Education
About Us
Working with TipRanks
Follow Us
Compania Cervecerias Unidas SA (CCU)
NYSE:CCU
RESEARCH TOOLSreports
Top Page
Compania Cervecerias Unidas SA
(NYSE:CCU)
Rating:72Outperform
Price Target:
$16.00
▲(22.98%Upside)
Compania Cervecerias Unidas SA (CCU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.42B
Dividend Yield3.32%
Average Volume (3M)183.62K
Price to Earnings (P/E)13.8
Beta (1Y)0.39
Revenue Growth6.18%
EPS Growth61.39%
CountryUS
Employees9,638
SectorConsumer Defensive
Sector Strength64
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)0.33
Shares Outstanding184,751,500
10 Day Avg. Volume159,836
30 Day Avg. Volume183,621
Financial Highlights & Ratios
PEG Ratio-0.86
Price to Book (P/B)3.14
Price to Sales (P/S)0.00
P/FCF Ratio-48.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.40Price Target Upside-27.75% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering0
Compania Cervecerias Unidas SA Business Overview & Revenue Model
Company DescriptionCompañía Cervecerías Unidas S.A. operates as a beverage company in Chile, Argentina, Bolivia, Colombia, Paraguay, and Uruguay. The company operates through three segments: Chile, International Business, and Wine. It produces and sells alcoholic and non-alcoholic beer under proprietary and licensed brands, as well as distributes Pernod Ricard products in non-supermarket retail stores. The company also produces and sells non-alcoholic beverages, including carbonated soft drinks, nectars and juices, sports and energy drinks, and ice tea; and mineral, purified, and flavored bottled water, as well as ready-to-mix products with instant powder drinks. In addition, it is involved in the production and distribution of pisco, cocktails, rum, flavored alcoholic beverages, gin, and cider. The company serves small and medium-sized retail outlets; retail establishments, such as restaurants, hotels, and bars; wholesalers; and supermarket chains. It also exports its products to Europe, Latin America, the United States, Canada, Asia, Oceania, and internationally. The company was founded in 1850 and is based in Santiago, Chile. Compañía Cervecerías Unidas S.A. is a subsidiary of Inversiones y Rentas S.A.
How the Company Makes MoneyCCU generates revenue through the production, distribution, and sale of its diverse range of beverages across Latin America. The company's primary revenue streams include the sale of beer, which is one of its most significant segments, followed by non-alcoholic beverages like soft drinks, bottled water, and juices. Additionally, CCU earns from the sale of spirits and wines. The company benefits from its extensive distribution network and strategic partnerships, allowing it to maintain a strong presence in both domestic and international markets. CCU's earnings are further supported by its ability to innovate and adapt to changing consumer trends, ensuring its product offerings remain competitive and attractive to customers in various regions.
Compania Cervecerias Unidas SA Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -15.08%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance with positive financial growth in terms of EBITDA and net income, driven by international operations, particularly in Argentina. However, the company faced challenges with declining volumes, especially in Chile, and global trends of decreasing alcohol consumption impacting their wine business. Despite this, the company remains focused on strategic growth and efficiency improvements.Q1-2025 Updates
Positive Updates
Increase in Consolidated EBITDA and Net Income
CCU delivered higher financial results versus last year, expanding consolidated EBITDA and net income by 6% and 10.7% respectively.
Revenue Growth in International Business
The International business operating segment recorded a 6.3% increase in organic net sales, driven by higher organic average prices, which offset a 1.2% contraction in organic volumes.
Strong Performance in Argentina
Organic EBITDA in the International segment expanded by 28.1%, driven by strong performance in Argentina, Uruguay, and Bolivia.
Efficient Cost Management
Despite inflationary pressures, organic MSD&A expenses increased only by 2.7%, with efficiency improvements offsetting cost pressures.
Strategic Focus on Profitability and Growth
CCU continues implementing its 2025-2027 strategic plan focusing on profitability, growth, and sustainability.
Negative Updates
Decline in Organic Volumes
Organic consolidated volumes were down 1.8% due to soft consumption across all operating segments.
Challenges in Chile Operating Segment
The Chile Operating segment saw organic EBITDA decrease by 2.4% and a contraction in organic gross margin by 180 basis points.
Decreasing Alcohol Consumption Trends
There is a global trend of declining alcohol consumption impacting sales, particularly in the wine segment.
Manufacturing Cost Pressures in Chile
Higher manufacturing costs in Chile due to inventory depletion, higher labor costs, and write-offs of old technology lines.
Weaker Demand in Wine
Weak demand in wine observed in both local market and exports, attributed to changing consumption patterns.
Company Guidance
In the first quarter of 2025, CCU reported a 6% increase in consolidated EBITDA and a 10.7% rise in net income despite a challenging market environment. The company's organic consolidated net sales saw a 3% uptick, primarily driven by a 4.9% increase in organic average prices, although organic volumes decreased by 1.8%. Gross profit grew organically by 1.7%, while the organic gross margin contracted by 56 basis points due to higher sales costs. Organic MSD&A expenses increased by 2.7% in Chilean pesos, with efficiencies helping to offset inflationary pressures. Across segments, the Chile Operating segment experienced a 2.8% top-line growth, while the International business segment recorded a 6.3% increase in organic net sales. The U.S. segment saw a 2.1% rise in the top line, driven by a 6.2% increase in average prices, despite a 3.8% drop in volumes. For the year ahead, CCU aims to focus on its 2025-2027 strategic plan, emphasizing profitability, growth, and sustainability amid ongoing market volatility.Compania Cervecerias Unidas SA Financial Statement Overview
Summary
Compania Cervecerias Unidas SA exhibits robust financial health with strong profitability and operational efficiency. The income statement reflects solid revenue and profit growth, while the balance sheet shows a balanced approach to leveraging debt and equity. Cash flow metrics are favorable, supporting the company's ability to sustain operations and invest in growth opportunities.Income Statement
The company has demonstrated solid revenue growth with a notable increase from previous periods. Gross profit margin and net profit margin are strong, indicating efficient cost management and profitability. EBIT and EBITDA margins are stable, reflecting consistent operational performance.85
Very Positive
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, suggesting a balanced use of debt and equity. The return on equity is commendable, indicating effective use of equity to generate profits. However, the equity ratio is moderate, highlighting a need for maintaining a healthy balance between liabilities and equity.78
Positive
Cash Flow
Operating cash flow is strong relative to net income, indicating efficient cash generation from operations. The free cash flow has shown growth, suggesting improved financial flexibility. The cash flow metrics reflect a positive capacity to fund operations and investments.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.98T | 2.90T | 2.57T | 2.71T | 2.48T | 1.86T | Gross Profit |
| 1.34T | 1.31T | 1.19T | 1.20T | 1.19T | 873.56B | EBIT |
| 264.51B | 262.61B | 239.97B | 218.76B | 330.47B | 175.18B | EBITDA |
| 344.98B | 372.61B | 344.05B | 332.41B | 454.00B | 288.81B | Net Income Common Stockholders |
| 166.52B | 160.94B | 105.65B | 118.17B | 199.16B | 96.15B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 771.43B | 707.95B | 621.47B | 609.04B | 279.58B | 403.72B | Total Assets |
| 3.91T | 3.99T | 3.42T | 3.60T | 2.85T | 2.53T | Total Debt |
| 1.41T | 1.41T | 1.33T | 1.37T | 573.65B | 490.46B | Net Debt |
| 639.75B | 707.45B | 711.11B | 775.48B | 308.08B | 94.07B | Total Liabilities |
| 2.24T | 2.32T | 2.09T | 2.16T | 1.42T | 1.12T | Stockholders Equity |
| 1.54T | 1.53T | 1.22T | 1.32T | 1.31T | 1.30T |
| Cash Flow | Free Cash Flow | ||||
| 181.43B | 127.43B | 164.65B | -85.44B | 121.50B | 157.88B | Operating Cash Flow |
| 296.67B | 287.52B | 294.10B | 118.17B | 293.36B | 280.67B | Investing Cash Flow |
| -92.40B | -118.29B | -137.23B | -236.46B | -178.99B | -140.55B | Financing Cash Flow |
| -95.12B | -125.04B | -118.04B | 537.10B | -233.64B | 64.75B |
Compania Cervecerias Unidas SA Technical Analysis
Negative
13.01
Price Trends
14.38
Negative
14.01
Negative
12.52
Positive
Market Momentum
-0.39
Positive
30.24
Neutral
10.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCU, the sentiment is Negative. The current price of 13.01 is below the 20-day moving average (MA) of 13.63, below the 50-day MA of 14.38, and above the 200-day MA of 12.52, indicating a neutral trend. The MACD of -0.39 indicates Positive momentum. The RSI at 30.24 is Neutral, neither overbought nor oversold. The STOCH value of 10.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCU.
Compania Cervecerias Unidas SA Risk Analysis
Compania Cervecerias Unidas SA disclosed 31 risk factors in its most recent earnings report. Compania Cervecerias Unidas SA reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Compania Cervecerias Unidas SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $141.94B | 24.37 | 7.31% | 1.47% | 0.64% | 10.02% | |
78 Outperform | $39.25B | 14.96 | 15.09% | 3.59% | 1.25% | -13.02% | |
73 Outperform | $21.76B | 22.04 | 9.84% | 1.72% | -0.37% | 44.52% | |
72 Outperform | $2.42B | 13.81 | 11.33% | 3.32% | 6.18% | 61.39% | |
67 Neutral | $10.06B | 9.98 | 7.90% | 3.72% | -5.17% | -0.74% | |
67 Neutral | $2.31B | 34.30 | 7.36% | ― | 0.79% | -24.27% | |
65 Neutral | $8.81B | 15.01 | 4.71% | 3.72% | 3.60% | -2.89% |
* Consumer Defensive Sector Average
Performance Comparison
CCU
Compania Cervecerias Unidas SA
13.01
1.61
14.12%
BUD
Anheuser-Busch Inbev Sa
71.24
12.80
21.90%
SAM
Boston Beer
207.53
-88.03
-29.78%
FMX
Fomento Economico Mexicano
104.82
1.02
0.98%
TAP
Molson Coors
49.62
0.94
1.93%
ABEV
Ambev SA
2.43
0.49
25.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.