Ambev S.A. 1 is in the alcoholic beverages industry and consumer defensive sector. The company CEO is Bernardo Pinto Paiva. Ambev SA produces, distributes and sells beer, CSDs and other non-alcoholic and non-carbonated products in countries across the Americas. The company operates in Latin America North, Latin America South and Canada.



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Historical Performance:

Over the last five trading days, ABEV shares returned 5.45% and in the past 30 trading days it returned -3.40%. Over three months, it changed -11.80%. In one year it has changed -19.67% and within that year its 52 week high was 5.44 and its 52 week low was 3.77. ABEV stock is 13.00% above its 52 week low.

Our calculations result in a 200 day moving average of 4.43 and a 50 day moving average of 4.41. Right now, ABEV stock is trading -3.94% below its 200 day moving average and may be a great opportunity to buy, but should check other technical indicators to confirm a buy signal.

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Liquidity:

The company has a market cap of $67.0b with 15.7b shares outstanding and a float of 15.7b shares. Trading volume was 20,152,375 shares and has experienced an average volume of 26,433,885 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is good.

Earnings:

The last annual reported EPS for Ambev S.A. 1 was 0.18 which ended on 31st of December 2018, which according to the previous close, that is a PE of 23.67. Based on 1 analyst estimate, the estimated EPS for the next quarter is 0.05. The trailing twelve month EPS reported is 0.21 (trailing twelve month diluted EPS is 0.17), which comes to a trailing twelve month PE of 20.29. Historically, the PE high was 53.50 and the PE low was 15.30. If the stock reached its PE low, that would represent a price of 3.21, which is a decrease of -24.59%.

Below was the last reported quarterly diluted earnings per share:

1stQtr 2019 0.04
4thQtr 2018 0.05
3rdQtr 2018 0.04
2ndQtr 2018 0.04
1stQtr 2018 0.05

The dividend per share is currently 0.15, which is a dividend yield of 3.43%.

Base on our calculations, the intrinsic value per share is 6.29, which means it might be undervalued and has a margin of safety of 32.31%.

EPS growth is an important number as it indicates the future prospects of Ambev S.A. 1; the EPS growth rate, as it is usually called, is typically displayed as a percentage, which at this time is hard to estimate, but revenue growth has been 7.30% over the last twelve months.



Indicators Also to Watch:

Based on the latest filings, there is 9.20% of institutional ownership. Short-interest was 17,691,564, which was 0.11% of shares outstanding. The short-interest ratio or days-to-cover ratio was 0.58. This stock has some short interest, but it might be normal and no need to worry if long the position.

The beta was calculated to be 0.76.

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Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 19.99%, return on assets is 12.02%, profit margin is 17.58%, price-to-sales is 3.88 and price-to-book is 4.59.

Company Score Card:

Results are out of six:
 2  : Growth Expectations Result
 5  : Financial Safety Result
 3  : Past Performance Result
 3  : Valuation Result
 2  : Dividend Safety Result
 3  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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