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Compania Cervecerias Unidas SA (CCU)
NYSE:CCU
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Compania Cervecerias Unidas SA
(NYSE:CCU)
Rating:76Outperform
Price Target:
$13.50
▲(7.14% Upside)
Compania Cervecerias Unidas SA (CCU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.26B
Dividend Yield3.6%
Average Volume (3M)222.33K
Price to Earnings (P/E)14.5
Beta (1Y)0.41
Revenue Growth13.92%
EPS Growth32.69%
CountryUS
Employees9,638
SectorConsumer Defensive
Sector Strength67
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)-0.03
Shares Outstanding184,751,500
10 Day Avg. Volume248,158
30 Day Avg. Volume222,334
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 Cap1.47
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$13.50Price Target Upside7.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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: -2.48%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with strong performance in Chile and the Wine segment, while challenges persist in Argentina due to currency devaluation and inflationary pressures. Efficiency improvements are helping to offset some of the negative impacts, but macroeconomic instability in Argentina remains a significant concern.Q2-2025 Updates
Positive Updates
Significant Growth in EBITDA
Consolidated EBITDA nearly doubled versus last year, mainly driven by the Chile Operating segment with a 59.1% expansion and the Wine Operating segment with an 8.3% growth.
Positive Performance in Chile
Top line in the Chile Operating segment expanded 9.4% with a 6% increase in average prices and a 3.2% rise in volumes. EBITDA increased by 59.1% and EBITDA margin expanded by 339 basis points.
Strong Export Performance in Wine Segment
The Wine Operating segment saw a 6% top-line expansion, driven by 17.4% growth in exports. EBITDA increased by 8.3% with a 32 basis point improvement in EBITDA margin.
Efficiency Improvements
Consolidated MSD&A expenses grew only 0.5% without the consolidation of Aguas de Origen, indicating strong efficiency measures.
Negative Updates
Challenges in Argentina
The International Business Operating segment faced an 11.4% contraction in net sales, driven by a 19.3% decline in organic average prices due to the devaluation of the Argentine peso and a challenging pricing scenario.
Pressure on Nonalcoholic Beverage Prices
Prices in the nonalcoholic categories in Chile grew in line with inflation, making it difficult to pass on additional costs to consumers.
Impact of Hyperinflation Accounting in Argentina
IAS 29 hyperinflation accounting impacted EBITDA by approximately $3 million, contributing to continued financial challenges in Argentina.
Company Guidance
In the second quarter of 2025, CCU delivered robust financial results despite a challenging business environment. Consolidated EBITDA nearly doubled compared to the previous year, with significant contributions from the Chile Operating segment, which saw a 59.1% increase in EBITDA, and the Wine Operating segment, which grew by 8.3%. Organic net sales rose by 4.8%, driven by a 4.7% increase in organic volumes, while gross profit grew by 6.7% and gross margin expanded by 73 basis points. The company faced headwinds in Argentina due to currency devaluation and a challenging pricing scenario, impacting the International Business Operating segment. However, strong revenue management and efficiency efforts helped offset inflationary pressures. The Chile segment experienced a 9.4% increase in top-line growth, with a 6% rise in average prices and a 3.2% increase in volumes, leading to a 12.5% growth in gross profit and a 115 basis-point expansion in gross margin. Overall, CCU's strategic focus on profitability, growth, and sustainability, guided by their 2025-2027 Strategic Plan, was evident in their ability to navigate industry-wide challenges while maintaining a positive trajectory in financial performance.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
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.82
Very Positive
| 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
Neutral
12.60
Price Trends
12.63
Negative
13.69
Negative
12.86
Negative
Market Momentum
-0.11
Negative
57.56
Neutral
95.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCU, the sentiment is Neutral. The current price of 12.6 is above the 20-day moving average (MA) of 12.03, below the 50-day MA of 12.63, and below the 200-day MA of 12.86, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 57.56 is Neutral, neither overbought nor oversold. The STOCH value of 95.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.26B | 14.55 | 10.15% | 3.60% | 13.92% | 32.69% | |
73 Outperform | $2.40B | 31.65 | 8.15% | ― | 2.46% | -7.28% | |
73 Outperform | $35.67B | 13.67 | 15.08% | 2.05% | -0.79% | -10.83% | |
71 Outperform | $121.90B | 17.05 | 8.97% | 1.72% | -2.06% | 21.03% | |
67 Neutral | $17.77B | 31.61 | 6.88% | 5.27% | -2.73% | -37.93% | |
67 Neutral | $10.60B | 10.05 | 7.79% | 3.52% | -5.48% | -6.99% | |
63 Neutral | $21.01B | 14.53 | -7.26% | 3.13% | 3.36% | -7.91% |
* Consumer Defensive Sector Average
Performance Comparison
CCU
Compania Cervecerias Unidas SA
12.60
1.45
13.00%
BUD
Anheuser-Busch Inbev Sa
61.14
1.24
2.07%
SAM
Boston Beer
224.74
-55.90
-19.92%
FMX
Fomento Economico Mexicano
85.74
-21.44
-20.00%
TAP
Molson Coors
51.71
-0.17
-0.33%
ABEV
Ambev SA
2.21
-0.01
-0.45%
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.