Despite a multi-quarter run of better-than-expected results,
Coca-Cola FEMSA (
NYSE:KOF)
still isn’t getting its due in the market. The company has had to deal
with input cost inflation, economic turbulence in multiple markets, and
more distant challenges like labeling and taxation
changes and a sometimes-contentious relationship with Coca-Cola (KO),
but the company has executed strongly in recent quarters and if
anything is better-leveraged to easing input costs than vulnerable to
higher costs. Mid-single-digit
revenue and FCF growth can support a double-digit return from here, and
the shares likewise look undervalued on an EV/EBITDA basis given the
company’s growth, margins, returns, brand value, and strategic
opportunities.
Continue reading here:
Cracking Open Coca-Cola FEMSA Could Prove Refreshing For Investors
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