BOVESPA:ABEV3

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Executive Summary

Ambev S.A., through its subsidiaries, produces, distributes, and sells beer, draft beer, carbonated soft drinks (CSD), other non-alcoholic beverages, malt, and food products in the Americas. More Details


Snowflake Analysis

Excellent balance sheet unattractive dividend payer.


Similar Companies

Share Price & News

How has Ambev's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ABEV3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ABEV3's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-5.0%

ABEV3

-3.1%

BR Beverage

-2.6%

BR Market


1 Year Return

-20.2%

ABEV3

-15.5%

BR Beverage

-2.2%

BR Market

Return vs Industry: ABEV3 underperformed the BR Beverage industry which returned -13.8% over the past year.

Return vs Market: ABEV3 underperformed the BR Market which returned -1.4% over the past year.


Shareholder returns

ABEV3IndustryMarket
7 Day-5.0%-3.1%-2.6%
30 Day-2.3%-0.1%0.6%
90 Day9.1%11.2%14.3%
1 Year-18.0%-20.2%-13.2%-15.5%0.4%-2.2%
3 Year-24.6%-30.8%-14.4%-21.1%47.3%31.4%
5 Year-5.8%-18.8%2.2%-10.7%195.4%144.8%

Long-Term Price Volatility Vs. Market

How volatile is Ambev's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ambev undervalued compared to its fair value and its price relative to the market?

27.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABEV3 (R$15.15) is trading above our estimate of fair value (R$10.13)

Significantly Below Fair Value: ABEV3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ABEV3 is poor value based on its PE Ratio (27.4x) compared to the XS Beverage industry average (17.6x).

PE vs Market: ABEV3 is poor value based on its PE Ratio (27.4x) compared to the BR market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: ABEV3 is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: ABEV3 is overvalued based on its PB Ratio (3.1x) compared to the XS Beverage industry average (2.2x).


Next Steps

Future Growth

How is Ambev forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABEV3's forecast earnings growth (13.3% per year) is above the savings rate (9.9%).

Earnings vs Market: ABEV3's earnings (13.3% per year) are forecast to grow slower than the BR market (27.4% per year).

High Growth Earnings: ABEV3's earnings are forecast to grow, but not significantly.

Revenue vs Market: ABEV3's revenue (5.1% per year) is forecast to grow slower than the BR market (10.4% per year).

High Growth Revenue: ABEV3's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABEV3's Return on Equity is forecast to be low in 3 years time (18.5%).


Next Steps

Past Performance

How has Ambev performed over the past 5 years?

-5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABEV3 has high quality earnings.

Growing Profit Margin: ABEV3's current net profit margins (15.6%) are lower than last year (20.9%).


Past Earnings Growth Analysis

Earnings Trend: ABEV3's earnings have declined by 5.1% per year over the past 5 years.

Accelerating Growth: ABEV3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ABEV3 had negative earnings growth (-21.3%) over the past year, making it difficult to compare to the Beverage industry average (-6.8%).


Return on Equity

High ROE: ABEV3's Return on Equity (11.4%) is considered low.


Next Steps

Financial Health

How is Ambev's financial position?


Financial Position Analysis

Short Term Liabilities: ABEV3's short term assets (R$39.1B) exceed its short term liabilities (R$30.3B).

Long Term Liabilities: ABEV3's short term assets (R$39.1B) exceed its long term liabilities (R$17.2B).


Debt to Equity History and Analysis

Debt Level: ABEV3's debt to equity ratio (6.6%) is considered satisfactory.

Reducing Debt: ABEV3's debt to equity ratio has increased from 6.3% to 6.6% over the past 5 years.

Debt Coverage: ABEV3's debt is well covered by operating cash flow (380.3%).

Interest Coverage: ABEV3's interest payments on its debt are well covered by EBIT (11.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Ambev current dividend yield, its reliability and sustainability?

3.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABEV3's dividend (3.24%) is higher than the bottom 25% of dividend payers in the BR market (0.96%).

High Dividend: ABEV3's dividend (3.24%) is low compared to the top 25% of dividend payers in the BR market (5.13%).


Stability and Growth of Payments

Stable Dividend: ABEV3 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ABEV3 has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.8%), ABEV3's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABEV3's dividends in 3 years are not forecast to be well covered by earnings (110.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Jean Neto (46 yo)

1

Tenure

Mr. Jean Jereissati Neto has been Chief Executive Officer of Ambev S.A. since January 1, 2020 serves as its Member of Executive Board. He served as Chief Sales Officer and Chief Marketing Officer at Ambev ...


Leadership Team

NamePositionTenureCompensationOwnership
Jean Neto
CEO & Member of Executive Board1yrno datano data
Lucas Lira
CFO, Chief Investor Relations & Shared Services Officer and Member of Board of Executive Officers0.75yrno datano data
Eduardo Braga de Lacerda
VP Officer of Commercial & Member of Executive Board of Officers2.5yrsno datano data
Ricardo Morais Pereira de Melo
VP Officer of People and Management & Member of Executive Board of Officersno datano datano data
Rodrigo de Souza
VP Officer of Procurement & Member of Executive Board of Officersno datano datano data
Mauricio Soufen
Industrial VP Officer & Member of Executive Board of Officers4.17yrsno datano data
Daniel Cocenzo
VP Officer of Sales & Member of Executive Board of Officersno datano datano data
Leticia Barbosa Kina
VP Officer of Legalno datano datano data
Ricardo Melo
VP Officer of Compliance and Corporate Affairs & Member of Executive Board of Officers2yrsno datano data
Paulo Zagman
VP Officer of Logistics & Member of Executive Board of Officers2yrsno datano data
Eduardo Horai
VP Officer of Information Technology & Member of Board of Executive Officers1yrno datano data
Ricardo Dias Silva
VP Officer of Marketing & Member of Executive Board of Officersno datano datano data

2.0yrs

Average Tenure

44yo

Average Age

Experienced Management: ABEV3's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nelson Jose Jamel
VP of Finance & Director2.75yrsno datano data
Roberto Moses Motta
Director13yrsno datano data
Antonio Carlos Augusto Ribeiro Bonchristiano
Independent Director7yrsno datano data
Victório de Marchi
Co-Chairman22yrsno datano data
José Heitor Gracioso
Director22yrsno datano data
Carlos de Brito
Co-Chairman15yrsno datano data
Luis Felipe Pedreira Leite
Director16yrsno datano data
Vicente Falconi Campos
Director22yrsno datano data
Milton Seligman
Director3yrsno datano data
Marcos de Barros Lisboa
Independent Director7yrsno datano data
Cecilia Sicupira
Director10yrsno datano data
José Ronaldo Rezende
Independent Chairman of the Fiscal Council2.5yrsno datano data

11.5yrs

Average Tenure

60yo

Average Age

Experienced Board: ABEV3's board of directors are seasoned and experienced ( 11.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ambev S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ambev S.A.
  • Ticker: ABEV3
  • Exchange: BOVESPA
  • Founded: 1885
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: R$245.599b
  • Shares outstanding: 15.73b
  • Website: https://www.ambev.com.br

Number of Employees


Location

  • Ambev S.A.
  • Rua Dr. Renato Paes de Barros, 1017
  • 3rd Floor
  • São Paulo
  • São Paulo
  • 04530-001
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABEV3BOVESPA (Bolsa de Valores de Sao Paulo)YesOrdinary SharesBRBRLNov 2013
ABEVNYSE (New York Stock Exchange)SPONSORED ADRUSUSDNov 2013
ABEV NBMV (Bolsa Mexicana de Valores)SPONSORED ADRMXMXNNov 2013
AMNADB (Deutsche Boerse AG)SPONSORED ADRDEEURNov 2013

Biography

Ambev S.A., through its subsidiaries, produces, distributes, and sells beer, draft beer, carbonated soft drinks (CSD), other non-alcoholic beverages, malt, and food products in the Americas. It operates th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 21:56
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.