Compania Stock Buy Hold or Sell Recommendation

CCU
 Stock
  

USD 10.82  0.16  1.46%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Compania Cervecerias Unidas is 'Strong Sell'. Macroaxis provides Compania Cervecerias buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CCU positions. The advice algorithm takes into account all of Compania Cervecerias' available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Compania Cervecerias' buy-and-hold perspective. Continue to Compania Cervecerias Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Compania and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Compania Cervecerias Unidas.

Execute Compania Cervecerias Buy or Sell Advice

The Compania recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Compania Cervecerias Unidas. Macroaxis does not own or have any residual interests in Compania Cervecerias Unidas or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Compania Cervecerias' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Compania CerveceriasBuy Compania Cervecerias
Strong Sell

Volatility

Not too volatileDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

LowDetails

Economic Sensitivity

Barely shadows the marketDetails

Analyst Consensus

Strong SellDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Compania Cervecerias Unidas has a Mean Deviation of 1.32, Standard Deviation of 1.69 and Variance of 2.87
Our trade advice tool can cross-verify current analyst consensus on Compania Cervecerias and to analyze the company potential to grow in the current economic cycle. To make sure Compania Cervecerias is not overpriced, please confirm all Compania Cervecerias fundamentals, including its book value per share, working capital, and the relationship between the cash and equivalents and number of employees . Given that Compania Cervecerias has a price to book of 1.06 X, we suggest you to validate Compania Cervecerias Unidas market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Compania Cervecerias Trading Alerts and Improvement Suggestions

Compania Cervecerias generated a negative expected return over the last 90 days
Compania Cervecerias Unidas was previously known as UNITED BREWERIES INC and was traded on New York Stock Exchange under the symbol CU.
Latest headline from www.investorsobserver.com: Is Compania Cervecerias Unidas, S.A. Common Stock Stock Trading Below Fair Value - InvestorsObserver

Compania Cervecerias current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Compania analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Compania analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price18.38
Target Median Price15.20
Target High Price23.70
Recommendation Mean3.20
Number Of Analyst Opinions5
Target Low Price15.00
Average Consensus Strong Sell
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Compania Cervecerias Returns Distribution Density

The distribution of Compania Cervecerias' historical returns is an attempt to chart the future uncertainty of Compania Cervecerias' future price movements. The chart of the probability distribution of Compania Cervecerias stock daily returns describes the distribution of returns around its average expected value. We use Compania Cervecerias Unidas price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Compania Cervecerias returns is essential to provide solid investment advice for Compania Cervecerias stock.
Mean Return-0.31Value At Risk-3.08
Potential Upside2.21Standard Deviation1.69
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Compania Cervecerias historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Compania Cervecerias Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(121.97 B)(127.3 B)(128.62 B)(116.62 B)(169.52 B)(182.9 B)
Net Cash Flow or Change in Cash and Cash Equivalents35.55 B177.35 B(101.29 B)204.87 B(119.28 B)(122.42 B)
Net Cash Flow Business Acquisitions and Disposals(49.4 B)(65.33 B)(20.96 B)(19.01 B)(5.76 B)(6.21 B)
Issuance Repayment of Debt Securities87.67 B254.27 B68.51 B435.86 B146.8 B133.3 B
Payment of Dividends and Other Cash Distributions(75.13 B)(74.83 B)(218.04 B)(102.14 B)(274.14 B)(281.35 B)
Net Cash Flow from Financing(53 B)(52.96 B)(199.42 B)64.75 B(233.64 B)(239.79 B)
Net Cash Flow from Investing(173.61 B)(199 B)(144.19 B)(140.55 B)(178.99 B)(193.12 B)
Net Cash Flow from Operations262.16 B429.31 B341.25 B329.42 B389.28 B354.11 B
Effect of Exchange Rate Changes on Cash465.56 M(28.38 B)(21.36 B)(4.85 B)(11.54 B)(11.84 B)

Compania Cervecerias Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Compania Cervecerias or Consumer Defensive sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Compania Cervecerias stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Compania stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.32
β
Beta against DOW0.0029
σ
Overall volatility
1.71
Ir
Information ratio -0.18

Compania Cervecerias Volatility Alert

Compania Cervecerias Unidas exhibits very low volatility with skewness of -0.74 and kurtosis of 0.68. However, we advise investors to further study Compania Cervecerias Unidas technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Compania Cervecerias' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Compania Cervecerias' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Compania Cervecerias Implied Volatility

Compania Cervecerias' implied volatility" href="/stock-options/CCU/Compania-Cervecerias-Unidas">Compania Cervecerias' implied volatility exposes the market's sentiment of Compania Cervecerias Unidas stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Compania Cervecerias' implied volatility" href="/stock-options/CCU/Compania-Cervecerias-Unidas">Compania Cervecerias' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Compania Cervecerias stock will not fluctuate a lot when Compania Cervecerias' options" href="/stock-options/CCU/Compania-Cervecerias-Unidas">Compania Cervecerias' options are near their expiration.

Compania Cervecerias Fundamentals Vs Peers

Comparing Compania Cervecerias' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Compania Cervecerias' direct or indirect competition across all of the common fundamentals between Compania Cervecerias and the related equities. This way, we can detect undervalued stocks with similar characteristics as Compania Cervecerias or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Compania Cervecerias' fundamental indicators could also be used in its relative valuation, which is a method of valuing Compania Cervecerias by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Compania Cervecerias to competition
FundamentalsCompania CerveceriasPeer Average
Return On Equity15.62 %(0.31) %
Return On Asset6.96 %(0.14) %
Profit Margin7.62 %(1.27) %
Current Valuation2.13 B16.62 B
Shares Outstanding184.75 M571.82 M
Shares Owned by Institutions19.35 %39.21 %
Number of Shares Shorted709.98 K4.71 M
Price to Earning4.28 X28.72 X
Price to Book1.06 X9.51 X
Price to Sales1.77 X11.42 X
Revenue2.72 B9.43 B
Gross Profit1190 B27.38 B
EBITDA536.39 M3.9 B
Net Income467.43 M570.98 M
Cash and Equivalents458.2 M2.7 B
Cash per Share2.48 X5.01 X
Total Debt457.3 M5.32 B
Debt to Equity0.76 %48.70 %
Current Ratio1.93 X2.16 X
Book Value Per Share10.22 X1.93 K
Cash Flow from Operations370.33 M971.22 M
Short Ratio2.30 X4.00 X
Earnings Per Share2.53 X3.12 X
Price to Earnings To Growth(3.23) X4.89 X
Number of Employees9.32 K18.84 K
Beta0.38-0.15
Market Capitalization2 B19.03 B
Total Asset658.65 B29.47 B
Retained Earnings798.62 B9.33 B
Working Capital96.86 B1.48 B
Current Asset220.35 B9.34 B
Current Liabilities123.49 B7.9 B
Z Score3.88.72

About Compania Cervecerias Buy or Sell Advice

When is the right time to buy or sell Compania Cervecerias Unidas? Buying financial instruments such as Compania Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Compania Cervecerias investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Current Assets789.28 B960.01 B1,091.37 B1,017.46 B
Total Assets2,353.69 B2,525.34 B2,846.75 B2,652.45 B

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Corona Opportunity
Corona Opportunity Theme
Firms that are involved in some capacity in making products or providing services to the public to buttle the virus directly or indirectly. This also includes some defencive and contrarian stocks and ETFs that are managing to avoid the big market correction coused by coronavirus. The Corona Opportunity theme has 45 constituents at this time.
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Continue to Compania Cervecerias Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Compania Cervecerias information on this page should be used as a complementary analysis to other Compania Cervecerias' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

Complementary Tools for Compania Stock analysis

When running Compania Cervecerias price analysis, check to measure Compania Cervecerias' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Compania Cervecerias is operating at the current time. Most of Compania Cervecerias' value examination focuses on studying past and present price action to predict the probability of Compania Cervecerias' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Compania Cervecerias' price. Additionally, you may evaluate how the addition of Compania Cervecerias to your portfolios can decrease your overall portfolio volatility.
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Is Compania Cervecerias' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Compania Cervecerias. If investors know Compania will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Compania Cervecerias listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
1.85
Market Capitalization
B
Quarterly Revenue Growth YOY
0.19
Return On Assets
0.0629
Return On Equity
0.13
The market value of Compania Cervecerias is measured differently than its book value, which is the value of Compania that is recorded on the company's balance sheet. Investors also form their own opinion of Compania Cervecerias' value that differs from its market value or its book value, called intrinsic value, which is Compania Cervecerias' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Compania Cervecerias' market value can be influenced by many factors that don't directly affect Compania Cervecerias' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Compania Cervecerias' value and its price as these two are different measures arrived at by different means. Investors typically determine Compania Cervecerias value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Compania Cervecerias' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.