FOMENTO ECONOMICO MEX-SP ADR (FMX) Stock Fundamental Analysis
NYSE:FMX - New York Stock Exchange, Inc. - US3444191064 - ADR - Currency: USD
Taking everything into account, FMX scores 4 out of 10 in our fundamental rating. FMX was compared to 31 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.
FMX had a positive operating cash flow in the past year.
Of the past 5 years FMX 4 years were profitable.
In the past 5 years FMX always reported a positive cash flow from operatings.
1.2 Ratios
FMX has a Return On Assets of 3.05%. This is in the lower half of the industry: FMX underperforms 67.86% of its industry peers.
FMX's Return On Equity of 8.80% is in line compared to the rest of the industry. FMX outperforms 42.86% of its industry peers.
FMX has a Return On Invested Capital (8.42%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FMX is significantly below the industry average of 13.25%.
The 3 year average ROIC (7.07%) for FMX is below the current ROIC(8.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 8.8% | ||
| ROIC | 8.42% |
ROA(3y)5%
ROA(5y)3.59%
ROE(3y)13.86%
ROE(5y)9.8%
ROIC(3y)7.07%
ROIC(5y)6.71%
1.3 Margins
The Profit Margin of FMX (2.84%) is worse than 78.57% of its industry peers.
FMX's Profit Margin has improved in the last couple of years.
FMX's Operating Margin of 7.92% is on the low side compared to the rest of the industry. FMX is outperformed by 67.86% of its industry peers.
FMX's Operating Margin has declined in the last couple of years.
FMX has a Gross Margin of 40.78%. This is in the lower half of the industry: FMX underperforms 64.29% of its industry peers.
In the last couple of years the Gross Margin of FMX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.92% | ||
| PM (TTM) | 2.84% | ||
| GM | 40.78% |
OM growth 3Y-0.63%
OM growth 5Y-2.15%
PM growth 3YN/A
PM growth 5Y12.85%
GM growth 3Y1.12%
GM growth 5Y1.3%
2. Health
2.1 Basic Checks
FMX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FMX has about the same amount of shares outstanding.
Compared to 5 years ago, FMX has about the same amount of shares outstanding.
Compared to 1 year ago, FMX has an improved debt to assets ratio.
2.2 Solvency
FMX has an Altman-Z score of 2.72. 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.
The Altman-Z score of FMX (2.72) is comparable to the rest of the industry.
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.
FMX has a Debt to FCF ratio of 21.84. This is in the lower half of the industry: FMX underperforms 75.00% of its industry peers.
FMX has a Debt/Equity ratio of 0.78. This is a neutral value indicating FMX is somewhat dependend on debt financing.
The Debt to Equity ratio of FMX (0.78) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 21.84 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.69
WACC12.12%
2.3 Liquidity
FMX has a Current Ratio of 1.62. This is a normal value and indicates that FMX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FMX (1.62) is comparable to the rest of the industry.
A Quick Ratio of 1.32 indicates that FMX should not have too much problems paying its short term obligations.
FMX's Quick ratio of 1.32 is fine compared to the rest of the industry. FMX outperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.94% over the past year.
Measured over the past 5 years, FMX shows a small growth in Earnings Per Share. The EPS has been growing by 0.50% on average per year.
FMX shows a small growth in Revenue. In the last year, the Revenue has grown by 0.91%.
Measured over the past years, FMX shows a quite strong growth in Revenue. The Revenue has been growing by 8.39% on average per year.
EPS 1Y (TTM)2.94%
EPS 3YN/A
EPS 5Y0.5%
EPS Q2Q%-5.15%
Revenue 1Y (TTM)0.91%
Revenue growth 3Y12.54%
Revenue growth 5Y8.39%
Sales Q2Q%4.61%
3.2 Future
The Earnings Per Share is expected to decrease by -17.89% on average over the next years. This is quite bad
The Revenue is expected to grow by 8.02% on average over the next years. This is quite good.
EPS Next Y32.37%
EPS Next 2Y17.84%
EPS Next 3Y13.03%
EPS Next 5Y-17.89%
Revenue Next Year3.05%
Revenue Next 2Y6.39%
Revenue Next 3Y6.62%
Revenue Next 5Y8.02%
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.
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
With a Price/Earnings ratio of 4.10, the valuation of FMX can be described as very cheap.
100.00% of the companies in the same industry are more expensive than FMX, based on the Price/Earnings ratio.
FMX is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 3.53, the valuation of FMX can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FMX indicates a rather cheap valuation: FMX is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. FMX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.1 | ||
| Fwd PE | 3.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FMX is valued cheaper than 92.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FMX is valued a bit more expensive than the industry average as 67.86% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.25 | ||
| EV/EBITDA | 6.25 |
4.3 Compensation for Growth
FMX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as FMX's earnings are expected to grow with 13.03% in the coming years.
PEG (NY)0.13
PEG (5Y)8.22
EPS Next 2Y17.84%
EPS Next 3Y13.03%
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 3.22, FMX has a dividend in line with its industry peers.
FMX's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| 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.
The Dividend Rate of FMX has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP97.75%
EPS Next 2Y17.84%
EPS Next 3Y13.03%
FOMENTO ECONOMICO MEX-SP ADR
NYSE:FMX (2/4/2025, 8:04:00 PM)
After market: 85.77 0 (0%)85.77
+0.87 (+1.02%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners21.16%
Inst Owner Change-2.09%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap30.69B
Analysts79.17
Price Target89.18 (3.98%)
Short Float %1.75%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend1.05
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)-3.5%
PT rev (3m)-13.1%
EPS NQ rev (1m)329.98%
EPS NQ rev (3m)401.72%
EPS NY rev (1m)409.06%
EPS NY rev (3m)409.06%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-1.68%
Revenue NY rev (1m)-1.59%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.1 | ||
| Fwd PE | 3.53 | ||
| P/S | 0.7 | ||
| P/FCF | 55.25 | ||
| P/OCF | 11.27 | ||
| P/B | 2.18 | ||
| P/tB | 4.34 | ||
| EV/EBITDA | 6.25 |
EPS(TTM)20.9
EY24.37%
EPS(NY)24.28
Fwd EY28.31%
FCF(TTM)1.55
FCFY1.81%
OCF(TTM)7.61
OCFY8.88%
SpS121.91
BVpS39.38
TBVpS19.75
PEG (NY)0.13
PEG (5Y)8.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 8.8% | ||
| ROCE | 11.3% | ||
| ROIC | 8.42% | ||
| ROICexc | 11.75% | ||
| ROICexgc | 17.29% | ||
| OM | 7.92% | ||
| PM (TTM) | 2.84% | ||
| GM | 40.78% | ||
| FCFM | 1.27% |
ROA(3y)5%
ROA(5y)3.59%
ROE(3y)13.86%
ROE(5y)9.8%
ROIC(3y)7.07%
ROIC(5y)6.71%
ROICexc(3y)9.03%
ROICexc(5y)8.39%
ROICexgc(3y)13.63%
ROICexgc(5y)12.69%
ROCE(3y)9.53%
ROCE(5y)9.04%
ROICexcg growth 3Y13.23%
ROICexcg growth 5Y1.96%
ROICexc growth 3Y13.8%
ROICexc growth 5Y3.51%
OM growth 3Y-0.63%
OM growth 5Y-2.15%
PM growth 3YN/A
PM growth 5Y12.85%
GM growth 3Y1.12%
GM growth 5Y1.3%
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 | 2.72 |
F-Score4
WACC12.12%
ROIC/WACC0.69
Cap/Depr(3y)99.44%
Cap/Depr(5y)93.5%
Cap/Sales(3y)4.96%
Cap/Sales(5y)4.78%
Profit Quality(3y)98.29%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.94%
EPS 3YN/A
EPS 5Y0.5%
EPS Q2Q%-5.15%
EPS Next Y32.37%
EPS Next 2Y17.84%
EPS Next 3Y13.03%
EPS Next 5Y-17.89%
Revenue 1Y (TTM)0.91%
Revenue growth 3Y12.54%
Revenue growth 5Y8.39%
Sales Q2Q%4.61%
Revenue Next Year3.05%
Revenue Next 2Y6.39%
Revenue Next 3Y6.62%
Revenue Next 5Y8.02%
EBIT growth 1Y-11.66%
EBIT growth 3Y11.83%
EBIT growth 5Y6.06%
EBIT Next Year74.17%
EBIT Next 3Y28.08%
EBIT Next 5Y19.33%
FCF growth 1Y-72.85%
FCF growth 3Y-22.26%
FCF growth 5Y-9.09%
OCF growth 1Y-16.16%
OCF growth 3Y0.75%
OCF growth 5Y2.37%