ABEVABEV
US • —
$3.13
P/E
3.15
PEG
0.36
FCF Yield
—
Rev Growth YoY
-3.8% YoY
Gross Margin
51.5%
Health Score
7/10
D/E Ratio
0.04
Confidence
LOW
Business Snapshot
Ambev S.A. is a leading beverage company operating primarily in the brewing and soft drink segments across the Americas. As a dominant player in markets like Brazil, it holds a strong competitive position through its extensive brand portfolio and distribution network. The company is a large-cap entity by market capitalisation, though its exact market cap and TTM revenue figures are not available in this data set. A defining characteristic is its highly conservative capital structure, with a debt-to-equity ratio of just 0.04x, providing significant financial flexibility.
Financial Health
Gross margin stands at a healthy 51.5%, while net margin is a robust 17.7%, indicating strong pricing power and operational efficiency. The balance sheet is exceptionally conservative, with a debt-to-equity ratio of only 0.04x, essentially making it debt-free, though a current ratio of 0.96x suggests a slight short-term liquidity tightness...
Risk Assessment
- REVENUE DECELERATION — Revenue declined by -3.8% YoY, signalling a contraction in the core business.
- DEBT / LIQUIDITY — The current ratio of 0.96x is below the 1.0x threshold, suggesting potential short-term liquidity risk.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- EARNINGS QUALITY — The company beat estimates in only 2 out of the last 4 quarters, indicating mixed earnings predictability.
- VALUATION — The very low P/E of 3.15x may reflect structural challenges (e.g., declining revenue) not captured by the earnings multiple alone....
Gross margin stands at a healthy 51.5%, while net margin is a robust 17.7%, indicating strong pricing power and operational efficiency. The balance sheet is exceptionally conservative, with a debt-to-equity ratio of only 0.04x, essentially making it debt-free, though a current ratio of 0.96x suggests a slight short-term liquidity tightness. The return on equity is solid at 17.2%, demonstrating effective capital allocation. Free cash flow data is unavailable, preventing a full assessment of cash generation versus earnings quality. Overall, the company's low debt burden and strong margins point to a resilient business capable of supporting dividends, though the liquidity ratio warrants monitoring.
- REVENUE DECELERATION — Revenue declined by -3.8% YoY, signalling a contraction in the core business. - DEBT / LIQUIDITY — The current ratio of 0.96x is below the 1.0x threshold, suggesting potential short-term liquidity risk. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - EARNINGS QUALITY — The company beat estimates in only 2 out of the last 4 quarters, indicating mixed earnings predictability. - VALUATION — The very low P/E of 3.15x may reflect structural challenges (e.g., declining revenue) not captured by the earnings multiple alone.
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