Price-to-book ratio or P/B ratio is essentially the ratio of stock price to book value, i.e., how much an investor needs to pay for each dollar of book value of a stock. It is calculated by dividing the current closing price of the stock by the book value per share.In value investing, it is a common practice to pick stocks that are cheap but fundamentally strong. There are a number of investment styles for finding great stocks at attractive values.While considering valuation metrics, though price-to-earning ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to fi ...

Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Cervecerias Unidas (CCU) and Constellation Brands (STZ) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimat ...

MoreISO/iStock Editorial via Getty ImagesCompañía Cervecerías Unidas (NYSE:CCU) is a Chilean beverage company. It's a market leader in its home market and a challenger in a number of other South American countries. CCU produces and distributes market leading brands, has owners with deep pockets and a robust balance sheet. The financial performance of CCU is somewhat in a turnaround position. The company is still pursuing to reach pre-covid profitability level after suffering from several external factor ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these ...

Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Constellation Brands (STZ) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy ...

Financial Data and Key Metrics Changes - In Q3 2023, consolidated EBITDA increased by 27.7%, with an EBITDA margin improvement of 269 basis points [6][11] - Revenues expanded by 0.4%, driven by a 5.1% increase in volumes, offset by a 5.7% rise in average prices in Chilean pesos [9][10] - Net income dropped by 44.9%, totaling CLP9,499 million [11] Business Line Data and Key Metrics Changes - **Chile Operating Segment**: Revenue grew by 5.1%, with a 4.7% decrease in volumes offset by a 10.2% increase in average prices. EBITDA reached CLP52,618 million, growing 38.7% [14][15] - **International Business Segment**: Net sales contracted by 2.4% due to a 4.3% drop in volumes, partially offset by a 2% increase in average prices. EBITDA reached CLP25,785 million, a 30.2% increase [16][17] - **Wine Operating Segment**: Revenues decreased by 4.7%, primarily due to a 17.3% contraction in volumes. EBITDA fell by 21.2% to CLP11,606 million [18][19] Market Data and Key Metrics Changes - In Chile, the overall consumption environment was challenging, with lower volumes attributed to unfavorable weather and economic conditions [9][14] - In Argentina, volumes in the water business decreased due to a challenging consumption environment, while other regions showed volume expansion [20] Company Strategy and Development Direction - The company is focused on maintaining business scale and improving profitability through the HerCCUles plan, which emphasizes revenue management, efficiency gains, and brand equity investment [7][8] - The strategy includes optimizing capital expenditures and working capital while focusing on core brands and high-margin innovations [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need for stronger efforts to navigate economic deceleration and volatility in exchange rates and commodity prices [6][7] - There is cautious optimism regarding the recovery of wine exports, with a positive trend noted in October [82] Other Important Information - The company reported a significant improvement in cash generation, with net cash inflow from operating activities totaling CLP205,681 million [13] - Nonrecurring expenses of CLP8,665 million were related to the integration of the route-to-market for the joint venture in Argentina [12] Q&A Session Summary Question: Volumes and Post-Pandemic Correction - Management indicated that comparing current volumes to 2021 is misleading due to the unique consumption boom that year. Volumes are 14% lower than pre-pandemic levels [23][24] Question: Cost Outlook - Management noted mixed signals regarding costs, with pressures in the non-alcoholic segment due to high sugar prices, while barley prices have stabilized [37][38] Question: Marketing Investment - Management emphasized the importance of marketing to maintain brand equity, indicating that current marketing expenses are returning to normal levels [44][45] Question: Pricing Strategy - The company plans to increase prices in line with inflation, particularly in the non-alcoholic segment due to rising commodity costs [50][52] Question: Portfolio Complexity - The company is reducing SKUs that do not provide sufficient volume or margin, focusing on high-volume and high-margin products [56][57] Question: Beer Industry Outlook - Management expects growth in the beer industry to slow, with volumes still above pre-pandemic levels, but acknowledges potential challenges ahead [63] Question: Wine Segment Outlook - Management expressed cautious optimism for the wine segment, noting a decrease in export volumes is improving, with a positive trend in October [82]

(283,850) | --- | --- | |-------------------------------------------------------------------------------------------------|---------| | Business Growth (volume, price and efficiencies – ExCCelencia / Plan deTransformación CCU) | 412,133 | | EBITDA 2022 | 357,929 | (1) Excludes the one-time effect compensation of CLP 18,882 million at EBITDA level received by our Argentine subsidiary CICSA during 2Q14 for the termination of the contract which allowed us to import and distribute on an exclusive basis Corona a ...

CompañÃa CervecerÃas Unidas S.A. (NYSE:CCU) Q2 2023 Earnings Conference Call August 10, 2023 12:00 PM ET Company Participants Claudio Heras - Head of IR Felipe Dubernet - CFO Conference Call Participants Felipe Ucros - Scotiabank Fernando Olvera - Bank of America Henrique Brustolin - BTG Pactual Operator Good day, everyone. And welcome to CCU's Second Quarter 2023 Earnings Conference Call. Please note that today's conference is being recorded. At this time, I would like to turn the conference over to Claudi ...

Financial Data and Key Metrics Changes - In Q1 2023, revenues increased by 4.5%, driven by an 8.1% growth in average prices in Chilean pesos, despite a low single-digit drop in volumes [28][30] - Gross profit rose by 9.6%, and gross margin improved by 227 basis points, attributed to lower cost pressures from favorable packaging material costs [29] - EBITDA saw a slight increase of 0.2%, while EBITDA margin contracted by 80 basis points, indicating a need for further efforts to consolidate profitability [30] Business Line Data and Key Metrics Changes - The International Business Operating segment experienced a 4.7% rise in net sales, driven by a 13.9% increase in average prices, although volumes contracted by 8.1% [32] - The Wine operating segment faced significant challenges, with revenues down 17.7% due to weaker volumes, particularly in exports, which dropped in the low-20s percentage [33] - Domestic volumes in Chile dropped mid-single digits, leading to a 32.5% decline in gross profit and a 69.5% fall in EBITDA [11] Market Data and Key Metrics Changes - The consumption environment in Argentina weakened, contributing to lower volumes across all geographies, particularly affecting the International Business segment [32] - The wine business is experiencing a global reduction in consumption, impacting inventory levels and sales [16][22] Company Strategy and Development Direction - The company is focusing on the six pillars of the HerCCUles 2023 plan, which include maintaining business scale, enhancing revenue management, optimizing capital expenditures, and investing in brand equity [2][27] - There is an emphasis on improving efficiency and managing costs to navigate the inflationary environment [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the tough economic environment but noted a recovery in financial results, primarily driven by the implementation of the HerCCUles plan [54] - The company expects to continue facing challenges in the wine segment due to global inventory adjustments and reduced consumption [39][46] Other Important Information - The company reported stronger cash generation, with net cash inflow from operating activities expanding compared to the previous year [8] - Marketing expenses as a percentage of net sales deteriorated, but the company plans to continue investing in brand equity despite the modest demand [7][62] Q&A Session Summary Question: How is the consumer reacting to price increases in Chile? - Management indicated that consumer resilience is observed despite price increases, with a slight volume decrease of 1.1% [14][36] Question: What actions are planned for the wine business? - Management acknowledged the need to enhance the HerCCUles plan within the wine business, focusing on efficiency improvements [15][39] Question: How are marketing expenses being managed in light of modest demand? - The company plans to protect brand equity and continue investing in marketing, aligning with their strategic pillars [62] Question: What is the outlook for volume recovery in international markets? - Management expressed that recovery in Argentina is unlikely due to high inflation, while other markets may stabilize [52][64]