FOMENTO ECONOMICO MEX-SP ADR (FMX)
US3444191064 - ADR
Overall FMX gets a fundamental rating of 5 out of 10. We evaluated FMX against 32 industry peers in the Beverages industry. FMX has only an average score on both its financial health and profitability. FMX has a decent growth rate and is not valued too expensively.
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.
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
With an excellent Return On Assets value of 14.12%, FMX belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
FMX has a Return On Equity of 37.44%. This is amongst the best in the industry. FMX outperforms 90.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.23%, FMX is in line with its industry, outperforming 56.25% of the companies in the same industry.
FMX had an Average Return On Invested Capital over the past 3 years of 7.07%. This is significantly below the industry average of 12.35%.
The last Return On Invested Capital (9.23%) for FMX is above the 3 year average (7.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.12% | ||
| ROE | 37.44% | ||
| ROIC | 9.23% |
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
Looking at the Profit Margin, with a value of 12.89%, FMX is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
FMX's Profit Margin has improved in the last couple of years.
The Operating Margin of FMX (8.78%) is worse than 71.88% of its industry peers.
In the last couple of years the Operating Margin of FMX has declined.
Looking at the Gross Margin, with a value of 39.26%, FMX is in line with its industry, outperforming 40.63% of the companies in the same industry.
In the last couple of years the Gross Margin of FMX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.78% | ||
| PM (TTM) | 12.89% | ||
| GM | 39.26% |
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.
FMX has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for FMX remains at a similar level compared to 5 years ago.
FMX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.39 indicates that FMX is not in any danger for bankruptcy at the moment.
FMX's Altman-Z score of 6.39 is amongst the best of the industry. FMX outperforms 81.25% of its industry peers.
FMX has a debt to FCF ratio of 14.33. This is a negative value and a sign of low solvency as FMX would need 14.33 years to pay back of all of its debts.
FMX has a Debt to FCF ratio of 14.33. This is in the lower half of the industry: FMX underperforms 68.75% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that FMX is somewhat dependend on debt financing.
FMX has a Debt to Equity ratio (0.71) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 14.33 | ||
| Altman-Z | 6.39 |
ROIC/WACC0.7
WACC13.23%
2.3 Liquidity
A Current Ratio of 1.95 indicates that FMX should not have too much problems paying its short term obligations.
FMX has a Current ratio (1.95) which is comparable to the rest of the industry.
FMX has a Quick Ratio of 1.63. 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 1.63. This is in the better half of the industry: FMX outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.04% over the past year.
FMX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.50% yearly.
The Revenue has been growing slightly by 7.50% in the past 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)6.04%
EPS 3YN/A
EPS 5Y0.5%
EPS growth Q2Q-88.06%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y12.54%
Revenue growth 5Y8.39%
Revenue growth Q2Q-12.03%
3.2 Future
FMX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.42% yearly.
Based on estimates for the next years, FMX will show a small growth in Revenue. The Revenue will grow by 6.49% on average per year.
EPS Next Y38.32%
EPS Next 2Y23.73%
EPS Next 3Y20.28%
EPS Next 5Y19.42%
Revenue Next Year5%
Revenue Next 2Y6.33%
Revenue Next 3Y7.68%
Revenue Next 5Y6.49%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.58, which means the current valuation is very expensive for FMX.
FMX's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.20. FMX is around the same levels.
Based on the Price/Forward Earnings ratio of 19.24, the valuation of FMX can be described as rather expensive.
65.63% of the companies in the same industry are more expensive than FMX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.63. FMX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.58 | ||
| Fwd PE | 19.24 |
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 68.75% of the companies listed in the same industry.
FMX's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. FMX is more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 214.35 | ||
| EV/EBITDA | 31.26 |
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.
The decent profitability rating of FMX may justify a higher PE ratio.
FMX's earnings are expected to grow with 20.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)53.25
EPS Next 2Y23.73%
EPS Next 3Y20.28%
5. Dividend
5.1 Amount
FMX has a Yearly Dividend Yield of 1.73%.
Compared to an average industry Dividend Yield of 2.50, FMX pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, FMX is paying slightly less dividend.
| 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 paid a dividend for at least 10 years, which is a reliable track record.
The dividend of FMX decreased in the last 3 years.
Dividend Growth(5Y)7.77%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
16.52% of the earnings are spent on dividend by FMX. This is a low number and sustainable payout ratio.
FMX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.52%
EPS Next 2Y23.73%
EPS Next 3Y20.28%
FOMENTO ECONOMICO MEX-SP ADR
NYSE:FMX (4/25/2024, 7:04:00 PM)
After market: 115.26 +0.15 (+0.13%)115.11
-0.79 (-0.68%)
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 Cap205.94B
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)
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Revenue beat(2)
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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 | 26.58 | ||
| Fwd PE | 19.24 | ||
| 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)0.69
PEG (5Y)53.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.12% | ||
| ROE | 37.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.78% | ||
| PM (TTM) | 12.89% | ||
| GM | 39.26% | ||
| 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 | 0.71 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.63 | ||
| 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)6.04%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y38.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.5%
Revenue growth 3Y12.54%
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