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Coca Cola Femsa SAB De CV (KOF)
NYSE:KOF
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Coca Cola Femsa SAB De CV
(NYSE:KOF)
73Outperform
Coca Cola Femsa SAB De CV (KOF) vs. S&P 500 (SPY)
Market Cap
$4.97B
Dividend Yield3.01%
Average Volume (3M)190.22K
Price to Earnings (P/E)15.2
Beta (1Y)0.44
Revenue Growth8.74%
EPS Growth16.30%
CountryUS
Employees104,000
SectorConsumer Defensive
Sector Strength91
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)6.15
Shares Outstanding52,520,763
10 Day Avg. Volume178,308
30 Day Avg. Volume190,218
Financial Highlights & Ratios
PEG Ratio0.93
Price to Book (P/B)N/A
Price to Sales (P/S)1.54
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$99.30Price Target Upside2.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Coca Cola Femsa SAB De CV Business Overview & Revenue Model
Company DescriptionCoca-Cola FEMSA, S.A.B. de C.V., a franchise bottler, produces, markets, sells, and distributes Coca-Cola trademark beverages. The company offers sparkling beverages, including colas and flavored sparkling beverages; and waters and other beverages, such as juice drinks, coffee, teas, milk, value-added dairy products, sports and energy drinks, and plant-based drinks. It provides a portfolio of products through retail outlets, such as wholesale supermarkets, discount stores, and convenience stores; retailers, such as restaurants and bars, as well as stadiums, auditoriums, and theaters; points-of-sale outlets; and home delivery, supermarkets, and other locations. In addition, the company distributes and sells Heineken beer products in its Brazilian territories. It operates in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Brazil, Argentina, and Uruguay. The company was founded in 1979 and is headquartered in Mexico City, Mexico. Coca-Cola FEMSA, S.A.B. de C.V. is a subsidiary of Fomento Economico Mexicano, S.A.B. de C.V.
How the Company Makes MoneyCoca-Cola Femsa generates revenue primarily through the sale of bottled beverages. The company earns money by producing and distributing a variety of Coca-Cola branded drinks, such as Coca-Cola, Sprite, Fanta, and other products. Its revenue streams are primarily derived from the volume of beverages sold, which varies based on consumer demand within its operational regions. Coca-Cola Femsa benefits from its strategic partnerships, notably with The Coca-Cola Company, which provides it with access to a broad portfolio of products and marketing support. Additionally, economies of scale in production and distribution, along with strategic acquisitions and a robust distribution network, contribute significantly to the company's earnings.
Coca Cola Femsa SAB De CV Financial Statement Overview
Summary
Coca Cola Femsa has shown strong financial performance with significant revenue and profit growth, effective cost management, and operational efficiency. The balance sheet is solid with moderate leverage, though cash flow data is limited, historical performance is robust.Income Statement
Coca Cola Femsa demonstrated robust revenue growth of 14.15% YoY in 2024, driven by strong market demand. Gross profit margin improved to 46.01%, reflecting effective cost management. Net profit margin also increased to 8.48%, indicating enhanced profitability. EBIT and EBITDA margins were healthy at 14.35% and 18.41% respectively, showing strong operational performance. The company has shown consistent growth in revenues and profitability over the years.85
Very Positive
Balance Sheet
The balance sheet remains solid with a debt-to-equity ratio of 0.54, suggesting moderate leverage. Return on equity (ROE) improved to 16.55%, indicating effective utilization of equity. The equity ratio stands at 46.57%, reflecting a healthy capital structure. The company has maintained a stable equity base, though total debt levels have increased slightly compared to the previous year, necessitating careful management.78
Positive
Cash Flow
Cash flow analysis is limited due to missing current year data, but historical performance shows strong free cash flow generation, with a significant free cash flow growth rate of 21.98% in 2023. The company has maintained a positive free cash flow to net income ratio, ensuring sufficient cash generation to support operations. Attention to future cash flow stability is crucial as recent data is unavailable.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 266.57B | 279.79B | 245.09B | 226.74B | 194.80B | 183.62B | Gross Profit |
| 121.89B | 128.74B | 110.86B | 100.30B | 88.60B | 82.81B | EBIT |
| 37.75B | 40.14B | 34.35B | 30.84B | 27.40B | 25.24B | EBITDA |
| 40.41B | 51.51B | 43.82B | 40.45B | 37.33B | 32.44B | Net Income Common Stockholders |
| 21.80B | 23.73B | 19.54B | 19.03B | 15.71B | 10.31B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 14.68B | 32.78B | 31.06B | 40.28B | 47.25B | 43.50B | Total Assets |
| 107.75B | 307.99B | 273.52B | 278.00B | 271.57B | 263.07B | Total Debt |
| 19.15B | 76.88B | 67.73B | 80.81B | 87.29B | 88.78B | Net Debt |
| 5.97B | 44.10B | 36.67B | 40.53B | 40.04B | 45.29B | Total Liabilities |
| 40.19B | 157.44B | 139.81B | 146.12B | 144.00B | 140.61B | Stockholders Equity |
| 65.15B | 143.43B | 127.03B | 125.38B | 121.55B | 116.87B |
| Cash Flow | Free Cash Flow | ||||
| 1.06B | 0.00 | 21.66B | 17.76B | 22.73B | 60.35B | Operating Cash Flow |
| 2.37B | 0.00 | 42.29B | 35.49B | 32.72B | 70.29B | Investing Cash Flow |
| -1.44B | 0.00 | -20.07B | -19.60B | -9.55B | -21.02B | Financing Cash Flow |
| -800.31M | 0.00 | -26.35B | -20.85B | -20.26B | 834.00M |
Coca Cola Femsa SAB De CV Technical Analysis
Positive
96.88
Price Trends
85.46
Positive
82.08
Positive
83.70
Positive
Market Momentum
1.98
Negative
68.63
Neutral
87.71
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOF, the sentiment is Positive. The current price of 96.88 is above the 20-day moving average (MA) of 89.87, above the 50-day MA of 85.46, and above the 200-day MA of 83.70, indicating a bullish trend. The MACD of 1.98 indicates Negative momentum. The RSI at 68.63 is Neutral, neither overbought nor oversold. The STOCH value of 87.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KOF.
Coca Cola Femsa SAB De CV Risk Analysis
Coca Cola Femsa SAB De CV disclosed 27 risk factors in its most recent earnings report. Coca Cola Femsa SAB De CV reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Coca Cola Femsa SAB De CV Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $205.27B | 21.53 | 52.42% | 3.58% | 0.42% | 5.77% | |
76 Outperform | $47.45B | 33.21 | 5.77% | 2.54% | 3.62% | -32.23% | |
76 Outperform | $57.46B | 40.01 | 21.27% | ― | 4.94% | -4.13% | |
73 Outperform | $4.97B | 15.21 | 17.94% | 3.01% | 8.74% | 16.30% | |
73 Outperform | $309.30B | 29.20 | 41.86% | 2.69% | 1.96% | -0.45% | |
69 Neutral | $3.96B | 21.03 | 40.81% | ― | 0.34% | 9.48% | |
63 Neutral | $20.94B | 14.39 | -10.05% | 3.13% | 1.25% | 3.11% |
* Consumer Defensive Sector Average
Performance Comparison
KOF
Coca Cola Femsa SAB De CV
96.88
4.09
4.41%
KO
Coca-Cola
73.18
15.60
27.09%
KDP
Keurig Dr Pepper
35.63
5.75
19.24%
MNST
Monster Beverage
59.65
3.90
7.00%
FIZZ
National Beverage
41.85
-4.07
-8.86%
PEP
PepsiCo
151.37
-12.82
-7.81%
Coca Cola Femsa SAB De CV Earnings Call Summary
Earnings Call Date: Feb 21, 2025 | % Change Since: 14.06% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue and operational growth, especially in digital transformation and certain regional markets like Guatemala and Brazil. However, these were balanced by challenges such as volume declines in key markets, unfavorable weather conditions in Mexico, and operational issues in Brazil. The sentiment reflects both strong achievements and notable challenges faced by the company.Highlights
Double-Digit Revenue and Operating Income Growth
Despite facing unfavorable weather conditions in Mexico and a tough comparison base, Coca-Cola FEMSA's revenues and operating income grew by double digits year-on-year, with total revenues increasing by 10.7% to MXN 69.6 billion.
Digital Transformation Initiatives
Progress in digital transformation with Juntos+ reaching 1.2 million active users, with digital buyers now accounting for 56% of the customer base, up by 6 percentage points. The Premier Juntos+ loyalty program saw a 21% increase in enrolled clients.
Operating Margin and EBITDA Growth
Operating income increased by 13.9%, with an operating margin expanding by 30 basis points to 13.8%. Adjusted EBITDA grew by 18.4% to reach MXN 14 billion, with an EBITDA margin expansion of 130 basis points to 20.1%.
Water Efficiency Achievement
Coca-Cola FEMSA achieved a water use efficiency ratio of 1.36 liters per liter of beverage produced, marking a 21% improvement since 2016.
Positive Performance in Guatemala and Brazil
Guatemala saw a 7.5% increase in volumes due to a growing population and digital adoption. Brazil reported a 6.3% volume growth, supported by favorable weather and macro fundamentals.
Lowlights
Volume Declines in Key Markets
Despite achieving some growth, consolidated volumes increased only 0.8%, with declines observed in Mexico, Colombia, and Uruguay.
Challenges in Colombia
Colombia faced a decline in consumer confidence and household expenditures, resulting in a 4% year-on-year volume contraction.
Impact of Weather Events in Mexico
Mexico's volume declined by 1.5% due to 50% more rainfall and lower temperatures compared to the previous year.
Currency Depreciation Impact
The quarter saw a more neutral currency translation impact, with the depreciation of the Brazilian real and Argentine peso affecting revenue.
Operational Challenges in Brazil
Closure of the Portage plant in Brazil led to an impact of MXN 200 million due to incremental freight and other expenses.
Company Guidance
During Coca-Cola FEMSA's Q3 2024 earnings call, the company reported robust financial metrics, indicating resilience and strategic execution amid challenging conditions. Revenues increased by 10.7% to MXN 69.6 billion, driven by revenue management initiatives and a favorable mix, while operating income rose by 13.9% to MXN 9.6 billion, with an operating margin expansion of 30 basis points to 13.8%. Adjusted EBITDA grew by 18.4% to MXN 14 billion, reflecting a 130 basis point increase in margin to 20.1%. The company highlighted digital advancements, with 56% of its customer base as digital buyers and 920,000 clients enrolled in its loyalty program, Premier Juntos+, marking a 21% increase from the previous quarter. Additionally, the company noted a positive impact of MXN 340 million from insurance claims related to Hurricane Otis. Despite a slight volume decline in Mexico, driven by adverse weather and economic conditions, Coca-Cola FEMSA remains optimistic about future growth, supported by infrastructure investments and strategic initiatives across its territories.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.