Coca-Cola FEMSA, S.A.B. de C.V. Fundamental Analysis (NYSE: KOF)
Coca-Cola FEMSA, S.A.B. de C.V. Fundamental Analysis (NYSE: KOF)
Coca-Cola FEMSA, S.A.B. de C.V. (NYSE: KOF) shows weak financial fundamentals with a PE ratio of 53.94, profit margin of 7.55%, and ROE of 11.85%. The company generates $27.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.3/100 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 KOF's fundamental strength across five key dimensions:
Efficiency Score
WeakKOF struggles to generate sufficient returns from assets.
Valuation Score
ModerateKOF shows balanced valuation metrics.
Growth Score
ModerateKOF shows steady but slowing expansion.
Financial Health Score
ExcellentKOF maintains a strong and stable balance sheet.
Profitability Score
WeakKOF struggles to sustain strong margins.
Key Financial Metrics
Is KOF Expensive or Cheap?
P/E Ratio
KOF trades at 53.94 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KOF's PEG of -0.05 indicates potential undervaluation.
Price to Book
The market values Coca-Cola FEMSA, S.A.B. de C.V. at 22.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.70 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 $7.55 as profit after all expenses.
Operating Margin
Core operations generate 13.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.85 in profit for every $100 of shareholder equity.
ROA
Coca-Cola FEMSA, S.A.B. de C.V. generates $5.01 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. produces operating cash flow of $5.14B, showing steady but balanced cash generation.
Free Cash Flow
Coca-Cola FEMSA, S.A.B. de C.V. produces free cash flow of $2.74B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $13.02 in free cash annually.
FCF Yield
KOF converts 5.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
53.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
22.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How KOF Stacks Against Its Sector Peers
| Metric | KOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 53.94 | 20.51 | Worse (Expensive) |
| ROE | 11.85% | 695.00% | Weak |
| Net Margin | 7.55% | -2241.00% (disorted) | Weak |
| Debt/Equity | 0.63 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.04 | 2.37 | Neutral |
| ROA | 5.01% | 320.00% | Weak |
KOF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
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
N/A
Industry Style: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility