Fomento Económico Mexicano, S.A.B. de C.V.
Fomento Económico Mexicano, S.A.B. de C.V. Fundamental Analysis
Fomento Económico Mexicano, S.A.B. de C.V. (FMX) shows moderate financial fundamentals with a PE ratio of 110.83, profit margin of 18.83%, and ROE of 64.19%. The company generates $19.5B in annual revenue with strong year-over-year growth of 11.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze FMX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentFMX demonstrates superior asset utilization.
Valuation Score
ModerateFMX shows balanced valuation metrics.
Growth Score
ModerateFMX shows steady but slowing expansion.
Financial Health Score
ModerateFMX shows balanced financial health with some risks.
Profitability Score
ExcellentFMX achieves industry-leading margins.
Key Financial Metrics
Is FMX Expensive or Cheap?
P/E Ratio
FMX trades at 110.83 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FMX's PEG of -0.14 indicates potential undervaluation.
Price to Book
The market values Fomento Económico Mexicano, S.A.B. de C.V. at 71.52 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.57 times EBITDA. This is generally considered low.
How Well Does FMX Make Money?
Net Profit Margin
For every $100 in sales, Fomento Económico Mexicano, S.A.B. de C.V. keeps $18.83 as profit after all expenses.
Operating Margin
Core operations generate 1.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $64.19 in profit for every $100 of shareholder equity.
ROA
Fomento Económico Mexicano, S.A.B. de C.V. generates $19.90 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fomento Económico Mexicano, S.A.B. de C.V. generates strong operating cash flow of $10.94B, reflecting robust business health.
Free Cash Flow
Fomento Económico Mexicano, S.A.B. de C.V. generates strong free cash flow of $3.28B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $16.26 in free cash annually.
FCF Yield
FMX converts 1.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
110.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
71.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.64
vs 25 benchmark
ROA
Return on assets percentage
0.20
vs 25 benchmark
ROCE
Return on capital employed
1.52
vs 25 benchmark
How FMX Stacks Against Its Sector Peers
| Metric | FMX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 110.83 | 22.46 | Worse (Expensive) |
| ROE | 64.19% | 1263.00% | Weak |
| Net Margin | 18.83% | -5207.00% (disorted) | Strong |
| Debt/Equity | 1.05 | 1.24 | Neutral |
| Current Ratio | 1.35 | 2.47 | Neutral |
| ROA | 19.90% | -192326.00% (disorted) | Strong |
FMX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Fomento Económico Mexicano, S.A.B. de C.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
56.17%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
30.77%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
19.07%
Industry Style: Defensive, Dividend, Low Volatility
High Growth