Compania Cervecerias Unidas SA (CCU) AI Stock Analysis

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Compania Cervecerias Unidas SA

(NYSE:CCU)

Rating:72Outperform

Price Target:

$16.00

▲(21.49%Upside)

Compania Cervecerias Unidas SA demonstrates strong financial performance with solid profitability and operational efficiency, contributing positively to its stock score. However, technical analysis points to bearish market sentiment, which slightly dampens the overall outlook. Valuation metrics are fair, and the earnings call highlights both growth opportunities and significant challenges, particularly in the Chile segment. The company's strategic initiatives aim to address these challenges, supporting a moderately positive stock score.

Compania Cervecerias Unidas SA (CCU) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.44B

Dividend Yield2.07%

Average Volume (3M)186.47K

Price to Earnings (P/E)14.0

Beta (1Y)0.39

Revenue Growth6.18%

EPS Growth61.39%

CountryUS

Employees9,638

SectorConsumer Defensive

Sector Strength62

IndustryBeverages - Alcoholic

Share Statistics

EPS (TTM)0.33

Shares Outstanding184,751,500

10 Day Avg. Volume153,729

30 Day Avg. Volume186,467

Financial Highlights & Ratios

PEG Ratio-0.86

Price to Book (P/B)3.14

Price to Sales (P/S)0.00

P/FCF Ratio-48.33

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$9.40

Price Target Upside-28.63% Downside

Rating ConsensusModerate Sell

Number of Analyst Covering0

Compania Cervecerias Unidas SA Business Overview & Revenue Model

Company DescriptionCompañía Cervecerías Unidas S.A. operates as a beverage company in Chile, Argentina, Bolivia, Colombia, Paraguay, and Uruguay. The company operates through three segments: Chile, International Business, and Wine. It produces and sells alcoholic and non-alcoholic beer under proprietary and licensed brands, as well as distributes Pernod Ricard products in non-supermarket retail stores. The company also produces and sells non-alcoholic beverages, including carbonated soft drinks, nectars and juices, sports and energy drinks, and ice tea; and mineral, purified, and flavored bottled water, as well as ready-to-mix products with instant powder drinks. In addition, it is involved in the production and distribution of pisco, cocktails, rum, flavored alcoholic beverages, gin, and cider. The company serves small and medium-sized retail outlets; retail establishments, such as restaurants, hotels, and bars; wholesalers; and supermarket chains. It also exports its products to Europe, Latin America, the United States, Canada, Asia, Oceania, and internationally. The company was founded in 1850 and is based in Santiago, Chile. Compañía Cervecerías Unidas S.A. is a subsidiary of Inversiones y Rentas S.A.

How the Company Makes MoneyCCU generates revenue through the production, distribution, and sale of its diverse range of beverages across Latin America. The company's primary revenue streams include the sale of beer, which is one of its most significant segments, followed by non-alcoholic beverages like soft drinks, bottled water, and juices. Additionally, CCU earns from the sale of spirits and wines. The company benefits from its extensive distribution network and strategic partnerships, allowing it to maintain a strong presence in both domestic and international markets. CCU's earnings are further supported by its ability to innovate and adapt to changing consumer trends, ensuring its product offerings remain competitive and attractive to customers in various regions.

Compania Cervecerias Unidas SA Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: -14.03%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed performance with positive financial growth in terms of EBITDA and net income, driven by international operations, particularly in Argentina. However, the company faced challenges with declining volumes, especially in Chile, and global trends of decreasing alcohol consumption impacting their wine business. Despite this, the company remains focused on strategic growth and efficiency improvements.

Q1-2025 Updates

Positive Updates

Increase in Consolidated EBITDA and Net Income

CCU delivered higher financial results versus last year, expanding consolidated EBITDA and net income by 6% and 10.7% respectively.

Revenue Growth in International Business

The International business operating segment recorded a 6.3% increase in organic net sales, driven by higher organic average prices, which offset a 1.2% contraction in organic volumes.

Strong Performance in Argentina

Organic EBITDA in the International segment expanded by 28.1%, driven by strong performance in Argentina, Uruguay, and Bolivia.

Efficient Cost Management

Despite inflationary pressures, organic MSD&A expenses increased only by 2.7%, with efficiency improvements offsetting cost pressures.

Strategic Focus on Profitability and Growth

CCU continues implementing its 2025-2027 strategic plan focusing on profitability, growth, and sustainability.

Negative Updates

Decline in Organic Volumes

Organic consolidated volumes were down 1.8% due to soft consumption across all operating segments.

Challenges in Chile Operating Segment

The Chile Operating segment saw organic EBITDA decrease by 2.4% and a contraction in organic gross margin by 180 basis points.

Decreasing Alcohol Consumption Trends

There is a global trend of declining alcohol consumption impacting sales, particularly in the wine segment.

Manufacturing Cost Pressures in Chile

Higher manufacturing costs in Chile due to inventory depletion, higher labor costs, and write-offs of old technology lines.

Weaker Demand in Wine

Weak demand in wine observed in both local market and exports, attributed to changing consumption patterns.

Company Guidance

In the first quarter of 2025, CCU reported a 6% increase in consolidated EBITDA and a 10.7% rise in net income despite a challenging market environment. The company's organic consolidated net sales saw a 3% uptick, primarily driven by a 4.9% increase in organic average prices, although organic volumes decreased by 1.8%. Gross profit grew organically by 1.7%, while the organic gross margin contracted by 56 basis points due to higher sales costs. Organic MSD&A expenses increased by 2.7% in Chilean pesos, with efficiencies helping to offset inflationary pressures. Across segments, the Chile Operating segment experienced a 2.8% top-line growth, while the International business segment recorded a 6.3% increase in organic net sales. The U.S. segment saw a 2.1% rise in the top line, driven by a 6.2% increase in average prices, despite a 3.8% drop in volumes. For the year ahead, CCU aims to focus on its 2025-2027 strategic plan, emphasizing profitability, growth, and sustainability amid ongoing market volatility.

Compania Cervecerias Unidas SA Financial Statement Overview

Summary

Compania Cervecerias Unidas SA exhibits robust financial health with strong profitability and operational efficiency. The income statement reflects solid revenue and profit growth, while the balance sheet shows a balanced approach to leveraging debt and equity. Cash flow metrics are favorable, supporting the company's ability to sustain operations and invest in growth opportunities.

Income Statement

Very Positive

The company has demonstrated solid revenue growth with a notable increase from previous periods. Gross profit margin and net profit margin are strong, indicating efficient cost management and profitability. EBIT and EBITDA margins are stable, reflecting consistent operational performance.

Balance Sheet

Positive

The balance sheet shows a moderate debt-to-equity ratio, suggesting a balanced use of debt and equity. The return on equity is commendable, indicating effective use of equity to generate profits. However, the equity ratio is moderate, highlighting a need for maintaining a healthy balance between liabilities and equity.

Cash Flow

Very Positive

Operating cash flow is strong relative to net income, indicating efficient cash generation from operations. The free cash flow has shown growth, suggesting improved financial flexibility. The cash flow metrics reflect a positive capacity to fund operations and investments.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.98T	2.90T	2.57T	2.71T	2.48T	1.86T
	Gross Profit
1.34T	1.31T	1.19T	1.20T	1.19T	873.56B
	EBIT
264.51B	262.61B	239.97B	218.76B	330.47B	175.18B
	EBITDA
344.98B	372.61B	344.05B	332.41B	454.00B	288.81B
	Net Income Common Stockholders
166.52B	160.94B	105.65B	118.17B	199.16B	96.15B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
202.62B	707.95B	621.47B	609.04B	279.58B	403.72B
	Total Assets
2.35T	3.99T	3.42T	3.60T	2.85T	2.53T
	Total Debt
315.82B	1.41T	1.33T	1.37T	573.65B	490.46B
	Net Debt
119.45B	707.45B	711.11B	775.48B	308.08B	94.07B
	Total Liabilities
910.76B	2.32T	2.09T	2.16T	1.42T	1.12T
	Stockholders Equity
1.33T	1.53T	1.22T	1.32T	1.31T	1.30T
Cash Flow		Free Cash Flow
181.43B	127.43B	164.65B	-85.44B	121.50B	157.88B
	Operating Cash Flow
296.67B	287.52B	294.10B	118.17B	293.36B	280.67B
	Investing Cash Flow
-92.40B	-118.29B	-137.23B	-236.46B	-178.99B	-140.55B
	Financing Cash Flow
-95.12B	-125.04B	-118.04B	537.10B	-233.64B	64.75B

Compania Cervecerias Unidas SA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price13.17

Price Trends

50DMA

14.55

Negative

100DMA

13.95

Negative

200DMA

12.48

Positive

Market Momentum

MACD

-0.36

Positive

RSI

30.07

Neutral

STOCH

8.43

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCU, the sentiment is Negative. The current price of 13.17 is below the 20-day moving average (MA) of 13.89, below the 50-day MA of 14.55, and above the 200-day MA of 12.48, indicating a neutral trend. The MACD of -0.36 indicates Positive momentum. The RSI at 30.07 is Neutral, neither overbought nor oversold. The STOCH value of 8.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCU.

Compania Cervecerias Unidas SA Risk Analysis

Compania Cervecerias Unidas SA disclosed 31 risk factors in its most recent earnings report. Compania Cervecerias Unidas SA reported the most risks in the "Macro & Political" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Compania Cervecerias Unidas SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BUD	79 Outperform	$140.00B	24.06	7.31%	1.19%	0.64%	10.02%
ABEV	78 Outperform	$39.00B	15.09	15.09%	5.92%	1.25%	-13.02%
SAM	73 Outperform	$2.45B	36.36	7.36%	―	0.79%	-24.27%
FMX	73 Outperform	$21.72B	21.93	9.84%	1.92%	-0.37%	44.52%
CCU	72 Outperform	$2.44B	13.98	11.33%	2.07%	6.18%	61.39%
TAP	68 Neutral	$10.58B	10.50	7.90%	3.44%	-5.17%	-0.74%
Sector *	65 Neutral	$8.88B	15.03	4.75%	203.74%	3.58%	-2.49%

* Consumer Defensive Sector Average

Performance Comparison

CCU

Compania Cervecerias Unidas SA

13.17

1.43

12.18%

BUD

Anheuser-Busch Inbev Sa

70.32

9.98

16.54%

SAM

Boston Beer

220.03

-65.76

-23.01%

FMX

Fomento Economico Mexicano

105.42

-0.01

>-0.01%

TAP

Molson Coors

52.21

2.86

5.80%

ABEV

Ambev SA

2.45

0.46

23.12%

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.