COCA-COLA FEMSA SAB-SP ADR (KOF) Stock Fundamental Analysis
USA - NYSE:KOF - US1912411089 - ADR
87.3 USD
+1.56 (+1.82%)
87.3 USD
0 (0%)
Overall KOF gets a fundamental rating of 5 out of 10. We evaluated KOF against 32 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.
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.
In the past 5 years KOF always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of KOF (7.52%) is better than 68.75% of its industry peers.
With a decent Return On Equity value of 17.23%, KOF is doing good in the industry, outperforming 62.50% of the companies in the same industry.
KOF has a Return On Invested Capital of 11.33%. This is in the better half of the industry: KOF outperforms 65.63% 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 11.08%.
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 59.38% of the companies in the same industry.
KOF's Profit Margin has improved in the last couple of years.
KOF has a Operating Margin (13.97%) which is in line with its industry peers.
KOF's Operating Margin has been stable in the last couple of years.
KOF has a Gross Margin of 46.02%. This is comparable to the rest of the industry: KOF outperforms 46.88% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KOF is still creating some value.
The number of shares outstanding for KOF remains at a similar level compared to 1 year ago.
KOF has about the same amout of shares outstanding than it did 5 years ago.
KOF has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.97 indicates that KOF is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.97, KOF perfoms like the industry average, outperforming 59.38% of the companies in the same 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 62.50% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that KOF is somewhat dependend on debt financing.
KOF's Debt to Equity ratio of 0.58 is in line compared to the rest of the industry. KOF outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 12.76 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.47
WACC7.71%
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 (1.12) which is in line with 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.
With a decent Quick ratio value of 0.90, KOF is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
KOF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.61%, which is quite impressive.
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.
KOF shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.22%.
KOF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.55% yearly.
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
The Earnings Per Share is expected to grow by 9.54% on average over the next years. This is quite good.
KOF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.82% yearly.
EPS Next Y7.23%
EPS Next 2Y10.45%
EPS Next 3Y9.54%
EPS Next 5YN/A
Revenue Next Year9.52%
Revenue Next 2Y8.96%
Revenue Next 3Y7.94%
Revenue Next 5Y6.82%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 14.31, which indicates a correct valuation of KOF.
Based on the Price/Earnings ratio, KOF is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.27, KOF is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.66, the valuation of KOF can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KOF indicates a rather cheap valuation: KOF is cheaper than 87.50% of the companies listed in the same industry.
KOF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.31 | ||
| Fwd PE | 11.66 |
4.2 Price Multiples
93.75% of the companies in the same industry are more expensive than KOF, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as KOF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.01 | ||
| EV/EBITDA | 7.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KOF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.98
PEG (5Y)0.99
EPS Next 2Y10.45%
EPS Next 3Y9.54%
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.
KOF's Dividend Yield is rather good when compared to the industry average which is at 2.84. KOF pays more dividend than 87.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, KOF pays a better dividend.
| 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 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)11.58%
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 slower than its dividend. This means the dividend growth is not sustainable.
DP58.19%
EPS Next 2Y10.45%
EPS Next 3Y9.54%
87.3
+1.56 (+1.82%)
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 Cap18.34B
Analysts79.05
Price Target91.46 (4.77%)
Short Float %6.66%
Short Ratio2.39
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)-17.71%
PT rev (3m)-6.75%
EPS NQ rev (1m)-3.68%
EPS NQ rev (3m)-10.49%
EPS NY rev (1m)-5.83%
EPS NY rev (3m)-5.83%
Revenue NQ rev (1m)-1.7%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)-1.18%
Revenue NY rev (3m)-1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.31 | ||
| Fwd PE | 11.66 | ||
| P/S | 1.17 | ||
| P/FCF | 51.01 | ||
| P/OCF | 10.24 | ||
| P/B | 2.47 | ||
| P/tB | 9.99 | ||
| EV/EBITDA | 7.17 |
EPS(TTM)6.1
EY6.99%
EPS(NY)7.49
Fwd EY8.57%
FCF(TTM)1.71
FCFY1.96%
OCF(TTM)8.53
OCFY9.77%
SpS74.6
BVpS35.4
TBVpS8.74
PEG (NY)1.98
PEG (5Y)0.99
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 | 2.97 |
F-Score4
WACC7.71%
ROIC/WACC1.47
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 Y7.23%
EPS Next 2Y10.45%
EPS Next 3Y9.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.22%
Revenue growth 3Y12.83%
Revenue growth 5Y7.55%
Sales Q2Q%4.98%
Revenue Next Year9.52%
Revenue Next 2Y8.96%
Revenue Next 3Y7.94%
Revenue Next 5Y6.82%
EBIT growth 1Y-9.75%
EBIT growth 3Y12.85%
EBIT growth 5Y8.96%
EBIT Next Year58.37%
EBIT Next 3Y22.48%
EBIT Next 5Y13.59%
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%