Coca-Cola FemsaB de CV (Coca-Cola FemsaB de CV) Earnings Yield %

: 5.76% (As of today)

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The earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.

As of today (2024-04-18), the stock price of Coca-Cola FemsaB de CV is $92.80. Coca-Cola FemsaB de CV's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $5.34. Therefore, Coca-Cola FemsaB de CV's earnings yield of today is 5.76%.

The earnings yield does not consider the growth of the business. A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Coca-Cola FemsaB de CV's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was -32.99%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.

Coca-Cola FemsaB de CV Earnings Yield % Calculation

Earnings yield is the reciprocal of the P/E Ratio.

Coca-Cola FemsaB de CV's Earnings Yield for today is calculated as

Earnings Yield	=	Earnings per Share (Diluted) (TTM)	/	Share Price
	=	5.343	/	92.80
	=	5.76 %

Coca-Cola FemsaB de CV's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $5.343 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

Earnings Yield

Net Income

Market Cap

The earnings in the calculation is the Trailing Twelve Months earnings.

Coca-Cola FemsaB de CV (NYSE:KOF) Earnings Yield % Explanation

If the P/E ratio is an indication of how many years it takes for the company to earn back the stock price shareholders pay to buy the shares, the earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.

If a company loses money, the earnings yield is negative. This gives a more straightforward indication that the company is losing money. This is an advantage of using earnings yield instead of the P/E ratio in valuation. For valuation purposes, the P/B Ratio and the P/S Ratio should be used for companies that are losing money.

Like the P/E ratio, the earnings yield can be used to compare investments in different industries. It can even be used to compare the attractiveness of different asset classes such as bonds and cash. Of course, the earnings yield should not be the only factor in deciding which asset classes to invest.

Also similar to the P/E ratio, the earnings yield does not consider the growth of the business. A growing company with the same earnings yield should be more attractive than a company that has the same earnings yield but does not grow.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %.

Be Aware

Just like the P/E Ratio, non-recurring items such as selling part of the business, selling a previous investment, etc., can affect earnings yield dramatically. The earning yield is also a poor indication for cyclical companies. When a cyclical stock has a high earnings yield it is usually at the peak of its cycle.

Coca-Cola FemsaB de CV Earnings Yield % Related Terms

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Coca-Cola FemsaB de CV (Coca-Cola FemsaB de CV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » Coca-Cola Femsa SAB de CV (NYSE:KOF) » Definitions » Earnings Yield %

Comparable Companies

Traded in Other Exchanges

COCSF:USA KOFUBL:Mexico CFS5:Germany CFSL:Germany CFSL:Germany KOF:Argentina

Address

Calle Mario Pani Number 100, Santa Fe Cuajimalpa, Cuajimalpa de Morelos, Ciudad de Mexico, DF, MEX, 05348

Website

https://www.coca-colafemsa.com

Coca-Cola Femsa, a subsidiary of Femsa, is the largest franchise bottler of wide-moat Coca-Cola in unit case volume terms. The company purchases beverage concentrates and syrup from Coca-Cola, which it then processes and packages for distribution through on-trade and off-trade channels, including retailers and food-service providers. Mexico and Brazil make up 80% of total sales for Coca-Cola Femsa, with the rest from other Central and South American countries, including Panama, Guatemala, Uruguay, and Argentina. Parent Femsa and Coca-Cola hold 47% and 28% of economic interests in Coca-Cola Femsa, through nonpublicly traded A and D shares, respectively, while controlling 56% and 33% of the respective voting rights.