# Arca Continental (AC.MX)

Canonical: https://gigainvestors.com/s/AC.MX

Analysis as of: 2026-10-16T07:34:48.395Z. Financial observations: FY2000–FY2025.

Listing currency: MXN. Reporting currency: MXN.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: MXN 206.38 per share; close as of 2026-10-15.

Estimated value: low MXN 121.82 per share, central MXN 160.40 per share, high MXN 177.47 per share. Buy at or below the central value MXN 160.40 per share. Valuation as of 2026-10-16T07:34:48.395Z; scenarios are not confidence intervals.

Expected annual return: 10.9% at the stated quote. About 10.9% a year at today's price (required return 13.3%). required return 13.3% a year (MX 10-year bond 9.3% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.10×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.16×

- FY2017: 0.13×

- FY2018: 0.12×

- FY2019: 0.13×

- FY2020: 0.13×

- FY2021: 0.14×

- FY2022: 0.14×

- FY2023: 0.15×

- FY2024: 0.16×

- FY2025: 0.15×

### moat: pass

- ROIC, median of available years: 19.6%

- ROIC, second-lowest year: 15.9%

- Typical minus recent gross margin: -1.7 pp

- Typical gross margin (annual median): 44.8%

- Recent gross margin (lower of latest and 3-year median): 46.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.8%

- ROIC including acquisitions, ten-year median: 8.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 16.8%

- FY2017: 18.0%

- FY2018: 14.4%

- FY2019: 15.9%

- FY2020: 18.1%

- FY2021: 21.1%

- FY2022: 24.5%

- FY2023: 28.0%

- FY2024: 26.0%

- FY2025: 24.2%

### economics: pass

- Owner earnings / net income, 5-yr: 0.95×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: MXN 83B

- Net income, five-year total: MXN 88B

- Return on incremental invested capital: 46.6%

- Working capital / revenue, annual change: -0.2 pp

- Working capital / revenue, change between three-year averages: -1.5 pp

- Working capital / revenue, final three-year average: 5.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.18×

- FY2022: 0.99×

- FY2023: 0.93×

- FY2024: 0.99×

- FY2025: 0.76×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 16.8% vs 26.0%

- Per-share earnings: 5.30 to 11.49 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -0.7%

- Market cap gain: MXN 147B

- Cumulative retained earnings: MXN 72B

- Diluted shares, 5-year annual growth: -0.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 11.7%

- Per-share value change: MXN 6.19

- Per-share value, starting three-year median: MXN 5.30

- Per-share value, ending three-year median: MXN 11.49

- Buybacks concentrated in cheaper years (correlation): 0.23

- Average buyback yield: 0.4%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: MXN 84B

- Cumulative net income, 10 years: MXN 138B

- ROIC, first three-year median: 16.8%

- ROIC, last three-year median: 26.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: MXN 5.30

- FY2017: MXN 7.43

- FY2018: MXN 4.95

- FY2019: MXN 5.45

- FY2020: MXN 5.85

- FY2021: MXN 6.96

- FY2022: MXN 10.74

- FY2023: MXN 10.14

- FY2024: MXN 11.49

- FY2025: MXN 11.53

### accounting: pass

- Sloan accruals: -6.2%

- Receivables to sales index (DSRI): 0.92×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.93×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.91×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.8%

- FY2017: -2.1%

- FY2018: -5.0%

- FY2019: -7.6%

- FY2020: -7.6%

- FY2021: -7.1%

- FY2022: -4.7%

- FY2023: -4.9%

- FY2024: -6.4%

- FY2025: -6.2%

## Holders

## Price story

Price needs cash profits to grow 10.1% a year for ten years · sales +4.5%

Story as of 2026-10-16T10:00:02.579Z; price observation 2026-10-15.

Price needs cash profits to grow 10.1% a year for ten years

### Sales · FY2024–2025

sales +4.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: MXN 94B 

- FY2017: MXN 139B 

- FY2018: MXN 159B 

- FY2019: MXN 165B 

- FY2020: MXN 172B 

- FY2021: MXN 186B 

- FY2022: MXN 210B 

- FY2023: MXN 216B 

- FY2024: MXN 240B 

- FY2025: MXN 250B 

### Gross margin · FY2025

gross margin 46.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 47.0% 

- FY2017: 44.8% 

- FY2018: 43.6% 

- FY2019: 44.3% 

- FY2020: 44.7% 

- FY2021: 44.9% 

- FY2022: 44.4% 

- FY2023: 45.9% 

- FY2024: 46.6% 

- FY2025: 46.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in beverages non-alcoholic; annual sales are MXN 250.3 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); FY2025: revenue 250258459000; grossProfit 116419563000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AC.MX: Arca Continental, S.A.B. de C.V., together with its subsidiaries, produces, distributes, and sells soft drinks in Mexico, Argentina, Ecuador, Peru, the United States, and internationally. It operates through Beverages and Other segments. Its products include savory snack food; cola and flavored soft drinks; purified and flavored water; fruit/soy, energy/sports, and enhanced drinks; tea; iced coffee/instant; milk whole/light/flavored; yogurt, milk, gelatin, hydration beverages and ice cream; snow/cones; potato, plantain, and tortilla chips; corn puffs; popcorn; pork rinds; peanuts/seeds; sauces/dips; candies/sugar; baked goods; and other carbonated and non-carbonated, and dairy beverages. The company sells its products under the Coca-Cola, Bokados, Wise, Inalecsa, and other brands. Arca Continental, S.A.B. de C.V. was founded in 1926 and is headquartered in Monterrey, Mexico.

### Why customers stay

Margins ranged from 45.9% to 46.6% during 2023–25; it earns 19.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); FY2023: grossProfit / revenue = 45.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); FY2024: grossProfit / revenue = 46.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); FY2025: grossProfit / revenue = 46.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); 10-year return on capital observations [[2016,0.1681286704368523],[2017,0.1800020656256184],[2018,0.14434046362407824],[2019,0.15934953523136797],[2020,0.18145740500809837],[2021,0.2110590872600369],[2022,0.24500333769261995],[2023,0.28018523391536615],[2024,0.2600370537081511],[2025,0.2421046527179584]]; median 0.19625824613406762. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 44% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); Gross margin observations: [[2021,0.4486369259794252],[2022,0.4441703875199902],[2023,0.45886963865594504]]; range within 2 percentage points.

### Where the cash goes

Spends 24.8% of cash earnings on expansion; earns 46.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); FY2016: growth capex 0; upkeep 7499382000; owner earnings 8258362000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); FY2017: growth capex 0; upkeep 10879820000; owner earnings 7351441000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); FY2018: growth capex 0; upkeep 10870837000; owner earnings 9743062000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); FY2019: growth capex 2313420000; upkeep 8937393000; owner earnings 9348959400. Growth capex / owner earnings = 0.2474521388979398.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); FY2020: growth capex 0; upkeep 6527642000; owner earnings 13129843600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); FY2021: growth capex 0; upkeep 7114691000; owner earnings 14437368400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); FY2022: growth capex 812732000; upkeep 8942533000; owner earnings 18538005600. Growth capex / owner earnings = 0.043841393596299266.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); FY2023: growth capex 2178806292.2546425; upkeep 9497802707.745358; owner earnings 16296911788.695282. Growth capex / owner earnings = 0.13369442753970234.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); FY2024: growth capex 7214137000; upkeep 9351133000; owner earnings 19305354477.404415. Growth capex / owner earnings = 0.37368580869331613.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); FY2025: growth capex 3698250693.916212; upkeep 15531889306.083788; owner earnings 14906002412.047573. Growth capex / owner earnings = 0.24810479642262445.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); Incremental return on capital 0.46624100151804726, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); Dividend observations: [[2016,3101215000],[2017,3528566000],[2018,3881423000],[2019,4057851000],[2020,6915990000],[2021,7811734000],[2022,10717478000],[2023,11218640000],[2024,10680880000],[2025,14605549000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); FY2025: cash repurchases 745699790.8333333 MXN.

### Are managers owners

Insiders own 45.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AC.MX SharesStats.PercentInsiders = 45.696 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 10.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.395Z); Ten-year compound average after fade. Initial solved rate 0.13269724290481888. Price 206.38; FX 1; discount 0.13252; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (MXN per share)

- 2016-10: MXN 117.62 per share

- 2016-11: MXN 108.56 per share

- 2016-12: MXN 108.07 per share

- 2017-01: MXN 112.50 per share

- 2017-02: MXN 112.51 per share

- 2017-03: MXN 130.10 per share

- 2017-04: MXN 138.87 per share

- 2017-05: MXN 133.27 per share

- 2017-06: MXN 136.39 per share

- 2017-07: MXN 131.98 per share

- 2017-08: MXN 130.80 per share

- 2017-09: MXN 124.48 per share

- 2017-10: MXN 122.01 per share

- 2017-11: MXN 127.61 per share

- 2017-12: MXN 135.93 per share

- 2018-01: MXN 135.05 per share

- 2018-02: MXN 130.84 per share

- 2018-03: MXN 125.71 per share

- 2018-04: MXN 129.26 per share

- 2018-05: MXN 119.68 per share

- 2018-06: MXN 122.26 per share

- 2018-07: MXN 123.72 per share

- 2018-08: MXN 117.56 per share

- 2018-09: MXN 120.88 per share

- 2018-10: MXN 102.15 per share

- 2018-11: MXN 105.15 per share

- 2018-12: MXN 109.77 per share

- 2019-01: MXN 111.22 per share

- 2019-02: MXN 108.68 per share

- 2019-03: MXN 108.13 per share

- 2019-04: MXN 107.61 per share

- 2019-05: MXN 104.75 per share

- 2019-06: MXN 103.85 per share

- 2019-07: MXN 101.93 per share

- 2019-08: MXN 105.01 per share

- 2019-09: MXN 106.67 per share

- 2019-10: MXN 107.47 per share

- 2019-11: MXN 103.51 per share

- 2019-12: MXN 99.98 per share

- 2020-01: MXN 107.01 per share

- 2020-02: MXN 107.99 per share

- 2020-03: MXN 95.61 per share

- 2020-04: MXN 92.83 per share

- 2020-05: MXN 98.91 per share

- 2020-06: MXN 100.75 per share

- 2020-07: MXN 109.76 per share

- 2020-08: MXN 99.83 per share

- 2020-09: MXN 95.77 per share

- 2020-10: MXN 92.35 per share

- 2020-11: MXN 98.62 per share

- 2020-12: MXN 95.68 per share

- 2021-01: MXN 93.07 per share

- 2021-02: MXN 94.77 per share

- 2021-03: MXN 100.85 per share

- 2021-04: MXN 108.46 per share

- 2021-05: MXN 113.04 per share

- 2021-06: MXN 115.62 per share

- 2021-07: MXN 120.46 per share

- 2021-08: MXN 129.37 per share

- 2021-09: MXN 125.88 per share

- 2021-10: MXN 125.53 per share

- 2021-11: MXN 130.77 per share

- 2021-12: MXN 130.52 per share

- 2022-01: MXN 122.01 per share

- 2022-02: MXN 135.12 per share

- 2022-03: MXN 135.25 per share

- 2022-04: MXN 129.49 per share

- 2022-05: MXN 133.79 per share

- 2022-06: MXN 132.50 per share

- 2022-07: MXN 141.21 per share

- 2022-08: MXN 137.15 per share

- 2022-09: MXN 145.02 per share

- 2022-10: MXN 162.29 per share

- 2022-11: MXN 161.02 per share

- 2022-12: MXN 158.24 per share

- 2023-01: MXN 166.34 per share

- 2023-02: MXN 154.42 per share

- 2023-03: MXN 163.64 per share

- 2023-04: MXN 171.10 per share

- 2023-05: MXN 178.83 per share

- 2023-06: MXN 175.94 per share

- 2023-07: MXN 167.76 per share

- 2023-08: MXN 166.00 per share

- 2023-09: MXN 158.28 per share

- 2023-10: MXN 161.67 per share

- 2023-11: MXN 177.35 per share

- 2023-12: MXN 185.41 per share

- 2024-01: MXN 195.56 per share

- 2024-02: MXN 183.61 per share

- 2024-03: MXN 181.45 per share

- 2024-04: MXN 167.12 per share

- 2024-05: MXN 173.06 per share

- 2024-06: MXN 179.41 per share

- 2024-07: MXN 183.34 per share

- 2024-08: MXN 176.35 per share

- 2024-09: MXN 184.10 per share

- 2024-10: MXN 171.31 per share

- 2024-11: MXN 172.04 per share

- 2024-12: MXN 172.74 per share

- 2025-01: MXN 189.38 per share

- 2025-02: MXN 212.29 per share

- 2025-03: MXN 213.98 per share

- 2025-04: MXN 206.37 per share

- 2025-05: MXN 213.27 per share

- 2025-06: MXN 198.33 per share

- 2025-07: MXN 196.62 per share

- 2025-08: MXN 190.38 per share

- 2025-09: MXN 192.02 per share

- 2025-10: MXN 179.94 per share

- 2025-11: MXN 186.75 per share

- 2025-12: MXN 194.88 per share

- 2026-01: MXN 196.94 per share

- 2026-02: MXN 207.28 per share

- 2026-03: MXN 206.72 per share

- 2026-04: MXN 209.87 per share

- 2026-05: MXN 225.13 per share

- 2026-06: MXN 209.58 per share

- 2026-07: MXN 198.46 per share

- 2026-08: MXN 194.99 per share

- 2026-09: MXN 193.24 per share

- 2026-10: MXN 204.07 per share

## Annual estimated value (MXN per share)

- FY2016: low MXN 40.32 per share, central MXN 43.89 per share, high MXN 48.22 per share

- FY2017: low MXN 60.30 per share, central MXN 64.81 per share, high MXN 70.29 per share

- FY2018: low MXN 62.34 per share, central MXN 67.49 per share, high MXN 73.74 per share

- FY2019: low MXN 56.00 per share, central MXN 60.23 per share, high MXN 65.37 per share

- FY2020: low MXN 60.71 per share, central MXN 65.12 per share, high MXN 70.46 per share

- FY2021: low MXN 66.89 per share, central MXN 71.64 per share, high MXN 77.40 per share

- FY2022: low MXN 99.13 per share, central MXN 130.06 per share, high MXN 143.75 per share

- FY2023: low MXN 100.59 per share, central MXN 132.79 per share, high MXN 147.04 per share

- FY2024: low MXN 117.41 per share, central MXN 154.26 per share, high MXN 170.56 per share

- FY2025: low MXN 121.83 per share, central MXN 160.41 per share, high MXN 177.47 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.