Ambev S.A. American Depositary Shares (Each representing 1 Common Share) (ABEV)

FairStock Score: 77/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see Ambev as a high-volume consumer franchise: it sells beer and other beverages under well-known Latin American brands and operates its own production and distribution. In the latest filed quarter, fiscal Q2 2026, revenue was $20.1B and net income $3.4B, a 16.81% net margin. That is a real business with real cash generation. The balance sheet is a Graham-style comfort: debt/equity is only 0.03, while FairStock calculates ROE at 18.4% and ROCE at 10.3%. Its Piotroski F-score is 6/9, acceptable but not pristine. The main weakness is growth: the supplied growth columns show revenue barely moving while profit growth is stronger, but the periods are not labeled, so I do not lean on them as filed figures. Valuation is where the margin of safety appears. At the 2026-10-26 close of $2.83, FairStock calculates P/E 14.15, P/B 2.55, PEG 0.67, EV/EBITDA 1.10, and FCF yield 51.8%. The Graham Number is $5.07, implying a 34.91% margin of safety. A 5.42% dividend yield and beta of 0.25 add defensive appeal. But Altman Z at 0.91 is a warning in FairStock's model, and the Lynch category is none because only 0 years of filed results exist and three are needed. Overall, this looks like a cash-rich, low-debt beverage business priced cheaply against earnings and cash flow; the key question is whether stagnant revenue can improve without eroding margins.

In plain English: Ambev makes and sells beer, soft drinks, and other drinks in Brazil, Central America and the Caribbean, Latin America South, and Canada. The business earns solid profits and uses very little debt, but sales are barely growing. At $2.83 a share, the price looks cheap compared with the company's earnings, cash flow, and book value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer