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

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$6.82 $0.05 (0.74%) ABEV stock closing price Sep 20, 2017 (Closing)
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Ambev S.A.
Updated on : Sep 20, 2017
previous close
ABEV 6.8 (0%)
S&P 500 2508.2 (0%)
Closing Price On: Sep 20, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Beverages-Alcoholic
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-1.2%
Operating Profit
Operating Margin:
34.9%
Sector Average:
11.3%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
1.54B
Debt/Equity Ratio:
 0.1
Compared to the industry
Cash Flow
Operating cash flow:
$742.7M
Net Income:
$661.8M
Dividend Yield
ABEV dividend yield:
2.93%
PROS      CONS
Operating Margins
Net Margins
Low Debt Burden
ROIC
ROE
FCF Margin
Long Term Growth
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ABEV PS :
8
Industry PS :
1.6
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
31.6%
Return on Equity:
26.1%
Free Cash Flow Margin:
16.2%
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ABEV Stock Analysis

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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.

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