I'm looking into Embotelladora Andina, a Chilean company dedicated to the production and distribution of drinks (including Coca-Cola & Monster Beverages).
It is operating in Chile, Brazil, Argentina & Paraguay and seems like an interesting company to have exposure to LATAM.
However, I am trying to figure out what am I missing as it seems quite cheap.
The revenues are up more than 100% over the last decade and were increasing in 7/10 years.
The gross margin remains stable at around 40% while the operating margin slightly improved from 12 to 13%.
Operating income for LTM – $351m
Net debt remains fairly stable around $900m
Market cap – $1.64b
Hence –>EV is around $2.5b
P/E is around 8
In the meantime, the share price has been quite volatile and now is at a very, very low point historically. I cannot tie the numbers to the share price movement as the fundamentals remain stable and strong throughout the entire decade.
It could be that it is trading cheap only because it is in LATAM and there's always political as well as inflation risk.
What are your thoughts?
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