Daily Stock Analysis: Embotelladoro Andina

By Fredrik Arnold
Tuesday, December 6, 2022 7:25 AM EDT

Embotelladora Andina SA bears the ticker symbol (AKO-B), and this is my first mention of Embotelladora Andina for my new Viking Portfolio, or for any of my previous seven Dog of The Week Portfolios.

Embotelladora Andina SA is a Coca-Cola bottler in Latin America that produces carbonated soft drinks, water, fruit juices, energy drinks, and sports drinks that it sells under various Coca-Cola brands.

Its geographic segment includes Chile, Brazil, Argentina, and Paraguay. The company also sells non-Coca-Cola branded teas, juices, beers, and spirits.

It offers its products primarily through small retailers, restaurants and bars, supermarkets, and distributors.

Embotelladora Andina S.A. was incorporated in 1946 and is headquartered in Santiago, Chile.

Three key data points gauge

Embotelladora Andina SA:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

AKO-B Price

Embotelladora’s price per share was $12.36 at Monday’s market close. However, in the past year, AKO-B’s share price fell slightly by $0.14 or about 1%.

If Embotelladora’s stock trades in the range of $8.00 to $14.00 this next year, its recent $12.36 share price might reach $13.00 by next year. My upside increase estimate of $0.64 is $0.49 over the median of eight analysts one year price target estimates.

AKO-B Dividends

Embotelladora’s most recently declared quarterly dividend of $0.2125 per share, equals  $0.85 annually and casts an annual yield of 6.88%.

AKO-B Returns

Adding the $0.85 annual estimated AKO.B dividend to my one-year price upside estimate of $0.64 reveals a $1.49 potential gross gain per share.

At Monday’s $12.36 closing price, a little over $1000 would buy 81 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.12 per share.

Subtract that maybe $0.12 brokerage cost from my estimated $1.49 gross gain per share results in a net gain of $1.37 X 81 shares = $110.97 for a 10% net gain including a 6.88% annual dividend yield.

In a year a $1K investment in shares of Embotelladora Andina SA would generate $68.80 in cash dividends. Of course, a single share of AKO-B stock at Friday's $12.36 price is over 5.5 times less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to buy Embotelladora’s shares based on their dividends for the coming year 2023. The current dividend from $1K invested is 5.56 times more than AKO-B’s single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of Embotelladora Andina SA. Only time and money invested in this stock will determine its market value.

More By This Author:

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Daily Stock Analysis: Old Republic International
Daily Stock Analysis: Newtek Business Services Corp.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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