- Name: Coca-Cola FEMSA, S.A.B. de C.V. $KOF (+0%)
Ticker: KOF (NYSE)- Headquarters: Mexico City
- Industry: Beverages / Bottling
- Employees: ~80,000
- Markets: Mexico, Colombia, Brazil, Argentina, Uruguay, Central America, Philippines
Fundamental key figures (as at: Q2 2025)
- Market capitalization: ~$14 billion
- Sales (TTM): ~$13.5 bn
- EBITDA margin: ~18
- Net profit margin: ~7.5 %
- Dividend per share (2025e): ~$2,35
- P/E ratio (2025e): ~14
- P/E ratio (2025e): ~1,0
- Leverage ratio (net): Low - solid balance sheet protection
🌎 Investment case - 5 strong arguments
Focus on growth regions
- Emerging markets such as Mexico, Colombia, Brazil = population growth & increasing consumption
- Per capita consumption of soft drinks still rising in many markets
- Attractive valuation compared to .KO $KO (-0.37%)
KO is defensive but expensive (P/E > 23) - KOF offers similar business model with significantly lower valuation
Strong partnership with The Coca-Cola Company
- KO holds around 28% of KOF
- Stable supply of Coca-Cola products, long-term contracts
Healthy balance sheet & attractive dividend
- Solid equity ratio, stable free cash flow generation
- Dividend yield currently over 4 %, payout well covered
Hedging against dollar strength / diversification
- KOF earns in local currencies (e.g. Mexican peso, Brazilian real)
- May perform better than KO in a weaker USD scenario
⚠️ Risks
- Currency risks (local currencies against the USD)
- Political risks in LATAM (e.g. Argentina, Colombia)
- Inflation in operating markets can burden cost structure
- Less pricing power than KO (brand owner)
📊 Conclusion
Coca-Cola FEMSA is an often overlooked value pearl in the beverage sector.
While KO convinces with its brand power, KOF offers significantly more growth potential, a better valuation and a higher dividend yield - with a solid balance sheet structure at the same time.
Would the share be an alternative for you?
