Andina Bottling Co Inc (AKO-A)

Price$23.40Cached quoteAs of 2026-09-05 09:09 UTC

AI: Undervalued

Price checkThe Series A shares look modestly undervalued, with solid earnings and a large discount to Series B.

The market values this ticker at about twelve times trailing earnings and roughly one-fifth below the more liquid Series B depositary shares. Series B receives a 10% higher dividend per underlying share, while Series A trading is extremely thin, so part of the gap is justified by class rights and liquidity. Still, with first-half earnings rising and leverage low, the current multiple offers a reasonable margin of safety for patient investors who can tolerate illiquidity.

Big pictureProfits and operating cash are improving, but dividend coverage has been uneven across recent years.

The supplied history shows 2025 revenue rising 3.7% to CLP 3.34 trillion, net income rising 15.3% to CLP 270.5 billion, and operating cash flow rising 29.1% to CLP 461.1 billion. Free cash flow, meaning cash left after capital spending, was about CLP 183.3 billion versus CLP 195.9 billion of dividends, so payouts slightly exceeded that year's internally generated surplus. Free cash flow was positive in every year shown, but coverage was notably weaker in 2022 and 2024.

Business strengthThe company has a stronger financial cushion, and its share count has barely changed recently.

By June 2026, current assets covered current liabilities 1.6 times. Net financial debt, meaning borrowings after financial assets, was only 1.1 times the company's adjusted operating cash-profit measure, while earnings covered net financing costs about 15 times. First-half operating cash flow also rose 52%. The reported share count stayed near 946.6 million from early 2026 through August, indicating little dilution. The supplied history records substantial dividends but provides no buyback figures, so dividend policy is the clearer capital-return signal.

What could change the storyThe thesis improves if cash growth persists, but Argentina and input costs remain the clearest threats.

The strongest bull case is continued volume growth, pricing, and cost control turning recent profit gains into durable cash flow while leverage stays near current levels. The bear case is company-specific: Argentina's second-quarter local-currency sales fell 5.8%, while concentrate costs rose in Brazil and Paraguay, resin costs rose in Chile, and dollar-linked costs hurt Argentina. The shares would look clearly cheaper if free cash flow consistently covered dividends and margins held; they would look expensive if earnings stalled while the valuation stayed near current levels.

AI: News

Second-quarter resultsSecond-quarter sales and operating profit rose strongly, while half-year earnings also moved higher.

The July 29 filing reported second-quarter net sales of CLP 820.1 billion, up 11.1%, and operating income of CLP 93.2 billion, up 16.7%. Management's adjusted cash-profit measure rose 17.0%, while quarterly net income was nearly flat; first-half net income, however, climbed to CLP 134.9 billion from CLP 113.6 billion. The core business improved, but currency translation helped reported sales and Argentina remained weaker, so not all of the growth should be treated as equally repeatable.

Interim dividendThe board declared another interim dividend, supporting income while preserving unequal share-class payouts.

On July 28, the board approved an interim dividend charged to 2026 earnings: CLP 51.0 per Series A share and CLP 56.1 per Series B share, payable from August 27. The 10% higher Series B dividend is an important structural reason its depositary shares trade at a premium. For Series A investors, the payment supports the income case, but it also shows why comparing the two classes requires adjusting for different dividend rights and trading liquidity.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	$3.34T	$3.22T	$2.62T	$2.66T	$2.22T	$1.70T	$1.78T	$1.67T	$1.85T	$1.78T	$1.88T
Gross profit	$1.31T	$1.28T	$1.02T	$1.03T	$841.34B	$675.78B	$730.68B	$704.89B	$779.85B	$743.55B	$770.69B
Gross margin	39.08%	39.66%	38.82%	38.70%	37.95%	39.79%	41.07%	42.14%	42.18%	41.83%	41.05%
Operating expenses	$854.65B	$850.66B	$663.51B	$688.13B	—	—	—	—	—	—	—
Operating income	$452.51B	$428.21B	$352.93B	$340.05B	—	—	—	—	—	—	—
Operating margin	13.53%	13.28%	13.48%	12.80%	—	—	—	—	—	—	—
EBITDA	$444.01B	$430.54B	$320.78B	$288.54B	—	—	—	—	—	—	—
EBITDA margin	13.27%	13.35%	12.25%	10.86%	—	—	—	—	—	—	—
Net income	$270.48B	$234.64B	$174.51B	$128.46B	$157.03B	$123.12B	$175.25B	$97.45B	$119.00B	$92.05B	$88.10B
Net profit margin	8.09%	7.28%	6.66%	4.83%	7.08%	7.25%	9.85%	5.83%	6.44%	5.18%	4.69%
Basic EPSper basic share	CLP 283.86	CLP 245.80	CLP 181.12	CLP 132.58	CLP 163.43	—	—	CLP 102.06	CLP 124.49	CLP 95.64	CLP 92.82
Diluted EPSper diluted share	CLP 283.86	CLP 245.80	CLP 181.12	CLP 132.58	CLP 163.43	—	—	CLP 102.06	CLP 124.49	CLP 95.64	CLP 92.82