FOMENTO ECONOMICO MEX-SP ADR (FMX)

US3444191064 - ADR

118.83  -14.63 (-10.96%)

After market: 118.83 0 (0%)

Fundamental Rating

5

Taking everything into account, FMX scores 5 out of 10 in our fundamental rating. FMX was compared to 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.



5

1. Profitability

1.1 Basic Checks

In the past year FMX was profitable.
In the past year FMX had a positive cash flow from operations.
Of the past 5 years FMX 4 years were profitable.
Each year in the past 5 years FMX had a positive operating cash flow.

1.2 Ratios

FMX has a better Return On Assets (14.17%) than 93.94% of its industry peers.
FMX has a better Return On Equity (38.49%) than 93.94% of its industry peers.
FMX has a Return On Invested Capital (8.57%) which is comparable to the rest of the industry.
FMX had an Average Return On Invested Capital over the past 3 years of 5.65%. This is significantly below the industry average of 11.82%.
The last Return On Invested Capital (8.57%) for FMX is above the 3 year average (5.65%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 14.17%
ROE 38.49%
ROIC 8.57%
ROA(3y)2.19%
ROA(5y)2.8%
ROE(3y)6.38%
ROE(5y)7.34%
ROIC(3y)5.65%
ROIC(5y)5.77%

1.3 Margins

With a decent Profit Margin value of 12.81%, FMX is doing good in the industry, outperforming 69.70% of the companies in the same industry.
FMX's Profit Margin has declined in the last couple of years.
The Operating Margin of FMX (9.05%) is worse than 69.70% of its industry peers.
FMX's Operating Margin has been stable in the last couple of years.
FMX has a worse Gross Margin (38.13%) than 69.70% 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 RankSector Rank
OM 9.05%
PM (TTM) 12.81%
GM 38.13%
OM growth 3Y-2.26%
OM growth 5Y-1.41%
PM growth 3Y-4.56%
PM growth 5Y-18.1%
GM growth 3Y-0.36%
GM growth 5Y0.29%

5

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.
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.
Compared to 1 year ago, FMX has a worse debt to assets ratio.

2.2 Solvency

FMX has an Altman-Z score of 6.96. This indicates that FMX is financially healthy and has little risk of bankruptcy at the moment.
FMX has a Altman-Z score of 6.96. This is amongst the best in the industry. FMX outperforms 84.85% of its industry peers.
The Debt to FCF ratio of FMX is 8.20, which is on the high side as it means it would take FMX, 8.20 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.20, FMX perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
FMX has a Debt/Equity ratio of 0.73. This is a neutral value indicating FMX is somewhat dependend on debt financing.
FMX's Debt to Equity ratio of 0.73 is in line compared to the rest of the industry. FMX outperforms 45.45% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF 8.2
Altman-Z 6.96
ROIC/WACC0.65
WACC13.2%

2.3 Liquidity

A Current Ratio of 1.96 indicates that FMX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.96, FMX perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
FMX has a Quick Ratio of 1.67. This is a normal value and indicates that FMX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of FMX (1.67) is better than 84.85% of its industry peers.
Industry RankSector Rank
Current Ratio 1.96
Quick Ratio 1.67

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 14.20% over the past year.
FMX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.17% yearly.
The Revenue has grown by 15.05% in the past year. This is quite good.
The Revenue has been growing by 8.88% on average over the past years. This is quite good.
EPS 1Y (TTM)14.2%
EPS 3Y53.17%
EPS 5Y-10.17%
EPS growth Q2Q-9.42%
Revenue 1Y (TTM)15.05%
Revenue growth 3Y9.93%
Revenue growth 5Y8.88%
Revenue growth Q2Q9.57%

3.2 Future

Based on estimates for the next years, FMX will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.61% on average per year.
Based on estimates for the next years, FMX will show a quite strong growth in Revenue. The Revenue will grow by 8.39% on average per year.
EPS Next Y155.22%
EPS Next 2Y24.05%
EPS Next 3Y20.14%
EPS Next 5Y16.61%
Revenue Next Year13.52%
Revenue Next 2Y10.66%
Revenue Next 3Y9.24%
Revenue Next 5Y8.39%

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 accelerating.
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.

3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 23.86 indicates a rather expensive valuation of FMX.
FMX's Price/Earnings is on the same level as the industry average.
FMX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.09, which indicates a rather expensive current valuation of FMX.
FMX's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, FMX is valued at the same level.
Industry RankSector Rank
PE 23.86
Fwd PE 19.09

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FMX is valued a bit more expensive than the industry average as 69.70% of the companies are valued more cheaply.
FMX's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 125.96
EV/EBITDA 35.02

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.
A more expensive valuation may be justified as FMX's earnings are expected to grow with 20.14% in the coming years.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y24.05%
EPS Next 3Y20.14%

5

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 a higher than the industry average which is at 2.53.
Compared to the average S&P500 Dividend Yield of 2.46, FMX is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.73%

5.2 History

The dividend of FMX is nicely growing with an annual growth rate of 7.05%!
FMX has been paying a dividend for at least 10 years, so it has a reliable track record.
FMX has decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.05%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

FMX pays out 15.63% of its income as dividend. This is a sustainable payout ratio.
FMX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.63%
EPS Next 2Y24.05%
EPS Next 3Y20.14%

FOMENTO ECONOMICO MEX-SP ADR

NYSE:FMX (2/23/2024, 7:04:00 PM)

After market: 118.83 0 (0%)

118.83

-14.63 (-10.96%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap212.60B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.73%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 23.86
Fwd PE 19.09
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.15
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 14.17%
ROE 38.49%
ROCE
ROIC
ROICexc
ROICexgc
OM 9.05%
PM (TTM) 12.81%
GM 38.13%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.11
Health
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.96
Quick Ratio 1.67
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)14.2%
EPS 3Y53.17%
EPS 5Y
EPS growth Q2Q
EPS Next Y155.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.05%
Revenue growth 3Y9.93%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y