Embotelladora Andina Series B

AKO.B

Market cap $4.64B

Embotelladora Andina (AKO.B) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.

Embotelladora Andina (AKO.B, AKO.A) delivered solid sales growth in CLP, but volume and margin trends were mixed across regions. Brazil outperformed with positive volumes and margin expansion, while Chile and Argentina faced volume pressures and margin challenges. At nearly 20x TTM earnings and a 4.8% earnings yield, AKO's valuation is unattractive for a Latin American consumer discretionary stock.

Embotelladora Andina's business has improved, especially in Argentina, driving a 20%+ share price gain, but cyclical risks remain. I estimate a total return potential of 11–12%, combining a 6–7% distributable yield with 5% long-term growth, using a cash flow-based model. Argentina's recovery led recent growth, but sustainability is questionable due to currency and inflation risks; Chile and Brazil show moderate pricing power.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

BBCP, GFI, PBPB, AKO.B and ICL have been added to the Zacks Rank #1 (Strong Buy) List on February 3, 2025.

Embotelladora Andina S.A.'s Q2 2024 results showed strong performance in Brazil and Paraguay, but challenges in Chile and Argentina. Future growth potential in Brazil, Chile, and Argentina, but exposure to inflation-adjusted debt in Chile remains a concern. Valuation of Andina is fair but less opportunistic, with multiples of 12.7x EV/NOPAT and 11x P/E, making it a Hold at current prices.

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