Embotelladora Andina SA (AKO.A) AI Stock Analysis

• Market Cap: $3.99B
• Dividend Yield: 4.78%
• Average Volume (3M): 783.00
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.47
• Revenue Growth: 18.92%
• EPS Growth: 34.03%
• Country: US
• Employees: 16,167
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.76
• Shares Outstanding: 78,881,500
• 10 Day Avg. Volume: 1,006
• 30 Day Avg. Volume: 783
• PEG Ratio: 3.86
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 21.79
• Enterprise Value/Market Cap: 1.20K
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 3.69
• Enterprise Value/Ebitda: 8.11
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.04
• Revenue Forecast (FY): $3.95B

• Rating: 69 Neutral
• Price Target: $24.50 ▲(7.03% Upside)
• Action: Downgraded Date: 02/24/26
• Date: Action: Downgraded 02/24/26

The score is driven primarily by solid financial profitability and returns but tempered by 2025 revenue decline and weaker/volatile free-cash-flow conversion. Technicals add support with an established uptrend above key moving averages and moderate momentum. Valuation is a positive contributor due to a reasonable P/E and a strong dividend yield.

Positive Factors

Strong Coca‑Cola partnership

Long‑term exclusive bottling ties to Coca‑Cola grant durable brand access, marketing support and shelf presence across Chile, Argentina, Brazil and Paraguay. This entrenches distribution scale, reduces customer acquisition risk and supports steady volume and pricing leverage over cycles.

Improving profitability and returns

Expanded net and operating margins and a roughly 22% ROE indicate stronger pricing power and cost control versus prior years. Sustained margin improvement supports free cash generation, dividend capacity and reinvestment, underpinning long‑run shareholder returns if maintained.

Moderating leverage vs prior years

Leverage moving toward parity with equity reduces refinancing and interest coverage risks relative to earlier periods. A more balanced capital structure improves financial flexibility to fund capex, dividends or selective investments without immediately needing equity raises.

Negative Factors

Revenue decline in 2025

A nearly 6% top‑line drop in 2025 signals weakening demand or competitive pressure in core markets. If revenue momentum does not recover, scale benefits and unit economics could erode, making it harder to sustain margin gains and constraining long‑term organic growth prospects.

Weak and volatile free cash flow conversion

Free cash flow volatility and a low conversion rate (≈40% of net income in 2025) reduce capacity to reliably fund dividends, capex and debt repayment. Persistent conversion weakness curtails strategic optionality and raises sensitivity to capital expenditure swings or working‑capital shocks.

Still relatively high debt for cycle

Although leverage has moderated, the residual high debt level leaves limited headroom if earnings or cash flow decline. That structural debt exposure increases refinancing and covenant risk in adverse scenarios and can constrain strategic moves like M&A or major capex.

Embotelladora Andina SA Business Overview & Revenue Model

Company Description

Embotelladora Andina S.A., together with its subsidiaries, produces, markets, and distributes Coca-Cola trademark beverages in Chile, Brazil, Argentina, and Paraguay. It offers fruit juices, other fruit-flavored beverages, sport drinks, flavored waters, and mineral and purified water; hard seltzers; polyethylene terephthalate (PET) bottles and preforms, returnable PET bottles, cases, and plastic caps; ice tea and mate beverages, as well as sells and distributes lactose free dairy products; and seed-based beverages. The company also distributes energy drinks, wine, cider, and spirits; ice cream and other frozen products under the Guallarauco brand; and beer under the Bavaria, Kaiser, Sol, Therezópolis, Estrella Galícia, Tiger, and Eisenbahn brands. It offers its products primarily through small retailers, restaurants and bars, supermarkets, and distributors. Embotelladora Andina S.A. was incorporated in 1946 and is headquartered in Santiago, Chile.

How the Company Makes Money

Embotelladora Andina generates revenue primarily through the sale of its bottled beverages, including soft drinks, bottled water, and juices. The company operates on a revenue model that includes direct sales to retailers, wholesalers, and food service operations, benefiting from its extensive distribution network. Key revenue streams include the sale of carbonated soft drinks under major brands like Coca-Cola, Fanta, and Sprite, as well as its own private label products. Significant partnerships with The Coca-Cola Company provide access to popular brands and marketing support, enhancing sales. Additionally, the company may also earn revenue from promotional activities and collaborations with local businesses, contributing to its overall earnings. Economic factors, consumer trends, and operational efficiency also play crucial roles in influencing its financial performance.

Embotelladora Andina SA Financial Statement Overview

Summary

Profitability and returns are solid (net margin improved to ~8% in 2025; ROE ~22%), and leverage has moderated versus prior years. Offsetting this, revenue declined in 2025 (-5.9%) and free cash flow quality weakened (FCF down sharply in 2025 and only ~40% of net income), indicating cash-conversion and consistency risks.

Income Statement

Profitability is solid and improving: gross margin stayed stable around ~38%–40% while net margin expanded from ~4.7% (2022) to ~8.0% (2025). Operating profitability also strengthened versus earlier years (operating margin ~12.8% in 2025 vs ~10.9% in 2022). The key weakness is growth momentum: revenue declined in 2025 (-5.9%) after being roughly flat to modestly positive in 2023–2024, creating a less consistent top-line trajectory despite better margins.

Balance Sheet

Leverage is meaningful but manageable: debt is roughly in line with equity in 2025 (about 1.0x), improving from more leveraged years like 2022–2024 (generally above 1.1x). Returns on shareholder capital are strong (roughly mid-teens to low-20s, ~22% in 2025), indicating efficient profitability. The main risk is that the company still carries a relatively high debt load for the cycle, which can pressure flexibility if earnings or cash generation weaken.

Cash Flow

Cash generation is mixed. Operating cash flow improved in 2025 versus 2024, and free cash flow is positive in most years, but it is volatile (notably negative in 2022). In 2025, free cash flow fell sharply (-56.8% growth) and covered only about 40% of net income, suggesting weaker conversion of profits into surplus cash after investment needs. Overall, cash flow supports operations, but variability and weaker recent conversion reduce quality.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.18T	3.41T	2.74T	2.61T	2.48T
Gross Profit	1.24T	1.35T	1.06T	1.01T	941.28B
EBITDA	567.88B	579.49B	485.39B	457.54B	428.80B
Net Income	255.50B	245.96B	179.56B	123.21B	173.07B
Balance Sheet
Total Assets	3.48T	3.29T	2.92T	3.01T	2.95T
Cash, Cash Equivalents and Short-Term Investments	343.50B	321.38B	369.87B	384.52B	499.78B
Total Debt	1.16T	1.12T	1.03T	1.14T	1.07T
Total Liabilities	2.28T	2.28T	2.00T	2.13T	1.84T
Stockholders Equity	1.16T	976.41B	886.29B	855.26B	1.08T
Cash Flow
Free Cash Flow	174.30B	65.70B	174.12B	-61.20B	161.03B
Operating Cash Flow	438.47B	357.24B	366.83B	397.45B	305.05B
Investing Cash Flow	-239.35B	-289.85B	-158.29B	-85.17B	-198.25B
Financing Cash Flow	-154.43B	-119.76B	-187.13B	-286.96B	-115.32B

Embotelladora Andina SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AKO.A, the sentiment is Negative. The current price of 22.89 is below the 20-day moving average (MA) of 23.94, below the 50-day MA of 24.16, and above the 200-day MA of 21.21, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 43.15 is Neutral, neither overbought nor oversold. The STOCH value of 54.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AKO.A.

Embotelladora Andina SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKO.A	69 Neutral	$3.99B	14.87	24.24%	4.78%	18.92%	34.03%
FIZZ	69 Neutral	$3.25B	19.35	35.99%	―	0.97%	0.36%
COKE	68 Neutral	$14.21B	19.79	56.69%	0.61%	4.22%	22.24%
KOF	66 Neutral	$5.17B	15.03	16.56%	3.98%	-2.81%	-2.66%
PRMB	63 Neutral	$7.32B	101.61	1.89%	2.44%	244.82%	-119.23%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KDP	62 Neutral	$37.43B	18.30	8.29%	3.12%	6.77%	-29.84%

Embotelladora Andina SA Corporate Events

Embotelladora Andina Calls April Shareholders’ Meeting and Proposes 2025 Dividend

On February 24, 2026, Embotelladora Andina’s board met in Santiago and resolved to call a regular shareholders’ meeting for April 16, 2026, to be held remotely from the company’s Renca offices. The agenda will cover approval of the 2025 annual report and financial statements, dividend and profit distribution, director and committee compensation, appointment of 2026 independent auditors and rating agencies, disclosure of related-party transactions, and other corporate governance matters.

The board also agreed to propose a cash dividend against 2025 earnings of Ch$102 per Series A share and Ch$112.2 per Series B share, with payment to begin May 14, 2026, if approved by shareholders. The move underscores the company’s intent to maintain capital returns while reaffirming standard governance practices, and the closing of the shareholder registry five business days before payment sets a clear timetable for investors tracking eligibility.

The most recent analyst rating on ($AKO.A) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Embotelladora Andina SA stock, see the AKO.A Stock Forecast page.

Embotelladora Andina Receives Clean Audit Opinion on 2025 IFRS Financials

Embotelladora Andina S.A. and its subsidiaries have released their consolidated financial statements for the years ended December 31, 2025 and 2024, accompanied by an independent auditor’s report dated January 27, 2026. The auditors concluded that the company’s 2025 financial position, performance and cash flows are fairly presented in all material respects under IFRS Accounting Standards.

The audit highlighted as a key matter the impairment assessment of indefinite-lived intangible assets, mainly distribution rights, and goodwill totaling approximately ThCh$674,766,128 and ThCh$137,128,318 as of December 31, 2025. Given the heavy reliance on management judgment in forecasting cash flows, growth and discount rates for these cash-generating units, auditors performed detailed testing and involved valuation specialists, ultimately reporting that the procedures yielded satisfactory results in the context of the planned audit objectives.

The report also reiterates management’s responsibility for preparing IFRS-compliant statements, maintaining adequate internal controls, and assessing the group’s ability to continue as a going concern. For investors, the clean audit opinion and the satisfactory handling of complex impairment judgments provide assurance on the reliability of Andina’s financial reporting amid the significant weight of its intangible assets on the balance sheet.

The most recent analyst rating on ($AKO.A) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Embotelladora Andina SA stock, see the AKO.A Stock Forecast page.

Embotelladora Andina Delivers Strong 4Q and 2025 Results, Expands Capacity and ESG Commitments

In its fourth-quarter and full-year 2025 results, Embotelladora Andina reported resilient performance, with Q4 consolidated sales volume slightly down 0.8% to 266.7 million unit cases, but up 0.8% when excluding prior-year bulk sales to Coca-Cola Femsa, and full-year volume rising 4.1% to 945.8 million unit cases. Net sales grew 2.2% in Q4 and 3.7% for 2025, while operating income increased 10.1% in the quarter and 6.6% for the year, and adjusted EBITDA climbed 9.8% in Q4 and 6.3% for 2025, lifting the Q4 margin to 20.5%; net income attributable to controlling shareholders rose 5.0% in the quarter and 15.5% for the full year. CEO Miguel Ángel Peirano highlighted broad-based EBITDA growth in local currencies across Argentina, Brazil, Chile and Paraguay, recent capacity expansions via three new production lines in Brazil and Paraguay, and renewal of the AB InBev distribution agreement in Chile, which strengthens the company’s multi-category beverage strategy. The group also advanced its digital transformation, with over 80% of revenue now flowing through digital platforms and its Mi Andina B2B platform surpassing 260,000 registered clients, while achieving notable sustainability milestones in 2025, including improved Carbon Disclosure Project scores, SBTi-validated 2030 carbon-reduction targets, exceeding 50% renewable energy use across operations, and raising recycled PET content in bottles to 27.48%, signaling operational efficiency gains and a stronger ESG profile for stakeholders.

The most recent analyst rating on ($AKO.A) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Embotelladora Andina SA stock, see the AKO.A Stock Forecast page.