Florida Ice and Farm Company (FIFCO) Stock – Investment Analysis

Common Stock: Florida Ice and Farm Company (FIFCO)

Current Market Price: $610 CRC

Market Capitalization: $561.3 Billion CRC ($911.2 million USD)

*All values in this article are expressed in Costa Rican Colones (CRC) unless otherwise noted.

**The bulk of this analysis is based on the company’s most recent audited financial report, which can be found by following this link.

Florida Ice and Farm Company (FIFCO) Stock – Summary of the Company

Florida Ice and Food Company is a Costa Rican conglomerate. Their keystone business is manufacturer and distribution of beverages, in particular beer. They also have operations in the food, retail, real estate, and hospitality industries. FIFCO has a diverse product portfolio, selling over 1,500 products in Costa Rica, as well as in Guatemala, El Salvador, and The United States.

The company was founded in 1908 and is headquartered in Heredia, Costa Rica. They currently employ over 6,000 people.

Revenue and Cost Analysis

FIFCO had total revenues of $643 billion in 2020, a significant decrease from $890 billion in 2019. Their COGS was $357 billion in 2020, representing a gross margin of 44%, also a significant decrease compared to 49% the previous year.

Despite declining revenues and gross margins, FIFCO was profitable in 2020, with net income of $17.4 billion, representing a profit margin of 2.7%.

Balance Sheet Analysis

FIFCO has a decent balance sheet. Their liquidity position is sound and they have a good base of long term assets. However they are leveraged, with relatively high debt outstanding.

Debt Analysis

As of year-end 2020 the company has $267.7 billion in total debt outstanding, $23.2 billion of which is classified as current. The debt carries interest ranging from 5.5% to 7.25%.

Florida Ice and Farm Company (FIFCO) Stock – Share Dynamics and Capital Structure

As of year-end 2020 the company has 920.2 million common shares outstanding. 25% of the company’s beverage business is owned by Heineken, who purchased their positions in 2002.


The company paid total dividends of $15.50 in 2020. At the current market price this implies a dividend yield of 2.5%.

Florida Ice and Farm Company (FIFCO) Stock – 3 Metrics to Consider

Debt to Equity Ratio

Total Liabilities/Total Share Holder Equity

$564 billion / $356 billion = 1.5

A debt to equity ratio of 1.5 indicates that FIFCO uses a mix of debt and equity in its capital structure, but is leveraged, and relies more heavily on debt financing.

Working Capital Ratio

Current Assets/Current Liabilities

$195 billion / $137 billion = 1.4

A working capital ratio of 1.4 indicates a sound liquidity position. FIFCO should not have problems meeting its near term obligations.

Price to Book Ratio

Current Share Price/Book Value per Share.

$610 / $387 =1.6

FIFCO has a book value per share of $387. At the current market price this implies a price to book ratio of 1.6, meaning the company’s stock currently trades at a premium to the book value of the company.

Florida Ice and Farm Company (FIFCO) Stock – Summary and Conclusions

FIFCO is an impressive company with a long history of success. As they have grown they have continued to diversify their operations. Their core business is solid, having some iconic beer brands in their portfolio such as Imperial and Heineken. They have a regional presence with operations in Guatemala and El Salvador, as well as The US.

The company is in a decent, but not strong financial position. Revenues and gross margins declined significantly in 2020, but FIFCO was profitable and paid a dividend. Their balance sheet is OK, with sufficient liquidity but relevant debt.

I like the company’s business portfolio, but I will wait to see if their financials recover from a complicated 2020 before adding it to my watchlist.

Investors can also consider other companies such as Salvadoran manufacturer Alimentos Mor, or Jamaican food company Berger Paints.


This is not investment advice. Nothing in this analysis should be construed as a recommendation to buy, sell, or otherwise take action related to the security discussed. If I own a position in the security discussed, I will clearly state it.

This is not intended to be a comprehensive analysis and you should not make an investment decision based solely on the information in this analysis. I hope this serves as a useful starting point for a more comprehensive analysis, and hopefully draws attention to aspects of the company that were overlooked or merit further investigation. This is by no means intended to be a complete analysis. Again, this is not investment advice, do your own research.

Patrick Flood, CFA