Stock Analysis

Is It Time To Consider Buying Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF)?

NYSE:KOF
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Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) saw a decent share price growth in the teens level on the NYSE over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine Coca-Cola FEMSA. de’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Coca-Cola FEMSA. de

Is Coca-Cola FEMSA. de still cheap?

Great news for investors – Coca-Cola FEMSA. de is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $68.15, but it is currently trading at US$48.15 on the share market, meaning that there is still an opportunity to buy now. Coca-Cola FEMSA. de’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What does the future of Coca-Cola FEMSA. de look like?

earnings-and-revenue-growth
NYSE:KOF Earnings and Revenue Growth April 12th 2021

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Coca-Cola FEMSA. de's earnings over the next few years are expected to increase by 48%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since KOF is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on KOF for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy KOF. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. At Simply Wall St, we found 2 warning signs for Coca-Cola FEMSA. de and we think they deserve your attention.

If you are no longer interested in Coca-Cola FEMSA. de, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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