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

• Market Cap: $5.18B
• Dividend Yield: 3.98%
• Average Volume (3M): 141.75K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.12
• 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: 77,942
• 30 Day Avg. Volume: 141,754
• 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: 82.63
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 3.22
• Enterprise Value/Ebitda: 10.06
• 1Y Price Target: $108.00
• Price Target Upside: 12.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $108.00 ▲(12.46% Upside)

Coca Cola Femsa's overall score reflects strong financial performance and positive technical indicators. The company's valuation is reasonable, offering a good dividend yield. However, mixed earnings call sentiment and challenges in key markets slightly temper the outlook.

Positive Factors

Revenue Growth

The company's ability to grow revenue despite macroeconomic challenges indicates strong market positioning and effective revenue management strategies.

Digital Engagement

Strong digital engagement reflects the company's adaptation to digital trends, enhancing customer interaction and potentially driving future sales growth.

Cost Management

Effective cost management through supply chain savings enhances profitability and operational efficiency, providing a competitive edge in cost control.

Negative Factors

Volume Decline

Volume declines in key markets like Mexico can impact overall sales and market share, posing a challenge to maintaining growth momentum.

Excise Tax Increase

The substantial excise tax increase in Mexico may negatively affect beverage volumes and profitability, requiring strategic adjustments to mitigate impact.

Currency and Cost Pressures

Currency and cost pressures can erode margins and affect financial performance, necessitating effective hedging and cost management strategies.

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

Coca Cola Femsa has shown strong financial health with robust revenue and profit growth, effective cost management, and operational efficiency. The balance sheet is solid, though careful monitoring of debt levels is needed. Cash flow data is incomplete, but historical performance indicates strong cash generation.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	288.60B	279.79B	245.09B	226.74B	194.80B	183.62B
Gross Profit	132.82B	128.74B	110.86B	100.30B	88.60B	82.81B
EBITDA	42.59B	52.85B	43.82B	40.45B	37.33B	32.44B
Net Income	23.59B	23.73B	19.54B	19.03B	15.71B	10.31B
Balance Sheet
Total Assets	313.86B	307.99B	273.52B	278.00B	271.57B	13.20B
Cash, Cash Equivalents and Short-Term Investments	37.14B	32.78B	31.06B	40.28B	47.25B	2.19B
Total Debt	84.50B	78.39B	69.31B	80.80B	87.29B	4.46B
Total Liabilities	168.41B	157.44B	139.81B	146.12B	144.00B	7.06B
Stockholders Equity	136.37B	143.43B	127.03B	125.39B	121.55B	5.87B
Cash Flow
Free Cash Flow	314.39M	16.65B	21.66B	17.76B	22.73B	60.35B
Operating Cash Flow	1.57B	42.44B	42.29B	35.49B	32.72B	70.29B
Investing Cash Flow	-1.34B	-23.39B	-20.07B	-19.60B	-9.55B	-21.02B
Financing Cash Flow	-335.71M	-19.64B	-26.35B	-20.85B	-20.26B	834.00M

Coca Cola Femsa SAB De CV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 96.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 96.03 is above the 20-day moving average (MA) of 94.99, above the 50-day MA of 90.76, and above the 200-day MA of 88.12, indicating a bullish trend. The MACD of 1.91 indicates Negative momentum. The RSI at 72.27 is Negative, neither overbought nor oversold. The STOCH value of 82.39 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEP	78 Outperform	$191.30B	26.62	37.19%	3.91%	0.48%	-22.61%
KO	75 Outperform	$303.31B	23.34	45.12%	2.92%	2.93%	25.42%
KOF	74 Outperform	$5.18B	17.19	16.18%	3.98%	-2.81%	-2.66%
CCEP	74 Outperform	$39.86B	24.44	17.99%	2.52%	9.65%	-4.26%
COKE	72 Outperform	$12.85B	23.26	41.92%	0.61%	4.22%	22.24%
KDP	71 Outperform	$37.76B	23.95	6.29%	3.12%	6.77%	-29.84%
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.

Coca-Cola FEMSA Reports Resilient Q3 2025 Amid Challenges

Coca-Cola FEMSA reported its third-quarter 2025 results, highlighting a 0.6% decline in volume but a 3.3% increase in revenue, with a 6.8% rise in operating income. The company noted a challenging macro environment in Mexico, while South America showed resilience with volume growth. Coca-Cola FEMSA is adapting to these conditions by implementing cost control measures and focusing on sustainable growth. Additionally, the company is actively engaging with local authorities regarding proposed tax increases on sugar-sweetened beverages in Mexico. Recent developments include the passing of a board member, efforts to support flood-affected communities in Mexico, and an improved sustainability assessment score.

The most recent analyst rating on (KOF) stock is a Buy with a $96.00 price target. To see the full list of analyst forecasts on Coca Cola Femsa SAB De CV stock, see the KOF Stock Forecast page.