Compania Cervecerias Unidas SA (CCU) AI Stock Analysis

Compare

149 Followers

Top Page

Compania Cervecerias Unidas SA

(NYSE:CCU)

Rating:75Outperform

Price Target:

$14.00

▲(13.18% Upside)

Compania Cervecerias Unidas SA demonstrates strong financial performance and effective strategic execution, particularly in its core Chilean market. The stock's valuation is fair, with an attractive dividend yield. However, technical indicators suggest a neutral to slightly bearish short-term trend, and challenges in Argentina pose risks to international operations.

Compania Cervecerias Unidas SA (CCU) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.28B

Dividend Yield3.7%

Average Volume (3M)185.33K

Price to Earnings (P/E)14.6

Beta (1Y)0.40

Revenue Growth13.92%

EPS Growth32.69%

CountryUS

Employees9,638

SectorConsumer Defensive

Sector Strength48

IndustryBeverages - Alcoholic

Share Statistics

EPS (TTM)-0.03

Shares Outstanding184,751,500

10 Day Avg. Volume158,377

30 Day Avg. Volume185,329

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.46

Enterprise Value/Revenue<0.01

Enterprise Value/Gross Profit<0.01

Enterprise Value/Ebitda<0.01

Forecast

1Y Price Target

$14.00

Price Target Upside13.18% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Compania Cervecerias Unidas SA Business Overview & Revenue Model

Company DescriptionCompania Cervecerias Unidas SA (CCU) is one of the leading beverage companies in Latin America, primarily engaged in the production and distribution of alcoholic and non-alcoholic beverages. Founded in Chile, CCU operates in multiple sectors, including beer, soft drinks, bottled water, and wine. The company is known for its diverse portfolio of brands, which includes popular beer brands such as Cristal and Escudo, as well as soft drinks and other beverages, catering to a wide range of consumer preferences across the region.

How the Company Makes MoneyCCU generates revenue through several key streams, primarily from the sale of its alcoholic and non-alcoholic beverages. The company produces and sells beer, which accounts for a significant portion of its revenue, leveraging its strong brand presence and distribution networks. Additionally, CCU earns income from the sale of soft drinks and bottled water, tapping into the growing demand for non-alcoholic beverages. The company has established strategic partnerships with retailers and distributors, enhancing its market reach and ensuring product availability. Furthermore, CCU may benefit from economies of scale in production and marketing, contributing to its profitability. Seasonal promotions and marketing initiatives also play a role in driving sales across various product lines.

Compania Cervecerias Unidas SA Earnings Call Summary

Earnings Call Date:Jun 30, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 05, 2025

Earnings Call Sentiment Neutral

The earnings call presented a strong performance in the Chile Operating segment and significant growth in consolidated EBITDA, indicating effective financial management and strategic execution. However, the company faces significant challenges in Argentina due to macroeconomic conditions and pricing pressures, which continue to impact profitability. Overall, the positive developments in core segments are somewhat offset by the difficulties in international markets.

Q2-2025 Updates

Positive Updates

Strong Chile Operating Segment Performance

EBITDA in the Chile Operating segment increased by 59.1%, with a 9.4% expansion in top-line revenue driven by a 6% increase in average prices and a 3.2% increase in volumes. Gross profit grew by 12.5% and gross margin expanded by 115 basis points.

Significant Growth in Consolidated EBITDA

Consolidated EBITDA nearly doubled compared to the previous year, with a 97.1% increase and an expansion of the EBITDA margin by 150 basis points.

Wine Operating Segment Growth

The Wine Operating segment achieved a 6% top-line expansion driven by a 4.2% rise in volumes and a 1.7% increase in average prices, resulting in an 8.3% increase in EBITDA.

Export Volume Recovery in Wine Segment

Export volumes in the Wine Operating segment grew by 17.4%, significantly contributing to the segment's overall performance.

Improved Financial Efficiencies

Efficiencies in logistics and marketing contributed to a decrease in MSD&A expenses as a percentage of net sales by 197 basis points.

Negative Updates

Challenging Environment in Argentina

The International Business Operating segment faced difficulties with a 19.3% decrease in organic average prices due to the devaluation of the Argentine peso and a challenging pricing scenario, resulting in a similar EBITDA loss compared to the previous year.

Pricing Challenges in Argentina

Beer prices in Argentina were 10.5% below inflation year-to-date, leading to difficulties in maintaining profitability and market share.

Impact of Hyperinflation Accounting in Argentina

Hyperinflation accounting impacted the International segment's results, particularly due to the devaluation of the Argentine peso.

Cost Pressures in Wine Segment

Gross margin in the Wine Operating segment deteriorated by 222 basis points due to cost pressures from a lower harvest and higher USD-linked packaging costs.

Increased Costs Due to r-PET Law

The r-PET law led to an additional MXN 3 billion in costs for the Chile Operating segment due to manufacturing expenses and the cost of recycled PET.

Company Guidance

In the second quarter of 2025, CCU reported a substantial increase in financial performance, with consolidated EBITDA nearly doubling compared to the previous year, driven primarily by a 59.1% EBITDA growth in Chile and an 8.3% increase in the Wine Operating segment. Organic net sales rose by 4.8%, supported by a 4.7% rise in organic volumes, although organic average prices remained flat. Additionally, gross profit grew by 6.7%, and the gross margin improved by 73 basis points. Despite challenges in Argentina due to inflation and currency devaluation, CCU maintained a strong focus on revenue management and efficiencies, which expanded the consolidated EBITDA margin by 150 basis points. The company plans to continue executing its 2025-2027 Strategic Plan, emphasizing profitability, growth, and sustainability.

Compania Cervecerias Unidas SA Financial Statement Overview

Summary

Compania Cervecerias Unidas SA exhibits robust financial health with strong profitability and operational efficiency. The income statement reflects solid revenue and profit growth, while the balance sheet shows a balanced approach to leveraging debt and equity. Cash flow metrics are favorable, supporting the company's ability to sustain operations and invest in growth opportunities.

Income Statement

Very Positive

The company has demonstrated solid revenue growth with a notable increase from previous periods. Gross profit margin and net profit margin are strong, indicating efficient cost management and profitability. EBIT and EBITDA margins are stable, reflecting consistent operational performance.

Balance Sheet

Positive

The balance sheet shows a moderate debt-to-equity ratio, suggesting a balanced use of debt and equity. The return on equity is commendable, indicating effective use of equity to generate profits. However, the equity ratio is moderate, highlighting a need for maintaining a healthy balance between liabilities and equity.

Cash Flow

Very Positive

Operating cash flow is strong relative to net income, indicating efficient cash generation from operations. The free cash flow has shown growth, suggesting improved financial flexibility. The cash flow metrics reflect a positive capacity to fund operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.98T	2.90T	2.57T	2.71T	2.48T	1.86T
Gross Profit	1.34T	1.31T	1.19T	1.20T	1.19T	873.56B
EBITDA	344.98B	372.61B	344.05B	332.41B	454.00B	288.81B
Net Income	166.52B	160.94B	105.65B	118.17B	199.16B	96.15B
Balance Sheet
Total Assets	3.91T	3.99T	3.42T	3.60T	2.85T	2.53T
Cash, Cash Equivalents and Short-Term Investments	771.43B	707.95B	621.47B	609.04B	279.58B	403.72B
Total Debt	1.41T	1.41T	1.33T	1.37T	573.65B	490.46B
Total Liabilities	2.24T	2.32T	2.09T	2.16T	1.42T	1.12T
Stockholders Equity	1.54T	1.53T	1.22T	1.32T	1.31T	1.30T
Cash Flow
Free Cash Flow	181.43B	127.43B	164.65B	-85.44B	121.50B	157.88B
Operating Cash Flow	296.67B	287.52B	294.10B	118.17B	293.36B	280.67B
Investing Cash Flow	-92.40B	-118.29B	-137.23B	-236.46B	-178.99B	-140.55B
Financing Cash Flow	-95.12B	-125.04B	-118.04B	537.10B	-233.64B	64.75B

Compania Cervecerias Unidas SA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price12.37

Price Trends

50DMA

12.40

Negative

100DMA

13.35

Negative

200DMA

12.95

Negative

Market Momentum

MACD

-0.02

Negative

RSI

48.97

Neutral

STOCH

45.54

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCU, the sentiment is Negative. The current price of 12.37 is above the 20-day moving average (MA) of 12.29, below the 50-day MA of 12.40, and below the 200-day MA of 12.95, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.97 is Neutral, neither overbought nor oversold. The STOCH value of 45.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCU.

Compania Cervecerias Unidas SA Risk Analysis

Compania Cervecerias Unidas SA disclosed 31 risk factors in its most recent earnings report. Compania Cervecerias Unidas SA reported the most risks in the "Macro & Political" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Compania Cervecerias Unidas SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCU	75 Outperform	$2.28B	14.57	10.15%	3.70%	13.92%	32.69%
BUD	75 Outperform	$124.31B	17.40	8.97%	1.71%	-2.06%	21.03%
SAM	74 Outperform	$2.41B	31.13	8.15%	―	2.46%	-7.28%
ABEV	74 Outperform	$35.77B	13.67	15.08%	2.03%	-0.79%	-10.83%
TAP	68 Neutral	$10.02B	9.94	7.79%	3.60%	-5.48%	-6.99%
FMX	67 Neutral	$17.84B	31.79	6.88%	5.19%	-2.73%	-37.93%
Sector *	63 Neutral	$20.41B	14.67	-2.94%	3.10%	2.04%	-6.12%

* Consumer Defensive Sector Average

Performance Comparison

CCU

Compania Cervecerias Unidas SA

12.27

1.68

15.86%

BUD

Anheuser-Busch Inbev Sa

61.37

-0.48

-0.78%

SAM

Boston Beer

215.73

-65.08

-23.18%

FMX

Fomento Economico Mexicano

86.92

-10.74

-11.00%

TAP

Molson Coors

50.25

-4.18

-7.68%

ABEV

Ambev SA

2.19

0.05

2.34%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 03, 2025