Ambev S.A. Stock Analysis, Valuation (NYSE:ABEV)
ABEV Stock Analysis
View Ambev S.A. stock analysis video. This is our analyst opinion covering the buy and sell arguments for ABEV stock.
Ambev SA (ADR) Stock Rating 3.2/5
Our Ambev S.A. stock opinion is based on fundamentals of the company. This Ambev S.A. stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.
Should you buy ABEV stock?
- Ambev S.A. had a healthy average operating margin of 34.9% over the last 4 quarters.
- LTM Net margins were good at 27.1% for Ambev S.A..
- Ambev S.A. has a lower debt burden than its peers in the Consumer Staples sector, with a debt/equity ratio of 0.1.
- Ambev S.A. generates a high return on invested capital of 31.6%.
- Ambev S.A. has a good Return On Equity (ROE) of 26.1%.
- The company has a healthy free cash flow margin of 16.2%.
Should you sell ABEV stock?
- The company saw an average annual sales decline of -1.2% in sales over the last 5 years.
- ABEV stock is trading at a PE ratio of 29.7, which is worse than the industry average multiple of 22.5.
- The company is trading at a price to sales multiple of 8, which is overvalued in comparison to the Beverages-Alcoholic industry average multiple of 1.6.