Coca-Cola FEMSA, S.A.B. de C.V.
Coca-Cola FEMSA, S.A.B. de C.V. Fundamental Analysis
Coca-Cola FEMSA, S.A.B. de C.V. (KOF) shows moderate financial fundamentals with a PE ratio of 17.23, profit margin of 8.12%, and ROE of 22.03%. The company generates $290.9B in annual revenue with strong year-over-year growth of 14.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze KOF's fundamental strength across five key dimensions:
Efficiency Score
WeakKOF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKOF trades at attractive valuation levels.
Growth Score
ExcellentKOF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentKOF maintains a strong and stable balance sheet.
Profitability Score
ModerateKOF maintains healthy but balanced margins.
Key Financial Metrics
Is KOF Expensive or Cheap?
P/E Ratio
KOF trades at 17.23 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KOF's PEG of -11.30 indicates potential undervaluation.
Price to Book
The market values Coca-Cola FEMSA, S.A.B. de C.V. at 2.87 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.72 times EBITDA. This is generally considered low.
How Well Does KOF Make Money?
Net Profit Margin
For every $100 in sales, Coca-Cola FEMSA, S.A.B. de C.V. keeps $8.12 as profit after all expenses.
Operating Margin
Core operations generate 13.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.03 in profit for every $100 of shareholder equity.
ROA
Coca-Cola FEMSA, S.A.B. de C.V. generates $7.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Coca-Cola FEMSA, S.A.B. de C.V. generates limited operating cash flow of $12.20B, signaling weaker underlying cash strength.
Free Cash Flow
Coca-Cola FEMSA, S.A.B. de C.V. generates weak or negative free cash flow of $6.02B, restricting financial flexibility.
FCF Per Share
Each share generates $28.66 in free cash annually.
FCF Yield
KOF converts 1.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-11.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How KOF Stacks Against Its Sector Peers
| Metric | KOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.23 | 23.25 | Better (Cheaper) |
| ROE | 22.03% | 1240.00% | Weak |
| Net Margin | 8.12% | -9728.00% (disorted) | Weak |
| Debt/Equity | 0.57 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.10 | 2.54 | Neutral |
| ROA | 7.50% | -203388.00% (disorted) | Weak |
KOF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Coca-Cola FEMSA, S.A.B. de C.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.87%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
96.09%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
35.65%
Industry Style: Defensive, Dividend, Low Volatility
High Growth