NYSE:KOF

Stock Analysis Report

Executive Summary

Coca-Cola FEMSA, S.A.B. de C.V., a franchise bottler, produces, markets, sells, and distributes Coca-Cola trademark beverages.

Snowflake

Fundamentals

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Coca-Cola FEMSA. de's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-6.2%

KOF

0.3%

US Beverage

1.0%

US Market


1 Year Return

-2.8%

KOF

15.8%

US Beverage

8.0%

US Market

Return vs Industry: KOF underperformed the US Beverage industry which returned 15.8% over the past year.

Return vs Market: KOF underperformed the US Market which returned 8% over the past year.


Shareholder returns

KOFIndustryMarket
7 Day-6.2%0.3%1.0%
30 Day-7.9%0.04%-0.07%
90 Day-4.5%0.7%-1.0%
1 Year0.04%-2.8%18.8%15.8%10.4%8.0%
3 Year-22.8%-28.7%31.8%21.6%46.2%36.7%
5 Year-36.3%-43.8%58.4%38.4%64.3%46.2%

Price Volatility Vs. Market

How volatile is Coca-Cola FEMSA. de's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Coca-Cola FEMSA. de 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: KOF ($57.77) is trading below our estimate of fair value ($118.24)

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


Price To Earnings Ratio

PE vs Industry: KOF is good value based on its PE Ratio (19.4x) compared to the Beverage industry average (29x).

PE vs Market: KOF is poor value based on its PE Ratio (19.4x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: KOF is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: KOF is good value based on its PB Ratio (1.9x) compared to the US Beverage industry average (4.4x).


Next Steps

Future Growth

How is Coca-Cola FEMSA. de forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KOF's forecast earnings growth (11% per year) is above the savings rate (2.7%).

Earnings vs Market: KOF's earnings (11% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: KOF's revenue (5.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: KOF'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: KOF's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

How has Coca-Cola FEMSA. de performed over the past 5 years?

-25.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KOF's earnings have declined by -25% per year over the past 5 years.

Accelerating Growth: KOF has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: KOF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Beverage industry (-1.9%).


Return on Equity

High ROE: KOF's Return on Equity (9.7%) is considered low.


Return on Assets

ROA vs Industry: KOF's Return on Assets is below or equal to the Beverage industry average last year.


Return on Capital Employed

ROCE Improving: KOF has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Coca-Cola FEMSA. de's financial position?


Financial Position Analysis

Short Term Liabilities: KOF's short term assets (MX$53.9B) exceeds its short term liabilities (MX$53.3B)

Long Term Liabilities: KOF's short term assets (53.9B) do not cover its long term liabilities (77.2B)


Debt to Equity History and Analysis

Debt Level: KOF's debt to equity ratio (58.5%) is considered high

Reducing Debt: KOF's debt to equity ratio has increased from 52.2% to 58.5% over the past 5 years.

Debt Coverage: KOF's debt is well covered by operating cash flow (42.9%).

Interest Coverage: KOF's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet

Inventory Level: KOF has a high level of physical assets or inventory.

Debt Coverage by Assets: KOF's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Coca-Cola FEMSA. de's current dividend yield, its reliability and sustainability?

3.20%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Coca-Cola FEMSA. de before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years3.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KOF's dividend (3.2%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: KOF's dividend (3.2%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: KOF's dividends per share have been stable in the past 10 years.

Growing Dividend: KOF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62%), KOF's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KOF's dividends in 3 years are forecast to be covered by earnings (58.1% payout ratio).


Next Steps

Management

What is the CEO of Coca-Cola FEMSA. de's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

John Santa Maria Otazua (62yo)

5.8yrs

Tenure

0

Mr. John Anthony Santa Maria Otazua has been the Chief Executive Officer of Coca-Cola FEMSA of Fomento Economico Mexicano S.A.B. de C.V. since January 2014. Mr. Santa Maria Otazua has been the Chief Execut ...


Management Age and Tenure

4.8yrs

Average Tenure

52.5yo

Average Age

Experienced Management: KOF's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

19.8yrs

Average Tenure

67.5yo

Average Age

Experienced Board: KOF's board of directors are seasoned and experienced ( 19.8 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • John Santa Maria Otazua (62yo)

    CEO & Director

    • Tenure: 5.8yrs
  • Alfonso Garza Garza (57yo)

    Chief Officer of Strategic Business of FEMSA

    • Tenure: 0yrs
  • Carlos Luis Díaz Saénz (59yo)

    General Counsel

    • Tenure: 12.8yrs
  • Jose Castro

    Director of Operative Planning & Projects of Mexico and Central America Division

    • Tenure: 5.5yrs
  • Roland Karig

    Head of Investor Relations

    • Tenure: 4.8yrs
  • Eduardo Guillermo Hernández Peña (54yo)

    Chief Operating Officer - Latin America

    • Tenure: 1.8yrs
  • Ian Marcel Craig García (47yo)

    Chief Operating Officer of Brazil

    • Tenure: 3.8yrs
  • Constantino Spas Montesinos (49yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Karina Paola Pérez (51yo)

    Human Resources Officer

    • Tenure: 1.8yrs
  • Washington Fabricio García (51yo)

    Chief Operating Officer of Mexico

    • Tenure: 4.8yrs

Board Members

  • José Antonio Vicente Fernández Carbajal (65yo)

    Chairman

    • Tenure: 18.6yrs
  • John Santa Maria Otazua (62yo)

    CEO & Director

    • Tenure: 5.8yrs
  • Federico Jose Reyes García (74yo)

    Director

    • Tenure: 26.8yrs
  • Miguel Eduardo Padilla Silva (64yo)

    Director

    • Tenure: 3.8yrs
  • Pete McTier (80yo)

    Independent Director

    • Tenure: 21.8yrs
  • Carlos Salazar Lomelín (68yo)

    Chief Executive Officer of Femsa

    • Tenure: 19.8yrs
  • Ricardo Guajardo Touché (71yo)

    Independent Director

    • Tenure: 26.8yrs
  • José Octavio Reyes Lagunes (67yo)

    Director

    • Tenure: 3.8yrs
  • Daniel Javier Servitje Montull (60yo)

    Independent Director

    • Tenure: 21.8yrs
  • Víctor Alberto Tiburcio Celorio (68yo)

    Independent Director

    • Tenure: 0yrs

Company Information

Coca-Cola FEMSA, S.A.B. de C.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Coca-Cola FEMSA, S.A.B. de C.V.
  • Ticker: KOF
  • Exchange: NYSE
  • Founded: 1979
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$12.137b
  • Shares outstanding: 210.08m
  • Website: https://www.coca-colafemsa.com

Number of Employees


Location

  • Coca-Cola FEMSA, S.A.B. de C.V.
  • Calle Mario Pani No. 100
  • Santa Fe Cuajimalpa
  • Mexico City
  • Distrito Federal
  • 5348
  • Mexico

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KOFNYSE (New York Stock Exchange)YesADS ECH REP 10 UNTS(ECH UT CONSIT SER L)USUSDSep 1993
CFSLDB (Deutsche Boerse AG)YesADS ECH REP 10 UNTS(ECH UT CONSIT SER L)DEEURSep 1993
CFS1DB (Deutsche Boerse AG)Old Series L SharesDEEURFeb 1998
KOF UBLBMV (Bolsa Mexicana de Valores)KOF UBL UnitsMXMXNApr 2019
COCS.FOTCPK (Pink Sheets LLC)KOF UBL UnitsUSUSDApr 2019
CFS5DB (Deutsche Boerse AG)KOF UBL UnitsDEEURApr 2019

Biography

Coca-Cola FEMSA, S.A.B. de C.V., a franchise bottler, produces, markets, sells, and distributes Coca-Cola trademark beverages. The company offers sparkling beverages, including colas and flavored sparkling ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:33
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.