FOMENTO ECONOMICO MEX-SP ADR (FMX) Stock Fundamental Analysis
NYSE:FMX - New York Stock Exchange, Inc. - US3444191064 - ADR - Currency: USD
We assign a fundamental rating of 4 out of 10 to FMX. FMX was compared to 32 industry peers in the Beverages industry. The financial health of FMX is average, but there are quite some concerns on its profitability. While showing a medium growth rate, FMX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
FMX had positive earnings in the past year.
FMX had a positive operating cash flow in the past year.
FMX had positive earnings in 4 of the past 5 years.
FMX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FMX has a Return On Assets (3.05%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 8.80%, FMX is in line with its industry, outperforming 59.38% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.93%, FMX is in line with its industry, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 8.8% | ||
| ROIC | 7.93% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 2.84%, FMX is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of FMX has declined.
FMX has a Operating Margin of 7.92%. This is in the lower half of the industry: FMX underperforms 62.50% of its industry peers.
FMX's Operating Margin has declined in the last couple of years.
The Gross Margin of FMX (40.78%) is comparable to the rest of the industry.
FMX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.92% | ||
| PM (TTM) | 2.84% | ||
| GM | 40.78% |
OM growth 3Y-6.55%
OM growth 5Y-2.57%
PM growth 3Y-11.04%
PM growth 5Y-2.46%
GM growth 3Y2.29%
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.
There is no outstanding debt for FMX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
FMX has an Altman-Z score of 5.99. This indicates that FMX is financially healthy and has little risk of bankruptcy at the moment.
FMX's Altman-Z score of 5.99 is amongst the best of the industry. FMX outperforms 81.25% of its industry peers.
FMX has a debt to FCF ratio of 21.84. This is a negative value and a sign of low solvency as FMX would need 21.84 years to pay back of all of its debts.
The Debt to FCF ratio of FMX (21.84) is worse than 62.50% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that FMX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.78, FMX is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 21.84 | ||
| Altman-Z | 5.99 |
ROIC/WACC0.56
WACC14.2%
2.3 Liquidity
A Current Ratio of 1.62 indicates that FMX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.62, FMX is in line with its industry, outperforming 59.38% of the companies in the same industry.
FMX has a Quick Ratio of 1.32. This is a normal value and indicates that FMX is financially healthy and should not expect problems in meeting its short term obligations.
FMX's Quick ratio of 1.32 is fine compared to the rest of the industry. FMX outperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
FMX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 59.15%, which is quite impressive.
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 quite strong growth in Revenue. The Revenue has grown by 8.54% in the last year.
FMX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.05% yearly.
EPS 1Y (TTM)59.15%
EPS 3Y40.06%
EPS 5Y43.4%
EPS Q2Q%1812.5%
Revenue 1Y (TTM)8.54%
Revenue growth 3Y12%
Revenue growth 5Y9.05%
Sales Q2Q%9.74%
3.2 Future
Based on estimates for the next years, FMX will show a decrease in Earnings Per Share. The EPS will decrease by -2.34% on average per year.
FMX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.53% yearly.
EPS Next Y-9.53%
EPS Next 2Y-3.87%
EPS Next 3Y-2.34%
EPS Next 5YN/A
Revenue Next Year9.73%
Revenue Next 2Y8.28%
Revenue Next 3Y9.73%
Revenue Next 5Y8.53%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 17.33, the valuation of FMX can be described as rather expensive.
Based on the Price/Earnings ratio, FMX is valued a bit cheaper than 71.88% of the companies in the same industry.
FMX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.63.
A Price/Forward Earnings ratio of 19.15 indicates a rather expensive valuation of FMX.
Based on the Price/Forward Earnings ratio, FMX is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
FMX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.33 | ||
| Fwd PE | 19.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FMX is valued a bit more expensive than the industry average as 65.63% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, FMX is valued a bit more expensive than 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 310.56 | ||
| EV/EBITDA | 33.9 |
4.3 Compensation for Growth
A cheap valuation may be justified as FMX's earnings are expected to decrease with -2.34% in the coming years.
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y-3.87%
EPS Next 3Y-2.34%
5. Dividend
5.1 Amount
FMX has a Yearly Dividend Yield of 1.73%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.00, FMX has a dividend in line with its industry peers.
FMX's Dividend Yield is slightly below the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
On average, the dividend of FMX grows each year by 7.77%, which is quite nice.
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)7.77%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
FMX pays out 97.75% of its income as dividend. 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.
DP97.75%
EPS Next 2Y-3.87%
EPS Next 3Y-2.34%
104.5
-1.32 (-1.25%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners21.2%
Inst Owner Change-0.86%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap181.31B
Analysts79.09
Price Target101.38 (-2.99%)
Short Float %1.86%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend0.54
Dividend Growth(5Y)7.77%
DP97.75%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)40.78%
Min EPS beat(2)10.25%
Max EPS beat(2)71.31%
EPS beat(4)2
Avg EPS beat(4)-6.54%
Min EPS beat(4)-94.73%
Max EPS beat(4)71.31%
EPS beat(8)4
Avg EPS beat(8)-10.73%
EPS beat(12)6
Avg EPS beat(12)-6.69%
EPS beat(16)7
Avg EPS beat(16)-16.66%
Revenue beat(2)0
Avg Revenue beat(2)-3.15%
Min Revenue beat(2)-4.77%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-3.89%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)-1.53%
Revenue beat(8)1
Avg Revenue beat(8)-3.5%
Revenue beat(12)5
Avg Revenue beat(12)6.46%
Revenue beat(16)7
Avg Revenue beat(16)21.81%
PT rev (1m)3.58%
PT rev (3m)9.7%
EPS NQ rev (1m)-79.38%
EPS NQ rev (3m)-9.85%
EPS NY rev (1m)-78.62%
EPS NY rev (3m)4.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.33 | ||
| Fwd PE | 19.15 | ||
| P/S | 3.95 | ||
| P/FCF | 310.56 | ||
| P/OCF | 63.32 | ||
| P/B | 12.24 | ||
| P/tB | 24.41 | ||
| EV/EBITDA | 33.9 |
EPS(TTM)6.03
EY5.77%
EPS(NY)5.46
Fwd EY5.22%
FCF(TTM)0.34
FCFY0.32%
OCF(TTM)1.65
OCFY1.58%
SpS26.43
BVpS8.54
TBVpS4.28
PEG (NY)N/A
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 8.8% | ||
| ROCE | 11.3% | ||
| ROIC | 7.93% | ||
| ROICexc | 11.06% | ||
| ROICexgc | 16.28% | ||
| OM | 7.92% | ||
| PM (TTM) | 2.84% | ||
| GM | 40.78% | ||
| FCFM | 1.27% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-6.55%
OM growth 5Y-2.57%
PM growth 3Y-11.04%
PM growth 5Y-2.46%
GM growth 3Y2.29%
GM growth 5Y1.71%
F-Score4
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 21.84 | ||
| Debt/EBITDA | 2.12 | ||
| Cap/Depr | 123.02% | ||
| Cap/Sales | 4.97% | ||
| Interest Coverage | 7.26 | ||
| Cash Conversion | 52.2% | ||
| Profit Quality | 44.8% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 5.99 |
F-Score4
WACC14.2%
ROIC/WACC0.56
Cap/Depr(3y)115.82%
Cap/Depr(5y)99.07%
Cap/Sales(3y)5.78%
Cap/Sales(5y)5.05%
Profit Quality(3y)65.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)59.15%
EPS 3Y40.06%
EPS 5Y43.4%
EPS Q2Q%1812.5%
EPS Next Y-9.53%
EPS Next 2Y-3.87%
EPS Next 3Y-2.34%
EPS Next 5YN/A
Revenue 1Y (TTM)8.54%
Revenue growth 3Y12%
Revenue growth 5Y9.05%
Sales Q2Q%9.74%
Revenue Next Year9.73%
Revenue Next 2Y8.28%
Revenue Next 3Y9.73%
Revenue Next 5Y8.53%
EBIT growth 1Y-11.66%
EBIT growth 3Y4.67%
EBIT growth 5Y6.25%
EBIT Next Year77.69%
EBIT Next 3Y29.92%
EBIT Next 5Y18.68%
FCF growth 1Y-56.68%
FCF growth 3Y-23.09%
FCF growth 5Y-8.39%
OCF growth 1Y-12.8%
OCF growth 3Y-0.14%
OCF growth 5Y3.38%