FOMENTO ECONOMICO MEX-SP ADR (FMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FMX - US3444191064 - ADR
100.63 USD
-0.84 (-0.83%)
100.55 USD
-0.08 (-0.08%)
Overall FMX gets a fundamental rating of 4 out of 10. We evaluated FMX 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.
Of the past 5 years FMX 4 years were profitable.
FMX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.02%, FMX perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
FMX's Return On Equity of 6.65% is in line compared to the rest of the industry. FMX outperforms 45.45% of its industry peers.
FMX has a Return On Invested Capital (8.26%) which is comparable to the rest of the industry.
FMX had an Average Return On Invested Capital over the past 3 years of 6.90%. This is below the industry average of 11.60%.
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
The Profit Margin of FMX (1.96%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FMX has declined.
FMX has a worse Operating Margin (8.38%) than 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.
FMX has a Gross Margin (41.14%) which is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FMX is creating some value.
The number of shares outstanding for FMX remains at a similar level compared to 1 year ago.
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
FMX has an Altman-Z score of 2.57. 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.
With a Altman-Z score value of 2.57, FMX perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
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 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's Debt to Equity ratio of 0.92 is on the low side compared to the rest of the industry. FMX is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 8.08 | ||
| Altman-Z | 2.57 |
ROIC/WACC1.26
WACC6.57%
2.3 Liquidity
A Current Ratio of 1.34 indicates that FMX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.34, FMX is in line with its industry, outperforming 57.58% of the companies in the same industry.
A Quick Ratio of 1.05 indicates that FMX should not have too much problems paying its short term obligations.
FMX has a Quick ratio of 1.05. This is in the better half of the industry: FMX outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The earnings per share for FMX have decreased by -8.91% in the last year.
FMX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.40% yearly.
The Revenue has decreased by -9.05% in the past year.
The Revenue has been growing by 9.05% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.91%
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 -1.10% on average over the next years.
The Revenue is expected to grow by 8.38% on average over the next years. This is quite good.
EPS Next Y-31.56%
EPS Next 2Y-8.77%
EPS Next 3Y-1.1%
EPS Next 5YN/A
Revenue Next Year10.42%
Revenue Next 2Y9.53%
Revenue Next 3Y8.87%
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 4.59 indicates a rather cheap valuation of FMX.
Based on the Price/Earnings ratio, FMX is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
FMX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.46.
The Price/Forward Earnings ratio is 3.78, which indicates a rather cheap valuation of FMX.
Based on the Price/Forward Earnings ratio, FMX is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
FMX is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.59 | ||
| Fwd PE | 3.78 |
4.2 Price Multiples
93.94% of the companies in the same industry are more expensive than FMX, based on the Enterprise Value to EBITDA ratio.
63.64% of the companies in the same industry are more expensive than FMX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.93 | ||
| EV/EBITDA | 6.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.11
EPS Next 2Y-8.77%
EPS Next 3Y-1.1%
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 3.07, FMX has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.32, FMX is paying slightly less dividend.
| 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-8.77%
EPS Next 3Y-1.1%
100.63
-0.84 (-0.83%)
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 Cap34.77B
Revenue(TTM)830.54B
Net Income(TTM)16.30B
Analysts80.91
Price Target105.89 (5.23%)
Short Float %2.11%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend3.87
Dividend Growth(5Y)12.97%
DP264.38%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)-11.83%
Min EPS beat(4)-26.96%
Max EPS beat(4)12.83%
EPS beat(8)3
Avg EPS beat(8)-9.18%
EPS beat(12)5
Avg EPS beat(12)-11.1%
EPS beat(16)7
Avg EPS beat(16)-7.98%
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)-0.87%
PT rev (3m)7.74%
EPS NQ rev (1m)-3.69%
EPS NQ rev (3m)388.74%
EPS NY rev (1m)-8.45%
EPS NY rev (3m)341.43%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-1.29%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.59 | ||
| Fwd PE | 3.78 | ||
| P/S | 0.76 | ||
| P/FCF | 19.93 | ||
| P/OCF | 8.18 | ||
| P/B | 2.59 | ||
| P/tB | 6.39 | ||
| EV/EBITDA | 6.38 |
EPS(TTM)21.9
EY21.76%
EPS(NY)26.64
Fwd EY26.48%
FCF(TTM)5.05
FCFY5.02%
OCF(TTM)12.3
OCFY12.22%
SpS131.55
BVpS38.84
TBVpS15.75
PEG (NY)N/A
PEG (5Y)0.11
Graham Number138.35
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 | 2.57 |
F-Score5
WACC6.57%
ROIC/WACC1.26
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)-8.91%
EPS 3Y40.06%
EPS 5Y43.4%
EPS Q2Q%-34.88%
EPS Next Y-31.56%
EPS Next 2Y-8.77%
EPS Next 3Y-1.1%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.05%
Revenue growth 3Y12%
Revenue growth 5Y9.05%
Sales Q2Q%9.08%
Revenue Next Year10.42%
Revenue Next 2Y9.53%
Revenue Next 3Y8.87%
Revenue Next 5Y8.38%
EBIT growth 1Y-3.79%
EBIT growth 3Y6.96%
EBIT growth 5Y7.64%
EBIT Next Year77.99%
EBIT Next 3Y28.94%
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 4 / 10 to FMX.
Can you provide the valuation status for FOMENTO ECONOMICO MEX-SP ADR?
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.
How financially healthy is FOMENTO ECONOMICO MEX-SP ADR?
The financial health rating of FOMENTO ECONOMICO MEX-SP ADR (FMX) is 4 / 10.
What is the earnings growth outlook for FOMENTO ECONOMICO MEX-SP ADR?
The Earnings per Share (EPS) of FOMENTO ECONOMICO MEX-SP ADR (FMX) is expected to decline by -31.56% in the next year.