FOMENTO ECONOMICO MEX-SP ADR (FMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FMX - US3444191064 - ADR
100.58 USD
-0.27 (-0.27%)
100.58 USD
0 (0%)
FMX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. FMX has only an average score on both its financial health and profitability. FMX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
FMX had positive earnings in the past year.
In the past year FMX had a positive cash flow from operations.
FMX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years FMX had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.02%, FMX is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
With a Return On Equity value of 6.65%, FMX perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
FMX's Return On Invested Capital of 8.26% is in line compared to the rest of the industry. FMX outperforms 54.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FMX is below the industry average of 11.47%.
The last Return On Invested Capital (8.26%) for FMX is above the 3 year average (6.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 6.65% | ||
| ROIC | 8.26% |
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 (1.96%) than 60.61% of its industry peers.
FMX's Profit Margin has declined in the last couple of years.
FMX's Operating Margin of 8.38% is on the low side compared to the rest of the industry. FMX is outperformed by 63.64% of its industry peers.
In the last couple of years the Operating Margin of FMX has remained more or less at the same level.
The Gross Margin of FMX (41.14%) 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 | 8.38% | ||
| PM (TTM) | 1.96% | ||
| GM | 41.14% |
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
FMX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for FMX remains at a similar level compared to 1 year ago.
Compared to 5 years ago, FMX has about the same amount of shares outstanding.
Compared to 1 year ago, FMX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.56 indicates that FMX is not a great score, but indicates only limited risk for bankruptcy at the moment.
FMX has a Altman-Z score of 2.56. This is comparable to the rest of the industry: FMX outperforms 57.58% of its industry peers.
FMX has a debt to FCF ratio of 8.08. This is a slightly negative value and a sign of low solvency as FMX would need 8.08 years to pay back of all of its debts.
FMX has a Debt to FCF ratio (8.08) which is in line with its industry peers.
FMX has a Debt/Equity ratio of 0.92. This is a neutral value indicating FMX is somewhat dependend on debt financing.
FMX has a Debt to Equity ratio of 0.92. This is in the lower half of the industry: FMX underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 8.08 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.25
WACC6.59%
2.3 Liquidity
A Current Ratio of 1.34 indicates that FMX should not have too much problems paying its short term obligations.
The Current ratio of FMX (1.34) is comparable to the rest of the industry.
A Quick Ratio of 1.05 indicates that FMX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.05, FMX is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.14% over the past 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.
FMX shows a decrease in Revenue. In the last year, the revenue decreased by -9.05%.
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)1.14%
EPS 3Y40.06%
EPS 5Y43.4%
EPS Q2Q%-34.88%
Revenue 1Y (TTM)-9.05%
Revenue growth 3Y12%
Revenue growth 5Y9.05%
Sales Q2Q%9.08%
3.2 Future
FMX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.97% yearly.
FMX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.38% yearly.
EPS Next Y-41.32%
EPS Next 2Y-12.18%
EPS Next 3Y-3.97%
EPS Next 5YN/A
Revenue Next Year8.67%
Revenue Next 2Y8.32%
Revenue Next 3Y7.81%
Revenue Next 5Y8.38%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.07 indicates a rather cheap valuation of FMX.
FMX's Price/Earnings ratio is rather cheap when compared to the industry. FMX is cheaper than 93.94% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. FMX is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 4.01, which indicates a rather cheap valuation of FMX.
FMX's Price/Forward Earnings ratio is rather cheap when compared to the industry. FMX is cheaper than 96.97% of the companies in the same industry.
FMX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.07 | ||
| Fwd PE | 4.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FMX is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FMX is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.59 | ||
| EV/EBITDA | 6.25 |
4.3 Compensation for Growth
A cheap valuation may be justified as FMX's earnings are expected to decrease with -3.97% in the coming years.
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y-12.18%
EPS Next 3Y-3.97%
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 1.80, FMX has a dividend in line with its industry peers.
FMX's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| 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 paid a dividend for at least 10 years, which is 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
FMX pays out 264.38% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of FMX has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP264.38%
EPS Next 2Y-12.18%
EPS Next 3Y-3.97%
100.58
-0.27 (-0.27%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners19.96%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap34.75B
Revenue(TTM)830.54B
Net Income(TTM)16.30B
Analysts80.91
Price Target104.82 (4.22%)
Short Float %3.12%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend3.92
Dividend Growth(5Y)12.97%
DP264.38%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.2%
Min EPS beat(2)-26.96%
Max EPS beat(2)-25.44%
EPS beat(4)1
Avg EPS beat(4)3.5%
Min EPS beat(4)-26.96%
Max EPS beat(4)74.12%
EPS beat(8)3
Avg EPS beat(8)-1.52%
EPS beat(12)5
Avg EPS beat(12)-5.99%
EPS beat(16)7
Avg EPS beat(16)-4.15%
Revenue beat(2)0
Avg Revenue beat(2)-3.71%
Min Revenue beat(2)-4.66%
Max Revenue beat(2)-2.76%
Revenue beat(4)0
Avg Revenue beat(4)-2.86%
Min Revenue beat(4)-4.66%
Max Revenue beat(4)-0.61%
Revenue beat(8)0
Avg Revenue beat(8)-3.38%
Revenue beat(12)1
Avg Revenue beat(12)-3.29%
Revenue beat(16)5
Avg Revenue beat(16)4.13%
PT rev (1m)5.87%
PT rev (3m)1.45%
EPS NQ rev (1m)2.47%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)-10.22%
EPS NY rev (3m)-21.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.07 | ||
| Fwd PE | 4.01 | ||
| P/S | 0.75 | ||
| P/FCF | 19.59 | ||
| P/OCF | 8.05 | ||
| P/B | 2.55 | ||
| P/tB | 6.28 | ||
| EV/EBITDA | 6.25 |
EPS(TTM)24.72
EY24.58%
EPS(NY)25.1
Fwd EY24.95%
FCF(TTM)5.13
FCFY5.1%
OCF(TTM)12.5
OCFY12.43%
SpS133.74
BVpS39.49
TBVpS16.01
PEG (NY)N/A
PEG (5Y)0.09
Graham Number148.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 6.65% | ||
| ROCE | 11.86% | ||
| ROIC | 8.26% | ||
| ROICexc | 11.11% | ||
| ROICexgc | 16.67% | ||
| OM | 8.38% | ||
| PM (TTM) | 1.96% | ||
| GM | 41.14% | ||
| FCFM | 3.84% |
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%
ROICexgc growth 3Y6.94%
ROICexgc 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 Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 8.08 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 105.14% | ||
| Cap/Sales | 5.51% | ||
| Interest Coverage | 4.21 | ||
| Cash Conversion | 68.63% | ||
| Profit Quality | 195.62% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 2.56 |
F-Score5
WACC6.59%
ROIC/WACC1.25
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)1.14%
EPS 3Y40.06%
EPS 5Y43.4%
EPS Q2Q%-34.88%
EPS Next Y-41.32%
EPS Next 2Y-12.18%
EPS Next 3Y-3.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.05%
Revenue growth 3Y12%
Revenue growth 5Y9.05%
Sales Q2Q%9.08%
Revenue Next Year8.67%
Revenue Next 2Y8.32%
Revenue Next 3Y7.81%
Revenue Next 5Y8.38%
EBIT growth 1Y-3.79%
EBIT growth 3Y6.96%
EBIT growth 5Y7.64%
EBIT Next Year70.74%
EBIT Next 3Y26.63%
EBIT Next 5Y18.75%
FCF growth 1Y18.8%
FCF growth 3Y-21.83%
FCF growth 5Y-7.49%
OCF growth 1Y18.71%
OCF growth 3Y-0.28%
OCF growth 5Y3.3%
FOMENTO ECONOMICO MEX-SP ADR / FMX FAQ
What is the fundamental rating for FMX stock?
ChartMill assigns a fundamental rating of 5 / 10 to FMX.
What is the valuation status of FOMENTO ECONOMICO MEX-SP ADR (FMX) stock?
ChartMill assigns a valuation rating of 7 / 10 to FOMENTO ECONOMICO MEX-SP ADR (FMX). This can be considered as Undervalued.
What is the profitability of FMX stock?
FOMENTO ECONOMICO MEX-SP ADR (FMX) has a profitability rating of 4 / 10.
What is the valuation of FOMENTO ECONOMICO MEX-SP ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FOMENTO ECONOMICO MEX-SP ADR (FMX) is 4.07 and the Price/Book (PB) ratio is 2.55.
What is the expected EPS growth for FOMENTO ECONOMICO MEX-SP ADR (FMX) stock?
The Earnings per Share (EPS) of FOMENTO ECONOMICO MEX-SP ADR (FMX) is expected to decline by -41.32% in the next year.