Fomento Económico Mexicano, S.A.B. de C.V. Fundamental Analysis (NYSE: FMX)
Fomento Económico Mexicano, S.A.B. de C.V. Fundamental Analysis (NYSE: FMX)
Fomento Económico Mexicano, S.A.B. de C.V. (NYSE: FMX) shows moderate financial fundamentals with a PE ratio of 22.16, profit margin of 3.60%, and ROE of 13.65%. The company generates $48.3B in annual revenue with moderate year-over-year growth of 7.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FMX's fundamental strength across five key dimensions:
Efficiency Score
WeakFMX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFMX trades at attractive valuation levels.
Growth Score
ModerateFMX shows steady but slowing expansion.
Financial Health Score
ModerateFMX shows balanced financial health with some risks.
Profitability Score
WeakFMX struggles to sustain strong margins.
Key Financial Metrics
Is FMX Expensive or Cheap?
P/E Ratio
FMX trades at 22.16 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FMX's PEG of -0.27 indicates potential undervaluation.
Price to Book
The market values Fomento Económico Mexicano, S.A.B. de C.V. at 3.22 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 22.82 times EBITDA. This signals the market has high growth expectations.
How Well Does FMX Make Money?
Net Profit Margin
For every $100 in sales, Fomento Económico Mexicano, S.A.B. de C.V. keeps $3.60 as profit after all expenses.
Operating Margin
Core operations generate 8.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.65 in profit for every $100 of shareholder equity.
ROA
Fomento Económico Mexicano, S.A.B. de C.V. generates $3.79 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. produces operating cash flow of $5.73B, showing steady but balanced cash generation.
Free Cash Flow
Fomento Económico Mexicano, S.A.B. de C.V. produces free cash flow of $3.51B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $10.29 in free cash annually.
FCF Yield
FMX converts 8.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
19.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How FMX Stacks Against Its Sector Peers
| Metric | FMX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.16 | 20.51 | Neutral |
| ROE | 13.65% | 695.00% | Weak |
| Net Margin | 3.60% | -2241.00% (disorted) | Weak |
| Debt/Equity | 1.17 | 0.80 | Weak (High Leverage) |
| Current Ratio | 19.86 | 2.37 | Strong Liquidity |
| ROA | 3.79% | 320.00% | Weak |
FMX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
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
78.88%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
1155.71%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
40.17%
Industry Style: Defensive, Dividend, Low Volatility
High Growth