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Coca Cola Femsa SAB De CV (KOF)
NYSE:KOF
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Coca Cola Femsa SAB De CV
(NYSE:KOF)
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Rating:74Outperform
Price Target:
$96.00
▲(10.38% Upside)
Coca Cola Femsa's overall score reflects strong financial performance and positive technical indicators. The company's valuation is reasonable, offering a good dividend yield. However, mixed earnings call sentiment and challenges in key markets slightly temper the outlook.
Coca Cola Femsa SAB De CV (KOF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.59B
Dividend Yield3.97%
Average Volume (3M)246.26K
Price to Earnings (P/E)15.2
Beta (1Y)0.24
Revenue Growth-2.81%
EPS Growth-2.66%
CountryUS
Employees118,683
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)1.51
Shares Outstanding52,520,763
10 Day Avg. Volume275,183
30 Day Avg. Volume246,261
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)2.38
Price to Sales (P/S)1.22
P/FCF Ratio20.52
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$104.40Price Target Upside20.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Coca Cola Femsa SAB De CV Business Overview & Revenue Model
Company DescriptionCoca-Cola FEMSA, S.A.B. de C.V., a franchise bottler, produces, markets, sells, and distributes Coca-Cola trademark beverages. The company offers sparkling beverages, including colas and flavored sparkling beverages; and waters and other beverages, such as juice drinks, coffee, teas, milk, value-added dairy products, sports and energy drinks, and plant-based drinks. It provides 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 theaters; points-of-sale outlets; and home delivery, supermarkets, and other locations. In addition, the company 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, S.A.B. de C.V. is a subsidiary of Fomento Economico Mexicano, S.A.B. de C.V.
How the Company Makes MoneyCoca Cola Femsa generates revenue primarily through the sale of beverages. Its revenue model is based on the production and distribution of Coca-Cola products, as well as other soft drinks and non-carbonated beverages. Key revenue streams include the sale of bottled and canned beverages to retailers, convenience stores, and food service outlets. Additionally, KOF benefits from economies of scale due to its extensive distribution network and large volume sales. The company also engages in promotional partnerships and marketing campaigns that enhance brand visibility and drive sales. Factors contributing to earnings include market demand for beverages, pricing strategies, and operational efficiency in production and distribution.
Coca Cola Femsa SAB De CV Earnings Call Summary
Earnings Call Date:Oct 24, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with several positive developments such as revenue growth, strong digital engagement, and significant growth in Coca-Cola Zero. However, these were offset by challenges including volume declines in key markets, the impact of a significant excise tax increase in Mexico, and ongoing currency and cost pressures.Q3-2025 Updates
Positive Updates
Revenue and Operating Income Growth
Total revenues for the quarter grew 3.3% to MXN 71.9 billion, supported by revenue management initiatives. Operating income increased 6.8% to MXN 10.3 billion, with operating margin expanding by 50 basis points to 14.3%.
Strong Digital Engagement
Digital initiatives like Juntos+ in Guatemala showed significant growth, with over 100,000 digital monthly active users, a 23 percentage point increase from the first quarter.
Coca-Cola Zero Growth
Coca-Cola Zero saw significant growth, increasing 23% versus the previous year in Mexico, and 38% in Brazil, driven by promotional campaigns.
South America Volume and Revenue Increase
Volumes in South America increased by 2.6%, with revenues rising 8.7% to MXN 29.4 billion, driven by revenue management initiatives and favorable mix.
Successful Cost Management
The company achieved $90 million in supply chain savings ahead of schedule, with significant contributions from primary distribution and cost-to-serve.
Negative Updates
Volume Decline in Mexico and Panama
Volumes in Mexico declined 3.7%, with a broader decline in Mexico and Central America by 2.7%, due to a soft macroeconomic backdrop.
Impact of Excise Tax Increase in Mexico
Facing a significant 87% increase in the excise tax on soft drinks in Mexico, expected to impact volume performance negatively in 2026.
Currency and Cost Pressures
Unfavorable currency translation effects impacted revenues, with gross margin contracting by 100 basis points to 45.1% due to an unfavorable mix and increased fixed costs.
Challenges in Argentina
Despite volume growth, Argentina remains a complex environment with potential economic slowdown and sluggish growth expected.
Company Guidance
During the Coca-Cola FEMSA Third Quarter 2025 Conference Call, the company provided guidance that highlighted several key metrics and strategic initiatives. The results showed a consolidated volume decline of 0.6% to 1.04 billion unit cases, with total revenues increasing by 3.3% to MXN 71.9 billion, driven by revenue management initiatives. Gross profit grew by 0.9% to MXN 32.4 billion, but there was a margin contraction of 100 basis points to 45.1%. Operating income rose by 6.8% to MXN 10.3 billion, with an operating margin expansion of 50 basis points to 14.3%. Adjusted EBITDA increased by 3.2% to MXN 14.4 billion, maintaining an EBITDA margin of 20.1%. Coca-Cola FEMSA emphasized its focus on sustainable growth, cost control, and productivity measures to navigate challenging conditions, such as the recent beverage excise tax increase in Mexico. The company also reported significant volume and share growth in specific markets, including a 3.2% volume increase in Guatemala and a 2.6% increase in Brazil, highlighting the success of their digital and affordability initiatives.Coca Cola Femsa SAB De CV Financial Statement Overview
Summary
Coca Cola Femsa shows strong financial health with robust revenue and profit growth, supported by effective cost management and operational efficiency. The balance sheet is solid, though debt levels require monitoring. Cash flow data is incomplete, but historical performance indicates strong cash generation.Income Statement
Coca Cola Femsa demonstrated robust revenue growth of 14.15% YoY in 2024, driven by strong market demand. Gross profit margin improved to 46.01%, reflecting effective cost management. Net profit margin also increased to 8.48%, indicating enhanced profitability. EBIT and EBITDA margins were healthy at 14.35% and 18.41% respectively, showing strong operational performance. The company has shown consistent growth in revenues and profitability over the years.Balance Sheet
The balance sheet remains solid with a debt-to-equity ratio of 0.54, suggesting moderate leverage. Return on equity (ROE) improved to 16.55%, indicating effective utilization of equity. The equity ratio stands at 46.57%, reflecting a healthy capital structure. The company has maintained a stable equity base, though total debt levels have increased slightly compared to the previous year, necessitating careful management.Cash Flow
Cash flow analysis is limited due to missing current year data, but historical performance shows strong free cash flow generation, with a significant free cash flow growth rate of 21.98% in 2023. The company has maintained a positive free cash flow to net income ratio, ensuring sufficient cash generation to support operations. Attention to future cash flow stability is crucial as recent data is unavailable.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 288.60B | 279.79B | 245.09B | 226.74B | 194.80B | 183.62B |
| Gross Profit | 132.82B | 128.74B | 110.86B | 100.30B | 88.60B | 82.81B |
| EBITDA | 41.46B | 52.85B | 43.82B | 40.45B | 37.33B | 32.44B |
| Net Income | 23.59B | 23.73B | 19.54B | 19.03B | 15.71B | 10.31B |
Balance Sheet | ||||||
| Total Assets | 313.86B | 307.99B | 273.52B | 278.00B | 271.57B | 263.07B |
| Cash, Cash Equivalents and Short-Term Investments | 37.14B | 32.78B | 31.06B | 40.28B | 47.25B | 43.50B |
| Total Debt | 84.50B | 78.39B | 67.73B | 80.81B | 87.29B | 88.78B |
| Total Liabilities | 169.12B | 157.44B | 139.81B | 146.12B | 144.00B | 140.61B |
| Stockholders Equity | 136.94B | 143.43B | 127.03B | 125.38B | 121.55B | 116.87B |
Cash Flow | ||||||
| Free Cash Flow | 314.39M | 16.65B | 21.66B | 17.76B | 22.73B | 60.35B |
| Operating Cash Flow | 1.57B | 42.44B | 42.29B | 35.49B | 32.72B | 70.29B |
| Investing Cash Flow | -1.34B | -23.39B | -20.07B | -19.60B | -9.55B | -21.02B |
| Financing Cash Flow | -335.71M | -19.64B | -26.35B | -20.85B | -20.26B | 834.00M |
Coca Cola Femsa SAB De CV Technical Analysis
Positive
86.97
Price Trends
83.45
Positive
86.35
Positive
86.12
Positive
Market Momentum
0.57
Negative
61.57
Neutral
79.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOF, the sentiment is Positive. The current price of 86.97 is above the 20-day moving average (MA) of 82.85, above the 50-day MA of 83.45, and above the 200-day MA of 86.12, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 61.57 is Neutral, neither overbought nor oversold. The STOCH value of 79.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KOF.
Coca Cola Femsa SAB De CV Risk Analysis
Coca Cola Femsa SAB De CV disclosed 27 risk factors in its most recent earnings report. Coca Cola Femsa SAB De CV reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
If we fail to comply with privacy and data protection laws, we could be subject to adverse publicity, business disruption, data loss, government enforcement actions and/or private litigation, any of which could negatively affect our business and operating results. Q4, 2023
2.
Product safety and quality concerns could negatively affect our business. Q4, 2023
3.
Pandemics and public health crises, may adversely affect our business, financial condition and results of operations. Q4, 2023
Coca Cola Femsa SAB De CV Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $299.87B | 23.08 | 45.12% | 2.89% | 2.93% | 25.42% | |
| ― | $207.22B | 28.83 | 37.19% | 3.67% | 0.48% | -22.61% | |
| ― | $42.14B | 25.19 | 17.99% | 2.43% | 9.65% | -4.26% | |
| ― | $4.59B | 15.18 | 16.18% | 3.97% | -2.81% | -2.66% | |
| ― | $11.09B | 21.26 | 41.45% | 0.78% | 3.22% | 23.88% | |
| ― | $36.90B | 24.10 | 6.18% | 3.39% | 4.63% | -28.22% | |
| ― | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
KOF
Coca Cola Femsa SAB De CV
86.97
5.71
7.03%
COKE
Coca-Cola Bottling Co Consolidated
127.66
5.57
4.56%
KO
Coca-Cola
69.71
4.99
7.71%
KDP
Keurig Dr Pepper
27.16
-5.70
-17.35%
PEP
PepsiCo
151.55
-11.97
-7.32%
CCEP
Coca-Cola Europacific Partners
91.45
16.06
21.30%
Coca Cola Femsa SAB De CV Corporate Events
Coca-Cola FEMSA Reports Resilient Q3 2025 Amid Challenges
Oct 24, 2025
Coca-Cola FEMSA reported its third-quarter 2025 results, highlighting a 0.6% decline in volume but a 3.3% increase in revenue, with a 6.8% rise in operating income. The company noted a challenging macro environment in Mexico, while South America showed resilience with volume growth. Coca-Cola FEMSA is adapting to these conditions by implementing cost control measures and focusing on sustainable growth. Additionally, the company is actively engaging with local authorities regarding proposed tax increases on sugar-sweetened beverages in Mexico. Recent developments include the passing of a board member, efforts to support flood-affected communities in Mexico, and an improved sustainability assessment score.
Coca-Cola FEMSA Reports Revenue Growth for First Half of 2025
Sep 23, 2025
Coca-Cola FEMSA reported its financial performance for the six months ended June 30, 2025, showing an increase in total revenues to US$7,579 million from the previous year. The report highlights the company’s ability to maintain growth despite challenges such as fluctuations in raw material prices and currency exchange rates, indicating a strong operational strategy and market positioning.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.