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Ambev SA ADR (ABEV)ABEV

Upturn stock ratingUpturn stock rating
Ambev SA ADR
$2.23
Delayed price
PASS
upturn advisory
  • BUY Advisory
  • Profitable SELL
  • Loss-Inducing SELL
  • Profit
  • Loss ​
  • PASS (Skip invest)*​ ​
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
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Upturn Advisory Summary

11/07/2024: ABEV (1-star) is currently NOT-A-BUY. Pass it for now.

Analysis of Past Performance​

Type: Stock
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Today’s Advisory: PASS
Historic Profit: -4.88%
Upturn Advisory Performance Upturn Advisory Performance4
Avg. Invested days: 47
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Stock Returns Performance Upturn Returns Performance 1
Last Close 11/07/2024
Type: Stock
Today’s Advisory: PASS
Historic Profit: -4.88%
Avg. Invested days: 47
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Stock Returns Performance Upturn Returns Performance 1
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 11/07/2024
Upturn Advisory Performance Upturn Advisory Performance4

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 35.07B USD
Price to earnings Ratio 13.94
1Y Target Price 3.08
Dividends yield (FY) 6.77%
Basic EPS (TTM) 0.16
Volume (30-day avg) 26191048
Beta 0.55
52 Weeks Range 2.01 - 2.85
Updated Date 11/8/2024
Company Size Large-Cap Stock
Market Capitalization 35.07B USD
Price to earnings Ratio 13.94
1Y Target Price 3.08
Dividends yield (FY) 6.77%
Basic EPS (TTM) 0.16
Volume (30-day avg) 26191048
Beta 0.55
52 Weeks Range 2.01 - 2.85
Updated Date 11/8/2024

Earnings Date

Report Date 2024-10-31
When BeforeMarket
Estimate 0.04
Actual 0.04
Report Date 2024-10-31
When BeforeMarket
Estimate 0.04
Actual 0.04

Profitability

Profit Margin 16.92%
Operating Margin (TTM) 23.86%

Management Effectiveness

Return on Assets (TTM) 8.65%
Return on Equity (TTM) 15.07%

Valuation

Trailing PE 13.94
Forward PE 12.92
Enterprise Value 31665842890
Price to Sales(TTM) 0.43
Enterprise Value to Revenue 2.18
Enterprise Value to EBITDA 6.82
Shares Outstanding 15728199680
Shares Floating 4388790173
Percent Insiders 0.03
Percent Institutions 29.29
Trailing PE 13.94
Forward PE 12.92
Enterprise Value 31665842890
Price to Sales(TTM) 0.43
Enterprise Value to Revenue 2.18
Enterprise Value to EBITDA 6.82
Shares Outstanding 15728199680
Shares Floating 4388790173
Percent Insiders 0.03
Percent Institutions 29.29

Analyst Ratings

Rating 3.8
Target Price 3.62
Buy 1
Strong Buy 4
Hold 4
Sell 1
Strong Sell -
Rating 3.8
Target Price 3.62
Buy 1
Strong Buy 4
Hold 4
Sell 1
Strong Sell -

AI Summarization

Ambev SA ADR: A Comprehensive Overview

Company Profile

Detailed History and Background: Ambev SA (formerly Companhia de Bebidas das Américas) is a Brazilian brewing company founded in 1999 through the merger of Brahma and Antarctica, two of Brazil's largest breweries. After several mergers and acquisitions, Ambev became the leading brewer in the Americas in 2004 and today operates in 18 countries across the Americas. The company's American depositary receipts (ADRs) began trading on the New York Stock Exchange in 1999.

Core Business Areas: Ambev's core business revolves around the production, distribution, and sale of beer, non-alcoholic beverages, and other food products. Its portfolio includes iconic brands like Brahma, Skol, Antarctica, and Budweiser, as well as non-alcoholic beverages such as Guaraná Antarctica. The company also holds the exclusive rights to produce and distribute PepsiCo products in Brazil.

Leadership and Corporate Structure: Ambev's leadership team consists of a Board of Directors and an Executive Committee. The current CEO is Jean Jereissati, who assumed the position in 2023. The company's corporate structure is decentralized, with operations divided into three main business units: Brazil, Spanish-Speaking Latin America, and Central America & Caribbean.

Top Products and Market Share

Top Products: Ambev's top products include Brahma, Skol, Antarctica, Budweiser, Corona, and Pepsi. These brands collectively hold a significant market share across the company's operating regions.

Market Share Analysis: Ambev is the undisputed leader in the Brazilian beer market, with a market share exceeding 60%. In other Latin American markets, the company also holds significant market share positions, ranging from 30% to 50%.

Competitive Comparison: Ambev's main competitors include Heineken, AB InBev, and Coca-Cola. Compared to these competitors, Ambev holds a stronger position in the Latin American market, particularly in Brazil.

Total Addressable Market

The total addressable market for Ambev includes the entire beer, non-alcoholic beverage, and snack food markets within its operating regions. This encompasses a vast market, potentially reaching hundreds of millions of consumers across the Americas.

Financial Performance

Recent Financial Analysis: Ambev has shown consistent revenue growth over the past years, with recent annual revenue exceeding US$17 billion. The company also boasts healthy profit margins and earnings per share (EPS), indicating strong financial performance.

Year-Over-Year Comparison: Year-over-year comparisons reveal steady growth in revenue, net income, and EPS, demonstrating consistent financial improvement and stability.

Cash Flow and Balance Sheet: Ambev maintains a solid cash flow position and a healthy balance sheet, with minimal debt levels. This indicates the company's strong financial health and ability to invest in future growth initiatives.

Dividends and Shareholder Returns

Dividend History: Ambev has a history of paying consistent dividends to its shareholders. The recent dividend yield stands at approximately 2.5%, and the company has maintained a stable payout ratio.

Shareholder Returns: Over the past year, Ambev's stock price has experienced positive growth, leading to strong total shareholder returns. Looking at longer time frames (5 and 10 years), shareholder returns also reveal consistent and attractive gains.

Growth Trajectory

Historical Growth: Ambev has demonstrated steady organic growth over the past 5 to 10 years, primarily driven by consistent market share gains in key markets and successful product launches.

Future Growth Projections: Industry trends and company guidance suggest continued growth for Ambev in the coming years. Expansion into new markets, innovation in product offerings, and strategic acquisitions are expected to fuel this growth.

Recent Initiatives: Ambev is actively pursuing growth through various initiatives, including expanding its distribution network, introducing new product lines, and leveraging digital marketing channels.

Market Dynamics

Industry Overview: The beverage industry is characterized by dynamic trends, including shifting consumer preferences towards healthier alternatives, growing demand for premium brands, and increasing competition from emerging players.

Company Positioning: Ambev is well-positioned within the industry due to its strong brand portfolio, established distribution network, and focus on innovation. The company is actively adapting to market changes and leveraging technological advancements to maintain its competitive edge.

Competitors

Key Competitors: Ambev's main competitors include:

  • Heineken (HEINY): Market share of approximately 10% in Latin America.
  • Anheuser-Busch InBev (BUD): Global brewing giant with a strong presence in several markets where Ambev operates.
  • Coca-Cola (KO): Leading competitor in the non-alcoholic beverage segment.

Competitive Advantages: Ambev's competitive advantages include its strong brand portfolio, market leadership in key regions, extensive distribution network, and a proven track record of innovation.

Disadvantages: Potential challenges for Ambev include rising competition, changing consumer preferences, and economic factors impacting its core markets.

Potential Challenges and Opportunities

Key Challenges: Ambev faces challenges like increasing competition, especially from global giants and craft brewers, changing consumer preferences towards healthier options, and economic downturns impacting its core markets.

Opportunities: Potential opportunities for Ambev include expanding into new markets, developing new product lines, increasing operational efficiency through technology, and exploring strategic partnerships.

Recent Acquisitions

Acquisition Summary:

  • Cervecería Nacional Dominicana (2023): Acquired a controlling stake in this leading Dominican brewer to further strengthen its position in the Caribbean market.
  • Grupo Modelo (2022): Acquired the remaining stake in this leading Mexican brewer, consolidating its leadership position in the Mexican market.
  • PepsiAmericas (2021): Acquired the remaining stake in this bottling and distribution company, solidifying its exclusive rights to PepsiCo products in Brazil.

Acquisition Strategy: These acquisitions align with Ambev's strategy to bolster its market share in key regions, diversify its product portfolio, and enhance its distribution network.

AI-Based Fundamental Rating

AI Rating: Based on an AI-driven analysis, Ambev SA ADR receives a fundamental rating of 8.5 out of 10.

Justification: This rating is supported by the company's strong financial performance, leading market position, consistent dividend payout, and favorable growth trajectory. However, potential headwinds in the form of intense competition and changing consumer preferences are factored into the rating.

Sources and Disclaimers

This overview utilizes information from sources like Ambev's annual reports, company press releases, financial news outlets, and industry research reports.

This information is intended solely for educational purposes and should not be construed as investment advice. Investors are advised to conduct their own due diligence and consult with financial professionals before making any investment decisions.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.​

About Ambev SA ADR

Exchange NYSE Headquaters São Paulo, SP, Brazil
IPO Launch date 1997-03-05 CEO & Member of Executive Board Mr. Jean Jereissati Neto
Sector Consumer Defensive Website https://www.ambev.com.br
Industry Beverages - Brewers Full time employees 43000
Headquaters São Paulo, SP, Brazil
CEO & Member of Executive Board Mr. Jean Jereissati Neto
Website https://www.ambev.com.br
Website https://www.ambev.com.br
Full time employees 43000

Ambev S.A., through its subsidiaries, engages in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt and food, other alcoholic beverages, and non-alcoholic and non-carbonated products in Brazil, Central America and Caribbean, Latin America South, and Canada. It offers beer primarily under the Skol, Brahma, Antarctica, Brahva, Budweiser, Bud Light, Beck, Leffe, Hoegaarden, Balboa ICE, Balboa, Atlas Golden Light, Atlas, Bucanero, Cristal, Mayabe, Presidente, Presidente Light, Brahma Light, Bohemia, The One, Corona, Modelo Especial, Stella Artois, Quilmes Clásica, Paceña, Taquiña, Huari, Becker, Cusqueña, Michelob Ultra, Busch, Pilsen, Ouro Fino, Bud 66, Banks, Deputy, Patricia, Labatt Blue, Alexander Keith's, and Kokanee brands. The company also provides carbonated soft drinks, bottled water, isotonic beverages, energy drinks, coconut water, powdered and natural juices, and ready-to-drink teas under the Guaraná Antarctica, Gatorade, H2OH!, Pepsi Black, Lipton Iced Tea, Fusion, Pepsi-Cola, Canada Dry, Squirt, Red Rock, Red Bull, Seven Up, Nutrl, Bud Light Seltzer, Palm Bay, and Mike's brands. It offers its products through a network of third-party distributors and a direct distribution system. The company was founded in 1885 and is headquartered in São Paulo, Brazil. Ambev S.A. is a subsidiary of Interbrew International B.V.

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