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Ambev SA ABEV3

Morningstar Rating
BRL 11.62 −0.02 (0.17%)
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Company Report

Ambev Begins Margin Rebuild as Commodity Cost Pressure Eases

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.

Price vs Fair Value

ABEV3 is trading at a 329% premium.
Price
BRL 11.64
Fair Value
BRL 12.00
Uncertainty
Medium
1-Star Price
BRL 51.10
5-Star Price
BRL 88.70
Economic Moat
Gqbk
Capital Allocation
Tmhysnclz

Bulls Say, Bears Say

Bulls

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.

Bears

As a Latin American near pure-play, Ambev’s cash flows and dividends are inherently more volatile than those of parent AB InBev.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
BRL 11.64
Day Range
BRL 11.5811.68
52-Week Range
BRL 10.9815.47
Bid/Ask
BRL 11.61 / BRL 11.62
Market Cap
BRL 182.90 Bil
Volume/Avg
4.1 Mil / 29.6 Mil

Key Statistics

Price/Earnings (Normalized)
11.00
Price/Sales
2.32
Dividend Yield (Trailing)
6.27%
Dividend Yield (Forward)
6.27%
Total Yield
6.37%

Company Profile

Ambev is the largest brewer in Latin America and the Caribbean and is Anheuser-Busch InBev's subsidiary in the region. It produces, distributes, and sells beer and PepsiCo products in Brazil and other Latin American countries and owns Argentina's largest brewer, Quinsa. Ambev was formed in 1999 through the merger of Brazil's two largest beverage companies, Brahma and Antarctica. In 2004, Ambev combined with Canadian brewer Labatt, giving Interbrew (now AB InBev) a controlling interest of 61.8% as at the end of 2023.
Sector
Consumer Defensive
Industry
Beverages - Brewers
Stock Style Box
Large Core
Total Number of Employees
42,774

Competitors

Valuation

Metric
ABEV3
FMX
HEIA
Price/Earnings (Normalized)
11.00106.2918.98
Price/Book Value
2.1212.602.49
Price/Sales
2.320.991.65
Price/Cash Flow
7.2517.0610.86
Price/Earnings
ABEV3
FMX
HEIA

Financial Strength

Metric
ABEV3
FMX
HEIA
Quick Ratio
0.641.180.48
Current Ratio
0.991.680.77
Interest Coverage
5.763.154.61
Quick Ratio
ABEV3
FMX
HEIA

Profitability

Metric
ABEV3
FMX
HEIA
Return on Assets (Normalized)
13.44%5.25%4.80%
Return on Equity (Normalized)
21.47%14.53%13.38%
Return on Invested Capital (Normalized)
20.43%7.93%7.87%
Return on Assets
ABEV3
FMX
HEIA
See how this stock stacks up to its competitors with Morningstar Investor

Beverages - Brewers Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Fomento Economico Mexicano SAB de CV ADR
FMX
TqdvfgrtDrqgrw
Anheuser-Busch InBev SA/NV
BUDFF
DFTbvbqtt$118.8 Bil
Anheuser-Busch InBev SA/NV ADR
BUD
ShyrslbdPvxrz$118.8 Bil
Heineken NV
HINKF
Xhmrbr$54.4 Bil
Heineken NV ADR
HEINY
TqhvpssrNbycvkt$54.4 Bil
Ambev SA ADR
ABEV
JlgcmsrzyDjbt$33.7 Bil
Heineken Holding NV
HKHHF
Wzj$22.4 Bil
Carlsberg A/S ADR
CABGY
FwtkfjdzPtnsn$17.5 Bil
Molson Coors Beverage Co Shs -B- Non-Voting
TAP
GsnydwbqtTyxy$10.9 Bil
Boston Beer Co Inc Class A
SAM
DcvthhrDgpmrg$3.4 Bil

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