FOMENTO ECONOMICO MEX-SP ADR (FMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FMX - US3444191064 - ADR
107.6 USD
+0.1 (+0.09%)
107.6 USD
0 (0%)
FMX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
- Of the past 5 years FMX 4 years were profitable.
- 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: 62.50% 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 40.63% of the companies in the same industry.
- FMX has a Return On Invested Capital of 8.26%. This is comparable to the rest of the industry: FMX outperforms 53.13% of its industry peers.
- FMX had an Average Return On Invested Capital over the past 3 years of 6.90%. This is below the industry average of 11.62%.
- The 3 year average ROIC (6.90%) for FMX is below the current ROIC(8.26%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 1.96%, FMX is doing worse than 62.50% of the companies in the same industry.
- In the last couple of years the Profit Margin of FMX has declined.
- FMX has a Operating Margin of 8.38%. This is in the lower half of the industry: FMX underperforms 62.50% 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 41.14%. This is comparable to the rest of the industry: FMX outperforms 40.63% of its industry peers.
- In the last couple of years the Gross Margin of FMX has grown nicely.
| 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.
- 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
- FMX has an Altman-Z score of 2.58. This is not the best score and indicates that FMX is in the grey zone with still only limited risk for bankruptcy at the moment.
- FMX has a Altman-Z score (2.58) which is comparable to the rest of the industry.
- The Debt to FCF ratio of FMX is 8.08, which is on the high side as it means it would take FMX, 8.08 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of FMX (8.08) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.92 indicates that FMX is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.92, FMX is doing worse than 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 8.08 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.23
WACC6.74%
2.3 Liquidity
- A Current Ratio of 1.34 indicates that FMX should not have too much problems paying its short term obligations.
- FMX has a Current ratio of 1.34. This is comparable to the rest of the industry: FMX outperforms 56.25% of its industry peers.
- FMX has a Quick Ratio of 1.05. 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 1.05 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 | 1.05 |
3. Growth
3.1 Past
- FMX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.14%.
- 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%.
- Measured over the past years, FMX shows a quite strong growth in Revenue. The Revenue has been growing by 9.05% on average per year.
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
- The Earnings Per Share is expected to decrease by -3.99% on average over the next years.
- Based on estimates for the next years, FMX will show a small growth in Revenue. The Revenue will grow by 7.84% on average per year.
EPS Next Y-41.78%
EPS Next 2Y-12.22%
EPS Next 3Y-3.99%
EPS Next 5YN/A
Revenue Next Year8.67%
Revenue Next 2Y8.32%
Revenue Next 3Y7.81%
Revenue Next 5Y7.84%
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 4.21, the valuation of FMX can be described as very cheap.
- Based on the Price/Earnings ratio, FMX is valued cheaper than 93.75% of the companies in the same industry.
- FMX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
- A Price/Forward Earnings ratio of 4.15 indicates a rather cheap valuation of FMX.
- Based on the Price/Forward Earnings ratio, FMX is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
- FMX is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.21 | ||
| Fwd PE | 4.15 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FMX is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, FMX is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.28 | ||
| EV/EBITDA | 6.42 |
4.3 Compensation for Growth
- A cheap valuation may be justified as FMX's earnings are expected to decrease with -3.99% in the coming years.
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y-12.22%
EPS Next 3Y-3.99%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.73%, FMX has a reasonable but not impressive dividend return.
- FMX's Dividend Yield is comparable with the industry average which is at 1.66.
- FMX's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| 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
- 264.38% 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.
DP264.38%
EPS Next 2Y-12.22%
EPS Next 3Y-3.99%
FOMENTO ECONOMICO MEX-SP ADR / FMX FAQ
What is the fundamental rating for FMX stock?
ChartMill assigns a fundamental rating of 4 / 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 4.21 and the Price/Book (PB) ratio is 2.64.
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 -41.78% in the next year.