One-glance verdict
Undervalued
$62.73 our estimate vs market $24.27
61% below our estimate, below the bear case
Fundamentals snapshot
Embotelladora Andina S.A.
AKO-A · NYQ · Consumer Defensive · Beverages - Non-Alcoholic
Current price
$24.27
52-week range
$18.19 - $26.96
Market cap
$3.83B
Balance sheet
Watch
7.14x Adequate
Net cash $0.00. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 3.7% last year.
- Reward Returns 23.7% on equity, ahead of 66% of its peers.
- Risk Stock trades 99107.4% above its 5-year average P/E.
- Risk Operating margin compressed from 12.8% to 0.0% over 3 years.
What this company does
Embotelladora Andina S.A.
Embotelladora Andina is a major Coca-Cola partner, bottling and selling its drinks across South American countries like Brazil, Chile, and Argentina. The company makes money by selling a huge variety of beverages, from sodas and juices to beer and energy drinks, through a vast network of supermarkets, restaurants, and small retailers. This means its success is closely tied to how much people are spending on everyday drinks in these key South American economies.
How the company got here
Embotelladora Andina started in 1946 with the exclusive right to produce and distribute Coca-Cola products in Chile. Over the years, it expanded by adding juices and mineral water to its lineup and eventually grew beyond Chile's borders. After overcoming financial difficulties in the 1980s, the company began a major expansion in the 1990s, entering the markets of Brazil, Argentina, and later, Paraguay. This growth transformed it from a local Chilean bottler into one of the largest distributors of Coca-Cola products in Latin America.
What it actually does
Think of Andina as the local partner for The Coca-Cola Company in parts of South America. It manufactures, bottles, and sells not just Coca-Cola, but a whole range of other well-known drinks like fruit juices (Del Valle), water (Crystal), sports drinks (Powerade), and energy drinks (Monster). The company also distributes some alcoholic beverages, like beer and spirits, in certain regions. It gets these drinks onto the shelves of supermarkets, small corner stores, restaurants, and bars for people to buy.
Operations in Chile
This is the company's home base and its largest market, contributing the biggest piece of its total sales. In Chile, Andina produces and sells the full range of Coca-Cola beverages, from sodas to juices and bottled water. The company's operations here are very established, covering the capital city of Santiago and many other regions throughout the country. This segment is a mature and significant source of the company's overall business.
Operations in Brazil
Andina's business in Brazil is its second-largest, making up a significant portion of its earnings. The company operates in key areas like the state of Rio de Janeiro, selling a wide variety of drinks. Besides the classic Coca-Cola products, this segment has been expanding its portfolio, including growing its beer brands. Brazil is a major focus for investment and future growth for the company.
Operations in Argentina
In Argentina, Andina operates in several provinces, including Córdoba and Mendoza. This part of the business faces a more challenging economic environment but remains an important piece of the company's overall footprint. It represents a meaningful slice of the company's sales and focuses on efficiently managing its operations in a volatile market. The company sells Coca-Cola's lineup of soft drinks, juices, and water here as well.
Operations in Paraguay
This is Andina's smallest geographic segment, covering the entire country of Paraguay. While it contributes a smaller portion of total revenue compared to the other countries, it is a complete operation that sells and distributes the full portfolio of Coca-Cola beverages. It serves as another area for the company to grow its presence in South America.
What management is betting on now
The company's leadership is heavily focused on using technology to improve its business, investing in digital platforms to manage sales and customer relationships. They are also making big bets on sustainability, such as using more recycled plastic and renewable energy, which they believe is important for long-term success. Another key priority is expanding their product offerings, especially in growing categories like alcoholic ready-to-drink beverages. To support this growth, they are making significant capital expenditures (capex, or money spent on physical assets like new factories and equipment) to increase their production capabilities.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $62.73 vs current price $24.27
Our most-likely fair value is $62.73 a share — about 158.5% above today's price of $24.27, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net cash $0 - more cash than debt. Interest coverage 7.1x.
Net debt
$0.00
Interest coverage
7.14x
Embotelladora Andina S.A.'s profit covers its interest bill about 7.1 times over.
Watch
Worse cushion
Baseline
Better cushion
AKO-A
BASELINE
Embotelladora Andina S.A.
Total debt — Interest coverage 7.14x This is the baseline the peer rows are being compared against.
Total debt $5.53B Interest coverage 8.00x +12% vs AKO-A Has roughly the same debt cushion as AKO-A.
Total debt $14.14B Interest coverage 10.19x +43% vs AKO-A Carries about 1.4x more debt cushion than AKO-A.
Total debt $1.12B Interest coverage 22.28x +212% vs AKO-A Carries about 3.1x more debt cushion than AKO-A.
Total debt $3.75B Interest coverage 8.91x +25% vs AKO-A Carries about 1.2x more debt cushion than AKO-A.
Total debt $33.53B Interest coverage 4.84x -32% vs AKO-A Carries about 1.5x less debt cushion than AKO-A.
What you should know
The case for and against AKO-A
3 Rewards
3 Risks
Rewards
-
Revenue grew 3.7% last year.
-
Returns 23.7% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 99107.4% above its 5-year average P/E.
-
Operating margin compressed from 12.8% to 0.0% over 3 years.
-
Net debt grew 8.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
12.84x
Forward P/E
—
P/B
0.02x
P/S
—
EV/EBITDA
—
PEG ratio
1.22x
Profitability
How much profit each dollar creates
Gross margin
39.5%
Operating margin
0.0%
Net margin
8.3%
ROE
23.7%
ROA
8.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.86x
Current ratio
1.61x
Quick ratio
1.03x
Total debt
—
Total cash
—
Growth
How the business has been compounding
Revenue TTM
$3.55B
Revenue 5Y CAGR
8.0%
EPS TTM
1.89
EPS 5Y CAGR
28.9%
Cash flow
How much cash the business throws off
Operating CF TTM
—
Free CF TTM
$194.77M
FCF margin
5.5%
Dividend
Shareholder payout
Yield
2.8%
Payout ratio
18.8%
Last ex-div date
2026-08-21