FOMENTO ECONOMICO MEX-SP ADR (FMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FMX - US3444191064 - ADR
101.07 USD
+0.43 (+0.43%)
101.07 USD
0 (0%)
Taking everything into account, FMX scores 5 out of 10 in our fundamental rating. FMX was compared to 32 industry peers in the Beverages industry. FMX has an average financial health and profitability rating. FMX is valued quite cheap, while showing a decent growth score. This is a good 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.
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's Return On Assets of 2.02% is on the low side compared to the rest of the industry. FMX is outperformed by 62.50% of its industry peers.
FMX's Return On Equity of 6.65% is in line compared to the rest of the industry. FMX outperforms 40.63% of its industry peers.
FMX has a Return On Invested Capital (8.26%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FMX is below the industry average of 11.65%.
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 Profit Margin of 1.96%. This is in the lower half of the industry: FMX underperforms 62.50% of its industry peers.
FMX's Profit Margin has declined in the last couple of years.
FMX has a worse Operating Margin (8.38%) than 62.50% of its industry peers.
FMX's Operating Margin has been stable in the last couple of years.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FMX is still creating some value.
Compared to 1 year ago, FMX has about the same amount of shares outstanding.
The number of shares outstanding for FMX remains at a similar level compared to 5 years ago.
The debt/assets ratio for FMX is higher compared to a year ago.
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's Altman-Z score of 2.56 is in line compared to the rest of the industry. FMX outperforms 56.25% 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.
The Debt to FCF ratio of FMX (8.08) is comparable to the rest of the industry.
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 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 8.08 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.25
WACC6.6%
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 comparable to the rest of the industry.
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.
With a decent Quick ratio value of 1.05, FMX is doing good in the industry, outperforming 68.75% of the companies in the same industry.
| 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.
The Revenue has decreased by -9.05% in the past year.
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
FMX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.97% yearly.
The Revenue is expected to grow by 8.38% on average over the next years. This is quite good.
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
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
FMX is valuated cheaply with a Price/Earnings ratio of 4.09.
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 26.51.
A Price/Forward Earnings ratio of 4.03 indicates a rather cheap valuation of FMX.
96.88% of the companies in the same industry are more expensive than FMX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FMX to the average of the S&P500 Index (23.13), we can say FMX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.09 | ||
| Fwd PE | 4.03 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FMX indicates a somewhat cheap valuation: FMX is cheaper than 65.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.69 | ||
| EV/EBITDA | 6.26 |
4.3 Compensation for Growth
FMX's earnings are expected to decrease with -3.97% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y-12.18%
EPS Next 3Y-3.97%
5. Dividend
5.1 Amount
FMX has a Yearly Dividend Yield of 1.73%.
FMX's Dividend Yield is comparable with the industry average which is at 1.69.
Compared to an average S&P500 Dividend Yield of 2.00, FMX has a dividend comparable with the average S&P500 company.
| 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.
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%
101.07
+0.43 (+0.43%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners20.41%
Inst Owner Change-7.8%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap34.92B
Revenue(TTM)830.54B
Net Income(TTM)16.30B
Analysts80.91
Price Target104.82 (3.71%)
Short Float %3.12%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend3.93
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)9.39%
EPS NQ rev (1m)2.47%
EPS NQ rev (3m)402.04%
EPS NY rev (1m)-14.26%
EPS NY rev (3m)294.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.29%
Revenue NY rev (1m)-1.59%
Revenue NY rev (3m)-2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.09 | ||
| Fwd PE | 4.03 | ||
| P/S | 0.76 | ||
| P/FCF | 19.69 | ||
| P/OCF | 8.09 | ||
| P/B | 2.56 | ||
| P/tB | 6.31 | ||
| EV/EBITDA | 6.26 |
EPS(TTM)24.72
EY24.46%
EPS(NY)25.1
Fwd EY24.83%
FCF(TTM)5.13
FCFY5.08%
OCF(TTM)12.5
OCFY12.37%
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
WACC6.6%
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 4.09 and the Price/Book (PB) ratio is 2.56.
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.