Compania Cervecerias Unidas S.A. Common Stock (CCU)

FairStock Score: 44/100 — MIXED

Key Financials

Strengths

• Generates $47.4 billion in annual free cash flow (2248.7% yield on market cap)
• Attractive 3.0% dividend yield providing steady income returns

Concerns

• Revenue declining at 11.8% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 1.0 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Compania Cervecerias Unidas S.A. Common Stock is a small-cap consumer defensive company valued at $2.1 billion. From a quality standpoint, Compania shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.0 warrants caution. On valuation, the stock is reasonably priced at 15.5x earnings, with offers a 96% margin of safety vs Graham Number of $254. Growth dynamics show revenue growing at -11.8% and profit growth of -25.7%. The 3.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 44/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $47.4 billion in annual free cash flow (2248.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer defensive space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer