FOMENTO ECONOMICO MEX-SP ADR (FMX) Stock Fundamental Analysis
USA - NYSE:FMX - US3444191064 - ADR
93.76 USD
-1.42 (-1.49%)
93.76 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to FMX. FMX was compared to 33 industry peers in the Beverages industry. While FMX is still in line with the averages on profitability rating, there are concerns on its financial health. FMX has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years FMX 4 years were profitable.
In the past 5 years FMX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FMX (2.38%) is worse than 63.64% of its industry peers.
FMX's Return On Equity of 8.09% is in line compared to the rest of the industry. FMX outperforms 48.48% of its industry peers.
FMX has a Return On Invested Capital of 8.19%. This is comparable to the rest of the industry: FMX outperforms 54.55% of its industry peers.
FMX had an Average Return On Invested Capital over the past 3 years of 6.90%. This is below the industry average of 10.78%.
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
Looking at the Profit Margin, with a value of 2.43%, FMX is doing worse than 63.64% of the companies in the same industry.
FMX's Profit Margin has declined in the last couple of years.
FMX has a Operating Margin of 8.53%. This is in the lower half of the industry: FMX underperforms 69.70% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FMX is creating some value.
The number of shares outstanding for FMX remains at a similar level compared to 1 year ago.
FMX has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, FMX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.43 indicates that FMX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.43, FMX is in line with its industry, outperforming 57.58% of the companies in the same industry.
FMX has a debt to FCF ratio of 15.03. This is a negative value and a sign of low solvency as FMX would need 15.03 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.03, FMX is doing worse than 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.94 indicates that FMX is somewhat dependend on debt financing.
FMX has a worse Debt to Equity ratio (0.94) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.26
WACC6.5%
2.3 Liquidity
A Current Ratio of 1.34 indicates that FMX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.34, FMX perfoms like the industry average, outperforming 57.58% of the companies in the same 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 better Quick ratio (1.06) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The earnings per share for FMX have decreased by -9.56% in the last year.
FMX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.40% yearly.
Looking at the last year, FMX shows a very negative growth in Revenue. The Revenue has decreased by -10.16% in the last year.
Measured over the past years, FMX shows a quite strong growth in Revenue. The Revenue has been growing by 9.05% on average per year.
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
FMX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.14% yearly.
Based on estimates for the next years, FMX will show a quite strong growth in Revenue. The Revenue will grow by 8.33% on average per year.
EPS Next Y-25.24%
EPS Next 2Y-6.75%
EPS Next 3Y-1.14%
EPS Next 5YN/A
Revenue Next Year10.47%
Revenue Next 2Y9.55%
Revenue Next 3Y8.84%
Revenue Next 5Y8.33%
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 decreasing.
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
A Price/Earnings ratio of 4.28 indicates a rather cheap valuation of FMX.
FMX's Price/Earnings ratio is rather cheap when compared to the industry. FMX is cheaper than 96.97% of the companies in the same industry.
When comparing the Price/Earnings ratio of FMX to the average of the S&P500 Index (27.02), we can say FMX is valued rather cheaply.
The Price/Forward Earnings ratio is 3.40, which indicates a rather cheap valuation of FMX.
Based on the Price/Forward Earnings ratio, FMX is valued cheaper than 96.97% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FMX to the average of the S&P500 Index (22.57), we can say FMX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.28 | ||
| Fwd PE | 3.4 |
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 93.94% of the companies listed in the same industry.
FMX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.79 | ||
| EV/EBITDA | 5.99 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y-6.75%
EPS Next 3Y-1.14%
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 3.11.
Compared to the average S&P500 Dividend Yield of 2.43, FMX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
The dividend of FMX is nicely growing with an annual growth rate of 12.97%!
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)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.
The Dividend Rate of FMX has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP188.65%
EPS Next 2Y-6.75%
EPS Next 3Y-1.14%
93.76
-1.42 (-1.49%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners18.5%
Inst Owner Change-1.19%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap32.47B
Analysts80.91
Price Target103.32 (10.2%)
Short Float %0.76%
Short Ratio1.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend3.82
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)12.44%
PT rev (3m)-2.76%
EPS NQ rev (1m)399.74%
EPS NQ rev (3m)324.75%
EPS NY rev (1m)381.05%
EPS NY rev (3m)301.33%
Revenue NQ rev (1m)-0.88%
Revenue NQ rev (3m)-3.63%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.28 | ||
| Fwd PE | 3.4 | ||
| P/S | 0.73 | ||
| P/FCF | 33.79 | ||
| P/OCF | 9.52 | ||
| P/B | 2.44 | ||
| P/tB | 6.09 | ||
| EV/EBITDA | 5.99 |
EPS(TTM)21.91
EY23.37%
EPS(NY)27.61
Fwd EY29.45%
FCF(TTM)2.77
FCFY2.96%
OCF(TTM)9.85
OCFY10.5%
SpS127.69
BVpS38.41
TBVpS15.4
PEG (NY)N/A
PEG (5Y)0.1
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 | 2.43 |
F-Score5
WACC6.5%
ROIC/WACC1.26
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-25.24%
EPS Next 2Y-6.75%
EPS Next 3Y-1.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.16%
Revenue growth 3Y12%
Revenue growth 5Y9.05%
Sales Q2Q%6.35%
Revenue Next Year10.47%
Revenue Next 2Y9.55%
Revenue Next 3Y8.84%
Revenue Next 5Y8.33%
EBIT growth 1Y-2.62%
EBIT growth 3Y6.96%
EBIT growth 5Y7.64%
EBIT Next Year77.99%
EBIT Next 3Y28.94%
EBIT Next 5Y18.69%
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%