Compania Cervecerias Unidas SA (CCU) AI Stock Analysis

• Market Cap: $2.48B
• Dividend Yield: 2.4%
• Average Volume (3M): 147.32K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.36
• Revenue Growth: 16.59%
• EPS Growth: 1.72%
• Country: US
• Employees: 9,638
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.09
• Shares Outstanding: 184,751,430
• 10 Day Avg. Volume: 204,765
• 30 Day Avg. Volume: 147,323
• PEG Ratio: 0.25
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 16.39
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: 0.01
• 1Y Price Target: $10.90
• Price Target Upside: -13.83% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: $13.50 ▲(6.72% Upside)

Compania Cervecerias Unidas SA's overall stock score reflects a mixed financial performance with strong cash flow and reasonable valuation. The technical indicators suggest a cautious outlook, while the earnings call highlights both growth opportunities and challenges. The company's focus on strategic initiatives and operational efficiencies provides a pathway for potential improvement.

Positive Factors

Cash Flow Strength

Strong cash flow growth enhances liquidity and provides a solid foundation for future investments and debt management, supporting long-term stability.

International Expansion

Significant growth in international operations indicates successful market penetration and diversification, reducing reliance on domestic markets.

Chilean Market Performance

Strong performance in the Chilean market shows effective pricing strategies and operational efficiencies, contributing to overall profitability.

Negative Factors

Net Sales Decline

Declining net sales can impact revenue growth and profitability, posing a challenge to sustaining long-term financial performance.

Challenges in Argentina

Economic challenges in Argentina, including currency devaluation, can hinder market performance and affect overall regional profitability.

Wine Segment Struggles

Weak performance in the wine segment due to higher costs and weak markets may limit growth opportunities and affect profitability.

Compania Cervecerias Unidas SA Business Overview & Revenue Model

Company Description

Compania Cervecerias Unidas SA (CCU) is a leading beverage company based in Chile, primarily engaged in the production and distribution of a wide range of alcoholic and non-alcoholic beverages. The company operates in various sectors, including brewing, soft drinks, and bottled water. CCU's core products include beer, sparkling water, and fruit beverages, with a portfolio that features both proprietary brands and licensed products. The company has a strong presence in Chile and has expanded its operations into other Latin American markets.

How the Company Makes Money

CCU generates revenue primarily through the sale of its diverse beverage offerings. The company's key revenue streams include the sale of beer, which is one of its largest segments, as well as non-alcoholic beverages such as soft drinks and bottled water. CCU also benefits from partnerships with international brands, allowing it to produce and distribute licensed products, which contributes to its earnings. Additionally, the company leverages its extensive distribution network to reach a wide customer base across various retail channels, including supermarkets, convenience stores, and restaurants, thereby enhancing its market penetration and revenue potential.

Compania Cervecerias Unidas SA Financial Statement Overview

Summary

Compania Cervecerias Unidas SA demonstrates a mixed financial performance. The income statement shows challenges with declining revenue and profitability, but the balance sheet indicates moderate leverage and stability. The cash flow statement is a bright spot, with significant improvements in free cash flow. The company needs to address revenue growth issues to enhance overall financial health, but its cash flow strength provides a solid foundation for future improvements.

Income Statement

The income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is stable at 45.2%, indicating consistent cost management. However, the net profit margin has decreased to 4.96% from 5.54% in the previous year, reflecting reduced profitability. Revenue growth has been negative in the TTM, with a decline of 23.7%, which is concerning. EBIT and EBITDA margins are relatively stable, suggesting operational efficiency, but the negative revenue growth is a significant drawback.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.86 in the TTM from 0.93 in the previous year, indicating a reduction in leverage. Return on equity is slightly lower at 10.1% compared to 10.55% last year, showing a slight decline in shareholder returns. The equity ratio remains stable, suggesting a balanced capital structure. Overall, the company maintains a reasonable level of financial stability, but the slight decline in ROE is a concern.

Cash Flow

Cash flow analysis reveals a strong performance in the TTM. Free cash flow growth is robust at 184.3%, indicating improved cash generation. The operating cash flow to net income ratio is 0.46, showing adequate cash flow relative to net income. The free cash flow to net income ratio is 0.64, reflecting strong cash conversion. Despite previous fluctuations, the current cash flow metrics suggest a healthy liquidity position and effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.02T	2.90T	2.57T	2.71T	2.48T	1.86T
Gross Profit	1.36T	1.31T	1.19T	1.20T	1.19T	873.56B
EBITDA	317.40B	262.70B	344.05B	211.68B	454.00B	172.32B
Net Income	136.21B	160.94B	105.65B	118.17B	199.16B	96.15B
Balance Sheet
Total Assets	3.60T	3.99T	3.42T	3.60T	2.85T	3.55B
Cash, Cash Equivalents and Short-Term Investments	498.79B	707.95B	621.47B	609.04B	279.58B	575.09M
Total Debt	1.30T	1.41T	1.33T	1.37T	573.65B	706.71M
Total Liabilities	1.98T	2.32T	2.09T	2.16T	1.42T	1.57B
Stockholders Equity	1.48T	1.53T	1.22T	1.32T	1.31T	1.82B
Cash Flow
Free Cash Flow	149.41B	127.43B	164.65B	-157.67B	121.50B	157.88B
Operating Cash Flow	252.35B	287.52B	294.10B	45.94B	293.36B	280.67B
Investing Cash Flow	-105.82B	-118.29B	-137.23B	-236.46B	-178.99B	-140.55B
Financing Cash Flow	-246.88B	-125.04B	-118.04B	537.10B	-233.64B	64.75B

Compania Cervecerias Unidas SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.65
• 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 CCU, the sentiment is Positive. The current price of 12.65 is below the 20-day moving average (MA) of 12.74, above the 50-day MA of 12.28, and below the 200-day MA of 13.10, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 63.33 is Neutral, neither overbought nor oversold. The STOCH value of 52.12 is Neutral, 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
ABEV	80 Outperform	$40.21B	13.94	15.97%	6.83%	-0.68%	4.29%
BUD	75 Outperform	$123.02B	17.18	8.97%	1.89%	-2.06%	21.03%
SAM	74 Outperform	$2.08B	23.02	9.58%	―	-1.13%	24.34%
CCU	70 Neutral	$2.48B	17.38	9.07%	2.40%	16.59%	1.72%
FMX	65 Neutral	$19.35B	42.01	5.48%	4.70%	1.44%	-38.87%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TAP	56 Neutral	$9.23B	―	-17.66%	4.01%	-4.01%	-339.22%

Compania Cervecerias Unidas SA Corporate Events

Compañía Cervecerías Unidas S.A. Reports Q3 2025 Financial Results

Compañía Cervecerías Unidas S.A. released its interim consolidated financial statements for the nine-month period ending September 30, 2025. The report indicates a decrease in total assets from December 31, 2024, to September 30, 2025, with current assets and non-current assets both showing declines. This financial update provides stakeholders with insights into the company’s financial health and operational adjustments over the period.

CCU Reports Mixed Financial Results for Q3 2025 Amid Market Challenges

On November 5, 2025, CCU announced its financial results for the third quarter of 2025, which ended on September 30, 2025. The company reported a 1.2% increase in consolidated volumes and a 4.6% rise in EBITDA compared to the same period last year. However, net sales decreased by 1.1% and gross profit fell by 2.9%. Despite a challenging business environment, particularly in Argentina, CCU’s Chilean operations showed resilience with a 4.8% increase in EBITDA. The wine segment faced difficulties due to weaker domestic markets and higher costs. Overall, CCU’s strategic focus on profitability and efficiency has supported its financial performance amidst volatile market conditions.

CCU Announces Interim Dividend Distribution for 2025

On November 5, 2025, the Board of Directors of Compañía Cervecerías Unidas S.A. approved the distribution of interim dividend No. 271, amounting to CLP 84.0 per share and CLP 168.0 per ADR, totaling CLP 31,038,241,248. This dividend will be paid starting November 27, 2025, to shareholders recorded by midnight on November 21, 2025. This decision reflects the company’s strong financial performance and commitment to returning value to its shareholders, potentially enhancing its market position and stakeholder confidence.