Brahma, the Brazilian brewer, was the first foray into the consumer product manufacturing industry by private equity group 3G. In 2000, 3G merged two Brazilian brewers; Brahma and Antarctica, creating Ambev. The company has gone on to roll up brewers throughout Central and South America and holds several monopolylike positions in large markets, including an 81% volume share in Argentina, 68% in Brazil, and 61% in Peru.
There are few transformative M&A options remaining for AB InBev, and its next major transaction could be to consolidate the remainder of Ambev that it does not already own, although this is unlikely to happen in the short term.
As a Latin American near pure-play, Ambev’s cash flows and dividends are inherently more volatile than those of parent AB InBev.
|
Metric
|
ABEV3
|
HEIA
|
ABI
|
|---|---|---|---|
Price/Earnings (Normalized) | 11.47 | 19.15 | 18.97 |
Price/Book Value | 2.48 | 2.52 | 1.49 |
Price/Sales | 2.47 | 1.66 | 2.08 |
Price/Cash Flow | 7.89 | 10.96 | 8.33 |
|
Metric
|
ABEV3
|
HEIA
|
ABI
|
|---|---|---|---|
Quick Ratio | 0.62 | 0.48 | 0.45 |
Current Ratio | 0.89 | 0.77 | 0.63 |
Interest Coverage | 5.56 | 4.61 | 2.83 |
|
Metric
|
ABEV3
|
HEIA
|
ABI
|
|---|---|---|---|
Return on Assets (Normalized) | 10.90% | 4.80% | 2.85% |
Return on Equity (Normalized) | 17.71% | 13.38% | 7.94% |
Return on Invested Capital (Normalized) | 17.20% | 7.87% | 5.38% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
FMX
| Fomento Economico Mexicano SAB de CV ADR | Tqnrncxpd | Gsryj | — | |
BUDFF
| Anheuser-Busch InBev SA/NV | R | Qrsk | $117.6 Bil | |
BUD
| Anheuser-Busch InBev SA/NV ADR | Fjqhpzhr | Bdslr | $117.6 Bil | |
HINKF
| Heineken NV | — | Kshfyd | $54.3 Bil | |
HEINY
| Heineken NV ADR | Nwcbwrfc | Ccbbxnh | $54.3 Bil | |
ABEV
| Ambev SA ADR | Nswqsblrf | Vgtnd | $38.6 Bil | |
HKHHY
| Heineken Holding NV ADR | — | Ptkpt | $23.0 Bil | |
CABGY
| Carlsberg A/S ADR | Cvgcvxf | Nxpt | $18.7 Bil | |
TAP
| Molson Coors Beverage Co Shs -B- Non-Voting | Vrrjcqxp | Svr | $12.1 Bil | |
SAM
| Boston Beer Co Inc Class A | Sdqzbkf | Ywvpdb | $3.2 Bil |
