Embotelladora Andina SA (AKO.B, Financial) has experienced a notable uptick in its stock price, with a 12.17% gain over the past week, contributing to a 12.93% increase over the past three months. With a current market capitalization of $2.59 billion and a stock price of $16.41, the company's recent performance has caught the attention of investors. According to the GF Value, the stock is considered Fairly Valued at a GF Value of $15.78, aligning closely with its past GF Value of $15.4. This consistency in valuation suggests that the company's stock price is reflective of its intrinsic value, maintaining a Fairly Valued status over the past quarter.
Introduction to Embotelladora Andina SA
Embotelladora Andina SA, operating in the Beverages - Non-Alcoholic industry, is a key Coca-Cola bottler in Latin America. The company's diverse product portfolio includes carbonated soft drinks, water, fruit juices, energy drinks, and sports drinks, which are sold under various Coca-Cola brands. Embotelladora Andina's operations span across Chile, Brazil, Argentina, and Paraguay, and it also offers non-Coca-Cola branded beverages such as teas, juices, beers, and spirits. The company's strategic positioning in the beverage market and its expansive product range have been instrumental in its growth trajectory.
Assessing Embotelladora Andina's Profitability
Embotelladora Andina SA boasts a strong Profitability Rank of 8/10, indicating robust profitability within its sector. The company's Operating Margin stands at 13.47%, surpassing 72.73% of its industry peers. Furthermore, its Return on Equity (ROE) is an impressive 22.57%, outperforming 81.55% of competitors, while the Return on Assets (ROA) at 6.93% is better than 60.91% of the industry. The Return on Invested Capital (ROIC) of 11.66% also exceeds 66.36% of similar companies. Embotelladora Andina's consistent profitability over the past decade, with 10 years of profitability, places it ahead of 98.92% of its peers, showcasing the company's financial resilience and operational efficiency.
Growth Prospects of Embotelladora Andina
The company's Growth Rank is 7/10, reflecting solid growth potential. Embotelladora Andina's 3-Year Revenue Growth Rate per Share is an impressive 17.40%, higher than 82.18% of industry companies. Its 5-Year Revenue Growth Rate per Share also stands strong at 11.30%, outpacing 79.31% of the sector. When it comes to earnings, the 3-Year EPS without NRI Growth Rate is 16.40%, better than 60.87% of industry firms, and the 5-Year EPS without NRI Growth Rate is 10.40%, surpassing 61.19% of competitors. These growth metrics underscore the company's ability to expand its financials and enhance shareholder value over time.
Significant Shareholders in Embotelladora Andina
Among the notable holders of Embotelladora Andina SA's stock is Jim Simons (Trades, Portfolio), who owns 501,581 shares, representing a 0.32% share percentage. The involvement of prominent investors like Simons can often be a positive signal to the market, reflecting confidence in the company's management and future prospects.
Competitive Landscape
Embotelladora Andina operates in a competitive industry, with key players such as Coca-Cola Embonor SA (XSGO:EMBONOR-B, Financial) holding a market cap of $588.021 million. It also contends with beverage giants like Coca-Cola Co (KO, Financial) and PepsiCo Inc (PEP, Financial), with market caps of $256.72 billion and $226.18 billion, respectively. Despite the presence of these larger competitors, Embotelladora Andina's strong financials and growth prospects position it well within the market.
Conclusion
In summary, Embotelladora Andina SA's stock performance has been impressive, with significant gains over the past week and three months. The company's strong profitability and growth prospects, as indicated by its high Profitability and Growth Ranks, suggest a robust business model and potential for continued success. When compared to its competitors, Embotelladora Andina holds its own, demonstrating the ability to thrive in a challenging industry. The presence of significant holders like Jim Simons (Trades, Portfolio) further bolsters the stock's outlook, making it a noteworthy consideration for value investors seeking opportunities in the non-alcoholic beverages sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
