Why We Think Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) Could Be Worth Looking At

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF), it is a notable dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Coca-Cola FEMSA. de here.

Established dividend payer and good value

KOF's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of KOF's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, KOF's share price is trading below the group's average. This further reaffirms that KOF is potentially undervalued.

NYSE:KOF Intrinsic value, October 7th 2019
NYSE:KOF Intrinsic value, October 7th 2019

For those seeking income streams from their portfolio, KOF is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.9%.

NYSE:KOF Historical Dividend Yield, October 7th 2019
NYSE:KOF Historical Dividend Yield, October 7th 2019

Next Steps:

For Coca-Cola FEMSA. de, there are three relevant aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for KOF’s future growth? Take a look at our free research report of analyst consensus for KOF’s outlook.

  2. Historical Performance: What has KOF's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KOF? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.