SÃO PAULO, March 12, 2025 /PRNewswire/ -- Ambev S.A. [B3: ABEV3; NYSE: ABEV] has submitted its annual report on Form 20-F for the year ending December 31, 2024, to the U.S. Securities and Exchange Commission (SEC) on March 12, 2025. This report can be accessed on the Company's website (ri.ambev.com.br) as well as on the SEC's database (www.sec.gov/edgar/).
We have just put together a list of the 8 Best Value Penny Stocks to Invest in Right Now. In this article, we will examine how Ambev S.A. (NYSE:ABEV) compares to other penny stocks. The weeks before President Donald Trump's inauguration were very positive for investors, with a significant amount of money being invested.
I suggest purchasing Ambev shares because they are fairly priced and Brazilian assets are showing better performance, even though the 4Q24 results were mixed and the future looks tough. Ambev's net revenue increased by 4.2% year-on-year, mainly due to good results in Canada, while the beer market in Brazil struggled because of weather and discounts. Despite facing rising costs, Ambev kept its gross margins steady and has a solid financial status, with a 7.5% increase in net income and BRL 26 billion in net cash.
Ambev S.A. (NYSE:ABEV) will hold its Q4 2024 Earnings Conference Call on February 26, 2025, at 10:30 AM ET. The call will feature company leaders, including CEO Carlos Lisboa and Chief Financial Officer Lucas Lira, along with participants from various financial institutions. The operator will greet everyone and thank them for their patience as the call begins.
Ambev S.A. is considered a Strong Buy because it has a very low valuation, offering a 13% free cash flow and over 5% in dividend yields. Even though the industry faces challenges like low consumer demand and possible tariffs from a trade war, Ambev's valuation is appealing, being the lowest since the 2009 Great Recession. The company also has strong profit margins and low debt, making it an attractive option, despite having minimal sales in the U.S.
Ambev shares have not performed well in recent years. The decline in currency value has negatively impacted dollar returns and the company's profit margins, which have been further affected by rising costs and market conditions in Brazil. Despite a significant drop in valuation, Ambev appears to be undervalued at 12 times earnings and has net cash on hand.
Ambev S.A. shows impressive revenue growth, good operating margins, and a strong balance sheet with low debt, making it an attractive investment even with Brazil's economic difficulties. The company's stock is currently valued at a low level, and it has a strong net cash position along with a high dividend yield of 5.8%. Recent earnings reports indicate positive trends, with net sales increasing by 4.9%, better margins, and a hopeful outlook from management for ongoing growth in both sales and profits.
Ambev S.A. (NYSE:ABEV) will hold its Q3 2024 Earnings Conference Call on October 31, 2024, at 11:30 AM ET. The call will feature company leaders, including CEO Jean Jereissati and CFO Lucas Lira, along with various participants from major financial institutions. The operator will begin by welcoming everyone to the conference call discussing Ambev's third-quarter results.
Ambev SA ABEV is getting closer to a golden cross, which is a technical indicator that might indicate better times for the stock in the future.
A high yield isn't very valuable if the payment behind it can't be maintained.