FOMENTO ECONOMICO MEX-SP ADR (FMX) Stock Fundamental Analysis
NYSE:FMX - New York Stock Exchange, Inc. - US3444191064 - ADR - Currency: USD
We assign a fundamental rating of 4 out of 10 to FMX. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on FMX.
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.
In the past 5 years FMX always reported a positive cash flow from operatings.
1.2 Ratios
FMX's Return On Assets of 3.05% is in line compared to the rest of the industry. FMX outperforms 43.75% of its industry peers.
FMX has a Return On Equity (8.80%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 8.42%, FMX perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FMX is significantly below the industry average of 13.08%.
The last Return On Invested Capital (8.42%) for FMX is above the 3 year average (7.07%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 2.84%, FMX is not doing good in the industry: 71.88% of the companies in the same industry are doing better.
FMX's Profit Margin has improved in the last couple of years.
The Operating Margin of FMX (7.92%) is worse than 62.50% of its industry peers.
In the last couple of years the Operating Margin of FMX has declined.
FMX has a Gross Margin of 40.78%. This is comparable to the rest of the industry: FMX outperforms 43.75% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FMX 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.
FMX has a better debt/assets ratio than last year.
2.2 Solvency
FMX has an Altman-Z score of 2.80. 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.
FMX's Altman-Z score of 2.80 is in line compared to the rest of the industry. FMX outperforms 56.25% of its industry peers.
The Debt to FCF ratio of FMX is 21.84, which is on the high side as it means it would take FMX, 21.84 years of fcf income to pay off all of its debts.
FMX's Debt to FCF ratio of 21.84 is on the low side compared to the rest of the industry. FMX is outperformed by 65.63% 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.
FMX has a Debt to Equity ratio (0.78) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 21.84 | ||
| Altman-Z | 2.8 |
ROIC/WACC0.68
WACC12.3%
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.
With a Current ratio value of 1.62, FMX perfoms like the industry average, outperforming 59.38% 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.
Looking at the Quick ratio, with a value of 1.32, FMX is in the better half of the industry, outperforming 68.75% 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
Based on estimates for the next years, FMX will show a very negative growth in Earnings Per Share. The EPS will decrease by -17.89% on average per year.
FMX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.02% yearly.
EPS Next Y32.37%
EPS Next 2Y17.84%
EPS Next 3Y13.03%
EPS Next 5Y-17.89%
Revenue Next Year3.02%
Revenue Next 2Y6.32%
Revenue Next 3Y6.5%
Revenue Next 5Y8.02%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 cheaply with a Price/Earnings ratio of 4.54.
100.00% of the companies in the same industry are more expensive than FMX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of FMX to the average of the S&P500 Index (29.35), we can say FMX is valued rather cheaply.
A Price/Forward Earnings ratio of 3.90 indicates a rather cheap valuation of FMX.
Based on the Price/Forward Earnings ratio, FMX is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. FMX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.54 | ||
| Fwd PE | 3.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FMX indicates a rather cheap valuation: FMX is cheaper than 84.38% of the companies listed in the same industry.
FMX's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. FMX is more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.07 | ||
| EV/EBITDA | 6.93 |
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.
FMX's earnings are expected to grow with 13.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)9.09
EPS Next 2Y17.84%
EPS Next 3Y13.03%
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 3.12.
FMX's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| 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 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)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 declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP97.75%
EPS Next 2Y17.84%
EPS Next 3Y13.03%
97.72
+0.29 (+0.3%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners21.2%
Inst Owner Change3.37%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap34.97B
Analysts79.13
Price Target97.87 (0.15%)
Short Float %2.42%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend2.59
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)9.75%
PT rev (3m)3.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)329.98%
EPS NY rev (1m)0%
EPS NY rev (3m)409.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.54 | ||
| Fwd PE | 3.9 | ||
| P/S | 0.78 | ||
| P/FCF | 61.07 | ||
| P/OCF | 12.45 | ||
| P/B | 2.41 | ||
| P/tB | 4.8 | ||
| EV/EBITDA | 6.93 |
EPS(TTM)21.54
EY22.04%
EPS(NY)25.03
Fwd EY25.61%
FCF(TTM)1.6
FCFY1.64%
OCF(TTM)7.85
OCFY8.03%
SpS125.67
BVpS40.59
TBVpS20.35
PEG (NY)0.14
PEG (5Y)9.09
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 | 2.8 |
F-Score4
WACC12.3%
ROIC/WACC0.68
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 Year3.02%
Revenue Next 2Y6.32%
Revenue Next 3Y6.5%
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%