Coca-Cola FEMSA. de (KOF) is drawing attention after recent share price moves, with the stock showing a 1 day return of 1.9% and a past 3 months return of 17.9%.
See our latest analysis for Coca-Cola FEMSA. de.
While the latest 1 day share price return of 1.9% comes after a period of stronger momentum, the 90 day share price return of 17.9% and 1 year total shareholder return of 35.5% point to investors steadily rewarding Coca-Cola FEMSA. de over both shorter and longer horizons as sentiment around its risk and growth profile shifts.
If this move has you thinking about where else capital could work, it might be worth scanning healthcare stocks as another area where consumer and defensive themes often intersect.
With Coca-Cola FEMSA, de trading near $99.25, sitting at roughly a 34% intrinsic discount and only a small gap to its latest analyst target, is there still a potential entry point here, or is the market already pricing in future growth?
Most Popular Narrative: 4.5% Undervalued
With Coca-Cola FEMSA. de closing at $99.25 against a narrative fair value of about $103.88, the story centers on modest upside grounded in measured growth, margin assumptions and a specific discount rate of 8.88%.
Coca-Cola FEMSA’s expansion of its Juntos+ digital platform and sales force enabler is expected to improve sales operations and customer engagement, leading to potential revenue growth and improved earnings in Brazil and soon in Mexico.
Strategic capacity investments and supply chain adjustments are anticipated to enhance customer service and cost efficiency, positively impacting net margins and overall earnings in several markets, notably Mexico and Brazil.
Curious what kind of revenue climb and margin uplift have to line up for that fair value to work, and what profit multiple ties it all together? The full narrative walks through those earnings assumptions step by step, and how they are brought back to today using that 8.88% discount rate.
Result: Fair Value of $103.88 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, you still need to weigh risks such as tougher macro conditions in Mexico or Colombia and potential tax or regulatory changes that could pressure volumes and margins.
Find out about the key risks to this Coca-Cola FEMSA. de narrative.
Build Your Own Coca-Cola FEMSA. de Narrative
If you are not fully on board with this story or simply prefer to pull the numbers yourself, you can build a customized view in a few minutes using Do it your way.
A great starting point for your Coca-Cola FEMSA. de research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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