SNSE:CCU

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Compañía Cervecerías Unidas

Executive Summary

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


Snowflake Analysis

Excellent balance sheet average dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

CCU

0.07%

CL Beverage

-0.8%

CL Market


1 Year Return

-38.1%

CCU

-25.9%

CL Beverage

-18.3%

CL Market

Return vs Industry: CCU underperformed the CL Beverage industry which returned -27% over the past year.

Return vs Market: CCU underperformed the CL Market which returned -19.6% over the past year.


Shareholder returns

CCUIndustryMarket
7 Day0.9%0.07%-0.8%
30 Day-5.5%-5.3%-3.4%
90 Day2.3%0.8%2.0%
1 Year-35.8%-38.1%-23.0%-25.9%-15.1%-18.3%
3 Year-23.5%-31.6%-17.2%-25.7%-15.8%-23.9%
5 Year-12.1%-24.8%8.5%-7.8%10.2%-14.6%

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 (CLP5881) is trading below our estimate of fair value (CLP15644.43)

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 (19.1x) compared to the CL Beverage industry average (15.1x).

PE vs Market: CCU is poor value based on its PE Ratio (19.1x) compared to the CL market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: CCU is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: CCU is overvalued based on its PB Ratio (1.6x) compared to the CL Beverage industry average (1.2x).


Next Steps

Future Growth

How is Compañía Cervecerías Unidas forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCU's forecast earnings growth (13.4% per year) is above the savings rate (8.2%).

Earnings vs Market: CCU's earnings (13.4% per year) are forecast to grow slower than the CL market (23.2% 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 (6.2% 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 (10.3%).


Next Steps

Past Performance

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

12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCU has high quality earnings.

Growing Profit Margin: CCU's current net profit margins (6.1%) are lower than last year (16.6%).


Past Earnings Growth Analysis

Earnings Trend: CCU's earnings have grown by 12.4% per year over the past 5 years.

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

Earnings vs Industry: CCU had negative earnings growth (-61.7%) over the past year, making it difficult to compare to the Beverage industry average (9%).


Return on Equity

High ROE: CCU's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is Compañía Cervecerías Unidas's financial position?


Financial Position Analysis

Short Term Liabilities: CCU's short term assets (CLP792.6B) exceed its short term liabilities (CLP502.2B).

Long Term Liabilities: CCU's short term assets (CLP792.6B) exceed its long term liabilities (CLP434.4B).


Debt to Equity History and Analysis

Debt Level: CCU's debt to equity ratio (20.8%) is considered satisfactory.

Reducing Debt: CCU's debt to equity ratio has increased from 14% to 20.8% over the past 5 years.

Debt Coverage: CCU's debt is well covered by operating cash flow (69.5%).

Interest Coverage: CCU's interest payments on its debt are well covered by EBIT (11.5x coverage).


Balance Sheet


Next Steps

Dividend

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

4.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CCU's dividend (4.34%) is higher than the bottom 25% of dividend payers in the CL market (2.19%).

High Dividend: CCU's dividend (4.34%) is low compared to the top 25% of dividend payers in the CL market (5.36%).


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.7%), CCU's 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 (56% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Patricio Jottar Nasrallah (57 yo)

22.08yrs

Tenure

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


Leadership Team

NamePositionTenureCompensationOwnership
Patricio Jottar Nasrallah
Chief Executive Officer22.08yrsno datano data
Felipe Dubernet
Chief Financial Officer6.5yrsno datano data
Claudio Heras
Head of Investor Relationsno datano datano data
Felipe Benavides
General Counsel5.42yrsno datano data
Antonio Cruz
Corporate Development Manager3.17yrsno datano data
Gabriela Ugalde
Chief Human Resources Officer2.33yrsno datano data
Martín Rodriguez
Head of Project Management Office & Innovation5.42yrsno datano data
Jesús García
General Comptroller15.25yrsno datano data

5.4yrs

Average Tenure

54yo

Average Age

Experienced Management: CCU's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
José Francisco Pérez Mackenna
Director22.08yrsCL$1.02bno data
Pablo Granifo Lavín
Director7.33yrsCL$801.24mno data
Andrónico Mariano Luksic Craig
Chairman7.33yrsCL$647.73m0.0040%
CLP 87.6m
Vittorio Corbo Lioi
Independent Director8.33yrsCL$832.45mno data
Jose Barros
Director4.33yrsCL$797.48mno data
Carlos Alberto Molina Solís
Independent Vice Chairman2.25yrsCL$1.01bno data
Rodrigo Hinzpeter Kirberg
Director5.08yrsCL$765.41mno data
Rory Cullinan
Director2.25yrsCL$635.11mno data
Marc Gross
Director0.25yrno datano data

5.1yrs

Average Tenure

61.5yo

Average Age

Experienced Board: CCU's board of directors are considered experienced (5.1 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

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$2.173t
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCUNYSE (New York Stock Exchange)SPON ADR EA REP 2 COM NPVUSUSDSep 1992
CVUDB (Deutsche Boerse AG)SPON ADR EA REP 2 COM NPVDEEURSep 1992
CCUSNSE (Santiago Stock Exchange)YesCommon StockCLCLPOct 1992

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 Analysis2020/08/03 18:24
End of Day Share Price2020/07/31 00:00
Earnings2020/03/31
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.