FOMENTO ECONOMICO MEX-SP ADR (FMX) Stock Fundamental Analysis
USA - NYSE:FMX - US3444191064 - ADR
94.36 USD
-1.24 (-1.3%)
94.36 USD
0 (0%)
Taking everything into account, FMX scores 4 out of 10 in our fundamental rating. FMX was compared to 33 industry peers in the Beverages industry. There are concerns on the financial health of FMX while its profitability can be described as average. FMX has a correct valuation and a medium 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.
Each year in the past 5 years FMX had a positive operating cash flow.
1.2 Ratios
FMX has a worse Return On Assets (2.38%) than 66.67% of its industry peers.
With a Return On Equity value of 8.09%, FMX perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
FMX has a Return On Invested Capital (8.19%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for FMX is below the industry average of 10.75%.
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's Profit Margin of 2.43% is on the low side compared to the rest of the industry. FMX is outperformed by 66.67% of its industry peers.
In the last couple of years the Profit Margin of FMX has declined.
Looking at the Operating Margin, with a value of 8.53%, FMX is doing worse than 69.70% of the companies in the same industry.
FMX's Operating Margin has been stable in the last couple of years.
FMX has a Gross Margin (41.27%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of FMX has grown nicely.
| 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.
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 2.44 indicates that FMX is not a great score, but indicates only limited risk for bankruptcy at the moment.
FMX has a Altman-Z score (2.44) which is in line with its industry peers.
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.
FMX has a Debt to FCF ratio of 15.03. This is in the lower half of the industry: FMX underperforms 69.70% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that FMX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.94, FMX is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 15.03 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.27
WACC6.46%
2.3 Liquidity
FMX has a Current Ratio of 1.34. This is a normal value and indicates that FMX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FMX (1.34) is comparable to the rest of the industry.
A Quick Ratio of 1.06 indicates that FMX should not have too much problems paying 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 -8.91% in the last year.
The Earnings Per Share has been growing by 43.40% on average over the past years. This is a very strong growth
FMX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.23%.
The Revenue has been growing by 9.05% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.91%
EPS 3Y40.06%
EPS 5Y43.4%
EPS Q2Q%-34.88%
Revenue 1Y (TTM)11.23%
Revenue growth 3Y12%
Revenue growth 5Y9.05%
Sales Q2Q%9.08%
3.2 Future
FMX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.10% yearly.
FMX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.33% yearly.
EPS Next Y-31.56%
EPS Next 2Y-8.77%
EPS Next 3Y-1.1%
EPS Next 5YN/A
Revenue Next Year10.42%
Revenue Next 2Y9.53%
Revenue Next 3Y8.87%
Revenue Next 5Y8.33%
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
The Price/Earnings ratio is 4.37, which indicates a rather cheap valuation of FMX.
Based on the Price/Earnings ratio, FMX is valued cheaper than 96.97% of the companies in the same industry.
FMX is valuated cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 3.59, which indicates a rather cheap valuation of FMX.
FMX's Price/Forward Earnings ratio is rather cheap when compared to the industry. FMX is cheaper than 96.97% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.55. FMX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.37 | ||
| Fwd PE | 3.59 |
4.2 Price Multiples
90.91% of the companies in the same industry are more expensive 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 | 34.24 | ||
| EV/EBITDA | 6.06 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y-8.77%
EPS Next 3Y-1.1%
5. Dividend
5.1 Amount
FMX has a Yearly Dividend Yield of 1.73%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.12, FMX has a dividend in line with its industry peers.
FMX's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| 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 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
188.65% 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.
DP188.65%
EPS Next 2Y-8.77%
EPS Next 3Y-1.1%
94.36
-1.24 (-1.3%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners18.5%
Inst Owner Change-2.87%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap32.60B
Revenue(TTM)781.59B
Net Income(TTM)19.78B
Analysts80.91
Price Target99.87 (5.84%)
Short Float %3.42%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend3.79
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)-7.07%
Min EPS beat(2)-26.96%
Max EPS beat(2)12.83%
EPS beat(4)2
Avg EPS beat(4)-2.9%
Min EPS beat(4)-26.96%
Max EPS beat(4)12.83%
EPS beat(8)4
Avg EPS beat(8)-4.28%
EPS beat(12)6
Avg EPS beat(12)-4.79%
EPS beat(16)7
Avg EPS beat(16)-10.24%
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)4.23%
PT rev (3m)-3.09%
EPS NQ rev (1m)-1.78%
EPS NQ rev (3m)319.23%
EPS NY rev (1m)0.24%
EPS NY rev (3m)302.28%
Revenue NQ rev (1m)-1.44%
Revenue NQ rev (3m)-3.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.37 | ||
| Fwd PE | 3.59 | ||
| P/S | 0.74 | ||
| P/FCF | 34.24 | ||
| P/OCF | 9.65 | ||
| P/B | 2.47 | ||
| P/tB | 6.17 | ||
| EV/EBITDA | 6.06 |
EPS(TTM)21.57
EY22.86%
EPS(NY)26.25
Fwd EY27.82%
FCF(TTM)2.76
FCFY2.92%
OCF(TTM)9.78
OCFY10.36%
SpS126.81
BVpS38.15
TBVpS15.29
PEG (NY)N/A
PEG (5Y)0.1
Graham Number136.07
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%
ROICexgc growth 3Y6.94%
ROICexgc 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 | 2.44 |
F-Score5
WACC6.46%
ROIC/WACC1.27
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)-8.91%
EPS 3Y40.06%
EPS 5Y43.4%
EPS Q2Q%-34.88%
EPS Next Y-31.56%
EPS Next 2Y-8.77%
EPS Next 3Y-1.1%
EPS Next 5YN/A
Revenue 1Y (TTM)11.23%
Revenue growth 3Y12%
Revenue growth 5Y9.05%
Sales Q2Q%9.08%
Revenue Next Year10.42%
Revenue Next 2Y9.53%
Revenue Next 3Y8.87%
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%
FOMENTO ECONOMICO MEX-SP ADR / FMX FAQ
What is the fundamental rating for FMX stock?
ChartMill assigns a fundamental rating of 4 / 10 to FMX.
Can you provide the valuation status for FOMENTO ECONOMICO MEX-SP ADR?
ChartMill assigns a valuation rating of 6 / 10 to FOMENTO ECONOMICO MEX-SP ADR (FMX). This can be considered as Fairly Valued.
What is the profitability of FMX stock?
FOMENTO ECONOMICO MEX-SP ADR (FMX) has a profitability rating of 4 / 10.
How financially healthy is FOMENTO ECONOMICO MEX-SP ADR?
The financial health rating of FOMENTO ECONOMICO MEX-SP ADR (FMX) is 3 / 10.
What is the earnings growth outlook for FOMENTO ECONOMICO MEX-SP ADR?
The Earnings per Share (EPS) of FOMENTO ECONOMICO MEX-SP ADR (FMX) is expected to decline by -31.56% in the next year.