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. (FMXUF) shows moderate financial fundamentals with a PE ratio of 20.62, profit margin of 2.31%, and ROE of 9.62%. The company generates $836.4B 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 46.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FMXUF's fundamental strength across five key dimensions:
Efficiency Score
WeakFMXUF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFMXUF trades at attractive valuation levels.
Growth Score
ModerateFMXUF shows steady but slowing expansion.
Financial Health Score
ModerateFMXUF shows balanced financial health with some risks.
Profitability Score
WeakFMXUF struggles to sustain strong margins.
Key Financial Metrics
Is FMXUF Expensive or Cheap?
P/E Ratio
FMXUF trades at 20.62 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FMXUF's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Fomento Económico Mexicano, S.A.B. de C.V. at 1.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.18 times EBITDA. This is generally considered low.
How Well Does FMXUF Make Money?
Net Profit Margin
For every $100 in sales, Fomento Económico Mexicano, S.A.B. de C.V. keeps $2.31 as profit after all expenses.
Operating Margin
Core operations generate 8.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.62 in profit for every $100 of shareholder equity.
ROA
Fomento Económico Mexicano, S.A.B. de C.V. generates $2.44 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 limited operating cash flow of $45.59B, signaling weaker underlying cash strength.
Free Cash Flow
Fomento Económico Mexicano, S.A.B. de C.V. generates weak or negative free cash flow of $16.99B, restricting financial flexibility.
FCF Per Share
Each share generates $8.28 in free cash annually.
FCF Yield
FMXUF converts 4.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.56
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How FMXUF Stacks Against Its Sector Peers
| Metric | FMXUF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.62 | 22.56 | Neutral |
| ROE | 9.62% | 1288.00% | Weak |
| Net Margin | 2.31% | -5952.00% (disorted) | Weak |
| Debt/Equity | 1.56 | 0.81 | Weak (High Leverage) |
| Current Ratio | 1.35 | 2.41 | Neutral |
| ROA | 2.44% | -197304.00% (disorted) | Weak |
FMXUF outperforms its industry in 0 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
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