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

• Market Cap: $5.52B
• Dividend Yield: 3.98%
• Average Volume (3M): 160.79K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.10
• Revenue Growth: -2.81%
• EPS Growth: -2.66%
• Country: US
• Employees: 118,683
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 1.51
• Shares Outstanding: 52,520,763
• 10 Day Avg. Volume: 220,000
• 30 Day Avg. Volume: 160,791
• PEG Ratio: 0.67
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 20.52
• Enterprise Value/Market Cap: 10.03
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 0.42
• Enterprise Value/Ebitda: 1.34
• 1Y Price Target: $106.00
• Price Target Upside: 0.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $119.00 ▲(13.10% Upside)

The score is driven primarily by solid underlying profitability and balance-sheet quality, tempered by weak/volatile TTM cash generation. Technicals remain bullish but look overextended, while valuation is fair with dividend support. The latest earnings call was constructive on execution and cost control, but weighed down by volume softness and Mexico excise-tax and cost/currency headwinds.

Positive Factors

Brand and distribution strength

Exclusive partnership with The Coca‑Cola Company and an extensive distribution network across Mexico, Brazil and Central America creates durable shelf presence, scale advantages and route-to-market density. This structural reach supports steady revenue capture and barriers to entry over years.

Improving profitability and margins

Recent margin expansion and double‑digit revenue growth reflect sustained operational efficiency and effective revenue management. Higher gross and operating margins indicate the company can convert sales into profit reliably, supporting reinvestment, dividend capacity and resilience to cost pressures over the medium term.

Solid cash generation and capital structure

Strong historical free cash flow growth and a moderate leverage profile provide lasting financial flexibility to fund capex, dividends and strategic initiatives. A healthy ROE and equity ratio point to efficient capital use, enabling sustainable funding of growth and liquidity buffers through varying cycles.

Negative Factors

Major excise tax increase in Mexico

An 87% excise tax hike is a structural regulatory shock that will raise prices or compress volumes in Mexico, a core market. Higher tax burdens can permanently alter consumption patterns, pressure unit volumes and force trade‑offs between price, promotions and margin sustainability over multiple years.

Volume weakness in core markets

Persistent volume declines in Mexico and Central America reduce operating leverage in the regions where the company has large scale. Structural softness limits revenue expansion, makes margin maintenance harder, and increases reliance on pricing and mix moves to sustain profitability over the medium term.

Rising debt levels require monitoring

Incrementally higher debt, despite moderate leverage today, reduces long‑term financial flexibility and raises vulnerability to currency swings and interest costs. If cash generation weakens or regional pressures persist, elevated indebtedness could constrain investments or shareholder returns over a multi‑quarter horizon.

Coca Cola Femsa SAB De CV Business Overview & Revenue Model

Company Description

Coca-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 Money

Coca-Cola Femsa generates revenue primarily through the sale of its beverages, which are sold to various retail outlets, including supermarkets, convenience stores, and restaurants. The company benefits from a strong distribution network and an extensive portfolio of Coca-Cola products, which allows it to capture significant market share in its operational regions. Key revenue streams include carbonated soft drinks, non-carbonated beverages, and water products. Additionally, KOF engages in partnerships with The Coca-Cola Company, which provides the brand and product offerings, enhancing customer loyalty and brand recognition. The company also invests in marketing and promotional activities, which help drive sales and increase its market presence.

Coca Cola Femsa SAB De CV Financial Statement Overview

Summary

Solid profitability and improving scale with strong ROE and manageable leverage, but the key drag is the unusually weak and volatile TTM cash flow (free cash flow ~20% of net income), which reduces confidence in near-term cash consistency.

Income Statement

Results show solid, steady profitability with gross margin holding around ~44%–46% over multiple years and EBIT margin generally in the low-to-mid teens. Revenue has expanded meaningfully from 2021–2024, and TTM (Trailing-Twelve-Months) revenue growth is very strong versus the prior period, supporting scale-driven earnings power. Offsetting this, net margin remains only ~6%–8% (modest for the quality of the franchise), and EBITDA margin appears to have compressed in TTM (Trailing-Twelve-Months) versus 2024, suggesting either cost pressure or mix/headwind effects.

Balance Sheet

Leverage looks manageable: debt runs at roughly ~0.53x–0.72x equity historically and improves into 2023–TTM (Trailing-Twelve-Months), while returns on equity are consistently strong (~13%–17%), indicating efficient use of capital. Total assets and equity have grown over time, supporting balance-sheet durability. The main watch-outs are that absolute debt remains sizable and leverage is not low, leaving the company more exposed if rates rise further or if operating performance softens.

Cash Flow

Annual cash generation was strong in 2021–2024, with operating cash flow generally supporting healthy free cash flow and decent conversion versus net income in those years. However, TTM (Trailing-Twelve-Months) cash flow appears unusually weak versus earnings (free cash flow is only ~20% of net income), and operating cash flow is far below prior annual levels—pointing to potential working-capital drag, timing effects, or higher cash uses. Free cash flow growth is also highly volatile (sharp swings across years), which reduces confidence in near-term cash consistency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	290.88B	279.79B	245.09B	226.74B	194.80B	183.62B
Gross Profit	133.12B	128.74B	110.86B	100.30B	88.60B	82.81B
EBITDA	41.48B	52.85B	43.82B	40.45B	37.33B	32.44B
Net Income	23.63B	23.73B	19.54B	19.03B	15.71B	10.31B
Balance Sheet
Total Assets	315.27B	307.99B	273.52B	278.00B	271.57B	13.20B
Cash, Cash Equivalents and Short-Term Investments	34.89B	32.78B	31.06B	40.28B	47.25B	2.19B
Total Debt	80.52B	78.39B	69.31B	80.80B	87.29B	4.46B
Total Liabilities	166.52B	157.44B	139.81B	146.12B	144.00B	7.06B
Stockholders Equity	141.93B	143.43B	127.03B	125.39B	121.55B	5.87B
Cash Flow
Free Cash Flow	6.02B	16.65B	21.66B	17.76B	22.73B	60.35B
Operating Cash Flow	12.20B	42.44B	42.29B	35.49B	32.72B	70.29B
Investing Cash Flow	-22.33B	-23.39B	-20.07B	-19.60B	-9.55B	-10.51B
Financing Cash Flow	-14.16B	-19.64B	-26.35B	-20.85B	-20.26B	417.00M

Coca Cola Femsa SAB De CV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 105.22
• 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 KOF, the sentiment is Positive. The current price of 105.22 is above the 20-day moving average (MA) of 101.33, above the 50-day MA of 95.33, and above the 200-day MA of 89.10, indicating a bullish trend. The MACD of 3.13 indicates Negative momentum. The RSI at 64.02 is Neutral, neither overbought nor oversold. The STOCH value of 57.80 is Neutral, 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEP	77 Outperform	$210.06B	29.23	37.19%	3.91%	0.48%	-22.61%
KO	76 Outperform	$321.80B	24.77	45.12%	2.92%	2.93%	25.42%
CCEP	74 Outperform	$41.19B	25.26	17.99%	2.52%	9.65%	-4.26%
KOF	72 Outperform	$5.52B	18.21	16.18%	3.98%	-2.81%	-2.66%
KDP	71 Outperform	$37.28B	23.64	6.29%	3.12%	6.77%	-29.84%
COKE	64 Neutral	$12.99B	23.53	41.92%	0.61%	4.22%	22.24%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Coca Cola Femsa SAB De CV Corporate Events

Coca-Cola FEMSA Announces Board Changes Effective November 2025

On November 3, 2025, Coca-Cola FEMSA announced changes to its Board of Directors, effective November 1, 2025. Mr. Jose Antonio Fernández Garza Lagüera was appointed as a Director following the passing of Mr. Ricardo Guajardo Touché, and Mr. Jose Luis Cutrale, Jr. was appointed as the new alternate Director for José Henrique Cutrale after Mrs. Graziela Cutrale’s resignation. These changes reflect the company’s ongoing governance adjustments and may impact its strategic direction.

The most recent analyst rating on (KOF) stock is a Buy with a $98.00 price target. To see the full list of analyst forecasts on Coca Cola Femsa SAB De CV stock, see the KOF Stock Forecast page.