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ABEV

Ambev BOVESPA:ABEV3 Stock Report

Last Price

R$13.61

Market Cap

R$214.3b

7D

2.3%

1Y

-20.3%

Updated

29 Jun, 2022

Data

Company Financials +
ABEV3 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance2/6
Financial Health6/6
Dividends3/6

ABEV3 Stock Overview

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

Ambev Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ambev
Historical stock prices
Current Share PriceR$13.61
52 Week HighR$18.17
52 Week LowR$12.81
Beta0.91
1 Month Change-3.41%
3 Month Change-11.62%
1 Year Change-20.27%
3 Year Change-27.88%
5 Year Change-25.30%
Change since IPO-21.78%

Recent News & Updates

May 16
Is Ambev (BVMF:ABEV3) Using Too Much Debt?

Is Ambev (BVMF:ABEV3) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Shareholder Returns

ABEV3BR BeverageBR Market
7D2.3%0.9%-0.3%
1Y-20.3%-13.8%-29.1%

Return vs Industry: ABEV3 underperformed the BR Beverage industry which returned -14% over the past year.

Return vs Market: ABEV3 exceeded the BR Market which returned -29% over the past year.

Price Volatility

Is ABEV3's price volatile compared to industry and market?
ABEV3 volatility
ABEV3 Average Weekly Movement3.0%
Beverage Industry Average Movement4.2%
Market Average Movement5.8%
10% most volatile stocks in BR Market9.2%
10% least volatile stocks in BR Market2.9%

Stable Share Price: ABEV3 is less volatile than 75% of BR stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ABEV3's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188553,000Jean Netohttps://www.ambev.com.br

Ambev S.A., through its subsidiaries, produces, distributes, and sells beer, draft beer, carbonated soft drinks, other non-alcoholic beverages, malt, and food products in the Americas. The company operates through four segments: Brazil; Central America and the Caribbean; Latin America South; and Canada. It offers beer primarily under the Skol, Brahma, Antarctica, Brahva, Brahva Gold, Extra, Bud Light, Beck, Leffe and Hoegaarden, Bucanero, Cristal, Mayabe, Cacique, Presidente, Brahma Light, Presidente Light, Presidente Golden Light, Bohemia, The One, Corona, Modelo Especial, Stella Artois, and Budweiser, Quilmes Clásica, Paceña, Taquiña, Huari, Becker, Cusqueña, Michelob Ultra, Busch, Pilsen, Ouro Fino, Banks, Deputy, Patricia, Labatt Blue, Alexander Keith’s, and Kokanee brands.

Ambev Fundamentals Summary

How do Ambev's earnings and revenue compare to its market cap?
ABEV3 fundamental statistics
Market CapR$214.29b
Earnings (TTM)R$13.46b
Revenue (TTM)R$74.65b

15.9x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABEV3 income statement (TTM)
RevenueR$74.65b
Cost of RevenueR$37.13b
Gross ProfitR$37.52b
Other ExpensesR$24.07b
EarningsR$13.46b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)0.85
Gross Margin50.27%
Net Profit Margin18.03%
Debt/Equity Ratio0.7%

How did ABEV3 perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

71%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ABEV3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ABEV3?

Other financial metrics that can be useful for relative valuation.

ABEV3 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA9.6x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does ABEV3's PE Ratio compare to its peers?

ABEV3 PE Ratio vs Peers
The above table shows the PE ratio for ABEV3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.5x
JBSS3 JBS
3.1x-14.8%R$72.2b
1876 Budweiser Brewing Company APAC
37.8x14.5%HK$302.1b
HEIA Heineken
15.5x1.5%€51.4b
291 China Resources Beer (Holdings)
33.8x10.7%HK$181.5b
ABEV3 Ambev
15.9x12.2%R$214.3b

Price-To-Earnings vs Peers: ABEV3 is good value based on its Price-To-Earnings Ratio (15.9x) compared to the peer average (22.5x).


Price to Earnings Ratio vs Industry

How does ABEV3's PE Ratio compare vs other companies in the Global Beverage Industry?

Price-To-Earnings vs Industry: ABEV3 is expensive based on its Price-To-Earnings Ratio (15.9x) compared to the South American Beverage industry average (12.9x)


Price to Earnings Ratio vs Fair Ratio

What is ABEV3's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ABEV3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.9x
Fair PE Ratio16.1x

Price-To-Earnings vs Fair Ratio: ABEV3 is good value based on its Price-To-Earnings Ratio (15.9x) compared to the estimated Fair Price-To-Earnings Ratio (16.1x).


Share Price vs Fair Value

What is the Fair Price of ABEV3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ABEV3 (R$13.61) is trading below our estimate of fair value (R$15.75)

Significantly Below Fair Value: ABEV3 is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: ABEV3 is poor value based on its PEG Ratio (1.3x)


Discover undervalued companies

Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABEV3's forecast earnings growth (12.2% per year) is above the savings rate (9.1%).

Earnings vs Market: ABEV3's earnings (12.2% per year) are forecast to grow faster than the BR market (6.2% per year).

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

Revenue vs Market: ABEV3's revenue (5.3% per year) is forecast to grow slower than the BR market (5.5% per year).

High Growth Revenue: ABEV3's revenue (5.3% 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 (18.9%).


Discover growth companies

Past Performance

How has Ambev performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ABEV3 has high quality earnings.

Growing Profit Margin: ABEV3's current net profit margins (18%) are lower than last year (20.7%).


Past Earnings Growth Analysis

Earnings Trend: ABEV3's earnings have grown by 7.6% per year over the past 5 years.

Accelerating Growth: ABEV3's earnings growth over the past year (4.2%) is below its 5-year average (7.6% per year).

Earnings vs Industry: ABEV3 earnings growth over the past year (4.2%) underperformed the Beverage industry 24.8%.


Return on Equity

High ROE: ABEV3's Return on Equity (17.4%) is considered low.


Discover strong past performing companies

Financial Health

How is Ambev's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ABEV3's short term assets (R$34.5B) exceed its short term liabilities (R$33.2B).

Long Term Liabilities: ABEV3's short term assets (R$34.5B) exceed its long term liabilities (R$14.0B).


Debt to Equity History and Analysis

Debt Level: ABEV3 has more cash than its total debt.

Reducing Debt: ABEV3's debt to equity ratio has reduced from 10.5% to 0.7% over the past 5 years.

Debt Coverage: ABEV3's debt is well covered by operating cash flow (3906.4%).

Interest Coverage: ABEV3's interest payments on its debt are well covered by EBIT (246.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.43%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ABEV3's dividend (4.43%) is higher than the bottom 25% of dividend payers in the BR market (1.73%).

High Dividend: ABEV3's dividend (4.43%) is low compared to the top 25% of dividend payers in the BR market (7.82%).


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's dividend payments have increased, but the company has only paid a dividend for 8 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (70.6%), ABEV3's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (71.2%), ABEV3's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

2.4yrs

Average management tenure


CEO

Jean Neto (47 yo)

2.42yrs

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

Experienced Management: ABEV3's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: ABEV3's board of directors are considered experienced (4.9 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 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
  • Implied Market Cap: R$214.288b
  • Shares outstanding: 15.74b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.