United Breweries, a prominent player in the breweries and distilleries sector, has recently faced a downgrade in its stock call to ‘Sell’ by MarketsMOJO as of January 8, 2025. This decision comes in light of the company’s long-term growth challenges, particularly highlighted by an annual operating profit decline of 17.57% over the past five years.
Despite a positive financial performance in the second quarter of FY24-25, the stock is currently categorized within a Mildly Bearish range. Since the downgrade, it has generated a return of -3.54%. Technical indicators, including Bollinger Bands and KST factors, also reflect a bearish trend.
United Breweries boasts a return on equity (ROE) of 11.2 and a price-to-book value of 12.5, suggesting an expensive valuation. However, the stock is trading at a discount compared to its historical averages. Over the past year, the company has achieved a return of 7.49%, with profits surging by 87.9%. Additionally, it maintains a low debt-to-equity ratio of 0.01 times and high institutional holdings at 24.03%.
