CCUCompañía Cervecerías Unidas S.A.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.4×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
A balanced mix of margins, efficiency, and leverage. ROE 12% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CCU?
Compañía Cervecerías Unidas S.A. earns 26% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 17 points above what the capital costs: growth creates value
- Operating margin
- 9.0%
Operating margin · Beverages - Brewers median 18% · fiscal year to FY2024
- Cash conversion
- 1.39×
Cash conversion · 1.55× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 45%
Gross margin
| Year | Operating margin |
|---|---|
| FY2019 | 13% |
| FY2020 | 9.4% |
| FY2021 | 13% |
| FY2022 | 8.1% |
| FY2023 | 9.3% |
| FY2024 | 9.0% |
Details›
- Gross marginfiscal year to FY2024
- 45%
- Operating marginfiscal year to FY2024
- 9.0%
- Net marginfiscal year to FY2024
- 6.1%
- Free cash flow margin
- 4.6%
- Revenue, trailing twelve months
- $2.90T
- Free cash flow, trailing twelve months
- $134.6B
- Net income, trailing twelve months
- $176.5B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 26%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.