FOMENTO ECONOMICO MEX-SP ADR (FMX) Stock Fundamental Analysis
USA - NYSE:FMX - US3444191064 - ADR
92.69 USD
-0.34 (-0.37%)
92.69 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to FMX. FMX was compared to 32 industry peers in the Beverages industry. Both the profitability and the financial health of FMX get a neutral evaluation. Nothing too spectacular is happening here. FMX is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FMX was profitable.
In the past year FMX had a positive cash flow from operations.
FMX had positive earnings in 4 of the past 5 years.
In the past 5 years FMX always reported a positive cash flow from operatings.
1.2 Ratios
FMX's Return On Assets of 2.38% is on the low side compared to the rest of the industry. FMX is outperformed by 62.50% of its industry peers.
The Return On Equity of FMX (8.09%) is comparable to the rest of the industry.
FMX's Return On Invested Capital of 8.19% is in line compared to the rest of the industry. FMX outperforms 53.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FMX is below the industry average of 10.95%.
The last Return On Invested Capital (8.19%) for FMX is above the 3 year average (6.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 8.09% | ||
| ROIC | 8.19% |
ROA(3y)4.76%
ROA(5y)3.57%
ROE(3y)13.24%
ROE(5y)9.95%
ROIC(3y)6.9%
ROIC(5y)6.43%
1.3 Margins
FMX has a worse Profit Margin (2.43%) than 62.50% of its industry peers.
In the last couple of years the Profit Margin of FMX has declined.
The Operating Margin of FMX (8.53%) is worse than 68.75% of its industry peers.
In the last couple of years the Operating Margin of FMX has remained more or less at the same level.
FMX has a Gross Margin of 41.27%. This is comparable to the rest of the industry: FMX outperforms 40.63% of its industry peers.
FMX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.53% | ||
| PM (TTM) | 2.43% | ||
| GM | 41.27% |
OM growth 3Y-4.5%
OM growth 5Y-1.29%
PM growth 3Y-12.59%
PM growth 5Y-3.49%
GM growth 3Y2.3%
GM growth 5Y1.71%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FMX is destroying value.
FMX has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for FMX remains at a similar level compared to 5 years ago.
Compared to 1 year ago, FMX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.84 indicates that FMX is not in any danger for bankruptcy at the moment.
FMX has a better Altman-Z score (4.84) than 81.25% of its industry peers.
FMX has a debt to FCF ratio of 15.03. This is a negative value and a sign of low solvency as FMX would need 15.03 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.03, FMX is doing worse than 65.63% of the companies in the same industry.
A Debt/Equity ratio of 0.94 indicates that FMX is somewhat dependend on debt financing.
FMX has a Debt to Equity ratio of 0.94. This is in the lower half of the industry: FMX underperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 4.84 |
ROIC/WACC0.94
WACC8.73%
2.3 Liquidity
FMX has a Current Ratio of 1.34. This is a normal value and indicates that FMX is financially healthy and should not expect problems in meeting its short term obligations.
FMX has a Current ratio (1.34) which is in line with its industry peers.
A Quick Ratio of 1.06 indicates that FMX should not have too much problems paying its short term obligations.
FMX's Quick ratio of 1.06 is fine compared to the rest of the industry. FMX outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The earnings per share for FMX have decreased by -9.56% in the last year.
Measured over the past years, FMX shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.40% on average per year.
Looking at the last year, FMX shows a very negative growth in Revenue. The Revenue has decreased by -10.16% in the last year.
The Revenue has been growing by 9.05% on average over the past years. This is quite good.
EPS 1Y (TTM)-9.56%
EPS 3Y40.06%
EPS 5Y43.4%
EPS Q2Q%-82.15%
Revenue 1Y (TTM)-10.16%
Revenue growth 3Y12%
Revenue growth 5Y9.05%
Sales Q2Q%6.35%
3.2 Future
The Earnings Per Share is expected to decrease by -0.29% on average over the next years.
Based on estimates for the next years, FMX will show a quite strong growth in Revenue. The Revenue will grow by 8.82% on average per year.
EPS Next Y-22.16%
EPS Next 2Y-5.81%
EPS Next 3Y-0.29%
EPS Next 5YN/A
Revenue Next Year11.03%
Revenue Next 2Y9.9%
Revenue Next 3Y9.17%
Revenue Next 5Y8.82%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.07 indicates a rather expensive valuation of FMX.
FMX's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.41. FMX is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.41, which indicates a correct valuation of FMX.
FMX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FMX is cheaper than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, FMX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 16.41 |
4.2 Price Multiples
FMX's Enterprise Value to EBITDA is on the same level as the industry average.
FMX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 166.57 | ||
| EV/EBITDA | 27.19 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y-5.81%
EPS Next 3Y-0.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.73%, FMX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.84, FMX pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, FMX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
The dividend of FMX is nicely growing with an annual growth rate of 12.97%!
FMX has been paying a dividend for at least 10 years, so it has a reliable track record.
FMX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)12.97%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
188.65% of the earnings are spent on dividend by FMX. This is not a sustainable payout ratio.
FMX's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP188.65%
EPS Next 2Y-5.81%
EPS Next 3Y-0.29%
92.69
-0.34 (-0.37%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners18.4%
Inst Owner Change1.01%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap160.79B
Analysts80
Price Target95.81 (3.37%)
Short Float %0.53%
Short Ratio1.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend0.76
Dividend Growth(5Y)12.97%
DP188.65%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-25.89%
Min EPS beat(2)-64.61%
Max EPS beat(2)12.83%
EPS beat(4)2
Avg EPS beat(4)-12.32%
Min EPS beat(4)-64.61%
Max EPS beat(4)12.83%
EPS beat(8)4
Avg EPS beat(8)-8.98%
EPS beat(12)6
Avg EPS beat(12)-7.93%
EPS beat(16)7
Avg EPS beat(16)-12.6%
Revenue beat(2)0
Avg Revenue beat(2)-4.03%
Min Revenue beat(2)-4.66%
Max Revenue beat(2)-3.4%
Revenue beat(4)0
Avg Revenue beat(4)-3.36%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)-0.61%
Revenue beat(8)0
Avg Revenue beat(8)-4.1%
Revenue beat(12)2
Avg Revenue beat(12)-2.88%
Revenue beat(16)6
Avg Revenue beat(16)15.71%
PT rev (1m)-24.52%
PT rev (3m)-13.18%
EPS NQ rev (1m)-6.96%
EPS NQ rev (3m)4.3%
EPS NY rev (1m)-13.96%
EPS NY rev (3m)-16.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)-0.84%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 16.41 | ||
| P/S | 3.62 | ||
| P/FCF | 166.57 | ||
| P/OCF | 46.94 | ||
| P/B | 12.03 | ||
| P/tB | 30.02 | ||
| EV/EBITDA | 27.19 |
EPS(TTM)4.4
EY4.75%
EPS(NY)5.65
Fwd EY6.1%
FCF(TTM)0.56
FCFY0.6%
OCF(TTM)1.97
OCFY2.13%
SpS25.61
BVpS7.7
TBVpS3.09
PEG (NY)N/A
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 8.09% | ||
| ROCE | 11.75% | ||
| ROIC | 8.19% | ||
| ROICexc | 11.33% | ||
| ROICexgc | 17.26% | ||
| OM | 8.53% | ||
| PM (TTM) | 2.43% | ||
| GM | 41.27% | ||
| FCFM | 2.17% |
ROA(3y)4.76%
ROA(5y)3.57%
ROE(3y)13.24%
ROE(5y)9.95%
ROIC(3y)6.9%
ROIC(5y)6.43%
ROICexc(3y)9.14%
ROICexc(5y)8.34%
ROICexgc(3y)13.65%
ROICexgc(5y)12.47%
ROCE(3y)9.94%
ROCE(5y)9.26%
ROICexcg growth 3Y6.94%
ROICexcg growth 5Y4.64%
ROICexc growth 3Y7.84%
ROICexc growth 5Y5.63%
OM growth 3Y-4.5%
OM growth 5Y-1.29%
PM growth 3Y-12.59%
PM growth 5Y-3.49%
GM growth 3Y2.3%
GM growth 5Y1.71%
F-Score5
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 15.03 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 107.66% | ||
| Cap/Sales | 5.54% | ||
| Interest Coverage | 4.35 | ||
| Cash Conversion | 56.4% | ||
| Profit Quality | 89.26% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 4.84 |
F-Score5
WACC8.73%
ROIC/WACC0.94
Cap/Depr(3y)114.57%
Cap/Depr(5y)98.32%
Cap/Sales(3y)5.72%
Cap/Sales(5y)5.02%
Profit Quality(3y)68.55%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.56%
EPS 3Y40.06%
EPS 5Y43.4%
EPS Q2Q%-82.15%
EPS Next Y-22.16%
EPS Next 2Y-5.81%
EPS Next 3Y-0.29%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.16%
Revenue growth 3Y12%
Revenue growth 5Y9.05%
Sales Q2Q%6.35%
Revenue Next Year11.03%
Revenue Next 2Y9.9%
Revenue Next 3Y9.17%
Revenue Next 5Y8.82%
EBIT growth 1Y-2.62%
EBIT growth 3Y6.96%
EBIT growth 5Y7.64%
EBIT Next Year83.86%
EBIT Next 3Y29.71%
EBIT Next 5Y19.14%
FCF growth 1Y-36.92%
FCF growth 3Y-21.83%
FCF growth 5Y-7.49%
OCF growth 1Y0.97%
OCF growth 3Y-0.28%
OCF growth 5Y3.3%