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Ambev - AI Stock Analysis

Analysis generated January 30, 2025

Ambev S.A., a Brazilian brewing company and one of the largest in the world, operates in the production, distribution, and sale of beer, carbonated soft drinks, and other beverages. The company has a prominent market share in Latin America and is known for its strong portfolio of brands including Skol, Brahma, and Antarctica. Ambev is also part of Anheuser-Busch InBev (AB InBev), enabling it to leverage an extensive distribution network and economies of scale.

Fundamental Analysis

Revenue: For the last quarter, Ambev reported a revenue of 22.1 billion BRL. This figure marks an impressive 10.24% increase compared to the prior quarter, which is a positive indicator of growth. On a year-over-year basis, revenue increased by 7.33%, suggesting consistent and steady growth.
Net Income: Net income for the last quarter was 3.46 billion BRL, demonstrating a remarkable 44.40% rise compared to the previous quarter. Compared to the same quarter last year, net income increased by 11.31%, indicating improved profitability.
EBITDA: The EBITDA for the last quarter was 6.89 billion BRL, with a 20.25% hike from the previous quarter. Year-over-year, there is an increase of 5.23%, showing steady operational efficiency.
P/E Ratio: The current Price to Earnings (P/E) ratio stands at 14.8, which is within a normal range, neither particularly high nor low. This ratio suggests that the stock might be fairly valued in the context of current market conditions.

Technical Analysis

Stock Price: Today's stock price is 1.86 BRL, which is a slight increase of 0.54% from a month ago, indicating a positive short-term trend. However, a decrease of 24.70% compared to a year ago signals potential long-term concerns.
SMA10: The current SMA10 is 1.82 BRL, higher than the previous SMA10 of 1.81 BRL. This indicates a potential upward trend in price movement.
RSI: The Relative Strength Index (RSI) is at 41.4, which indicates a neutral condition. An RSI between 30 and 70 represents neither overbought nor oversold conditions, suggesting the stock is currently in a stable phase.

Alternative Data Analysis

Job Postings and Employee Sentiment: Ambev has 333 open positions, up by 25% in the last couple of months, indicating a company's intent to grow and expand. The business outlook among employees is neutral, neither overly optimistic nor pessimistic.
Customer Acquisition: Ambev's website received an estimated 680,000 visitors, which is a 21% decrease in the last couple of months. This could signal potential customer attrition and is a worrisome trend.
Customer Engagement: Considering AltIndex's AI score that incorporates fundamental, technical, and alternative data, Ambev has a score of 60, which indicates a hold signal.

Conclusion

Ambev shows robust revenue and income growth, demonstrating strong performance in its core business operations. The technical indicators present a mixed outlook with a positive short-term trend but some long-term concerns. The alternative data indicate potential issues in customer acquisition but a generally stable workforce sentiment. Given the AI score of 60 and neutral RSI, it seems prudent to recommend holding the stock for now, monitoring closely both fundamental performance and alternative data trends.

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.