Ambev S.A. (ABEV) AI Stock Analysis

Ambev S.A., a subsidiary of Interbrew International B.V. founded in 1885 and headquartered in Sao Paulo, Brazil, produces, distributes, and sells beverages and food products. It operates across four segments: Brazil, Central America and the Caribbean, Latin America South, and Canada. Its beer brand portfolio features Skol, Brahma, Antarctica, Budweiser, Corona, and Stella Artois. Ambev also manufactures and distributes non-alcoholic beverages such as bottled water, isotonic drinks, energy drinks, and juices under brands including Guarana Antarctica, Gatorade, and Lipton Iced Tea, using both direct distribution and third-party networks.

Over the past five fiscal years, Ambev delivered a revenue CAGR of 8.6%, rising from $72.85B in FY2021 to $88.24B in FY2025 despite revenue declining 1.4% in FY2025. Annual net income grew from $12.67B in FY2021 to $15.50B in FY2025, supported by expanding operating margins that reached 25.3% in FY2025 from 23.4% in FY2021. For the trailing twelve months, revenue totaled $88.27B with a net profit margin of 18.4%. In the latest quarter ended June 30, 2026, quarterly revenue growth was modest at 0.3% year-over-year, while quarterly earnings growth accelerated by 24.6%.

Ambev holds a liquid financial position as of June 30, 2026, with $18.35B in cash and short-term investments against $2.95B in total debt, resulting in net cash of $15.40B. Its current ratio stands at 1.02 and its debt-to-equity ratio is 0.03. In FY2025, operating cash flow reached $24.45B and free cash flow was $19.86B. Capital allocation in FY2025 included $4.59B in capital expenditures, $1.93B for share buybacks, and $20.46B paid out in dividends.

Ambev trades at a trailing P/E of 17.3x and a forward P/E of 13.2x, lower than the median of its US-listed Consumer Defensive peers at 18.6x and 14.3x, respectively. Its enterprise value-to-EBITDA multiple of 7.6x is well below the peer median of 11.7x, while its price-to-sales ratio sits at 0.6x compared to 0.7x for peers. Over the past year, the stock gained 57.0%, outperforming the S&P 500 ETF return of 16.8%, though its 5-year return of 57.4% lagged the benchmark return of 83.0%.

Ambev pays a quarterly dividend with a forward annual payout of $0.14 per share, translating to a dividend yield of 4.12%. The company has paid dividends for 30 consecutive years, achieving a 5-year annualized dividend growth rate of 20.7%. However, its dividend payout ratio is elevated at 86.7%, and its last ex-dividend date occurred on September 23, 2026.

Wall Street analysts hold a mixed outlook on ABEV, with 1 Strong Buy, 2 Buys, 5 Holds, 1 Sell, and 2 Strong Sells. The mean price target is $3.35, implying an upside of 1.7% from the last close of $3.29. Analysts project FY2026 EPS of $0.20 on revenue of $90.54B. For FY2027, 7 analysts forecast EPS of $0.22 and revenue of $94.96B. Ambev beat EPS estimates in 1 of the last 4 quarters, with next earnings scheduled for October 29, 2026.

This page is an AI-written research summary of Ambev S.A. (ABEV). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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