FOMENTO ECONOMICO MEX-SP ADR (FMX) Stock Fundamental Analysis
NYSE:FMX - US3444191064 - ADR
86.99 USD
+0.08 (+0.09%)
86.99 USD
0 (0%)
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. FMX has only an average score on both its financial health and profitability. 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.
In the past 5 years FMX always reported a positive cash flow from operatings.
1.2 Ratios
FMX has a Return On Assets of 2.38%. This is in the lower half of the industry: FMX underperforms 62.50% of its industry peers.
FMX has a Return On Equity of 8.09%. This is comparable to the rest of the industry: FMX outperforms 46.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.19%, FMX is in line with its industry, outperforming 53.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FMX is below the industry average of 11.07%.
The last Return On Invested Capital (8.19%) for FMX is above the 3 year average (6.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 8.09% | ||
| ROIC | 8.19% |
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
FMX has a worse Profit Margin (2.43%) than 62.50% of its industry peers.
FMX's Profit Margin has declined in the last couple of years.
FMX's Operating Margin of 8.53% is on the low side compared to the rest of the industry. FMX is outperformed by 68.75% of its industry peers.
FMX's Operating Margin has been stable in the last couple of years.
FMX has a Gross Margin (41.27%) which is in line with its industry peers.
FMX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.53% | ||
| PM (TTM) | 2.43% | ||
| GM | 41.27% |
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
FMX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FMX has about the same amount of shares outstanding.
FMX has about the same amout of shares outstanding than it did 5 years ago.
FMX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.70 indicates that FMX is not in any danger for bankruptcy at the moment.
FMX's Altman-Z score of 4.70 is amongst the best of the industry. FMX outperforms 81.25% of its industry peers.
The Debt to FCF ratio of FMX is 15.03, which is on the high side as it means it would take FMX, 15.03 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.03, FMX is doing worse than 65.63% of the companies in the same industry.
FMX has a Debt/Equity ratio of 0.94. This is a neutral value indicating FMX is somewhat dependend on debt financing.
FMX has a worse Debt to Equity ratio (0.94) than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 4.7 |
ROIC/WACC0.96
WACC8.54%
2.3 Liquidity
A Current Ratio of 1.34 indicates that FMX should not have too much problems paying its short term obligations.
FMX has a Current ratio (1.34) which is comparable to the rest of the industry.
FMX has a Quick Ratio of 1.06. 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 Quick ratio of 1.06. This is in the better half of the industry: FMX outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
FMX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.56%.
Measured over the past years, FMX shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.40% on average per year.
The Revenue for FMX has decreased by -10.16% in the past year. This is quite bad
The Revenue has been growing by 9.05% on average over the past years. This is quite good.
EPS 1Y (TTM)-9.56%
EPS 3Y40.06%
EPS 5Y43.4%
EPS Q2Q%-82.15%
Revenue 1Y (TTM)-10.16%
Revenue growth 3Y12%
Revenue growth 5Y9.05%
Sales Q2Q%6.35%
3.2 Future
Based on estimates for the next years, FMX will show a decrease in Earnings Per Share. The EPS will decrease by -0.29% 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 8.88% on average per year.
EPS Next Y-22.16%
EPS Next 2Y-5.81%
EPS Next 3Y-0.29%
EPS Next 5YN/A
Revenue Next Year11.64%
Revenue Next 2Y10.36%
Revenue Next 3Y9.48%
Revenue Next 5Y8.88%
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 rather expensively with a Price/Earnings ratio of 20.18.
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 (27.14), we can say FMX is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.69, which indicates a correct valuation of FMX.
Based on the Price/Forward Earnings ratio, FMX is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FMX to the average of the S&P500 Index (22.80), we can say FMX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 15.69 |
4.2 Price Multiples
65.63% of the companies in the same industry are cheaper than FMX, based on the Enterprise Value to EBITDA ratio.
FMX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 159.3 | ||
| EV/EBITDA | 25.91 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y-5.81%
EPS Next 3Y-0.29%
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 2.73.
FMX's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
On average, the dividend of FMX grows each year by 12.97%, 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)12.97%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
FMX pays out 188.65% 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.
DP188.65%
EPS Next 2Y-5.81%
EPS Next 3Y-0.29%
86.99
+0.08 (+0.09%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners18.4%
Inst Owner Change1.01%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap150.90B
Analysts80
Price Target91.89 (5.63%)
Short Float %0.42%
Short Ratio1.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend0.75
Dividend Growth(5Y)12.97%
DP188.65%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-25.89%
Min EPS beat(2)-64.61%
Max EPS beat(2)12.83%
EPS beat(4)2
Avg EPS beat(4)-12.32%
Min EPS beat(4)-64.61%
Max EPS beat(4)12.83%
EPS beat(8)4
Avg EPS beat(8)-8.98%
EPS beat(12)6
Avg EPS beat(12)-7.93%
EPS beat(16)7
Avg EPS beat(16)-12.6%
Revenue beat(2)0
Avg Revenue beat(2)-4.03%
Min Revenue beat(2)-4.66%
Max Revenue beat(2)-3.4%
Revenue beat(4)0
Avg Revenue beat(4)-3.36%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)-0.61%
Revenue beat(8)0
Avg Revenue beat(8)-4.1%
Revenue beat(12)2
Avg Revenue beat(12)-2.88%
Revenue beat(16)6
Avg Revenue beat(16)15.71%
PT rev (1m)-10.83%
PT rev (3m)-12.33%
EPS NQ rev (1m)-8.19%
EPS NQ rev (3m)12.11%
EPS NY rev (1m)-16.57%
EPS NY rev (3m)-16.57%
Revenue NQ rev (1m)-1.55%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 15.69 | ||
| P/S | 3.46 | ||
| P/FCF | 159.3 | ||
| P/OCF | 44.89 | ||
| P/B | 11.51 | ||
| P/tB | 28.71 | ||
| EV/EBITDA | 25.91 |
EPS(TTM)4.31
EY4.95%
EPS(NY)5.54
Fwd EY6.37%
FCF(TTM)0.55
FCFY0.63%
OCF(TTM)1.94
OCFY2.23%
SpS25.13
BVpS7.56
TBVpS3.03
PEG (NY)N/A
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 8.09% | ||
| ROCE | 11.75% | ||
| ROIC | 8.19% | ||
| ROICexc | 11.33% | ||
| ROICexgc | 17.26% | ||
| OM | 8.53% | ||
| PM (TTM) | 2.43% | ||
| GM | 41.27% | ||
| FCFM | 2.17% |
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 Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 15.03 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 107.66% | ||
| Cap/Sales | 5.54% | ||
| Interest Coverage | 4.35 | ||
| Cash Conversion | 56.4% | ||
| Profit Quality | 89.26% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 4.7 |
F-Score5
WACC8.54%
ROIC/WACC0.96
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)-9.56%
EPS 3Y40.06%
EPS 5Y43.4%
EPS Q2Q%-82.15%
EPS Next Y-22.16%
EPS Next 2Y-5.81%
EPS Next 3Y-0.29%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.16%
Revenue growth 3Y12%
Revenue growth 5Y9.05%
Sales Q2Q%6.35%
Revenue Next Year11.64%
Revenue Next 2Y10.36%
Revenue Next 3Y9.48%
Revenue Next 5Y8.88%
EBIT growth 1Y-2.62%
EBIT growth 3Y6.96%
EBIT growth 5Y7.64%
EBIT Next Year83.86%
EBIT Next 3Y29.71%
EBIT Next 5Y22.39%
FCF growth 1Y-36.92%
FCF growth 3Y-21.83%
FCF growth 5Y-7.49%
OCF growth 1Y0.97%
OCF growth 3Y-0.28%
OCF growth 5Y3.3%