Ambev S.A. [NYSE: ABEV] shares went higher by 0.56% from its previous closing of $4.49, now trading at the price of $4.51, also adding 0.02 points. Is ABEV stock a buy or should you stay away?

The stock had a rather active trading session with the latest closing, by far recording 4.19 million contracts. Compared to the average trading volume of ABEV shares, the company saw a far better performance. Moreover, the stock has a 4.39B float and a -0.88% run over in the last seven days. ABEV share price has been hovering between $5.45 and $3.77 lately, and is definitely worthy of attention.

Ambev S.A. [NYSE:ABEV]: Analyst Rating and Earnings

Its stock price has been found in the range of 3.77 to 5.45. This is compared to its latest closing price of $4.49.

Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Thu 24 Oct (In 6 Days).

Fundamental Analysis of Ambev S.A. [ABEV]

Now let’s turn to look at profitability: with a current Operating Margin for Ambev S.A. [ABEV] sitting at +32.38 and its Gross Margin at +59.35.

Turning to investigate this organization’s capital structure, Ambev S.A. [ABEV] has generated a Total Debt to Total Equity ratio of 4.30. Similarly, its Total Debt to Total Capital is 4.12, while its Total Debt to Total Assets stands at 2.52. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 16.45, and its Long-Term Debt to Total Capital is 1.53.

What about valuation? This

company’s Enterprise Value to EBITDA is 14.09 and its Total Debt to EBITDA Value is 0.12. The Enterprise Value to Sales for this firm is now 5.46, and its Total Debt to Enterprise Value stands at 0.01. Ambev S.A. [ABEV] has a Price to Book Ratio of 4.29, a Price to Cash Flow Ratio of 13.62 and P/E Ratio of 24.27. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.

Shifting the focus to workforce efficiency, Ambev S.A. [ABEV] earns $1,004,627 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 6.55 and its Total Asset Turnover is 0.55. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.80 and its Current Ratio is 1.02. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.

Ambev S.A. [ABEV] has 15.73B shares outstanding, amounting to a total market cap of $70.63B. Its stock price has been found in the range of 3.77 to 5.45. At its current price, it has moved down by -17.16% from its 52-week high, and it has moved up 19.76% from its 52-week low.

This stock’s Relative Strength Index (RSI) is at 44.93. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Ambev S.A. [ABEV] a Reliable Buy?

Ambev S.A. [ABEV] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.