Financial analysis of Coca-Cola FEMSA (KOF) compared to its peers


Coca-Cola FEMSA (NYSE:KOF – Get Rating) is one of 18 public companies in the “bottled and canned soft drinks” sector, but how does it stack up against its competitors? We will compare Coca-Cola FEMSA to related companies based on earnings strength, analyst recommendations, profitability, valuation, dividends, risk and institutional ownership.

Analyst Recommendations

This is a summary of recent valuations and price targets for Coca-Cola FEMSA and its rivals, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Coca-Cola FEMSA 0 3 2 0 2.40
Competitors of Coca-Cola FEMSA 217 764 1023 36 2.43

Coca-Cola FEMSA currently has a consensus target price of $59.50, suggesting a potential upside of 8.97%. As a group, the “bottled and canned soft drink” companies have an upside potential of 41.05%. Since Coca-Cola FEMSA’s rivals have a higher consensus rating and higher possible upside potential, analysts clearly believe that Coca-Cola FEMSA has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

4.5% of Coca-Cola FEMSA shares are held by institutional investors. By comparison, 51.0% of the shares of all “bottled and canned soft drink” companies are held by institutional investors. 1.0% of the shares of Coca-Cola FEMSA are held by insiders of the company. By comparison, 17.0% of the shares of all “bottled and canned soft drink” companies are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock is poised for long-term growth.

Volatility and risk

Coca-Cola FEMSA has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Coca-Cola FEMSA’s competitors have a beta of 1.10, which suggests that their average price is 10% more volatile than the S&P 500. the S&P 500.

Valuation and benefits

This table compares the revenue, earnings per share (EPS), and valuation of Coca-Cola FEMSA and its rivals.

Gross revenue Net revenue Price/earnings ratio
Coca-Cola FEMSA $9.56 billion $766.00 million 14.84
Competitors of Coca-Cola FEMSA $5.73 billion $412.20 million -101.57

Coca-Cola FEMSA has higher revenues and profits than its competitors. Coca-Cola FEMSA trades at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares the net margins, return on equity and return on assets of Coca-Cola FEMSA and its competitors.

Net margins Return on equity return on assets
Coca-Cola FEMSA 8.07% 12.90% 5.84%
Competitors of Coca-Cola FEMSA 3.77% -2.77% 2.05%

Dividends

Coca-Cola FEMSA pays an annual dividend of $2.42 per share and has a dividend yield of 4.4%. Coca-Cola FEMSA pays 65.8% of its profits as a dividend. As a group, the “bottled and canned soft drink” companies pay a dividend yield of 1.4% and pay out 28.2% of their profits as a dividend.

Summary

Coca-Cola rivals FEMSA beat Coca-Cola FEMSA on 8 of the 15 factors compared.

Coca-Cola FEMSA Company Profile (Get an evaluation)

Coca-Cola FEMSA, SAB de CV, a franchised bottler, produces, markets, sells and distributes Coca-Cola brand beverages. The company offers sparkling beverages, including colas and flavored sparkling beverages; and still waters and beverages, such as juice drinks, coffee, teas, milk, value-added dairy products, sports and energy drinks, and plant-based beverages. It offers a portfolio of products through retail outlets, such as wholesale supermarkets, discount stores and convenience stores; retailers, such as restaurants and bars, as well as stadiums, auditoriums and theatres; outlets; and home delivery, supermarkets and other places. The Company also distributes and sells Heineken beer products in its Brazilian territories. It operates in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Brazil, Argentina and Uruguay. The company was founded in 1979 and is headquartered in Mexico City, Mexico. Coca-Cola FEMSA, SAB de CV is a subsidiary of Fomento Economico Mexicano, SAB de CV



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Sarah J. Greer