Compania Cervecerias Unidas SA (CCU) AI Stock Analysis

• Market Cap: $2.78B
• Dividend Yield: 1.66%
• Average Volume (3M): 220.65K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.55
• Revenue Growth: 0.15%
• EPS Growth: 35.56%
• Country: US
• Employees: 9,638
• Sector: Consumer Defensive
• Sector Strength: 65
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.92
• Shares Outstanding: 184,751,500
• 10 Day Avg. Volume: 231,906
• 30 Day Avg. Volume: 220,650
• PEG Ratio: 0.47
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.03
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $9.40
• Price Target Upside: -37.67% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

Compania Cervecerias Unidas SA demonstrates strong financial performance with consistent growth and effective cost management. The technical indicators show upward momentum, though caution on overbought signals is advised. The company's strategic moves and partnerships, as highlighted in the earnings call, indicate resilience and future growth potential, despite some regional challenges. Valuation metrics suggest a fairly priced stock in the current market.

Compania Cervecerias Unidas SA Business Overview & Revenue Model

Company Description

Compañía Cervecerías Unidas S.A. operates as a beverage company in Chile, Argentina, Bolivia, Colombia, Paraguay, and Uruguay. The company operates through three segments: Chile, International Business, and Wine. It produces and sells alcoholic and non-alcoholic beer under proprietary and licensed brands, as well as distributes Pernod Ricard products in non-supermarket retail stores. The company also produces and sells non-alcoholic beverages, including carbonated soft drinks, nectars and juices, sports and energy drinks, and ice tea; and mineral, purified, and flavored bottled water, as well as ready-to-mix products with instant powder drinks. In addition, it is involved in the production and distribution of pisco, cocktails, rum, flavored alcoholic beverages, gin, and cider. The company serves small and medium-sized retail outlets; retail establishments, such as restaurants, hotels, and bars; wholesalers; and supermarket chains. It also exports its products to Europe, Latin America, the United States, Canada, Asia, Oceania, and internationally. The company was founded in 1850 and is based in Santiago, Chile. Compañía Cervecerías Unidas S.A. is a subsidiary of Inversiones y Rentas S.A.

How the Company Makes Money

CCU generates revenue through the production, distribution, and sale of its diverse range of beverages across Latin America. The company's primary revenue streams include the sale of beer, which is one of its most significant segments, followed by non-alcoholic beverages like soft drinks, bottled water, and juices. Additionally, CCU earns from the sale of spirits and wines. The company benefits from its extensive distribution network and strategic partnerships, allowing it to maintain a strong presence in both domestic and international markets. CCU's earnings are further supported by its ability to innovate and adapt to changing consumer trends, ensuring its product offerings remain competitive and attractive to customers in various regions.

Compania Cervecerias Unidas SA Financial Statement Overview

Summary

Compania Cervecerias Unidas SA shows a stable financial position with strong equity and cash generation capabilities. However, challenges include declining revenue growth and increased leverage. Profitability margins are stable but show room for improvement.

Income Statement

The income statement shows a mixed performance. The TTM revenue of 2.51 trillion has decreased from the previous annual period, indicating a negative revenue growth trend. Gross profit margin stands at a healthy 44.4%, showing good cost management. However, the net profit margin of 5.1% is modest, indicating that there might be room for efficiency improvements. EBIT margin is at 6.7% and EBITDA margin at 10.8%, showing stable profitability but also a decline from previous years' performance.

Balance Sheet

The balance sheet indicates a strong equity position with stockholders' equity at 1.41 trillion, representing 38.6% of total assets, a healthy equity ratio. The debt-to-equity ratio is 1.0, indicating moderate leverage. Return on equity is solid at 9.1%, reflecting effective use of shareholders' capital. However, the increase in total debt suggests potential future risks related to financial leverage.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, with TTM free cash flow at 108 billion compared to the previous annual period's 164.6 billion. Operating cash flow to net income ratio remains robust at 1.73, indicating strong cash generation relative to earnings. However, the free cash flow to net income ratio has decreased to 0.84, suggesting reduced cash available after capital expenditures.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.51T	2.57T	2.71T	2.48T	1.86T	1.82T
	Gross Profit
1.11T	1.19T	1.20T	1.19T	873.56B	914.22B
	EBIT
168.52B	239.97B	218.76B	330.47B	175.18B	233.97B
	EBITDA
270.01B	344.05B	332.41B	454.00B	288.81B	331.05B
	Net Income Common Stockholders
128.52B	105.65B	118.17B	199.16B	96.15B	130.14B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
330.02B	621.47B	609.04B	279.58B	403.72B	202.62B
	Total Assets
2.41T	3.42T	3.60T	2.85T	2.53T	2.35T
	Total Debt
270.64B	1.33T	1.37T	573.65B	490.46B	315.82B
	Net Debt
-48.38B	711.11B	775.48B	308.08B	94.07B	119.45B
	Total Liabilities
1.02T	2.09T	2.16T	1.42T	1.12T	910.76B
	Stockholders Equity
1.28T	1.22T	1.32T	1.31T	1.30T	1.33T
Cash Flow		Free Cash Flow
108.03B	164.65B	-85.44B	121.50B	157.88B	101.83B
	Operating Cash Flow
221.77B	294.10B	118.17B	293.36B	280.67B	242.32B
	Investing Cash Flow
-107.39B	-137.23B	-236.46B	-178.99B	-140.55B	-144.19B
	Financing Cash Flow
-126.28B	-118.04B	537.10B	-233.64B	64.75B	-199.42B

Compania Cervecerias Unidas SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCU, the sentiment is Positive. The current price of 15.08 is above the 20-day moving average (MA) of 14.54, above the 50-day MA of 13.17, and above the 200-day MA of 11.68, indicating a bullish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 67.08 is Neutral, neither overbought nor oversold. The STOCH value of 84.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCU.

Compania Cervecerias Unidas SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCU	75 Outperform	$2.78B	16.62	11.55%	1.66%	0.15%	35.56%
BUD	74 Outperform	$124.87B	21.48	7.31%	1.03%	0.64%	10.02%
TAP	74 Outperform	$11.94B	11.01	8.54%	3.04%	-0.64%	22.45%
DEO	66 Neutral	$59.29B	16.53	35.83%	3.83%	-1.27%	-12.18%
Sector *	62 Neutral	$20.46B	13.73	-10.76%	7.35%	1.61%	5.91%
SAM	61 Neutral	$2.56B	46.23	5.99%	―	0.21%	-20.69%
STZ	61 Neutral	$32.06B	47.50	7.94%	2.28%	3.69%	-55.78%