ABEVCAUTIOUS

ABEV Return on Equity (ROE) Analysis

17.6%

Higher than 86% of Consumer Defensive sector peers

Updated 2532h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how efficiently Ambev generates profit from shareholders' money — a 17.6% ROE indicates it earns 17.6 cents for every dollar of equity.

Sector Performance

86th percentile

ABEV

17.6%

Sector Median

6.4%

Sector Avg

-32.0%

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Deep Analysis

Return on Equity (ROE) measures how efficiently Ambev generates profit from shareholders' money — a 17.6% ROE indicates it earns 17.6 cents for every dollar of equity.

This outperforms the sector median of 8.0%, placing Ambev in the 82nd percentile among Consumer Defensive peers. Trend data is not available, as both year-over-year and quarter-over-quarter changes are marked N/A, so no directional insight can be drawn from recent movements. The combination of a high ROE level with no trend information suggests the current performance is strong, but the absence of change data leaves uncertainty about whether this level is sustainable. This metric supports the NEUTRAL verdict: the strong relative ROE is a positive but does not outweigh other factors that keep the overall rating neutral.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ABEV?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ABEV's Return on Equity (ROE) compare to its sector?

ABEV's Return on Equity (ROE) of 17.6% compares to a Consumer Defensive sector median of 6.4%, placing it in the 86th percentile.

Who are ABEV's closest peers by Return on Equity (ROE)?

The closest Consumer Defensive peers by Return on Equity (ROE) include: CELH (8.1%), ADM (4.7%), CPB (15.4%), WMT (24.1%), COTY (-13.9%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.