FOMENTO ECONOMICO MEX-SP ADR (FMX)
US3444191064 - ADR
Taking everything into account, FMX scores 5 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. FMX is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years FMX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FMX (8.60%) is comparable to the rest of the industry.
FMX's Return On Equity of 24.76% is fine compared to the rest of the industry. FMX outperforms 71.88% of its industry peers.
FMX's Return On Invested Capital of 9.79% is in line compared to the rest of the industry. FMX outperforms 53.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FMX is significantly below the industry average of 12.59%.
The 3 year average ROIC (7.07%) for FMX is below the current ROIC(9.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.6% | ||
| ROE | 24.76% | ||
| ROIC | 9.79% |
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
FMX has a Profit Margin (7.79%) which is in line with its industry peers.
FMX's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 8.81%, FMX is not doing good in the industry: 71.88% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of FMX has declined.
Looking at the Gross Margin, with a value of 39.70%, FMX is in line with its industry, outperforming 40.63% of the companies in the same industry.
FMX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.81% | ||
| PM (TTM) | 7.79% | ||
| GM | 39.7% |
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.
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 better debt/assets ratio than last year.
2.2 Solvency
FMX has an Altman-Z score of 6.32. This indicates that FMX is financially healthy and has little risk of bankruptcy at the moment.
FMX's Altman-Z score of 6.32 is amongst the best of the industry. FMX outperforms 81.25% of its industry peers.
The Debt to FCF ratio of FMX is 9.48, which is on the high side as it means it would take FMX, 9.48 years of fcf income to pay off all of its debts.
FMX has a Debt to FCF ratio of 9.48. This is in the lower half of the industry: FMX underperforms 68.75% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that FMX is somewhat dependend on debt financing.
FMX's Debt to Equity ratio of 0.75 is in line compared to the rest of the industry. FMX outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 9.48 | ||
| Altman-Z | 6.32 |
ROIC/WACC0.72
WACC13.65%
2.3 Liquidity
A Current Ratio of 1.68 indicates that FMX should not have too much problems paying its short term obligations.
FMX has a Current ratio (1.68) which is comparable to the rest of the industry.
FMX has a Quick Ratio of 1.42. 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 1.42. This is in the better half of the industry: FMX outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
FMX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.70%.
FMX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.50% yearly.
Looking at the last year, FMX shows a small growth in Revenue. The Revenue has grown by 3.26% in the last year.
Measured over the past years, FMX shows a quite strong growth in Revenue. The Revenue has been growing by 8.39% on average per year.
EPS 1Y (TTM)-26.7%
EPS 3YN/A
EPS 5Y0.5%
EPS Q2Q%-39.71%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y12.54%
Revenue growth 5Y8.39%
Sales Q2Q%-1%
3.2 Future
FMX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.78% yearly.
The Revenue is expected to grow by 8.80% on average over the next years. This is quite good.
EPS Next Y36.24%
EPS Next 2Y24.46%
EPS Next 3Y18.11%
EPS Next 5Y22.78%
Revenue Next Year5.18%
Revenue Next 2Y7.13%
Revenue Next 3Y7.28%
Revenue Next 5Y8.8%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.66, which means the current valuation is very expensive for FMX.
Compared to the rest of the industry, the Price/Earnings ratio of FMX is on the same level as its industry peers.
FMX is valuated rather expensively when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
FMX is valuated rather expensively with a Price/Forward Earnings ratio of 17.44.
FMX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FMX is cheaper than 68.75% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.35. FMX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.66 | ||
| Fwd PE | 17.44 |
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 71.88% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FMX is valued a bit more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 148.52 | ||
| EV/EBITDA | 31.93 |
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.
A more expensive valuation may be justified as FMX's earnings are expected to grow with 18.11% in the coming years.
PEG (NY)0.87
PEG (5Y)63.42
EPS Next 2Y24.46%
EPS Next 3Y18.11%
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 2.83.
FMX's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| 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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.77%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
FMX pays out 27.39% 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.
DP27.39%
EPS Next 2Y24.46%
EPS Next 3Y18.11%
FOMENTO ECONOMICO MEX-SP ADR
NYSE:FMX (7/25/2024, 7:04:00 PM)
After market: 108.27 0 (0%)108.27
-2.82 (-2.54%)
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 Cap193.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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)
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Min EPS beat(4)
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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)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.66 | ||
| Fwd PE | 17.44 | ||
| 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)0.87
PEG (5Y)63.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.6% | ||
| ROE | 24.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.81% | ||
| PM (TTM) | 7.79% | ||
| GM | 39.7% | ||
| 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 Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.42 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-26.7%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y36.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.26%
Revenue growth 3Y12.54%
Revenue growth 5Y
Sales 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