Coca Cola Femsa SAB De CV (KOF) AI Stock Analysis

Compare

926 Followers

Top Page

Coca Cola Femsa SAB De CV

(NYSE:KOF)

Rating:74Outperform

Price Target:

$105.00

▲(17.10%Upside)

Coca Cola Femsa's strong financial performance and effective operational strategies are the primary strengths, supporting its overall score. While technical analysis and valuation present some uncertainty, the company's focus on sustainability and efficiency provides additional positive momentum. Challenges in key markets and competitive pressures are notable risks.

Coca Cola Femsa SAB De CV (KOF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$5.17B

Dividend Yield1.88%

Average Volume (3M)242.12K

Price to Earnings (P/E)16.5

Beta (1Y)0.27

Revenue Growth1.54%

EPS Growth4.48%

CountryUS

Employees118,683

SectorConsumer Defensive

Sector Strength57

IndustryBeverages - Non-Alcoholic

Share Statistics

EPS (TTM)1.66

Shares Outstanding52,520,763

10 Day Avg. Volume177,045

30 Day Avg. Volume242,123

Financial Highlights & Ratios

PEG Ratio6.90

Price to Book (P/B)22.14

Price to Sales (P/S)0.00

P/FCF Ratio156.32

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$110.00

Price Target Upside22.67% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering6

Coca Cola Femsa SAB De CV Business Overview & Revenue Model

Company DescriptionCoca Cola Femsa SAB De CV (KOF) is the largest franchise bottler of Coca-Cola products in the world, serving multiple countries across Latin America and Asia. The company operates in the beverage sector, focusing on the production, distribution, and marketing of a wide variety of non-alcoholic beverages, including carbonated soft drinks, juices, teas, and water. Coca Cola Femsa is headquartered in Mexico City, Mexico, and collaborates closely with The Coca-Cola Company to deliver its products to millions of consumers.

How the Company Makes MoneyCoca Cola Femsa makes money primarily through the sale of its beverage products. The company generates revenue by producing and distributing Coca-Cola branded products under franchise agreements with The Coca-Cola Company. Its key revenue streams include the direct sale of bottled and canned beverages to retailers, restaurants, and other distributors. Coca Cola Femsa benefits from exclusive bottling and distribution rights in its territories, which allows it to leverage The Coca-Cola Company's brand strength and marketing support. Additionally, the company engages in strategic partnerships and acquisitions to expand its market presence and product offerings, which also contribute to its revenue.

Coca Cola Femsa SAB De CV Earnings Call Summary

Earnings Call Date:Apr 25, 2025

(Q1-2025)

% Change Since: -8.88%|

Next Earnings Date:Jul 28, 2025

Earnings Call Sentiment Neutral

While the company demonstrated strong revenue and profit growth, particularly in the South America division, challenges in Mexico and Central America, increased competitive pressures, and higher operational costs offset some of these gains. Sustainability efforts and operational efficiencies provided positive momentum, but the overall environment remains challenging.

Q1-2025 Updates

Positive Updates

Revenue and Profit Growth

Despite a 2.2% decline in consolidated volume, total revenues grew 10% to MXN70.2 billion, and gross profit increased 12% to MXN31.8 billion, with a margin expansion of 80 basis points to 45.4%.

South America Division Performance

Volumes in the South America division increased 1%, with significant growth in Brazil, Argentina, and Uruguay. Revenues increased 17.4%, and gross profit rose 22.8%, leading to a margin expansion of 190 basis points to 42.5%.

Sustainability Achievements

Increased renewable energy use to 84%, improved water efficiency, and diverted 99% of operational waste from landfills while strengthening community support programs.

Operational Efficiencies

Adjusted EBITDA grew 11% to reach MXN13.3 billion, and EBITDA margin expanded 20 basis points to 18.9%, driven by cost and expense controls.

Negative Updates

Volume Decline in Key Markets

Consolidated volume declined 2.2% year-on-year, with notable declines in Mexico and Colombia, affecting overall performance.

Mexico and Central America Challenges

Volumes declined 4.6% in the Mexico and Central America division, with a 5% decrease in operating income and a 140 basis point contraction in operating margin.

Increased Competitive Intensity

Increased promotional activities across the market led to heightened competitive intensity, particularly affecting Mexico's performance.

Higher Operating Expenses

Operating margin contracted by 30 basis points to 13.2% due to higher operating expenses such as freight, labor, and maintenance.

Company Guidance

During Coca-Cola FEMSA's first quarter 2025 conference call, the company provided guidance on its financial performance and strategic initiatives. The company reported a 2.2% decline in consolidated volume year-on-year to 986.5 million unit cases, with notable decreases in Mexico and Colombia, offset by growth in Brazil, Argentina, Uruguay, and Guatemala. Despite the volume decline, total revenues grew 10% to MXN70.2 billion, aided by favorable currency translation and revenue management initiatives, with a currency neutral increase of 5.9%. Gross profit rose by 12% to MXN31.8 billion, resulting in an 80 basis point margin expansion to 45.4%, driven by lower sweetener costs and raw material hedging. Operating income increased 7.3% to MXN9.2 billion, though operating margin contracted by 30 basis points to 13.2% due to higher expenses. Adjusted EBITDA rose 11% to MXN13.3 billion, with a 20 basis point margin expansion to 18.9%. The company also highlighted operational strategies, including promotional activities and supply chain improvements in Mexico, where volumes declined 5.4%. In Guatemala, volumes increased 1.9% amid macroeconomic challenges, while Brazil saw a resilient 2.5% volume growth. The call emphasized Coca-Cola FEMSA's adaptability in navigating uncertainties and its focus on long-term strategic goals, including sustainability efforts showcased in the company's recent integrated annual report.

Coca Cola Femsa SAB De CV Financial Statement Overview

Summary

Coca Cola Femsa has exhibited strong financial health with substantial revenue and profit growth, supported by effective cost management and operational efficiency. The balance sheet remains robust with moderate leverage, although monitoring of debt levels is advisable. While cash flow data for the latest period is incomplete, historical performance reflects solid cash generation, underscoring the company's ability to sustain growth and manage financial obligations effectively.

Income Statement

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	285.13B	279.79B	245.09B	226.74B	194.80B	183.62B
Gross Profit	131.74B	128.74B	110.86B	100.30B	88.60B	82.81B
EBITDA	41.42B	52.85B	43.82B	40.45B	37.33B	32.44B
Net Income	23.89B	23.73B	19.54B	19.03B	15.71B	10.31B
Balance Sheet
Total Assets	257.84B	307.99B	273.52B	278.00B	271.57B	263.07B
Cash, Cash Equivalents and Short-Term Investments	20.49B	32.78B	31.06B	40.28B	47.25B	43.50B
Total Debt	71.36B	78.39B	67.73B	80.81B	87.29B	88.78B
Total Liabilities	128.15B	157.44B	139.81B	146.12B	144.00B	140.61B
Stockholders Equity	122.93B	143.43B	127.03B	125.38B	121.55B	116.87B
Cash Flow
Free Cash Flow	489.69M	16.65B	21.66B	17.76B	22.73B	60.35B
Operating Cash Flow	1.85B	42.44B	42.29B	35.49B	32.72B	70.29B
Investing Cash Flow	-1.49B	-23.39B	-20.07B	-19.60B	-9.55B	-21.02B
Financing Cash Flow	-784.85M	-19.64B	-26.35B	-20.85B	-20.26B	834.00M

Coca Cola Femsa SAB De CV Technical Analysis

Technical Analysis Sentiment

Negative

Last Price89.67

Price Trends

50DMA

94.81

Negative

100DMA

92.28

Negative

200DMA

86.37

Positive

Market Momentum

MACD

-0.28

Positive

RSI

36.96

Neutral

STOCH

40.73

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOF, the sentiment is Negative. The current price of 89.67 is below the 20-day moving average (MA) of 95.43, below the 50-day MA of 94.81, and above the 200-day MA of 86.37, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 36.96 is Neutral, neither overbought nor oversold. The STOCH value of 40.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 3 New Risks

If we fail to comply with privacy and data protection laws, we could be subject to adverse publicity, business disruption, data loss, government enforcement actions and/or private litigation, any of which could negatively affect our business and operating results. Q4, 2023

Product safety and quality concerns could negatively affect our business. Q4, 2023

Pandemics and public health crises, may adversely affect our business, financial condition and results of operations. Q4, 2023

Coca Cola Femsa SAB De CV Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCEP	79 Outperform	$44.61B	29.04	17.43%	1.83%	11.73%	-15.34%
COKE	77 Outperform	$9.93B	19.80	36.83%	0.88%	3.21%	31.84%
KOF	74 Outperform	$5.17B	16.48	17.12%	1.88%	1.54%	4.48%
KO	73 Outperform	$305.65B	28.43	40.98%	2.90%	1.15%	0.28%
KDP	72 Outperform	$46.22B	30.82	6.13%	2.70%	3.95%	-28.73%
Sector *	65 Neutral	$27.02B	15.16	-4.24%	3.17%	1.01%	1.94%
PRMB	63 Neutral	$11.56B	20.07	-2.83%	1.31%	90.28%	-105.48%

* Consumer Defensive Sector Average

Performance Comparison

KOF

Coca Cola Femsa SAB De CV

89.67

7.19

8.72%

COKE

Coca-Cola Bottling Co Consolidated

113.32

5.72

5.32%

Coca-Cola

69.48

8.44

13.83%

PRMB

Primo Brands

30.05

9.92

49.28%

KDP

Keurig Dr Pepper

33.65

2.56

8.23%

CCEP

Coca-Cola Europacific Partners

95.86

25.05

35.38%

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: Jul 09, 2025