Core Argument - The US dollar's weakening value due to nearly $35 trillion in unpayable Treasury debt suggests investors should diversify portfolios overseas, with Ambev SA (ABEV) being a top foreign pick [1] - Ambev's undervaluation, combined with a weaker US dollar, could lead to a dramatic share price increase over 2-3 years, potentially doubling or tripling in price with a high 6.5% dividend payout [1] Weak Dollar Argument - Dedollarization in international trade is expected to continue over the next decade, driven by US deficit spending and potential economic recession risks [2] - The Brazilian Real has been gaining ground against the US dollar since mid-2020, with $1 USD now exchanging for $5.12 BRL, making foreign assets like Ambev more attractive [2] Ambev's Valuation - Ambev is currently at one of its cheapest valuations in 20 years, with a trailing dividend yield of 6.5%, the highest in the global brewery and distilled beverage industries [4] - Key financial ratios include price to trailing earnings (12.7x), sales (2.3x), cash flow (7.46x), and book value (2.26x), similar to recession lows in 2009 and 2020 [4] - Ambev's enterprise valuation metrics, such as EV to forward cash EBITDA (6.2x) and revenues (2.06x), are at 10-year lows, approaching 2009 Great Recession levels [6] Financial Metrics - Ambev's free cash flow yield is 10.1%, the highest since the 2009 global recession, and significantly higher than US large caps, which are yielding at or below 5% [7] - The company has a conservative balance sheet with more cash than debt (net $3 billion in cash), and gross profit margins exceeding 50% [5][8] Peer Comparison - Ambev is the least expensive major beer brewery or liquor distiller globally compared to peers like Heineken, Anheuser-Busch InBev, and Diageo [6] - Seeking Alpha's Quant Valuation Grade gives Ambev an "A," with key metrics like P/E Non-GAAP (TTM) at 12.45, 32.49% below the sector median [9] Earnings and Growth - Ambev's earnings estimates for 2024-26 show modest growth, with 2025 EPS expected to increase by 9.79% YoY, while sales are projected to grow steadily [10] - The company's stable business model and defensive nature make it desirable in a potential recession or market volatility scenario [9] Dividend Appeal - Ambev's trailing dividend yield of 6.48% is the highest since the company began paying dividends in 2006 and the strongest relative to the S&P 500 index [11] - The yield is also the highest among peer breweries and distillers, making it an attractive income investment with a sound balance sheet and strong profit margins [12] Upside Potential - A return to 10-year average financial ratios could push Ambev's share price to $4.00, offering a potential total return of +80% [15] - If the US dollar declines further and the Brazilian economy outperforms, price targets of $5 or $6 are possible, with total returns of +150% to +200% over 2-3 years [15] Downside Risks - A material decline in the Brazilian Real vs the US dollar or global financial turmoil could pressure Ambev's operating results and share price [14] - However, Ambev's current valuation is so cheap that it is expected to outperform the S&P 500 in a bear market scenario [14]

carlosgaw/E+ via Getty Images The 1-Second Thesis Ambev's (NYSE:ABEV) valuation is tied in to the strength of the Brazilian Real. That simple. Beer as a Forex Investment The most basic assumption in investing is that the share price of a company will reflect earnings, free cash flow and revenue growth over a long period of time, thus the usefulness of discounted cashflow models. However, using this type of analysis is almost useless in the case of Ambev, the Brazilian juggernaut in the brewing industry. ...

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SÃO PAULO, March 11, 2024 /PRNewswire/ -- Ambev S.A. [B3: ABEV3; NYSE: ABEV] announces that the Company's annual report on Form 20-F for the year ended December 31, 2023 was filed with the U.S. Securities and Exchange Commission - SEC ("SEC") on March 11, 2024 and is available on the Company's website (ri.ambev.com.br) and also on the SEC (www.sec.gov/edgar/). ADR holders may receive a hard copy of the Company's complete audited financial statements contained in the Form 20-F free of charge, upon request. T ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ¨ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ¨ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ...

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of March, 2024 Commission File Number 1565025 AMBEV S.A. (Exact name of registrant as specified in its charter) AMBEV S.A. (Translation of Registrant's name into English) Rua Dr. Renato Paes de Barros, 1017 - 3rd Floor 04530-000 São Paulo, SP Federative Republic of Brazil (Address of principal executive office) Indicate by ...

Stocks trading for under $20 tend to be more established than their penny stock counterparts which trade for under $5. Yet, they also offer growth potential along with that increased stability. While not as dependable as the revered dividend aristocrats, all three of these 5% dividend stocks will generate passive income for your portfolio.They offer a compelling mix of growth potential and income through those dividends that can combine to create impressive returns overall. Let’s take a look at those three ...

Penny stocks tend to be risky. Most companies end up with a low share price due to some major fundamental problem with the business, such as a bad balance sheet or low levels of profitability.However, there can be diamonds in the rough. If you’re looking for a low-priced penny stock bargain for January 2024, these three stocks should be at the top of your watchlist.Planet Labs (PL)Source: ShutterstockPlanet Labs (NYSE:PL) is a company focused on the Earth observability category of the space industry. Specif ...

Investors have been preoccupied with interest rates over the past year. The Federal Reserve raised interest rates at its fastest rate in many years. This caused steep selloffs in many sectors of the stock market. For companies with heavy debtloads or high capital intensity, higher interest rates could be an existential risk.For other companies, however higher interest rates are no big deal. The following seven companies all have long-term debt to equity ratios of 0.1 or less, meaning that they have pristine ...

Ambev S.A. (NYSE:ABEV) Q3 2023 Earnings Conference Call October 31, 2023 11:30 AM ET Company Participants Jean Jereissati – Chief Executive Officer Lucas Lira – Chief Financial, Investor Relations and Shared Services Officer Conference Call Participants Isabella Simonato – Bank of America Robert Ottenstein – Evercore Thiago Duarte – BTG Pactual Ben Theurer – Barclays Felipe Ucros – Scotiabank Alan Alanis – Santander Operator Good morning, good afternoon, and thank you for waiting. We would like to welcome e ...