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Compañía Cervecerías Unidas

Market Cap

CL$2.4t

Last Updated

2021/05/14 04:38 UTC

Data Sources

Company Financials +

Executive Summary

Compañía Cervecerías Unidas S.A. operates as a beverage company principally in Chile, Argentina, Uruguay, Paraguay, Colombia, and Bolivia. More Details


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has Compañía Cervecerías Unidas's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CCU is not significantly more volatile than the rest of CL stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CCU's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-4.0%

CCU

-1.9%

CL Beverage

-4.2%

CL Market


1 Year Return

16.0%

CCU

5.9%

CL Beverage

12.9%

CL Market

Return vs Industry: CCU exceeded the CL Beverage industry which returned 5.9% over the past year.

Return vs Market: CCU exceeded the CL Market which returned 12.9% over the past year.


Shareholder returns

CCUIndustryMarket
7 Day-4.0%-1.9%-4.2%
30 Day-6.1%-5.0%-9.3%
90 Day-2.5%-2.5%-2.3%
1 Year19.6%16.0%10.8%5.9%18.2%12.9%
3 Year-15.0%-24.8%-18.4%-27.8%-19.4%-27.6%
5 Year1.5%-13.9%3.2%-13.3%13.6%-5.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Compañía Cervecerías Unidas undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CCU (CLP6336) is trading below our estimate of fair value (CLP13669.67)

Significantly Below Fair Value: CCU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CCU is poor value based on its PE Ratio (18.2x) compared to the CL Beverage industry average (13.1x).

PE vs Market: CCU is poor value based on its PE Ratio (18.2x) compared to the CL market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: CCU is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: CCU is overvalued based on its PB Ratio (1.8x) compared to the CL Beverage industry average (1.2x).


Future Growth

How is Compañía Cervecerías Unidas forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCU's forecast earnings growth (9.4% per year) is above the savings rate (7.6%).

Earnings vs Market: CCU's earnings (9.4% per year) are forecast to grow slower than the CL market (18.9% per year).

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

Revenue vs Market: CCU's revenue (4% per year) is forecast to grow slower than the CL market (7.3% per year).

High Growth Revenue: CCU's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CCU's Return on Equity is forecast to be low in 3 years time (10.4%).


Past Performance

How has Compañía Cervecerías Unidas performed over the past 5 years?

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCU has high quality earnings.

Growing Profit Margin: CCU's current net profit margins (6.7%) are higher than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: CCU's earnings have grown by 0.5% per year over the past 5 years.

Accelerating Growth: CCU's earnings growth over the past year (12.7%) exceeds its 5-year average (0.5% per year).

Earnings vs Industry: CCU earnings growth over the past year (12.7%) underperformed the Beverage industry 12.7%.


Return on Equity

High ROE: CCU's Return on Equity (10%) is considered low.


Financial Health

How is Compañía Cervecerías Unidas's financial position?


Financial Position Analysis

Short Term Liabilities: CCU's short term assets (CLP1,007.1B) exceed its short term liabilities (CLP554.8B).

Long Term Liabilities: CCU's short term assets (CLP1,007.1B) exceed its long term liabilities (CLP598.0B).


Debt to Equity History and Analysis

Debt Level: CCU's debt to equity ratio (33.8%) is considered satisfactory.

Reducing Debt: CCU's debt to equity ratio has increased from 12.5% to 33.8% over the past 5 years.

Debt Coverage: CCU's debt is well covered by operating cash flow (58.3%).

Interest Coverage: CCU's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet


Dividend

What is Compañía Cervecerías Unidas's current dividend yield, its reliability and sustainability?

3.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CCU's dividend (3.08%) is higher than the bottom 25% of dividend payers in the CL market (1.82%).

High Dividend: CCU's dividend (3.08%) is low compared to the top 25% of dividend payers in the CL market (5.66%).


Stability and Growth of Payments

Stable Dividend: CCU's dividend payments have been volatile in the past 10 years.

Growing Dividend: CCU's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.2%), CCU's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CCU's dividends in 3 years are forecast to be covered by earnings (65.9% payout ratio).


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Patricio Jottar Nasrallah (57 yo)

22.83yrs

Tenure

Mr. Patricio Jottar Nasrallah has been the Chief Executive Officer at Compania Cervecerias Unidas S.A. (CCU), a subsidiary of Quiñenco SA (formerly known as Quinenco SA) since July 1998. Mr. Nasrallah serv...


Leadership Team

Experienced Management: CCU's management team is seasoned and experienced (6.2 years average tenure).


Board Members

Experienced Board: CCU's board of directors are considered experienced (5.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Compañía Cervecerías Unidas S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Compañía Cervecerías Unidas S.A.
  • Ticker: CCU
  • Exchange: SNSE
  • Founded: 1850
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: CL$2.387t
  • Shares outstanding: 369.50m
  • Website: https://www.ccu.cl

Number of Employees


Location

  • Compañía Cervecerías Unidas S.A.
  • Vitacura 2670
  • Twenty-Third Floor
  • Santiago de Chile
  • Region Metropolitana (Santiago)
  • Chile

Listings


Biography

Compañía Cervecerías Unidas S.A. operates as a beverage company principally in Chile, Argentina, Uruguay, Paraguay, Colombia, and Bolivia. The company operates through three segments: Chile, International ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/14 04:38
End of Day Share Price2021/05/13 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.