Is Compania Cervecerias Unidas S.A. (CCU) Stock Cheap Or Risky?


As of Wednesday close, Compania Cervecerias Unidas S.A.’s (NYSE:CCU) stock was up $0.23, moving up 1.98 percent to $11.85. The average number of shares traded per day over the past five days has been 276,280 shares. 3 times new highs have been achieved over the past 5 days, with a $0.48 gain in that time frame. In the last twenty days, the average volume was 206,560, while in the previous 50 days, it was 271,330.

Since last month, CCU stock rose 13.83%. Shares of the company fell to $10.18 on 10/25/22, the lowest level in the past month. A 52-week high of $17.78 was reached on 01/21/22 after having rallying from a 52-week low of $9.31. Since the beginning of this year, CCU’s stock price has dropped by -27.79% or -$4.56, and marked a new high 7 times. However, the stock has declined by -33.35% since its 52-week high.

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Valuation Metrics

Right now, Compania Cervecerias Unidas S.A. (CCU) has a P/E ratio of about 13.91. The stock’s beta is 0.78. Besides these, the trailing price-to-sales (P/S) ratio of 0.74, the price-to-book (PB) ratio of 1.44.

The latest dividend of $0.3080 per share was paid out, which is -56.41% less than last year’s $0.7066. On Thursday April 14 2022, a $0.3986 dividend decrease was announced.

Financial Health

In the three months ended March 30, Compania Cervecerias Unidas S.A.’s quick ratio stood at 1.40, while its current ratio was 2.00, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 0.84, and the total debt-to-equity ratio was 0.99. On the profitability front, the trailing twelve-month gross margin is 44.60% percent. In the year ended March 30, operating margins totaled 9.40%. Based on annual data, CCU earned $1.55 billion in gross profit and brought in $3.23 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 13.10%. Return on equity (ROE) for the past 12 months was 10.80%.

According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. CCU’s revenue rose 25.24% during the quarter, while net income inched up to $3.61 billion. While analysts expected Compania Cervecerias Unidas S.A. to report $0.36 quarterly earnings, the actual figure was $0.43 per share, beating the consensus estimate by 19.40%. During the quarter, the company generated $38.35 million in EBITDA. The liabilities of Compania Cervecerias Unidas S.A. were 2.38 billion at the end of its most recent quarter ended March 30.

Technical Picture

This quick technical analysis looks at Compania Cervecerias Unidas S.A.’s (CCU) price momentum. With a historical volatility rate of 22.84%, the RSI 9-day stood at 70.34% on 23 November.

With respect to its five-day moving average, the current Compania Cervecerias Unidas S.A. price is up by +4.22% percent or $0.48. At present, CCU shares trade +13.94% above its 20-day simple moving average and -5.95% percent below its 100-day simple moving average. However, the stock is currently trading approximately +10.54% above its SMA50 and -24.52% below its SMA200.

Stochastic coefficient K was 82.03% and Stochastic coefficient D was 72.49%, while ATR was 0.35. Given the Stochastic reading of 95.92% for the 14-day period, the RSI (14) reading has been calculated as 65.11%. As of today, the MACD Oscillator reading stands at 0.14, while the 14-day reading stands at 0.21.

Analyst Ratings

Compania Cervecerias Unidas S.A. downgraded its rating on Compania Cervecerias Unidas S.A. (NYSE: CCU) to a Hold in a note to investors on November 14, 2022. The analysts firm previously had a Buy rating on the stock.Compania Cervecerias Unidas S.A. (CCU) has been rated Hold by analysts. According to 0 brokerage firms, CCU is a sell, and 7 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 0 analysts rate Compania Cervecerias Unidas S.A. stock as buy, with 2 recommending it as overweight.

With a median target price of $13764.80, the current consensus forecast for the stock is $9992.00 – $23102.30. Based on these forecasts, analysts predict Compania Cervecerias Unidas S.A. (CCU) will achieve an average price target of $14374.39.


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