM)4.05
FCFY4.36%
OCF(TTM)10.32
OCFY11.11%
SpS83.67
BVpS34.88
TBVpS10.11
PEG (NY)1.16
PEG (5Y)1.11
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 | 3.55 |
F-Score7
WACC12.93%
ROIC/WACC1.06
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 Year11.6%
Revenue Next 2Y9.79%
Revenue Next 3Y9.14%
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%