|Bid||2.3200 x 34100|
|Ask||2.3700 x 39400|
|Day's Range||2.2600 - 2.3900|
|52 Week Range||1.9000 - 5.4500|
|Beta (5Y Monthly)||0.66|
|PE Ratio (TTM)||13.12|
|Forward Dividend & Yield||0.12 (5.08%)|
|Ex-Dividend Date||Dec 20, 2019|
|1y Target Est||3.68|
Today with us, we have Mr. Jean Jereissati, CEO for Ambev, and Mr. Lucas Lira, CFO and Investor Relations Officer. Forward-looking statements are based on the beliefs and assumptions of Ambev's management and on information currently available to the company. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Ambev and could cause the results to differ materially from those expressed in such forward-looking statements.
SÃO PAULO, Brazil, May 07, 2020 -- Ambev S.A. announces its results for the first quarter of 2020. The following operating and financial.
SÃO PAULO, Brazil, April 14, 2020 -- In a release issued under the same headline earlier today by Ambev S.A. , please note that the date of filing.
SÃO PAULO, Brazil, April 14, 2020 -- Ambev S.A. announces that the Company’s annual report on Form 20-F for the year ended December 31, 2019 was.
The beer industry is made up of companies specializing in the production of beer, although many of these firms also produce other alcoholic and non-alcoholic beverages. Beverages are considered consumer staples and thus the beer industry may be considered a small part of the broader consumer staples sector. Some of the well-known names in the industry include Netherlands-based SABMiller International BV, Netherlands-based Heineken NV, and Molson Coors Beverage Co. (TAP).
Coronavirus is probably the 1 concern in investors' minds right now. It should be. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW. We predicted that a US recession is imminent and US stocks will go down by at least 20% in the next 3-6 […]
Ambev (NYSE:ABEV), the Brazilian brewing company that focuses on Latin America, has seen its stock decline to multi-year lows. In the last five years, the high of Ambev stock was $7.10. The shares are currently about 55% below that level, as they are changing hands for $3.28.Source: rmcarvalhobsb / Shutterstock.com While Ambev is facing multiple difficulties, I believe that the valuation of the stock is attractive, making it a buy. All of the challenges the company is facing, including the weak macroeconomic outlook, the contraction of its EBITDA margin and corruption charges, appear to already be reflected in the shares.My view is backed by most analysts. Three analysts have a median price target of $5.5 on Ambev stock, while the lowest price target among analysts on the shares is $3.5o. Ambev stock currently trades below the lowest target, indicating that it's oversold.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Ambev's Major ProblemsThe first factor that has kept Ambev stock depressed for years is the macroeconomic difficulties of Latin America. According to International Monetary Fund data, real GDP growth per capita in the region has declined by 0.6% per year on average between 2014 and 2019. Weak GDP growth has contributed to the company's sluggish top-line growth and the contraction of its margins.While Brazil's GDP growth is likely to accelerate to 2.2% in 2020 from 1.2% in 2019, the coronavirus factor still needs to be considered. * 9 Stocks to Buy If People Get Stuck at Home Another factor that has depressed the stock in the recent past is the corruption allegations against Ambev by a former Brazilian finance minister . While Ambev called the charges "false and incoherent," the stock reacted negatively to the news. The country is still investing Ambev.Finally, the company issued weak Q1 guidance. For Q1, the company expects upward pressure on its manufacturing costs and "front-loaded sales and marketing investments." That will cause its EBITDA to fall sharply. While the company expects its performance to improve in the coming quarters, it's likely to continue to have cost pressures through FY20. The Positive Aspects of Ambev's BusinessThe concerns described above dominate the headlines regarding Ambev and have dictated the performance of Ambev stock. However, the company does have positive catalysts which can spark a rally of Ambev stock from its current oversold levels.The first positive is the company's growth in the Brazilian non-alcoholic beverage market. For Q4, it reported 13% year-over-year growth in the segment, while the EBITDA margin of the business increased 11.6 percentage points.I am bullish on the company's non-alcoholic beverage segment because it's focused on launching premium products in Brazil, which should help it increase its EBITDA margin and could also cause its revenue growth to accelerate.Ambev expects its Brazilian beer business to enable its EBITDA to resume increasing this year. In FY19, the segment's EBITDA fell 6.5% YOY. If its EBITDA does rebound after Q1, the stock is likely to respond positively.Ambev's business in Canada has been disappointing, as the unit's revenue and EBITDA dropped 1.9% and 10.7% respectively in FY19. The company is, however, trying to innovate in Canada with a pipeline of ready-to-drink products. If those innovations result in a top-line turnaround, I expect Ambev stock to react positively.Ambev is well-positioned from a financial perspective ,with total debt of just 3.1 billion Brazilian real. With cash and equivalents of 11.9 billion Brazilian real, it has ample financial flexibility and no balance sheet stress. Even in challenging times, the company has maintained healthy operating cash flows and positive free cash flow. My Concluding Views on Ambev StockAmbev is facing multiple challenges, including weak macroeconomic conditions, competition, the stagnating growth of the beer market and corruption charges. However, Ambev stock is trading at multi-year lows, and these factors are largely reflected in the stock.Any improvement of the company's EBITDA margin or sustained growth by its non-alcoholic beverage segment should take Ambev stock higher.Faisal Humayun is senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock-specific articles with a focus on the technology, energy and commodities sector. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Stocks to Buy If People Get Stuck at Home * 7 Strong Value Stocks to Buy for 2020 * 5 High-Yield Dividend Stocks With Great Buyback Programs The post Ambev Stock Looks Oversold Despite Its Challenges appeared first on InvestorPlace.
Intuitively and scientifically, beverage maker and distributor Ambev (NYSE:ABEV) can be a frustrating investment. On the one hand, everybody loves beer. Many a problem, even across borders and customs, can be solved by sharing a cold one. Yet agonizingly, Ambev stock is one of the worst performers of this year, down over 27%.Source: rmcarvalhobsb / Shutterstock.com Before we dive into the headwinds pressuring shares, it's worth considering the bullish angle. For Ambev stock, the overriding catalyst is the burgeoning Latin American market. As Cesar Manent, partner and co-founder of 5th Street Advisors stated, "…Latin America has two fabulous demographic attributes that developed countries can only dream of: significant population growth and a growing middle class."Indeed, the region has a very favorable population pyramid. Basically, the country has more young people than old. As I wrote last July:InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Naturally, a young-skewing population benefits companies like ABEV because they can cultivate long-term consumer relationships. Let's face it: there's a reason why the 18-to-40 demographic is a goldmine for advertisers. In the same vein, alcoholic-beverage makers have more opportunities to sell their products to an impressionable crowd." * 10 Tech Stocks to Buy on Coronavirus Weakness, According to Wedbush Furthermore, with the increased spending power of this prime demographic, their discretionary spending should move up a notch, both in scale and substance. And that's exactly what happened, with BBC.com reporting rising interest in Latin America for craft beer.More money and a willingness to experiment with premium products? In theory, this is a huge positive for Ambev stock.Unfortunately, though, Wall Street took a different interpretation on ABEV. Frankly, I can't say that they're entirely wrong in their assessment. Ambev Stock May Be Weaker than AnticipatedMany analysts like Manent above have cited favorable Latin American demographics as a broader catalyst for regional economic growth. However, this oft-told narrative may be losing its luster.According to a report from McKinsey Global Institute, Latin America's contextual growth story isn't nearly as charming as many believe. The study asserts that the region's productivity has stemmed largely from nominal brute force. It states:"Almost three-quarters of Latin America's growth came from expanding the number of workers rather than through productivity gains, which averaged just 0.8 percent annually, or one-fourth the productivity gains in emerging-market peers."With fertility rates ticking down, the study's authors note that Latin America must substantively increase productivity or risk falling behind to other regions. Thus, the demographic argument for Ambev stock is not quite ironclad.Second, despite reports to the contrary, beer is simply not a popular alcoholic beverage down south. According to a Statista forecast, beer consumption in Latin America has a compound annual growth rate (CAGR) of 2.65% between 2015 and 2020. That sounds great, especially compared to North America's 1.25%.However, Africa and Asia have CAGRs of 5.25% and 3.05%, respectively. As well, Asia features a very robust beverage market that would be difficult to disrupt.An interesting data point is that in the U.S., nearly 78% of those who purchase beer regularly are white. Hispanic/Latino Americans only comprised 4.9%. You'd expect this share to be higher if beer was making an impact with our southern neighbors, given the generally close connections between Latin communities in the U.S. and Latin America.However it's just not happening, which contributes to why Ambev stock looks irrelevant right now. Is ABEV Dead? Not Quite…With all the negatives pressuring Ambev stock, I can understand the temptation to throw in the towel. Nevertheless, I want to share with you one wrinkle that could move the needle: the raging coronavirus outbreak.I'm not going to bore you with the latest terrible statistics. Suffice to say, the coronavirus has caused panic throughout the world. But what it has also caused is a reconsideration among large corporations and their exposure to China.Whether it's human rights violations, a trade war, or a pandemic, China is the pimple on everyone's hind end. As such, many companies, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) are reportedly entertaining proposals to shift production outside of China. Currently, the biggest benefactors will likely be Asian countries, such as Vietnam and Thailand.However, don't discount Central and Latin America. Although the region has challenges, none of the countries there want to usurp U.S. national interests. Over time, this could translate to true economic growth, to the McKinsey Global Institute's point.Admittedly, this is a very long-term argument. Bottom line: if you're interested in Ambev stock, you should wait it out a little bit. The discount you're seeing now could be even steeper later.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Stocks to Buy in March for a Coronavirus Rebound * 5 Big Reasons Stocks Will Rebound From the Coronavirus Selloff * 4 Large-Cap Stocks Still in Trouble The post Ambev Stock Is A Bull Case For The Extremely Patient appeared first on InvestorPlace.
Tennenbaum will also join the executive committee of the company that makes Budweiser, Corona and Stella Artois. Dutra, who was CFO for almost 15 years, will remain with the company during a transition period, the company said.
Brazilian beverages company Ambev SA has set an ambitious target of eliminating plastic pollution in its packaging by 2025, in a push that an executive said on Monday has the potential to generate approximately 1 billion reais ($239.09 million) in business. Latin America's largest brewer is partnering with stakeholders, including suppliers, recycling cooperatives, startups and universities to have all its beverages either in returnable packaging or made of 100% recycled material. "Today 40% of our beers already use returnable packaging, but as we made progress our dream got bigger and we decided to end plastic pollution in our packaging," Ambev's vice-president of sustainability and supply chain, Rodrigo Figueiredo, said in an interview.
We are still in an overall bull market and many stocks that smart money investors were piling into surged through the end of November. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 54% and 51% respectively. Hedge funds' top 3 stock picks returned 41.7% this year and beat […]
The 750+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive […]
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Ambev S.A. New York, November 13, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Ambev S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Ambev SA said on Friday it has signed a deal with a private equity group to build a wind farm that will supply renewable energy to all of its beverage plants in Northeastern Brazil, as well as to its five Budweiser breweries across the country. Under the terms of the agreement, Ambev is expected to pay around 600 million reais ($145 million) over a 15-year period to Casaforte Investimentos, which in turn will build a 1,600 hectare wind farm in Bahia state exceeding 80 megawatts in capacity. "This power purchase agreement will cut 20,000 tonnes in carbon dioxide emissions per year, which is the equivalent of removing 35,000 cars from the streets per year," Ambev's vice president for sustainability and supply chain, Rodrigo Figueiredo, told Reuters in an interview.
Ambev (NYSE:ABEV) stock presents a conundrum for investors. The long-term drop in the equity and the dividend may point to a potential bargain. However, political and business headwinds in Brazil point to significant challenges. Deciding whether to buy Ambev stock, investors must weigh these benefits against both the risk and their risk tolerance.Source: Anton Garin / Shutterstock.com Most Americans have few reasons to know Ambev. The Sao Paulo-based brewery is a subsidiary of Interbrew International, a subsidiary of Anheuser-Busch InBev (NYSE:BUD). For most residents of the U.S., their familiarity with the company likely revolves around Labatt Blue, a familiar brand for those who visit Canada. Outside of the Canadian connection, Ambev operates in Latin America, primarily in its home market of Brazil. 3 Notable Risks of Ambev StockThis unfamiliarity with AmBev stock likely extends to its significant risks. For one, Ambev faces ongoing political turmoil in its home country. The company is currently contending with an antitrust complaint filed by competitors in Brazil. A group of 110 resellers and distributors alleges that ABEV has used its market position to push abusive commercial policies. If found guilty, AmBev could face a fine ranging from 0.1% to 20% of its revenue.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAlso, in 2015, Ambev was tied to the Operation Car Wash corruption scandal in Brazil. However, Ambev products faced a massive tax increase that year, despite charges that the firm made "inappropriate payments" to two former Brazilian presidents to prevent the hike. However, the increase went into effect despite the allegation. To Vince Martin's point, that would either point to the company's innocence or highlight how poorly the firm has mastered the art of bribery. * 7 Stocks to Buy in November Secondly, Vince Martin also makes another great point about the Brazil beer market itself. Brazil was the only one of the company's regions to decline in the first six months of the year. It also accounts for more than half of company profits. Many blame an emerging craft beer scene amid overall growth in the beer market. However, this may have begun to recover as the Brazil region saw modest revenue growth in the third quarter.Third, ABEV stock has experienced a downtrend since peaking at more than $9 per share in early 2013. After recovering to the $7.25 per share range in March 2018, the stock tanked, falling below $4 per share by the end of that year. It has spent about 18 months trading in a range and sells for around $4.30 per share as of the time of this writing.These risks increase the uncertainty surrounding ABEV stock. As of now, the company supports a forward price-earnings (PE) ratio of around 20.5. This might seem high for a company expected to post no profit growth this year and a 10.5% earnings increase in 2020. 3 Reasons to Buy ABEVHowever, ABEV stock offers some reward for the risks. First, the current dividend yield stands at 5.2%, assuming the expected 24 cent per share gets paid. The company pays a varied dividend on a non-consistent basis. It seems especially inconsistent as it has not yet made a payout in 2019.Secondly, the aforementioned 20.5 forward PE comes in much lower than the multiple for Constellation Brands (NYSE:STZ) and Diageo (NYSE:DEO). It also offers a higher dividend yield than Molson Coors (NYSE:TAP). While not the cheapest alcoholic beverage equity, it offers some unique benefits for investors willing to invest.Third, revenue also continues to hold up well. In the recent quarterly report, profits fell by 15.8% year-over-year due to higher income taxes. However, overall revenue increased by 5.9%. The only region to experience a decline was Canada, where they face more intense competition from craft beer. It also saw its highest growth in the Latin America south region, which prospers despite the economic turmoil in Argentina. Should I Buy ABEV Stock?Investors have good reasons to both avoid or take a chance on ABEV stock. The risks associated with the legal and business environment in Brazil may give investors second thoughts about buying at current levels. However, it has offered a generous, if volatile dividend. It also trades well compared to other alcoholic beverage peers. Growth in some regions also points to its resilience.As customers and Ambev adapt to the higher taxes, I expect profit growth to resume. Moreover, given the revenue growth, I expect the downward move in ABEV stock to break at some point. For those wanting a beverage stock and do not mind the risk, they should consider Ambev stock.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Buy-and-Hold Stocks to Play Investing's Biggest Trends * 7 Stocks to Buy in November * 5 Strong Buy Stocks Under $5 With Massive Upside Potential The post Ambev Stock: 3 Significant Risks, 3 Reasons to Buy Anyway appeared first on InvestorPlace.
Beverage distributors working for Brazilian brewer Ambev SA have filed a complaint against the company at the local antitrust regulator Cade, accusing it of anticompetitive practices. "Ambev creates a closed and vicious cycle of control, determining resellers to work on the product mix they want, in the format, price and structure of their interest," Confenar's president, Ataíde Gil Guerreiro, said in a statement on Friday.
Beverage distributors working for Brazilian brewer Ambev SA <ABEV3.SA> have filed a complaint against the company at the local antitrust regulator Cade, accusing it of anticompetitive practices. "Ambev creates a closed and vicious cycle of control, determining resellers to work on the product mix they want, in the format, price and structure of their interest," Confenar's president, Ataíde Gil Guerreiro, said in a statement on Friday.
Brazilian beverages firm Ambev SA expects some of the headwinds that hurt third-quarter results to carry into the fourth-quarter, as recent prices hikes in its home country keep a lid on beer volumes, a company executive said on Friday. The largest brewer in Latin American has played down hopes of boosting its operating profit this year in Brazil, its largest market, where tougher competition and a still sluggish economy put pressure on beer sales. "It takes two to three months for the local market to adjust to price hikes, hence why we still see some headwinds carrying into the fourth-quarter," Chief Financial Officer Fernando Tennenbaum told Reuters in an interview.
Brazilian beverage firm Ambev SA will launch its first canned water by year-end, following a global trend to step up recycling and phase out plastic containers as consumers shift towards greener alternatives, a company executive said. The move is part of a push by parent Anheuser Busch InBev to adopt more sustainable practices, and comes as other multinationals, such as Coca-Cola Co, PepsiCo and Nestle also launch canned water elsewhere. In Brazil, Ambev will start using its breweries in the southeastern state of Rio de Janeiro to produce its water brand AMA in aluminum cans to be distributed countrywide, its head of sustainability, Richard Lee, told Reuters in an interview.
Is Ambev SA (NYSE:ABEV) a good equity to bet on right now? We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting […]
Back in April, I featured Brazilian beer company Ambev (NYSE:ABEV) in an article about the best large-cap stocks to own under $10. As I write this, Ambev stock is up 4.5%.Source: Daniel Spiess via FlickrThe two other stocks recommended: Ford (NYSE:F) is down 1.6% and Sirius XM (NYSE:SIRI) is up 13.7%. Over the same five months, the S&P 500 is up 2.5%, an indication that low-priced stocks did well over the summer.As for Anheuser-Busch (NYSE:BUD), who owns more than 60% of ABEV stock is up 6.9% over the same period, 240 basis points higher than its Brazilian subsidiary. However, year to date it's up 45.0% including dividends through Sept. 11, 2.4 times Ambev's total return for the year. InvestorPlace - Stock Market News, Stock Advice & Trading TipsWith three-and-a-half months left in 2019, I'm wondering if ABEV, BUD, or some other beer stock is the best bet heading into 2020. Ambev Stock is the Best BetAmbev's 15-year total annual return is quite good, at 11.2%. That trails both its brewing peers and the Brazilian market at 13.5%. However, the entire U.S. market over this period could only muster a total return of 9.3%. * 10 Battered Tech Stocks to Buy Now My InvestorPlace colleague Vince Martin recently highlighted in an article in late August that Ambev has a much stronger balance sheet than its parent and is growing its normalized EBITDA on an organic basis at more than 10% per year. In the first six months of 2019, Ambev's revenues increased by 7.4%. Three of its operating segments: Brazil, Central America and the Caribbean, and Canada delivered growth while only the company's South American division (excluding Brazil) experienced declining sales. South America might be experiencing a craft beer boom but Ambev's holding its own in a very competitive market. It's also important to remember that Ambev also makes non-alcoholic beverage products. In the first six months of 2019, it grew this segment by 19.6%, accounting for 15% of Ambev's overall revenues. Although Ambev has only paid an eight-cent dividend so far in 2019, its goal is to deliver an average annual yield of 5%. Currently, its forward dividend yield is 5.2%. Over the long haul, buying ABEV stock under $5 should deliver above-average results, including the dividends. Bud's the CallEven though Budweiser might have a ton of debt on its balance sheet (its net debt at the end of June was $104.2 billion) it still managed to generate $9.1 billion in free cash flow in the first six months of the year. On an annualized basis over the trailing 12 months, BUD had $11.5 billion in free cash flow, $54.1 billion in revenue, and a free cash flow margin of 21.1%. This means it's generating 21 cents of free cash flow for every $1 of revenue.Anheuser-Busch said to be reviving its IPO plans for its Asian business, a move that's expected to raise $5 billion and give it additional liquidity on the remainder of its ownership stake, the company's giving itself financial flexibility to pay down debt, repurchase shares, buy a cannabis company, or countless other things it could do with the funds. The point is, Anheuser-Busch is the largest beer company in the world. Investors shouldn't have a problem with a dividend yield of 3.5% given the appreciation it's experienced so far in 2019. The Bottom Line on Ambev StockIf you're not sure which beer company to back, a good alternative would be to buy a thematic portfolio, either through an ETF, mutual fund, or third-party provider such as Motif Investing. Motif currently has a portfolio called "Take a Shot" that invests in makers of alcoholic beverages including BUD and ABEV, which account for 19.4% and 16.6% of the portfolio, respectively. Beer stocks account for 46.3% of the portfolio with wine and spirits, accounting for the rest.Over the past year, it's generated a return of 8.6%, better than both the S&P 500 and the Invesco Dynamic Food & Beverage ETF (NYSEARCA:PBJ). At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Ambev Stock Might Be the Best Beer Bet Heading into 2020Â appeared first on InvestorPlace.