Ambev S.A.
Ambev S.A. Fundamental Analysis
Ambev S.A. (ABEV) shows moderate financial fundamentals with a PE ratio of 15.39, profit margin of 17.57%, and ROE of 16.90%. The company generates $88.3B in annual revenue with strong year-over-year growth of 12.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ABEV's fundamental strength across five key dimensions:
Efficiency Score
ExcellentABEV demonstrates superior asset utilization.
Valuation Score
ExcellentABEV trades at attractive valuation levels.
Growth Score
ModerateABEV shows steady but slowing expansion.
Financial Health Score
ModerateABEV shows balanced financial health with some risks.
Profitability Score
ExcellentABEV achieves industry-leading margins.
Key Financial Metrics
Is ABEV Expensive or Cheap?
P/E Ratio
ABEV trades at 15.39 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ABEV's PEG of -1.01 indicates potential undervaluation.
Price to Book
The market values Ambev S.A. at 2.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.58 times EBITDA. This is generally considered low.
How Well Does ABEV Make Money?
Net Profit Margin
For every $100 in sales, Ambev S.A. keeps $17.57 as profit after all expenses.
Operating Margin
Core operations generate 26.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.90 in profit for every $100 of shareholder equity.
ROA
Ambev S.A. generates $10.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ambev S.A. generates strong operating cash flow of $24.45B, reflecting robust business health.
Free Cash Flow
Ambev S.A. generates strong free cash flow of $19.85B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.27 in free cash annually.
FCF Yield
ABEV converts 8.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How ABEV Stacks Against Its Sector Peers
| Metric | ABEV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.39 | 22.46 | Better (Cheaper) |
| ROE | 16.90% | 1263.00% | Weak |
| Net Margin | 17.57% | -5207.00% (disorted) | Strong |
| Debt/Equity | 0.06 | 1.24 | Strong (Low Leverage) |
| Current Ratio | 0.96 | 2.47 | Weak Liquidity |
| ROA | 10.47% | -192326.00% (disorted) | Strong |
ABEV outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ambev S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
69.99%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
22.50%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
41.92%
Industry Style: Defensive, Dividend, Low Volatility
High Growth