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

• Market Cap: $5.12B
• Dividend Yield: 3.98%
• Average Volume (3M): 222.13K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.15
• 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): 2.00
• Shares Outstanding: 52,520,763
• 10 Day Avg. Volume: 201,898
• 30 Day Avg. Volume: 222,127
• PEG Ratio: 33.96
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 62.65
• Enterprise Value/Market Cap: 12.91
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 0.49
• Enterprise Value/Ebitda: 1.41
• 1Y Price Target: $112.50
• Price Target Upside: 15.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 124.37
• Revenue Forecast (FY): $308.85B

• Rating: 66 Neutral
• Price Target: $107.00 ▲(10.13% Upside)
• Action: Downgraded Date: 03/13/26
• Date: Action: Downgraded 03/13/26

The score is driven primarily by solid operating fundamentals (strong revenue momentum and steady profitability) but is held back by the sharp 2025 cash-flow deterioration and cautious 2026 outlook risks (Mexico volume pressure, margin/input-cost headwinds, higher financing costs). Technicals remain weak despite oversold signals, while valuation is supportive due to the mid-teens P/E and ~3.7% dividend yield.

Positive Factors

Revenue growth & profitability

KOF delivered materially stronger top-line momentum through 2025 with category-appropriate margins. Durable demand, pricing and mix gains underpin recurring revenue expansion and steady operating profitability, supporting mid‑teens ROE and providing a stable earnings base over the next 2–6 months.

Scale & distribution network

As the largest Coca‑Cola bottler by sales in Latin America, KOF's extensive plant and distribution footprint and deep retail penetration (>2.2M points of sale) create durable competitive advantage in route-to-market, pricing flexibility and resilience versus smaller rivals across markets.

Improving leverage and market access

Trending lower leverage and steady asset/equity growth improve financial flexibility. Combined with demonstrated access to local capital markets (recent Ps.10bn bond issuance), this positions KOF to fund capex or refinance maturities without structurally impairing operations over the medium term.

Negative Factors

Cash-flow deterioration

A pronounced 2025 decline in operating and free cash flow raises durable cash-conversion risk until working capital normalizes. Lower FCF constrains discretionary investment, shareholder returns and buffer against margin shocks, meaning liquidity and funding choices may be tighter for several quarters.

Mexico volume & tax headwind

Mexico is a core market; tax-driven elasticity that depresses volumes undermines revenue and household penetration. Even with offsetting actions, sustained weaker volumes or constrained pricing in Mexico could weigh on consolidated growth and margins across the 2–6 month horizon.

Input-cost and margin pressure

Rising aluminum and fixed-cost pressures compress gross margins and limit operating leverage from revenue growth. If input-costs or higher depreciation/labor persist, margin recovery will be muted and require sustained productivity or price recovery to protect profitability over coming quarters.

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

Strong, accelerating revenue growth and steady category-appropriate profitability support the score, alongside improving leverage trends and solid mid-teens ROE. The key offset is the sharp deterioration in 2025 operating and free cash flow, which raises near-term cash-conversion and flexibility risk until working capital normalizes.

Income Statement

Revenue growth has been consistently positive since 2021 and accelerated strongly in 2025 (about 30% year-over-year), showing solid demand and/or pricing momentum. Profitability is steady for the category: gross margin has held around the mid‑40% range and operating profitability is resilient (EBIT margin ~13–15% and EBITDA margin ~18–19% over 2021–2025). Net margin is stable around ~8% in recent years (up meaningfully versus 2020), but it has not expanded alongside the strong top-line growth in 2025, suggesting cost inflation, reinvestment, or mix effects limiting bottom-line leverage.

Balance Sheet

Leverage looks manageable and improving: debt-to-equity has trended down from ~0.72 (2021) to ~0.57 (2025), which supports balance-sheet flexibility. Equity and total assets have grown steadily from 2021–2025, and returns on equity are consistently solid in the mid‑teens (~15–16% from 2022–2025). The main watch-out is that absolute debt remains sizable and rose from 2023 to 2025, so future margin pressure or FX/interest-rate headwinds could matter more if cash generation stays uneven.

Cash Flow

Cash generation is the weakest area in the recent period. Operating cash flow fell sharply in 2025 versus 2024, and free cash flow dropped materially as well (with free cash flow growth deeply negative in 2025), indicating heavier working-capital needs and/or higher capital spending. While 2022–2024 showed generally healthy cash production, the 2025 step-down raises questions about the durability of cash conversion until it normalizes.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	291.75B	279.79B	245.09B	226.74B	194.80B
Gross Profit	133.18B	128.74B	110.86B	100.30B	88.60B
EBITDA	55.18B	52.85B	43.82B	40.45B	37.33B
Net Income	23.84B	23.73B	19.54B	19.03B	15.71B
Balance Sheet
Total Assets	314.54B	307.99B	273.52B	278.00B	271.57B
Cash, Cash Equivalents and Short-Term Investments	28.07B	32.78B	31.06B	40.28B	47.25B
Total Debt	82.68B	78.39B	69.31B	80.80B	87.29B
Total Liabilities	160.51B	157.44B	139.81B	146.12B	144.00B
Stockholders Equity	146.20B	143.43B	127.03B	125.39B	121.55B
Cash Flow
Free Cash Flow	5.72B	16.65B	21.66B	17.76B	22.73B
Operating Cash Flow	26.04B	42.44B	42.29B	35.49B	32.72B
Investing Cash Flow	-22.02B	-23.39B	-20.07B	-19.60B	-9.55B
Financing Cash Flow	-6.35B	-19.64B	-26.35B	-20.85B	-20.26B

Coca Cola Femsa SAB De CV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 97.16
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 97.16 is below the 20-day moving average (MA) of 107.59, below the 50-day MA of 105.04, and above the 200-day MA of 91.50, indicating a neutral trend. The MACD of -1.75 indicates Positive momentum. The RSI at 30.57 is Neutral, neither overbought nor oversold. The STOCH value of 7.40 is Positive, 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KO	76 Outperform	$332.62B	33.11	44.35%	2.92%	2.93%	25.42%
PEP	70 Outperform	$218.50B	23.92	43.03%	3.91%	0.48%	-22.61%
CCEP	69 Neutral	$45.13B	18.87	24.39%	2.52%	9.65%	-4.26%
COKE	68 Neutral	$14.44B	19.79	56.69%	0.61%	4.22%	22.24%
KOF	66 Neutral	$5.12B	15.03	16.56%	3.98%	-2.81%	-2.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KDP	62 Neutral	$37.24B	18.30	8.29%	3.12%	6.77%	-29.84%

Coca Cola Femsa SAB De CV Corporate Events

Coca-Cola FEMSA Board Proposes 2026 Ordinary Dividend Payable in Quarterly Installments

On March 3, 2026, Coca-Cola FEMSA announced that its board has proposed an ordinary dividend of Ps. 0.9675 per share, equivalent to Ps. 7.74 per KOF UBL unit, for fiscal year 2026. If approved at the annual shareholders’ meeting scheduled for March 24, 2026, the dividend would be paid in four equal installments in April, July, October, and December 2026, signaling continued cash returns to investors and underlining the company’s confidence in its financial position and cash-generation capacity.

The most recent analyst rating on (KOF) stock is a Hold with a $112.00 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 Sets March 24, 2026 Date for Annual Shareholders’ Meeting

Coca-Cola FEMSA, S.A.B. de C.V. is the world’s largest Coca-Cola bottler by sales volume, supplying a wide portfolio of branded beverages to more than 276 million consumers in Latin America. With 56 manufacturing plants, 256 distribution centers, and over 93,000 employees, it channels around 4.2 billion unit cases a year through more than 2.2 million points of sale and is recognized in major sustainability indices.

On March 2, 2026, Coca-Cola FEMSA announced it will hold its annual shareholders’ meeting on March 24, 2026, with the formal call, agenda proposals, and board and committee nominees made available on its investor relations website. The upcoming meeting will address key governance items and board composition, giving investors and other stakeholders a formal venue this month to review the company’s direction and oversight structures.

The most recent analyst rating on (KOF) stock is a Hold with a $110.00 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 Posts Strong 4Q25, Raises ESG Scores and Secures Ps. 10 Billion in Bonds

On February 24, 2026, Coca-Cola FEMSA reported its fourth-quarter 2025 results, highlighting a 1.3% increase in volume, 2.9% revenue growth, and a 13.3% rise in operating income, with majority net income up 3.0% and record December volumes in its four largest markets. For full-year 2025, volume slipped 1.8% but revenue and operating income rose 4.3% and 7.0%, respectively, as the company navigated a complex operating environment, boosted its ESG scores to sector-leading levels, paid a December 9 dividend installment of Ps. 3,819.6 million, and tapped the Mexican bond market on February 12 for Ps. 10,000 million at top national credit ratings, reinforcing both financial flexibility and competitive positioning ahead of 2026 tax changes in Mexico.

Coca-Cola FEMSA’s CEO said 2025 tested the business but confirmed the resilience of its core operations and strategy, citing sequential volume improvements and strong South American performance. Management signaled that, despite the upcoming IEPS tax increase in Mexico, the company expects to leverage revenue-growth-management initiatives, enhanced brand engagement from the FIFA World Cup and continued rollout of digital tools to sustain long-term growth while maintaining solid margins and stakeholder returns.

The most recent analyst rating on (KOF) stock is a Buy with a $124.00 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 Raises Ps. 10 Billion in Oversubscribed Mexican Bond Offering

On February 12, 2026, Coca-Cola FEMSA announced it had successfully priced a dual-tranche bond offering in the Mexican market totaling Ps. 10,000 million. The issuance consisted of a 10‑year fixed‑rate tranche of Ps. 7,000 million at 9.12% and a three‑year floating‑rate tranche of Ps. 3,000 million at Funding TIIE plus 0.38%, both listed under the tickers KOF26 and KOF26‑2.

The deal drew strong demand from investment‑grade investors, with an orderbook 3.84 times oversubscribed versus the initial Ps. 5,000 million target, enabling the company to upsize the transaction to Ps. 10,000 million. Carrying top national ratings of ‘mxAAA’ from S&P Global Ratings and ‘AAA.mx’ from Moody’s Local MX, the bonds will support Coca-Cola FEMSA’s general corporate needs, including refinancing upcoming debt maturities, reinforcing its financial flexibility and already solid credit profile.

The most recent analyst rating on (KOF) stock is a Hold with a $110.00 price target. To see the full list of analyst forecasts on Coca Cola Femsa SAB De CV stock, see the KOF Stock Forecast page.