FOMENTO ECONOMICO MEX-SP ADR (FMX)
US3444191064 - ADR
FMX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. FMX has an average financial health and profitability rating. 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.
FMX had a positive operating cash flow in the past year.
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 worse Return On Assets (3.05%) than 63.33% of its industry peers.
FMX has a Return On Equity (8.80%) which is in line with its industry peers.
With a Return On Invested Capital value of 8.42%, FMX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
FMX had an Average Return On Invested Capital over the past 3 years of 7.07%. This is significantly below the industry average of 12.86%.
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
Looking at the Profit Margin, with a value of 2.84%, FMX is doing worse than 73.33% of the companies in the same industry.
In the last couple of years the Profit Margin of FMX has grown nicely.
FMX has a worse Operating Margin (7.92%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of FMX has declined.
With a Gross Margin value of 40.78%, FMX is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
FMX's Gross Margin has been stable in the last couple of years.
| 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.
FMX has about the same amout of shares outstanding than it did 1 year ago.
FMX has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for FMX has been reduced compared to a year ago.
2.2 Solvency
FMX has an Altman-Z score of 5.47. This indicates that FMX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.47, FMX is in the better half of the industry, outperforming 80.00% of the companies in the same 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 70.00% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that FMX is somewhat dependend on debt financing.
FMX's Debt to Equity ratio of 0.78 is in line compared to the rest of the industry. FMX outperforms 43.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 21.84 | ||
| Altman-Z | 5.47 |
ROIC/WACC0.6
WACC13.93%
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.
Looking at the Current ratio, with a value of 1.62, FMX is in line with its industry, outperforming 53.33% of the companies in the same industry.
FMX has a Quick Ratio of 1.32. 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 1.32, FMX is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
FMX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.94%.
FMX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.50% yearly.
The Revenue has been growing slightly by 0.91% in the past year.
The Revenue has been growing by 8.39% on average over the past years. This is quite good.
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 grow by 22.78% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.48% on average over the next years.
EPS Next Y30.02%
EPS Next 2Y19.25%
EPS Next 3Y13.17%
EPS Next 5Y22.78%
Revenue Next Year4.72%
Revenue Next 2Y7.08%
Revenue Next 3Y7.39%
Revenue Next 5Y7.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 20.24, the valuation of FMX can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as FMX.
When comparing the Price/Earnings ratio of FMX to the average of the S&P500 Index (27.09), we can say FMX is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.02 indicates a rather expensive valuation of FMX.
Based on the Price/Forward Earnings ratio, FMX is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FMX to the average of the S&P500 Index (23.45), we can say FMX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 17.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FMX indicates a slightly more expensive valuation: FMX is more expensive than 76.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FMX is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 272.65 | ||
| EV/EBITDA | 29.47 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FMX's earnings are expected to grow with 13.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)40.55
EPS Next 2Y19.25%
EPS Next 3Y13.17%
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.
FMX's Dividend Yield is comparable with the industry average which is at 3.08.
FMX's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| 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
97.75% of the earnings are spent on dividend by FMX. This is not a sustainable payout ratio.
FMX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP97.75%
EPS Next 2Y19.25%
EPS Next 3Y13.17%
FOMENTO ECONOMICO MEX-SP ADR
NYSE:FMX (1/2/2025, 7:00:00 PM)
After market: 85.42 0 (0%)85.42
-0.07 (-0.08%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners21.16%
Inst Owner Change9.22%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap152.83B
Analysts79.17
Price Target92.42 (8.19%)
Short Float %0.04%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Dividend Growth(5Y)7.77%
DP97.75%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)-2.12%
PT rev (3m)-12.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 17.02 | ||
| P/S | 3.47 | ||
| P/FCF | 272.65 | ||
| P/OCF | 55.59 | ||
| P/B | 10.75 | ||
| P/tB | 21.43 | ||
| EV/EBITDA | 29.47 |
EPS(TTM)4.22
EY4.94%
EPS(NY)5.02
Fwd EY5.87%
FCF(TTM)0.31
FCFY0.37%
OCF(TTM)1.54
OCFY1.8%
SpS24.61
BVpS7.95
TBVpS3.99
PEG (NY)0.67
PEG (5Y)40.55
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 | 5.47 |
F-Score4
WACC13.93%
ROIC/WACC0.6
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 Y30.02%
EPS Next 2Y19.25%
EPS Next 3Y13.17%
EPS Next 5Y22.78%
Revenue 1Y (TTM)0.91%
Revenue growth 3Y12.54%
Revenue growth 5Y8.39%
Sales Q2Q%4.61%
Revenue Next Year4.72%
Revenue Next 2Y7.08%
Revenue Next 3Y7.39%
Revenue Next 5Y7.48%
EBIT growth 1Y-11.66%
EBIT growth 3Y11.83%
EBIT growth 5Y6.06%
EBIT Next Year74.17%
EBIT Next 3Y28.08%
EBIT Next 5Y18.73%
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%