Ambev S.A. Stock Analysis, Valuation (NYSE:ABEV)
ABEV Stock Analysis
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?
- The Year Over Year (YoY) revenue growth for Ambev S.A. was 11.2% in 2017 Q3.
- The TTM operating margin was good at 35.3% for Ambev S.A..
- Net margins stood at a healthy 19.9% (average) for Ambev S.A. in the Trailing Twelve Months.
- With a debt/equity ratio of 0.12, Ambev S.A. is comparatively less leveraged than its peers in the Consumer Staples sector.
- Ambev S.A. generates a high return on invested capital of 22.9%.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Ambev S.A. at 19%.
- The company has a good Free Cash Flow (FCF) margin of 34.3%.
Should you sell ABEV stock?
- Revenue declined at a CAGR of -1.4% over the last 5 years.
- ABEV stock is trading at a PS multiple of 7.5, which is a negative when compared to the Beverages-Alcoholic industry average multiple of 1.7.
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.