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 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. While showing a medium growth rate, FMX is valued expensive at the moment.
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 has a Return On Assets (3.80%) which is in line with its industry peers.
The Return On Equity of FMX (10.74%) is comparable to the rest of the industry.
The Return On Invested Capital of FMX (8.71%) 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 11.61%.
The last Return On Invested Capital (8.71%) for FMX is above the 3 year average (6.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 10.74% | ||
| ROIC | 8.71% |
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 (3.33%) is worse than 62.50% of its industry peers.
FMX's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 8.35%, FMX is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
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 (40.97%) 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 | 8.35% | ||
| PM (TTM) | 3.33% | ||
| GM | 40.97% |
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 below the Cost of Capital (WACC), so FMX is destroying value.
Compared to 1 year ago, FMX has about the same amount of shares outstanding.
The number of shares outstanding for FMX has been reduced 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 5.77 indicates that FMX is not in any danger for bankruptcy at the moment.
The Altman-Z score of FMX (5.77) is better than 81.25% of its industry peers.
FMX has a debt to FCF ratio of 23.29. This is a negative value and a sign of low solvency as FMX would need 23.29 years to pay back of all of its debts.
FMX has a worse Debt to FCF ratio (23.29) than 68.75% of its industry peers.
FMX has a Debt/Equity ratio of 0.75. This is a neutral value indicating FMX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.75, FMX is in line with its industry, outperforming 46.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 23.29 | ||
| Altman-Z | 5.77 |
ROIC/WACC0.76
WACC11.42%
2.3 Liquidity
A Current Ratio of 1.64 indicates that FMX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.64, FMX is in line with its industry, outperforming 59.38% of the companies in the same industry.
FMX has a Quick Ratio of 1.31. 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 better Quick ratio (1.31) than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
FMX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.48%, which is quite impressive.
FMX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.40% yearly.
FMX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.14%.
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)100.48%
EPS 3Y40.06%
EPS 5Y43.4%
EPS Q2Q%52.44%
Revenue 1Y (TTM)11.14%
Revenue growth 3Y12%
Revenue growth 5Y9.05%
Sales Q2Q%9.89%
3.2 Future
FMX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.34% yearly.
FMX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.45% yearly.
EPS Next Y-9.53%
EPS Next 2Y-3.87%
EPS Next 3Y-2.34%
EPS Next 5YN/A
Revenue Next Year12.31%
Revenue Next 2Y10.74%
Revenue Next 3Y9.57%
Revenue Next 5Y8.45%
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
FMX is valuated correctly with a Price/Earnings ratio of 15.06.
Based on the Price/Earnings ratio, FMX is valued cheaper than 81.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, FMX is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.49, which indicates a rather expensive current valuation of FMX.
The rest of the industry has a similar Price/Forward Earnings ratio as FMX.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, FMX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 17.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FMX is valued a bit more expensive than the industry average as 65.63% of the companies are valued more cheaply.
FMX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 277.77 | ||
| EV/EBITDA | 27.76 |
4.3 Compensation for Growth
FMX's earnings are expected to decrease with -2.34% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-3.87%
EPS Next 3Y-2.34%
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 3.14.
FMX's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
On average, the dividend of FMX grows each year by 28.91%, which is quite nice.
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)28.91%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
FMX pays out 95.67% of its income as dividend. 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.
DP95.67%
EPS Next 2Y-3.87%
EPS Next 3Y-2.34%
102.98
+0.99 (+0.97%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners18.4%
Inst Owner Change2.92%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap178.64B
Analysts80
Price Target106.25 (3.18%)
Short Float %0.45%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend1.48
Dividend Growth(5Y)28.91%
DP95.67%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)33.19%
Min EPS beat(2)-7.74%
Max EPS beat(2)74.12%
EPS beat(4)3
Avg EPS beat(4)36.98%
Min EPS beat(4)-7.74%
Max EPS beat(4)74.12%
EPS beat(8)4
Avg EPS beat(8)3.2%
EPS beat(12)6
Avg EPS beat(12)0.15%
EPS beat(16)7
Avg EPS beat(16)-9.29%
Revenue beat(2)0
Avg Revenue beat(2)-2.01%
Min Revenue beat(2)-3.4%
Max Revenue beat(2)-0.61%
Revenue beat(4)0
Avg Revenue beat(4)-2.58%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)-0.61%
Revenue beat(8)0
Avg Revenue beat(8)-3.98%
Revenue beat(12)3
Avg Revenue beat(12)5.85%
Revenue beat(16)7
Avg Revenue beat(16)21.74%
PT rev (1m)1.37%
PT rev (3m)1.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-82.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-79.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 17.49 | ||
| P/S | 3.45 | ||
| P/FCF | 277.77 | ||
| P/OCF | 52.84 | ||
| P/B | 11.12 | ||
| P/tB | 21.95 | ||
| EV/EBITDA | 27.76 |
EPS(TTM)6.84
EY6.64%
EPS(NY)5.89
Fwd EY5.72%
FCF(TTM)0.37
FCFY0.36%
OCF(TTM)1.95
OCFY1.89%
SpS29.87
BVpS9.26
TBVpS4.69
PEG (NY)N/A
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 10.74% | ||
| ROCE | 12.51% | ||
| ROIC | 8.71% | ||
| ROICexc | 11.82% | ||
| ROICexgc | 17.14% | ||
| OM | 8.35% | ||
| PM (TTM) | 3.33% | ||
| GM | 40.97% | ||
| FCFM | 1.24% |
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%
ROICexcg growth 3Y6.94%
ROICexcg 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 Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 23.29 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 127.86% | ||
| Cap/Sales | 5.28% | ||
| Interest Coverage | 4.96 | ||
| Cash Conversion | 52.27% | ||
| Profit Quality | 37.28% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 5.77 |
F-Score5
WACC11.42%
ROIC/WACC0.76
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)100.48%
EPS 3Y40.06%
EPS 5Y43.4%
EPS Q2Q%52.44%
EPS Next Y-9.53%
EPS Next 2Y-3.87%
EPS Next 3Y-2.34%
EPS Next 5YN/A
Revenue 1Y (TTM)11.14%
Revenue growth 3Y12%
Revenue growth 5Y9.05%
Sales Q2Q%9.89%
Revenue Next Year12.31%
Revenue Next 2Y10.74%
Revenue Next 3Y9.57%
Revenue Next 5Y8.45%
EBIT growth 1Y3.85%
EBIT growth 3Y6.96%
EBIT growth 5Y7.64%
EBIT Next Year83.86%
EBIT Next 3Y29.71%
EBIT Next 5Y21.91%
FCF growth 1Y-66.8%
FCF growth 3Y-21.83%
FCF growth 5Y-7.49%
OCF growth 1Y-7.12%
OCF growth 3Y-0.28%
OCF growth 5Y3.3%