About AMBEV S.A.
Ambev S.A., through its subsidiaries, produces, distributes, and sells beer, draft beer, carbonated soft drinks, other non-alcoholic beverages, malt, and food products in the Americas. The company operates through four segments: Brazil; Central America and the Caribbean; Latin America South; and Canada. It offers beer primarily under the Skol, Brahma, Antarctica, Brahva, Brahva Gold, Extra, Bud Light, Beck, Leffe and Hoegaarden, Bucanero, Cristal, Mayabe, Cacique, Presidente, Brahma Light, Presidente Light, Presidente Golden Light, Bohemia, The One, Corona, Modelo Especial, Stella Artois, and Budweiser, Quilmes Clásica, Paceña, Taquiña, Huari, Becker, Cusqueña, Michelob Ultra, Busch, Pilsen, Ouro Fino, Banks, Deputy, Patricia, Labatt Blue, Alexander Keith's, and Kokanee brands. The company also provides bottled water, isotonic beverages, energy drinks, coconut water, powdered and natural juices, and ready-to-drink teas under the Guaraná Antarctica, Gatorade, H2OH!, Lipton Iced Tea, Fusion, Do Bem, Pepsi, Canada Dry, Squirt, Red Rock, Pepsi-Cola, Seven Up, Nutrl, Bud Light Seltzer, Palm Bay, and Mike's brands.
It offers its products through a network of third-party distributors and a direct distribution system. The company was founded in 1885 and is headquartered in São Paulo, Brazil. Ambev S.A. is a subsidiary of Interbrew International B.V.
ABEV operates in the Manufacturing | Beer & Liquor | approximately 52,000 employees | led by CEO Jereissati J. Neto.
$29.1 billion 12.5x P/E 1.8x P/B 5.3x EV/EBITDA 14.7% ROE -12.0% rev. growth
AMBEV S.A. earns a Buy rating from our quantitative model with a composite score of 73/100, ranking #37 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 97/100, which places ABEV in the top 3 percent of all stocks on this measure. stability at 92/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Manufacturing sector, ABEV ranks 19th out of 50 peers, placing it in the 62nd percentile. At $29.1 billion, the company is a well-established large cap.
Quality Analysis
AMBEV S.A.'s quality score of 90/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 14.7% exceeds the sector median of -2.0%. Gross margins of 51.2% reflect strong pricing power and competitive moats. Operating margins of 24.4% sit above the 3.0% sector average.
Net margins of 16.6% demonstrate that the company efficiently converts revenue into bottom-line profit.
Valuation Assessment
A value score of 97/100 puts ABEV in the top 3 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 12.5x, an EV/EBITDA of 5.3x, a price-to-book of 1.8x, a price-to-sales of 2.0x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 71/100 shows ABEV is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of -12.0% is declining, which makes the momentum signal more precarious. A beta of 0.18 means AMBEV S.A. moves with less volatility than the market, which can be attractive for risk-conscious investors.
Our entry timing model currently signals Neutral, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support AMBEV S.A.'s rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
AMBEV S.A. earns a Buy rating with a composite score of 73/100 and 4 out of 5 stars, ranking #37 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position ABEV above the majority of the market.
Explore the full ABEV analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
