Coca Cola Femsa SAB De CV (KOF) AI Stock Analysis

1,065 Followers

Coca Cola Femsa SAB De CV

(NYSE:KOF)

Select Model

Rating:75Outperform

Price Target:$135.00▲(14.01% Upside)

Action:reiterated

Date:11/11/26

KOF scores well primarily on solid financial performance (durable margins, improving leverage, steady growth) tempered by cash-flow volatility. Technicals are supportive with price above key moving averages and neutral momentum readings. Valuation is reasonable with an attractive dividend yield, and the latest earnings call was broadly positive (volume/EBITDA and margin expansion), though Mexico cost pressures and Brazil regulatory/labor uncertainty remain key risks.

Positive Factors

Revenue and margin growthRecent growth combines higher revenue with meaningful gross-margin and EBITDA improvement, indicating effective pricing, mix, and operating execution. If sustained, this combination can strengthen internal funding capacity and support earnings growth across the next several quarters.

Negative Factors

Volatile cash conversionUneven free-cash-flow conversion makes the company’s financial capacity less predictable than its income statement suggests. Working-capital movements or investment needs can reduce cash available for debt reduction, reinvestment, acquisitions, or shareholder distributions over the medium term.

Coca Cola Femsa SAB De CV Key Performance Indicators (KPIs)

Revenue by GeographyBreaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.

Chart Insights

South America is clearly the growth engine—sustained volume gains and World Cup‑driven activations (Brazil, Colombia) are delivering outsized revenue and margin relief that help offset Mexico weakness. Mexico & Central America shows more volatility and margin pressure from excise taxes, higher freight/marketing and softer consumers; management now expects flattish Mexico volumes with a measured price catch‑up in August. Near‑term upside depends on continued South American momentum, successful price pass‑through in Mexico, and how hedging and Brazil regulatory/labor risks play out.

Data provided by:

The Fly

Coca Cola Femsa SAB De CV (KOF) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $24.88B
Dividend Yield: 3.61%
Average Volume (3M): 224.16K
Price to Earnings (P/E): 19.1
Beta (1Y): 0.20
Revenue Growth: 16.92%
EPS Growth: 14.27%
Country: US
Employees: 108,925
Sector: Consumer Defensive
Sector Strength: 62
Industry: Beverages - Non-Alcoholic

Coca Cola Femsa SAB De CV Business Overview & Revenue Model

Company Description

Coca-Cola FEMSA, S.A.B. de C.V., operating as a licensed bottler, is engaged in the manufacturing, marketing, sale, and distribution of beverages under the Coca-Cola brand. Its extensive product portfolio encompasses sparkling beverages, including va...

How the Company Makes Money

Coca-Cola FEMSA primarily makes money by producing and selling finished beverages to retailers and other customers within its authorized bottling territories. Its core revenue stream is net sales from beverage volume (unit cases) multiplied by realiz...

Coca Cola Femsa SAB De CV Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:4.21%|Next Earnings Date:Feb 25, 2027

Earnings Call SentimentPositive

The call was predominantly positive. The company delivered record consolidated volumes, double-digit revenue growth, stronger gross profit and adjusted EBITDA, broad-based volume and market-share gains, substantial South American profitability improvement, successful innovation launches and continued digital and sustainability progress. The main challenges were Mexico's underlying margin pressure, higher labor and freight costs, increased financing expense, uncertain Brazil tax and labor reforms, volatile commodities, flat Argentina volumes and capacity constraints in Colombia and Venezuela. Management nevertheless expressed confidence in continued growth and profitability improvement.

Positive Updates

Record Consolidated Volume and Strong Revenue Growth

Third-quarter consolidated volumes increased 5.3% year over year to 1.1 billion unit cases, marking a record third-quarter volume. Total revenues increased 10.9% to MXN 79.7 billion, or 11.3% on a currency-neutral basis, driven primarily by volume growth and revenue growth management initiatives.

Negative Updates

Underlying Consolidated Operating Margin Declined Excluding Insurance Recovery

The reported operating results included MXN 1.1 billion related to recovered insurance claims in Brazil. Excluding this nonrecurring benefit, operating income would have increased 7.4% and operating margin would have been 13.6%, representing a 40-basis-point contraction.

Company Guidance

For the fourth quarter, Mexico expects further RGM initiatives in mid November to cover impacts from FX and raw materials and continue improving profitability; for 2027, management is “moderately optimistic” and expects a “fairly normal operating year,” with labor, FX and raw-material impacts to be addressed through RGM, while Brazil’s potential selective tax and 5-by-2 work schedule change would require RGM to cover “100% of that impact” if the tax is not neutral. Management expects to announce the shareholder capital-return mechanism “earlier in next year,” and has secured approximately 16% of 2027 PET requirements, 85% of sugar, 94% of HFCS, and 54% of alumina.

Coca Cola Femsa SAB De CV Financial Statement Overview

Summary

Fundamentals are solid: steady revenue growth through 2025 and into TTM, stable mid‑40% gross margin with improvement in TTM, and operating margins holding in the mid‑teens. Balance sheet leverage has improved (debt-to-equity trending down to mid‑0.5x range), supporting flexibility. The main offset is cash-flow predictability: free cash flow rebounded strongly in TTM but has been volatile (notably weak in 2025) and cash conversion is only moderate versus net income in most periods.

Income Statement

82Very Positive

Balance Sheet

74Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	304.71B	291.75B	279.79B	245.09B	226.74B	194.80B
Gross Profit	142.60B	131.52B	127.65B	111.44B	99.61B	87.27B
EBITDA	57.44B	54.67B	53.22B	44.04B	40.72B	37.53B
Net Income	24.28B	23.84B	23.73B	19.54B	19.03B	15.71B
Balance Sheet
Total Assets	344.22B	314.54B	307.99B	273.52B	278.00B	271.57B
Cash, Cash Equivalents and Short-Term Investments	46.77B	28.57B	33.13B	31.36B	40.52B	47.49B
Total Debt	88.35B	82.68B	79.18B	69.50B	82.47B	88.18B
Total Liabilities	183.89B	160.51B	157.44B	139.81B	146.12B	144.00B
Stockholders Equity	151.08B	146.20B	143.43B	127.03B	125.39B	121.55B
Cash Flow
Free Cash Flow	24.04B	6.10B	16.65B	21.66B	17.76B	22.73B
Operating Cash Flow	41.48B	27.76B	42.44B	42.29B	35.49B	32.72B
Investing Cash Flow	-18.71B	-23.48B	-23.39B	-20.07B	-19.60B	-9.55B
Financing Cash Flow	-11.05B	-6.77B	-19.64B	-26.35B	-20.85B	-20.26B

Coca Cola Femsa SAB De CV Technical Analysis

Technical Analysis SentimentPositive

Last Price118.41

Price Trends

50DMA112.74Positive

100DMA109.76Positive

200DMA106.00Positive

Market Momentum

MACD1.62Negative

RSI57.58Neutral

STOCH85.32Negative

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 118.41 is above the 20-day moving average (MA) of 117.17, above the 50-day MA of 112.74, and above the 200-day MA of 106.00, indicating a bullish trend. The MACD of 1.62 indicates Negative momentum. The RSI at 57.58 is Neutral, neither overbought nor oversold. The STOCH value of 85.32 is Negative, 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

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

KOF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKO.A	80Outperform	$4.18B	12.89	22.86%	5.07%	9.60%	14.76%
MNST	78Outperform	$88.87B	41.16	24.01%	―	20.18%	25.30%
KOF	75Outperform	$6.36B	19.06	16.80%	3.61%	16.92%	14.27%
CCEP	74Outperform	$51.73B	23.82	24.78%	1.94%	9.67%	42.56%
KDP	63Neutral	$52.06B	32.21	6.51%	2.60%	42.99%	-5.75%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
COKE	62Neutral	$14.10B	23.60	-104.99%	0.48%	10.22%	21.45%

* Consumer Defensive Sector Average

Performance Comparison

KOF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
KOF	Coca Cola Femsa S.a.b. De C.v.	118.41	33.74	39.85%
COKE	Coca-cola Bottling Co. Consolidated	207.00	48.34	30.47%
KDP	Keurig Dr Pepper	35.42	9.13	34.72%
AKO.A	Embotelladora Andina S.A. A	24.25	2.70	12.52%
MNST	Monster Beverage	45.57	9.91	27.81%
CCEP	Coca-Cola Europacific Partners Plc	116.93	27.53	30.79%

Coca Cola Femsa SAB De CV Corporate Events

Coca-Cola FEMSA Posts Record 3Q 2026 Volume and Strong Profit Growth

Oct 26, 2026

In the third quarter of 2026, Coca-Cola FEMSA reported solid operational and financial results, with consolidated volume up 5.3% to a record level, revenue rising 10.9% and operating income increasing 15.4% versus a year earlier. Growth was driven by...

Coca-Cola FEMSA Moves Q3 2026 Earnings Call to October 26

Oct 22, 2026

Coca-Cola FEMSA announced on October 21, 2026 that it has rescheduled its third-quarter 2026 earnings conference call, moving it forward by one day from October 27 to October 26, 2026. The call, led by Chief Executive Officer Ian Craig, Chief Financi...

Coca-Cola FEMSA Hits Water-Efficiency Target, Securing Terms on Sustainability-Linked Bonds

Sep 3, 2026

On September 3, 2026, Coca-Cola FEMSA announced it has met the sustainability performance target tied to its KOF 21L sustainability-linked bonds by reaching a water use efficiency ratio of 1.26 liters of water per liter of beverage produced. An exter...

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.

Date of analysis: Nov 11, 2026

Coca Cola Femsa SAB De CV AI Stock Analysis