We award a wide moat to Arca Continental. We think brand intangibles from its status as a top five bottler to wide-moat Coca-Cola, coupled with cost advantages given its large manufacturing and distribution scale, should support the firm’s competitive standing and excess investment returns for more than 20 years.
Arca is poised to drive volume growth in under-penetrated Latin American markets, leveraging Coke’s brand prowess and a strong product lineup in sodas and noncarbonated drinks.
We expect health awareness-driven headwinds to soft drink demand will likely gain traction in Latin America, posing a threat to Arca’s long-term growth.
|
Metric
|
AC
|
KDP
|
CELH
|
|---|---|---|---|
Price/Earnings (Normalized) | 9.32 | 18.59 | 91.23 |
Price/Book Value | 2.65 | 1.75 | 63.21 |
Price/Sales | 1.62 | 3.07 | 12.94 |
Price/Cash Flow | 12.30 | 14.81 | 72.85 |
|
Metric
|
AC
|
KDP
|
CELH
|
|---|---|---|---|
Quick Ratio | 0.97 | 0.25 | 3.41 |
Current Ratio | 1.24 | 0.51 | 4.36 |
Interest Coverage | 8.92 | 5.25 | — |
|
Metric
|
AC
|
KDP
|
CELH
|
|---|---|---|---|
Return on Assets (Normalized) | 8.26% | 4.56% | 17.47% |
Return on Equity (Normalized) | 18.34% | 9.39% | 167.52% |
Return on Invested Capital (Normalized) | 11.24% | 7.20% | 23.02% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
KO
| Coca-Cola Co | Kbfbhbjw | Vvb | $261.4 Bil | |
PEP
| PepsiCo Inc | Zbsstrqzyr | Jhm | $236.8 Bil | |
NNFSF
| Nongfu Spring Co Ltd Class H Ordinary Shares | — | Dml | $63.5 Bil | |
MNST
| Monster Beverage Corp | Nbmkmws | Njjdwr | $56.9 Bil | |
KDP
| Keurig Dr Pepper Inc | Nqltcjd | Plmgbs | $43.7 Bil | |
CCEP
| Coca-Cola Europacific Partners PLC | Hgkjryrj | Rwwldh | $31.7 Bil | |
COCSF
| Coca-Cola Femsa SAB de CV Series L | — | Rrkhq | $18.8 Bil | |
KOF
| Coca-Cola Femsa SAB de CV ADR | Qkbczbtvm | Bfp | $18.8 Bil | |
CELH
| Celsius Holdings Inc | Pkcgtvxph | Yqhfv | $16.3 Bil | |
PRMW
| Primo Water Corp | Wrmlygsy | Lvqf | $3.0 Bil |
