Important note

This AI stock analysis for Ambev is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Ambev - AI Stock Analysis

Analysis generated January 29, 2025

Ambev S.A. is a Brazilian brewing company and one of the largest breweries in Brazil and Latin America. It produces and distributes a wide array of alcoholic and non-alcoholic beverages, including beer, soft drinks, and other products. While the company has significant market penetration in Latin America, it also manages brands that have international reach. It operates under the larger Anheuser-Busch InBev umbrella, which is considered one of the leading global players in the brewing industry.

Fundamental Analysis

The most recent data shows that Ambev's revenue for the last quarter was BRL 22.1B. This is a 10.24% increase from the previous quarter, signifying short-term growth. On a year-over-year basis, the revenue increased by 7.33%, indicating positive long-term growth trends. This kind of revenue growth highlights a resilient business, effective marketing strategies, and strong consumer demand.

The net income for the last quarter was BRL 3.46B, marking a significant 44.40% increase compared to the previous quarter. Year over year, the net income increased by 11.31%. This considerable growth suggests that the company is effectively managing its costs and improving its operational efficiency.

EBITDA for the last quarter stood at BRL 6.89B, reflecting a 20.25% increase from the previous quarter and a 5.23% increase year over year. A growing EBITDA in both the short and long term, along with the increases in revenue and net income, depicts a healthy operational performance.

Lastly, Ambev’s current Price-to-Earnings (P/E) ratio is 14.8. This figure is within a standard range for the industry and indicates that the stock is fairly valued. It neither suggests overvaluation nor undervaluation, offering potential investors a balanced opportunity for both growth and dividends.

Technical Analysis

The stock price for Ambev is currently BRL 1.85, which is a slight decrease of 1.07% from a month ago. However, this price represents a substantial 25.40% decrease from a year ago, potentially indicating some long-term concerns.

The trend is bullish, as the Simple Moving Average over the last 10 days (SMA10) shows a small upward movement from 1.80 to 1.81. While the Relative Strength Index (RSI) currently stands at 35.7, signaling a neutral condition, it still leaves room for either positive or negative changes in momentum in the near future.

Alternative Data Analysis

Examining Ambev's job postings and employee sentiment provides valuable insights. There are currently 331 open positions, which is a 27% increase in recent months. This suggests that the company is looking to expand and possibly launch new initiatives, which is generally a good sign of growth prospects.

On the flip side, customer acquisition and engagement metrics tell a different story. Ambev's website visitors number around 680,000, which has decreased by 21% over a couple of months. This could indicate a decline in consumer interest or market demand, which is a red flag that needs to be addressed promptly.

Moreover, the AltIndex AI score, which integrates various data points from fundamental, technical, and alternative data analysis, gives Ambev a score of 60. This is seen as a 'hold' signal, suggesting a balanced outlook where the company neither stands out as a strong buy nor a sell.

Conclusion and Recommendation

Taking into account all the data points analyzed, Ambev presents a mixed but cautiously optimistic investment opportunity. The company shows robust financial health through increased revenue, net income, and EBITDA figures, accompanied by a stable P/E ratio. Despite a recent dip in the stock price and concerns about customer engagement, the bullish trend and expansion in job postings indicate growth potential.

Based on these factors, the recommendation for Ambev is a 'hold'. Investors should keep an eye on future financial reports and closely monitor customer acquisition metrics to make an informed decision moving forward.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.