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 weak financial fundamentals with a PE ratio of 194.00, profit margin of 7.26%, and ROE of 14.77%. The company generates $27.5B in annual revenue with moderate year-over-year growth of 4.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.9/100 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
ExcellentKOF demonstrates superior asset utilization.
Valuation Score
ModerateKOF shows balanced valuation metrics.
Growth Score
WeakKOF faces weak or negative growth trends.
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 194.00 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KOF's PEG of -0.33 indicates potential undervaluation.
Price to Book
The market values Coca-Cola FEMSA, S.A.B. de C.V. at 404.18 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.06 times EBITDA. This signals the market has high growth expectations.
How Well Does KOF Make Money?
Net Profit Margin
For every $100 in sales, Coca-Cola FEMSA, S.A.B. de C.V. keeps $7.26 as profit after all expenses.
Operating Margin
Core operations generate 13.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.77 in profit for every $100 of shareholder equity.
ROA
Coca-Cola FEMSA, S.A.B. de C.V. generates $86.45 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 $3.61B, showing steady but balanced cash generation.
Free Cash Flow
Coca-Cola FEMSA, S.A.B. de C.V. produces free cash flow of $1.61B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $7.65 in free cash annually.
FCF Yield
KOF converts 3.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
194.003
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
404.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.86
vs 25 benchmark
ROCE
Return on capital employed
2.09
vs 25 benchmark
How KOF Stacks Against Its Sector Peers
| Metric | KOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 194.00 | 21.04 | Worse (Expensive) |
| ROE | 14.77% | 1170.00% | Weak |
| Net Margin | 7.26% | -2432.00% (disorted) | Weak |
| Debt/Equity | 0.66 | 0.81 | Neutral |
| Current Ratio | 1.10 | 2.51 | Neutral |
| ROA | 86.45% | -196096.00% (disorted) | Strong |
KOF outperforms its industry in 1 out of 6 key metrics, particularly excelling in ROA, 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
58.89%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
131.35%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
-60.50%
Industry Style: Defensive, Dividend, Low Volatility
Declining