Ambev S.A.ABEV
NYSE • Consumer Defensive
$3.15
P/E
3.18
PEG
1.59
FCF Yield
—
Rev Growth YoY
-0.1% YoY
Gross Margin
51.6%
Health Score
7/10
D/E Ratio
0.06
Confidence
MEDIUM
Business Snapshot
Ambev S.A. is a major Latin American beverage company, primarily generating revenue from beer production, distribution, and other alcoholic drinks across markets such as Brazil and other countries in the region. The company operates in the Consumer Defensive sector within the Beverages - Alcoholic industry, holding a dominant position in its core markets, particularly in Brazil where it commands substantial market share. With trailing twelve-month revenue of $88.21B, Ambev is a large-cap entity characterised by significant financial scale. A defining feature is its exceptionally conservative balance sheet, with a debt-to-equity ratio of just 0.06x, which supports strong free cash flow generation and provides resilience during economic downturns.
Financial Health
Gross margin stands at 51.6%, down from 52.6% in the prior year, indicating modest margin erosion, while net margin is a healthy 17.7%. The balance sheet is fortress-like with a debt/equity ratio of 0.06x, though the current ratio of 0.96x sits just below the 1.0x threshold, signalling some short-term liquidity tightness...
Risk Assessment
- REVENUE DECELERATION — Revenue declined 0.1% year-over-year and dropped 9.4% quarter-over-quarter, signaling weakening demand momentum.
- EARNINGS QUALITY — Only 2 out of the last 4 quarters beat earnings estimates, reflecting inconsistent earnings surprise performance.
- LIQUIDITY — The current ratio of 0.96x falls below the 1.0x threshold, pointing to potential short-term liquidity pressure.
- 52-WEEK POSITION — The current price of $3.15 sits $0.30 below the 52-week high of $3.45, representing an 8.7% decline from the high, but still above the 52-week midpoint.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- MARGIN CONTRACTION — Gross margin declined from 52.6% to 51.6% year-over-year, indicating some pricing or cost pressure....
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