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

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$6.9 $0.02 (0.29%) ABEV stock closing price Feb 16, 2018 (Closing)
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Ambev S.A.
Updated on : Feb 16, 2018
previous close
ABEV 6.9 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Beverages-Alcoholic
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-1.4%
Operating Profit
Operating Margin:
35.3%
Sector Average:
11.2%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
1.8B
Debt/Equity Ratio:
 0.12
Compared to the industry
Cash Flow
Operating cash flow:
$1.46B
Net Income:
$0.1M
Dividend Yield
ABEV dividend yield:
2.46%
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Low Debt Burden
ROIC
ROE
Long Term Growth
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ABEV PS :
7.5
Industry PS :
1.7
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
22.9%
Return on Equity:
19%
Free Cash Flow Margin:
34.3%
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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?

  • 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.

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.