Ambev S.A. Stock Analysis, Valuation (NYSE:ABEV)

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$6.69 $0.06 (0.89%) ABEV stock closing price Apr 24, 2018 (Closing)
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Ambev S.A.
Updated on : Apr 24, 2018
previous close
ABEV 6.7 (0%)
S&P 500 2634.6 (0%)
Closing Price On: Apr 24, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Beverages-Alcoholic
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-1%
Operating Profit
Operating Margin:
34.3%
Sector Average:
11.9%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
1.56B
Debt/Equity Ratio:
 0.1
Compared to the industry
Cash Flow
Operating cash flow:
$2.76B
Net Income:
$960.8M
Dividend Yield
ABEV dividend yield:
2.24%
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Low Debt Burden
Cash Flow
ROIC
Long Term Growth
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ABEV PS :
7
Industry PS :
1.6
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
20.5%
Return on Equity:
15.7%
Free Cash Flow Margin:
52.3%
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ABEV Stock Analysis

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View the Ambev S.A. stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for ABEV stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Ambev SA (ADR) Stock Rating 3.4/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for ABEV stock analysis. We also use relative valuation metrics like PE ratio and price to sales ratio for Ambev S.A. valuation analysis. Ambev S.A. stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy ABEV stock?

  • Ambev S.A.'s revenue growth came in at 15.8% in 2017 Q4.
  • Ambev S.A. had a healthy average operating margin of 34.3% over the last 4 quarters.
  • Net margins came in at average 15.7% for Ambev S.A. over the last twelve months.
  • With its debt/equity ratio of  0.1, Ambev S.A. has a lower debt burden when compared to the Consumer Staples average.
  • The company has an operating cash flow which is 2.9 times the net income. We see this as a positive signal.
  • Ambev S.A.'s return on invested capital of 20.5% is good.
  • The company has a healthy free cash flow margin of 52.3%.

Should you sell ABEV stock?

  • The company saw an average annual sales decline of -1% in sales over the last 5 years.
  • ABEV stock is trading at a PE ratio of 29.1, which is worse than the industry average multiple of 22.
  • The company is trading at a price to sales multiple of 7, which is overvalued in comparison to the Beverages-Alcoholic industry average multiple of 1.6.

Comments on this video and Ambev S.A. stock

Amigobulls Ambev S.A. stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. The fundamentals of a company are vital to identify long-term investment opportunities.

Ambev S.A. revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about ABEV stock.