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Ambev S.A.NYSE:ABEV Stock Report

Market Cap US$47.4b
Share Price
n/a
1Y28.2%
7D0.3%
1D0.7%
Portfolio Value
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Ambev S.A.

NYSE:ABEV Stock Report

Market Cap: US$47.4b

Ambev (ABEV) Stock Overview

Through its subsidiaries, engages in the production, distribution, and sale of beer, draft beer, soft drinks, malt and food, and other beverages in Brazil, Central America and Caribbean, Latin America South, and Canada. More details

ABEV fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends5/6

Rewards

Trading at 29.9% below our estimate of its fair value

Earnings are forecast to grow 5.91% per year

Earnings have grown 2.3% per year over the past 5 years

Trading at good value compared to peers and industry

Risk Analysis

Unstable dividend track record


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Ambev S.A. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Ambev
Historical stock prices
Current Share PriceR$3.05
52 Week HighR$3.45
52 Week LowR$2.10
Beta0.27
1 Month Change-4.69%
3 Month Change0%
1 Year Change28.15%
3 Year Change-1.29%
5 Year Change-4.98%
Change since IPO-57.76%

Recent News & Updates

Seeking Alpha • Jun 21

Ambev: Don't Ignore This High-Quality Beverage Leader

Summary Ambev is rated a Buy, supported by strong Q1 results, robust free cash flow, and a resilient balance sheet with minimal long-term debt. ABEV’s Q1 net revenue rose 8.1% despite flat volumes, with a 33.6% Normalized EBITDA margin and the strongest Q1 operating cash flow in a decade. Macroeconomic tailwinds, including Brazil’s switch to rate cuts and the 2026 FIFA World Cup, offer stabilization and recovery potential, though consumer and cost pressures remain key risks. Intrinsic value is estimated at $3.83 per share versus the current $3.12, reflecting attractive upside and a compelling risk-reward profile. Read the full article on Seeking Alpha

Recent updates

Seeking Alpha • Jun 21

Ambev: Don't Ignore This High-Quality Beverage Leader

Summary Ambev is rated a Buy, supported by strong Q1 results, robust free cash flow, and a resilient balance sheet with minimal long-term debt. ABEV’s Q1 net revenue rose 8.1% despite flat volumes, with a 33.6% Normalized EBITDA margin and the strongest Q1 operating cash flow in a decade. Macroeconomic tailwinds, including Brazil’s switch to rate cuts and the 2026 FIFA World Cup, offer stabilization and recovery potential, though consumer and cost pressures remain key risks. Intrinsic value is estimated at $3.83 per share versus the current $3.12, reflecting attractive upside and a compelling risk-reward profile. Read the full article on Seeking Alpha
Seeking Alpha • Apr 08

Ambev: A Strong Past, A Weak Future

Summary Ambev, once a growth powerhouse, is now stagnant with declining market share and profitability, making it a SELL opportunity. Despite generating strong free cash flow and dividends, Ambev's yield is unattractive compared to other Brazilian companies. Ambev's shares are overvalued, trading at a high P/E multiple, with a fair value of USD 1.76, indicating a 24% downside. For better exposure to the Brazilian market, consider selling Ambev shares and buying Brazilian market ETFs, which have outperformed in recent years. Read the full article on Seeking Alpha
Seeking Alpha • Mar 27

Some Key Reasons To Short Ambev Stock

Summary Ambev's stock is rated a sell due to stagnant or declining volumes in key markets and an overvalued forward P/E ratio. Despite a recent rebound, Ambev's growth prospects are limited by mature markets and changing consumer preferences, particularly among younger generations. The company's EBITDA growth is misleading due to currency devaluation and historical margin declines, adding to the investment risk. Better investment opportunities exist in Brazil with lower valuations and higher dividend yields, making Ambev less attractive for long-term holding. Read the full article on Seeking Alpha
Seeking Alpha • Mar 03

Ambev Q4: Faces Challenges, But Still A Buy

Summary I recommend buying Ambev shares due to its attractive valuation and improved momentum of Brazilian assets despite mixed 4Q24 results and challenging outlook. Ambev's net revenue grew 4.2% y/y, driven by strong performance in Canada, while Brazil's beer segment underperformed due to weather conditions and discounts. Despite cost pressures, Ambev maintained stable gross margins and a strong financial position, with net income growth of 7.5% y/y and net cash of BRL 26 billion. Ambev's low P/E ratio of 11x earnings and strong financial metrics compared to competitors suggest a potential 29% upside, supporting my buy recommendation. Read the full article on Seeking Alpha
Seeking Alpha • Feb 17

Ambev: Only The Third FCF-Yield Strong Buy Signal In 25 Years

Summary Ambev S.A. is a Strong Buy due to its ultra-cheap valuation, including 13% free cash flow and 5%+ dividend yields. Despite industry challenges from weak consumer demand to potential tariffs in a trade war, Ambev's valuation metrics are very attractive - the lowest since the 2009 Great Recession bottom. The company's robust profit margins and minor debt level enhance its appeal, with negligible sales in the U.S. A strengthening Brazilian real currency could further boost share returns for American ADR investors, potentially driving ABEV's stock price closer to $5 in 18-24 months. Read the full article on Seeking Alpha
Seeking Alpha • Jan 14

Ambev: Battered And Bruised By Currency And Margin Headwinds

Summary Ambev shares have been an incredibly weak performer in recent years. Currency depreciation has hurt dollar returns and the company's margins, with the latter exacerbated by recent cost inflation and market dynamics in Brazil. These shares have also suffered a pretty severe valuation de-rating. However, at 12x earnings and sitting on net cash, Ambev looks cheap. Read the full article on Seeking Alpha
Seeking Alpha • Dec 13

Ambev: Little Hope For A Turnaround

Summary Ambev, owning top beer brands in Brazil, offers steady dividends but faces limited capital gains, macroeconomic challenges, and intense competition. Despite stable fundamentals and premium brand growth, Ambev's stock performance is pressured by high Brazilian interest rates and a weakening BRL. Ambev's valuation seems overpriced, particularly when factoring in its slow growth prospects. While the balance sheet is solid with minimal debt and strong cash flows, historically weak returns and high volatility diminish its investment appeal. Read the full article on Seeking Alpha
Seeking Alpha • Oct 30

Ambev And Its Real Value

Summary Ambev S.A. shows strong stability and innovation but faces challenges from competitive pressure, declining profitability, and shifting consumer preferences. The company has a solid balance sheet, low debt, and a high dividend yield, making it a potential defensive investment. Ambev's fundamentals, including EPS, ROE, and ROIC, indicate a recovery from Covid lows, suggesting the stock may be undervalued. This article focuses on the fundamentals, the real value versus the current share price, and if Ambev is currently worth investing in. Read the full article on Seeking Alpha
Seeking Alpha • Oct 14

Ambev: A Quintessential Value Stock With Low Multiples And Strong Financials

Summary Ambev is a quintessential value stock. It is cheap relative to where it has traded historically, its peers, the consumer staples sector, and the market. The stock has clean financials and operating results, which increase its margin of safety for investors and reduce the odds it is a value trap. Ambev’s risks include exposure to the Brazilian Real, litigation and tax changes in Brazil, hyperinflation in Argentina, and lackluster results in Canada. As with many value stocks, realizing profits may take time and could require patience. Read the full article on Seeking Alpha
Seeking Alpha • Sep 28

Why Ambev Stock Remains Unattractive Despite Solid Q2 Results

Summary Ambev's Q2 showed margin recovery and stable volumes, but slow growth and currency risks make the stock less appealing with its reasonable valuation. The beer market in Brazil is mature, limiting Ambev's organic growth potential, with revenue growth relying on mix improvements and new initiatives. Compared to other Brazilian stocks and high-yield treasuries, Ambev's growth prospects, returns and valuation are less compelling, leading to a high opportunity cost for investors. Read the full article on Seeking Alpha
Seeking Alpha • Sep 03

Ambev Q2: Many Positive Trends

Summary Ambev reported good results, beating market revenue and profit estimates. Ambev's revenues increased by 6.1% YoY, driven by strong performance in Brazil and CAC, despite weaker results in LAS and Canada. Despite higher taxes and expenses, the potential 27% appreciation based on EV/EBITDA multiple supports my buy recommendation. Read the full article on Seeking Alpha
Seeking Alpha • Jun 25

Ambev: Not As Appealing As Its Local Alternatives

Summary Ambev S.A. is the largest beverage firm in Brazil with a well-established presence in the country and exposure to other Latin American nations and non-alcoholic goods. Ambev's prospects are unclear, with challenges in revenue growth, net income, and operating margins, making it less attractive compared to other Brazilian companies. The hold rating is based on Ambev's unattractive comparative valuation against other Brazilian stocks, compounded by uncertain growth prospects. Read the full article on Seeking Alpha
Seeking Alpha • May 08

Ambev: Discounted Valuation Compared To Competitors Makes No Sense

Summary Ambev's scale and global position is a major competitive advantage, as it mitigates specific risks in each country in which it operates. The company has good prospects for increasing margins due to the resilient nature of its market and the reduction in commodity prices that impact its cost. Despite presenting the highest efficiency and profitability among its competitors, the company is traded at a significant discount of 14.8% to its peers. Read the full article on Seeking Alpha
Seeking Alpha • Apr 30

Ambev S.A.: Diversify Out Of U.S. Assets With Beer Made In Brazil

Summary The potential for an outlier U.S. dollar decline and the need for portfolio diversification make Ambev S.A. an attractive foreign investment. Ambev is trading at its cheapest valuation since the 2009 recession low and has a strong 6.5% dividend payout, 5x the S&P 500 rate. The company's stable brand-name business model, high profit margins, low-debt balance sheet, and undervaluation, including 10% in free cash flow generation, highlight an attractive buy choice. Read the full article on Seeking Alpha
Seeking Alpha • Apr 02

Ambev: A Currency That Produces Beer

Summary Ambev's valuation is strongly tied to the strength of the Brazilian Real. Ambev is a wide-moat company in the markets it operates in, with strong profitability and a solid balance sheet. Ambev's valuation is attractive assuming no significant deterioration of the Brazilin real in the near future despite the economical turmoil in Latin America. Read the full article on Seeking Alpha
Seeking Alpha • Mar 22

Ambev: A Dominant Beer Producer With Currency And Commodity Risk

Summary Ambev is a dominant brewer in Latin America, holding monopoly-like positions in several large markets and enjoying strong market shares. The company's exceptional profitability is attributed to its market position, cost control, and broad brand portfolio. Ambev faces risks such as currency volatility, commodity exposure, and potential changes to tax regulations in Brazil. However, its strong balance sheet and attractive dividend make it an appealing investment option. Read the full article on Seeking Alpha
Seeking Alpha • Mar 03

Ambev: Premiumization Meets Little Resistance

Summary Ambev's brands are strong and premiumisation is going very well, supporting meaningful margin lift and profit growth. Part of this might be downtrading from spirits, and general performance occurred, despite a tough World Cup comp in 2022. The company expects fixed costs to increase due to marketing going forward, but CAPEX associated with scaling supply is already done, and it will be to push premium products. There may be tax changes, that could limit bottom line growth somewhat, but underlying markets are much healthier in Brazil than in the developed markets, like ABEV's own Canadian segment. Valuation case is also quite clear, although due to absolute levels we are not overweight the sector. Read the full article on Seeking Alpha
Seeking Alpha • Dec 11

Ambev: Cautious Outlook For A Difficult Proposition

Summary Ambev is a quality business, providing exposure to the LatAm market. Growth has been strong, although the business faces increased competition from Heineken. The company has a diverse portfolio of brands, allowing for its market-leading margins. Ambev has faced some erosion but remains attractive. Premiumization and non-alcoholic alternatives should support MSD growth in the coming years as consumers increasingly seek differentiation in the face of substantial choice. Current economic conditions have contributed to near-term headwinds, with volume declining. This said, positive pricing action has offset this subsequently, with improvements ahead. The decline in the Brazilian real and potential FX risks going forward make Ambev a riskier investment compared to its peers. Read the full article on Seeking Alpha
Seeking Alpha • Nov 26

Ambev Q3 Earnings: Insufficient To Alter Bearish Outlook

Summary Ambev reported a robust 24.9% YoY growth in consolidated net profit to R$4.015 billion in Q3 2023. Despite a 1.3% decline in net revenue, organic growth was strong at 19.3%, with adjusted EBITDA at R$6.584 billion. Ongoing operational challenges in Brazil, stemming from insufficient logistics infrastructure, impact Ambev's efficiency and market reach. Ambev's valuation appears elevated, signaling potential overvaluation based on discounted cash flow (DCF) models. Bearish thesis on Ambev reflects perceived overvaluation, low growth concerns, potential tax changes in Brazil, and uncertainties in Argentina. Read the full article on Seeking Alpha
Seeking Alpha • Sep 14

Ambev: Improving Operating Metrics With Healthy Dividend Yield, Buy

Summary Ambev faced a shrinking bottom line during the past year and a half as higher commodity prices squeezed gross margins. Trends have improved in Brazil beer driven by increasing market share within the premium category along with recovery in international segments. ABEV upgraded its COGS guidance for 2023 and now expects an improvement in gross margins for H2 2023. We ascribe a Buy rating due to improving operational performance, a healthy dividend yield of 5.3% along with a relatively cheap valuation. Read the full article on Seeking Alpha
Seeking Alpha • Jun 26

Nurture Ambev S.A. But Don't Gulp It

Summary Ambev S.A. is rated a hold by us for retail value investors due to its near 52-week high share price, potential dividend cuts, and growth challenges. The beverage company faces headwinds from macroeconomics, aggressive competitors, and higher costs in the industry. Despite strong analyst ratings, we believe Ambev's current investment outlook is less favorable for small investors. Read the full article on Seeking Alpha
Seeking Alpha • Jan 10

Ambev: Limited World Cup Boost, Shares Remain Out Of Favor

Summary Global Consumer Staples equities have produced significant alpha against the S&P 500 in the last year. Many investors reach for drinks due to high volatility, and Ambev has returned about 10% in the last 12 months. With tepid EPS growth and a long-term downtrend in place, I'd wait for momentum higher in the name before getting long. Consumer Staples stocks continue to fetch a valuation premium in this uncertain market. Also, a sudden lovefest with foreign equities has helped send both ex-US developed and emerging markets up close to 20% from their Q4 2022 lows, easily beating the return on the S&P 500. One under-the-radar ETF holds staples stocks around the world. The iShares Global Consumer Staples ETF is down just 4% total return over the last year, outpacing the S&P 500 by more than 13 percentage points. One firm has caught a bid in the last 12 months, but shares remain stuck in a downtrend. But is Ambev a buy now on valuation? Let's check it out. Global Staples Rally Hard Since October StockCharts.com According to Bank of America Global Research, AmBev S.A. (ABEV) is the world's fourth-largest brewer and the largest Pepsi bottler outside the US. Beer brands Skol, Brahma, and Antarctica have a nearly 67% share of the Brazilian beer market by volume. The company also has operations in Canada via Labatt and is present in several South and Central American countries. AmBev is controlled by Anheuser-Busch InBev (BUD). The Brazil-based $46.7 billion market cap beverages industry company within the Consumer Staples sector trades at a near-market trailing 12-month GAAP price-to-earnings ratio of 17.3 while it pays a high 4.0% dividend yield, according to The Wall Street Journal. Despite hopes that positive sales related to exposure from the 2022 World Cup, shares have been generally on the move lower in the past two months. Before the global sporting event, ABEV reported Q3 earnings that were positive, along with a solid 11.4% annual jump in revenues. Shares managed to stage a short-lived rally after that earnings announcement. Near term, political unrest in Brazil could be pressuring the stock, but it is off lows notched to kick off 2023. High uncertainty and tough comps are key risks for 2023 sales and earnings, but lower commodity prices could help the firm. On valuation, analysts at BofA see earnings having fallen slightly in 2022 before flat-lining next year. Per-share profits are expected to rise notably in 2024, though. Dividends are seen as rising at a steadier pace than EPS. Still, the P/E ratio of Ambev does not scream cheap, but the EV/EBITDA ratio is significantly below that of the typical S&P 500 stock. The alcohol company generates free cash flow, which is a positive. Overall, the valuation seems decent, but not extremely attractive here considering lukewarm growth. The resulting PEG ratio is near 2 while the price-to-sales multiple is almost 3. Ambev: Earnings, Valuation, Dividend Forecasts BofA Global Research Looking ahead, corporate event data provided by Wall Street Horizon show a confirmed Q4 2022 earnings date of Thursday, March 2 BMO. A shareholder meeting takes place in late April while a near-term volatility catalyst could strike when Ambev's management team speaks at the 2023 Latin America Investment Conference (Jan 31-Feb 1). Corporate Event Calendar Wall Street Horizon The Technical Take With a lukewarm valuation and geopolitical jitters, what does the chart say above ABEV? I decided to take a long-term view of the chart. Notice below that ABEV remains well off its all-time high, notched back in 2012. In fact, a steep downtrend is in play off the early 2018 peak, when many non-US firms topped out.
Seeking Alpha • Dec 15

Ambev declares $0.1457 dividend

Ambev (NYSE:ABEV) declares $0.1457/share annual dividend Forward yield 5.11% Payable Jan. 9; for shareholders of record Dec. 21; ex-div Dec. 20. See ABEV Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Oct 28

Ambev: Still Everything To Do Post Q3 Earnings Print

Summary Ambev meets earnings expectations in Q3. Brazil once more drove the quarter forward, both operationally and financially. Cash flow needs to improve to protect the dividend. Volume growth is also required to take the pressure off price increases. Intro Ambev S.A. (ABEV) recently reported its third quarter earnings where the company met its earnings expectations (EPS of $0.04) with the Brazilian market once more to the fore. However, weakness in international markets such as Central America as well as the Caribbean is worrying going forward, especially if inflation persists into next year. Suffice it to say, although sales can benefit on the front end from rising inflation, volume growth sooner rather than later has to follow suit to ensure sales can remain in a growth curve. The beer market for Ambev remains resilient, but it will be interesting to see if this trend persists, especially if economic conditions continue to tighten. However, the upcoming World Cup should provide some solid momentum for Ambev's brands. Management actually reiterated its forward-looking EBITDA guidance to this effect. If we pull up a long-term chart of Ambev, we can see that shares continue to have significant overhead resistance above the prevailing share price at approximately the $3 level. Despite the encouraging quarter, the long-term trend (confirmed by lower highs) remains bearish. Therefore, there definitely is an opportunity here if indeed Ambev can break above their heavy overhead resistance. To ascertain whether we believe this is possible over the near term, we like to delve into the stock's profitability and valuation trends. A strong, sustainable dividend is usually buoyed by a consistent earnings growth curve, so let's see how these metrics play themselves out below. ABEV Technical Chart (StockCharts.com) Pay-Out Ratio The dividend payout ratio gives a quick snapshot of whether Ambev's dividend is strong or not. At present, the cash flow pay-out ratio comes in at 75.3%, which is well up from the company's 60% 5-year average percentage. Remember, due to non-cash costs on the income statement which can sometimes blur the earnings pay-out ratio, we prefer to go with the cash flow alternative for a more accurate picture of affordability. Suffice it to say, despite the higher yield Ambev pays out at present, the company currently has less room to maneuver concerning sustained dividend increases due to a higher percentage of the company's cash flow being used up for dividend purposes. Profitability Ambev traditionally has had very strong profitability compared to the sector in general. The company's return on capital of 11.72% over the trailing twelve-month average remains elevated and demonstrates the company's prowess in growing its capital. However, it has been the company's margins that have been coming under scrutiny in recent times. For example, Ambev's gross profit margin of just under 50% (trailing twelve-month average) is well down from its 57% 5-year average number. To this point, we have seen some weakness with respect to earnings revisions for this present fiscal year, but next year's profit projections have actually sprung up over the past 30 days. It will be interesting to see how Ambev's profitability fares over the next 6 months or so. Ambev Consensus EPS Revisions Trend (Seeking Alpha) Valuation
Seeking Alpha • Aug 12

Ambev: Bullish Ahead Of The FIFA World Cup

ABEV Q2 quarterly report confirmed overall solid fundamentals. The company is well-positioned to benefit from a boost in beer demand during the FIFA World Cup in Q4. We are bullish on ABEV as a good option to capture exposure to consumer spending trends in Latin America as macro conditions improve. Ambev SA (ABEV) is the largest brewer in Latin America with diversified operations that include non-alcoholic beverages. The company based in Brazil, technically a unit of Anheuser-Busch InBev (BUD), recently reported its latest results highlighted by solid growth moving past the pandemic disruptions of the last two years. Indeed, the stock has been a winner, up around 5% and bucking the trend of global market volatility. We last covered ABEV back in January, and our update today reaffirms a bullish call while recapping the latest developments. In line with strong, solid operating trends, we note that macro conditions in Brazil are improving and represent a new tailwind for the next leg higher in the stock. We can also start looking ahead to this year's "FIFA World Cup" which should provide a boost in beer sales as another strong point in the outlook. Ambev is a high-quality leader and a good option to gain exposure to consumer trends in the Latam region. ABEV Key Metrics ABEV Q2 earnings at BRL 0.19 per share climbed 1% year-over-year. More impressive was the net revenue at BRL 18.0 billion, up 15% from Q2 2021 and even 19.6% on an organic basis. Volumes climbed 6.1% compared to the period last year, with the company noting that 42.2 million hectoliters sold in the quarter were a Q2 record. A positive sales mix and pricing initiatives contributed to the top-line momentum, balancing inflationary cost pressures which hit the gross margin by 140 basis points. Still, the normalized EBITDA at BRL at 5.5 billion, or approximately $1.1 at an exchange rate of 5.25 BRL per dollar, was up a reported 4.7% and 17.6% y/y on an organic basis. The spread here considers an adjustment for some tax credit accounting. The message from management is that the results were better than expected, despite some macro challenges. source: company IR The Brazilian market, which represents approximately 52% of total revenue and 55% of operating income, stood out as a strong point in this report. Brazil beer volumes were up 8.5% y/y while non-alcoholic beverages gained 16.2%. This balanced a 2% volume growth in the "Latam South" region, which includes countries like Argentina and Chile. On the other hand, the smaller Central America and the Caribbean segment faced an -11% volume decline, with management citing some supply chain disruptions being limited availability of glass bottles. In other words, a literal "bottleneck", although comments in the conference call suggest some improvement already into Q3. source: company IR Finally, when we talk about the company's quality, keep in mind that Ambev maintains a net cash position on the balance sheet at BRL 12 billion, or around $2.3 billion, representing a strong point in its investment outlook. Ambev also pays a dividend, although the timing has historically been irregular, at the discretion of the Board of Directors. According to the company's Dividend Policy, the intention is to distribute at least 40% of net income to shareholders. A yield of around 4% can be expected on a forward basis, keeping in mind that the distribution for ADR holders will depend on the FX rate fluctuations. Data by YCharts ABEV Benefiting From Improving Brazil Macro A bullish call on Ambev, in large part, comes down to the macro environment and sentiment towards emerging market equities. The good news is that we have some positive signals out of Brazil, Ambev's largest market. We'll note that the economic outlook for Brazil has improved, with The Finance Ministry raising its 2023 GDP forecast to 2% from a prior 1.5% target. A recently passed legislative tax cut package has been credited with supporting activity levels and the improving outlook. The unemployment rate in the country has been dropping and actually hit a seven-year low at 9.3% in June. While high inflation remains an issue in the region and much of the world, even pressuring Ambev margins in Q2, the latest July consumer price index for Brazil surprised to the downside. The -0.7% decline compared to June was the largest monthly drop on record since the series began in 1980. This echoes headlines we saw from the U.S. CPI, with Brazil's inflation trends cooling off based on the pullback in gas prices and the effects of recent Central Bank rate hikes. For anyone following Brazil, the country always has its problems, but the setup here has been amid low expectations. As it relates to Ambev, economic data coming in stronger should be a positive backdrop to operating and financial trends. From a high level, the attraction of a Latam brewer and beverages leader is a recognition that the market offers higher growth opportunities compared to more developed regions. Ambev has made an effort to capture market share through initiatives like introducing "light beers" along with some premium imports in an effort to drive margins. The point here is to say that its long-term outlook is looking up. source: company IR ABEV Can Win The World Cup When analyzing stocks, a good catalyst always helps make the case. The 2022 FIFA World Cup is set to kick off in November in Qatar. Several countries in Ambev's operating regions are playing, including Brazil and Argentina as among tournament favorites. We bring this up because the quarter during which the World Cup takes place has historically been strong for Ambev going back to 2018, 2014, and 2010 editions of the event. It's fair to assume that beer volumes should see a boost in Q4 amid the fan excitement and large gatherings, which could help Ambev outperform expectations. Management touched on this topic during the earnings conference call:
Seeking Alpha • Jul 28

Ambev Non-GAAP EPS of R$0.19, revenue of R$17.99B

Ambev press release (NYSE:ABEV): Q2 Non-GAAP EPS of R$0.19. Revenue of R$17.99B (+14.4% Y/Y). Total Volume (organic) +6.1% vs LY Volume growth led by Brazil NAB (+16.2%), Brazil Beer (+8.5%) and Latin America South (“LAS”) (+1.5%) supported by the continued return of out of home occasions. Canada and Central America and the Caribbean (“CAC”) volumes declined by 2.9% and 10.5%, respectively.
Seeking Alpha • Apr 20

Ambev: Signs Of A Turnaround But Valuation Remains Rich

Ambev is turning its core business around and tapping into new areas of growth. The focus on ROIC-accretive businesses should allow for enhanced shareholder value creation. That said, the stock trades at a premium valuation despite near to medium-term challenges.
Seeking Alpha • Jan 28

Ambev S.A.: Bullish Operating Momentum Can Lift Shares Higher

Ambev is benefiting from strong demand for its portfolio of beer brands and other beverages across Brazil and the Latin America region. The company has solid fundamentals including recurring profitability and a rock-solid balance sheet adding a layer of quality. Shares appear attractively priced and we see upside through 2022.
Seeking Alpha • Oct 29

Ambev: Strong Q3 Initiates A Buy Even With Some Risks

Ambev's 3Q saw the beer giant post outstanding gains in net income on strong double-digit growth in revenue compared to both 2019 and 2020. Most geographies exhibited strength in recoveries even against a tougher comp of 3Q 2020. Brazil's inflationary environment could present a risk to shares moving forward.
Seeking Alpha • Oct 07

Ambev: An Underappreciated And Undervalued Brewing Giant

Ambev is facing challenges in its core Brazilian market. Despite this, its cash flow strengths and net cash balance sheet leave it well placed to deal with these challenges. The current valuation does not reflect the quality of the operation or its financial strength.
Seeking Alpha • Jul 10

Ambev Accelerating Its Core Plus Segment

The Beer industry in the world is expected to grow to $710.89 billion by 2025, a 3.72 percent compound annual growth rate, accompanied by a global economic recovery. There are ongoing projects that will increase ABEV's chances of success. ABEV remains liquid and has revenue growth of 22% YOY and currently trades at a fair EV/EBITDA of 13.14x.
Seeking Alpha • Jun 30

Ambev: Don't Sleep On This Reopening Strategy

The beer industry and Ambev, in particular, have been staring stagnation straight in the face as population growth and mounting competitive pressures hinder growth. However, as we come out of the COVID-19 pandemic and as they market new hard seltzer products ahead of the summer, I believe that current expectations are too conservative. I believe they will outperform expectations and remain bullish on their long-term prospects.

Shareholder Returns

ABEVUS BeverageUS Market
7D0.3%-1.6%0.8%
1Y28.2%11.6%20.5%

Return vs Industry: ABEV exceeded the US Beverage industry which returned 11.6% over the past year.

Return vs Market: ABEV exceeded the US Market which returned 20.5% over the past year.

Price Volatility

Is ABEV's price volatile compared to industry and market?
ABEV volatility
ABEV Average Weekly Movement5.9%
Beverage Industry Average Movement5.4%
Market Average Movement7.2%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: ABEV has not had significant price volatility in the past 3 months compared to the US market.

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

About the Company

FoundedEmployeesCEOWebsite
185339,000Carlos Eduardo Lisboawww.ambev.com.br

Ambev S.A., through its subsidiaries, engages in the production, distribution, and sale of beer, draft beer, soft drinks, malt and food, and other beverages in Brazil, Central America and Caribbean, Latin America South, and Canada. The company offers beer, ready-to-drink cocktails and spritzers, soft drinks, water, teas, and isotonic drinks under the Brahma, Skol, Antarctica, Original, Quilmes, Andes Origen, Patricia, Paceha, Huari, Pilsen, Presidente, Balboa, Guaraná Antarctica, and Beats brands. It sells its products to distributors, supermarkets, and retailers within a broad distribution network.

Ambev S.A. Fundamentals Summary

How do Ambev's earnings and revenue compare to its market cap?
ABEV fundamental statistics
Market capUS$47.38b
Earnings (TTM)US$3.06b
Revenue (TTM)US$17.30b
15.5x
P/E Ratio
2.7x
P/S Ratio

Is ABEV overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
ABEV income statement (TTM)
RevenueR$88.21b
Cost of RevenueR$42.80b
Gross ProfitR$45.41b
Other ExpensesR$29.83b
EarningsR$15.58b

Last Reported Earnings

Mar 31, 2026

Next Earnings Date

Jul 30, 2026

Earnings per share (EPS)1.00
Gross Margin51.48%
Net Profit Margin17.66%
Debt/Equity Ratio0.4%

How did ABEV perform over the long term?

See historical performance and comparison

Dividends

7.2%
Current Dividend Yield
86%
Payout Ratio

Does ABEV pay a reliable dividends?

See ABEV dividend history and benchmarks
When do you need to buy ABEV by to receive an upcoming dividend?
Ambev dividend dates
Ex Dividend DateJun 24 2026
Dividend Pay DateJan 11 2027
Days until Ex dividend23 days
Days until Dividend pay date178 days

Does ABEV pay a reliable dividends?

See ABEV dividend history and benchmarks

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/07/16 22:03
End of Day Share Price 2026/07/16 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Ambev S.A. is covered by 31 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Benjamin TheurerBarclays
Berenice MuñozBarclays
Georgia JorgeBB Banco de Investimento S.A.