Embotelladora Andina SA (AKO.A) AI Stock Analysis

• Market Cap: $4.43B
• Dividend Yield: 4.78%
• Average Volume (3M): 783.00
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.44
• 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: 0.03
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 21.79
• Enterprise Value/Market Cap: 1.10K
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 3.90
• Enterprise Value/Ebitda: 8.13
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.08
• Revenue Forecast (FY): $3.98B

• Rating: 69 Neutral
• Price Target: $29.00 ▲(26.69% 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

Strategic bottler partnership

Long-standing exclusive bottler relationships with Coca-Cola give durable access to global brands, marketing support and product innovation. That scale and brand alignment support stable volume, strong shelf placement and lower go-to-market costs across multiple countries.

Improving margins and returns

Margin expansion and high returns indicate the company has improved operating efficiency and pricing power, allowing it to convert revenue into sustainable profitability. Strong ROE signals effective capital deployment, supporting resilience through cost cycles and funding reinvestment.

Leverage trending lower

A declining debt-to-equity trend improves financial flexibility and reduces refinancing risk. With leverage nearer parity, the company has more capacity to fund capex or absorb shocks without immediate restructuring, strengthening medium-term balance sheet durability.

Negative Factors

Top-line contraction

A meaningful revenue decline undermines scale economics and raises questions about demand sustainability or market share. If top-line weakness persists, margin gains and high ROE may prove harder to sustain, limiting organic growth and reinvestment capacity over the medium term.

Weak and volatile free cash flow conversion

Poor FCF conversion reduces discretionary cash available for debt repayment, capex and shareholder returns. Historical volatility (notably negative in 2022) signals inconsistent cash generation, which raises execution and funding risks during downturns despite reported accounting profits.

Material debt level for the cycle

Even with improvement, a meaningful debt burden increases sensitivity to earnings shocks and interest cost variability. If revenue or cash flow volatility continues, servicing and refinancing needs could constrain investment, force cost cuts, or limit strategic options over the next several quarters.

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	3.22T	2.62T	2.66T	2.22T
Gross Profit	1.24T	1.28T	1.02T	1.03T	841.34B
EBITDA	557.92B	523.40B	435.88B	453.63B	371.39B
Net Income	255.50B	232.66B	171.44B	125.50B	154.70B
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: Positive
• Last Price: 22.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 22.89 is below the 20-day moving average (MA) of 24.87, below the 50-day MA of 24.07, and above the 200-day MA of 21.01, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 50.76 is Neutral, neither overbought nor oversold. The STOCH value of 53.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AKO.A.

Embotelladora Andina SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KOF	72 Outperform	$5.79B	18.71	16.64%	3.98%	-2.81%	-2.66%
FIZZ	70 Outperform	$3.53B	18.72	40.93%	―	0.97%	0.36%
AKO.A	69 Neutral	$4.43B	14.86	25.18%	4.78%	18.92%	34.03%
KDP	69 Neutral	$42.16B	20.34	8.36%	3.12%	6.77%	-29.84%
COKE	68 Neutral	$12.99B	28.69	168.34%	0.61%	4.22%	22.24%
PRMB	63 Neutral	$7.08B	-63.20	-2.08%	2.44%	244.82%	-119.23%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Embotelladora Andina SA Corporate Events

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.

Embotelladora Andina S.A. Announces Interim Dividend Distribution

On November 25, 2025, the Board of Directors of Embotelladora Andina S.A. approved the distribution of an interim dividend, following the authorization from the Regular Shareholders’ Meeting held on April 15, 2025. Shareholders of Series A and Series B shares will receive Ch$20.0 and Ch$22.0 per share, respectively, with payments commencing on December 18, 2025. This decision reflects the company’s financial strategy and commitment to returning value to its shareholders, potentially impacting its market positioning and investor relations positively.

The most recent analyst rating on ($AKO.A) stock is a Buy with a $20.50 price target. To see the full list of analyst forecasts on Embotelladora Andina SA stock, see the AKO.A Stock Forecast page.