KOF - Coca-Cola FEMSA: The World's Largest Coca-Cola Bottler At A Discount To Fair Value
Investment Thesis
Coca-Cola FEMSA (KOF) is the world’s largest Coca-Cola bottling company with operations throughout Latin America. It is a stable business with significant barriers to entry that should grow at a mid-single-digit pace. Despite the stability of the business, the strength of the competitive position, and growth outlook, it trades on an EV/EBITDA of 7.3 times and offers a 3.7% dividend yield. There is 44.5% upside to the target price of MXN137.71.
Key Stats
Company Description
In volume terms, Coca-Cola FEMSA is the largest franchise bottler of Coca-Cola beverages in the world. The company