COCA-COLA FEMSA SAB-SP ADR (KOF) Stock Fundamental Analysis
NYSE:KOF - New York Stock Exchange, Inc. - US1912411089 - ADR - Currency: USD
KOF gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. Both the profitability and the financial health of KOF get a neutral evaluation. Nothing too spectacular is happening here. KOF has a correct valuation and a medium 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.
KOF had positive earnings in each of the past 5 years.
KOF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.25%, KOF is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.03%, KOF is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
KOF has a Return On Invested Capital of 13.32%. This is in the better half of the industry: KOF outperforms 78.79% 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 11.39%.
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.
KOF's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 14.02%, KOF perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
KOF's Operating Margin has been stable in the last couple of years.
KOF's Gross Margin of 45.88% is in line compared to the rest of the industry. KOF outperforms 54.55% of its industry peers.
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 | 14.02% | ||
| 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.
The debt/assets ratio for KOF is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.56 indicates that KOF is not in any danger for bankruptcy at the moment.
KOF has a Altman-Z score of 3.56. This is in the better half of the industry: KOF outperforms 63.64% of its industry peers.
KOF has a debt to FCF ratio of 8.61. This is a slightly negative value and a sign of low solvency as KOF would need 8.61 years to pay back of 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.
KOF has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.48, KOF perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 8.61 | ||
| Altman-Z | 3.56 |
ROIC/WACC1.63
WACC8.16%
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.
The Quick ratio of KOF (0.96) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
KOF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.61%, which is quite impressive.
KOF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.46% yearly.
The Revenue has grown by 13.14% in the past year. This is quite good.
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)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
The Earnings Per Share is expected to grow by 11.88% on average over the next years. This is quite good.
Based on estimates for the next years, KOF will show a small growth in Revenue. The Revenue will grow by 7.46% 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 5Y7.46%
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
With a Price/Earnings ratio of 15.31, KOF is valued correctly.
72.73% of the companies in the same industry are more expensive than KOF, based on the Price/Earnings ratio.
KOF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.69.
Based on the Price/Forward Earnings ratio of 12.07, the valuation of KOF can be described as correct.
Based on the Price/Forward Earnings ratio, KOF is valued cheaper than 87.88% of the companies in the same industry.
KOF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 12.07 |
4.2 Price Multiples
KOF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KOF is cheaper than 84.85% 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 | 40.57 | ||
| EV/EBITDA | 6.64 |
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)1.1
PEG (5Y)1.06
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 3.15. KOF pays more dividend than 81.82% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, KOF pays a better dividend.
| 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
44.58% 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%
91.57
-2.58 (-2.74%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners15.86%
Inst Owner Change0.56%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap19.24B
Analysts79
Price Target97.48 (6.45%)
Short Float %2.19%
Short Ratio0.71
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)1.65%
PT rev (3m)6.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.29%
EPS NY rev (1m)0%
EPS NY rev (3m)2.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 12.07 | ||
| P/S | 1.04 | ||
| P/FCF | 40.57 | ||
| P/OCF | 9.95 | ||
| P/B | 2.41 | ||
| P/tB | 7.72 | ||
| EV/EBITDA | 6.64 |
EPS(TTM)5.98
EY6.53%
EPS(NY)7.59
Fwd EY8.29%
FCF(TTM)2.26
FCFY2.46%
OCF(TTM)9.21
OCFY10.05%
SpS87.67
BVpS38
TBVpS11.87
PEG (NY)1.1
PEG (5Y)1.06
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 | 3.56 |
F-Score8
WACC8.16%
ROIC/WACC1.63
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 5Y7.46%
EBIT growth 1Y16.34%
EBIT growth 3Y12.85%
EBIT growth 5Y8.96%
EBIT Next Year58.37%
EBIT Next 3Y22.48%
EBIT Next 5Y14.45%
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%