Gruma, S.A.B. de C.V.
Gruma, S.A.B. de C.V. Fundamental Analysis
Gruma, S.A.B. de C.V. (GPAGF) shows moderate financial fundamentals with a PE ratio of 12.47, profit margin of 8.15%, and ROE of 24.58%. The company generates $6.4B in annual revenue with weak year-over-year growth of -1.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GPAGF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGPAGF demonstrates superior asset utilization.
Valuation Score
ExcellentGPAGF trades at attractive valuation levels.
Growth Score
ModerateGPAGF shows steady but slowing expansion.
Financial Health Score
ExcellentGPAGF maintains a strong and stable balance sheet.
Profitability Score
ModerateGPAGF maintains healthy but balanced margins.
Key Financial Metrics
Is GPAGF Expensive or Cheap?
P/E Ratio
GPAGF trades at 12.47 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GPAGF's PEG of -3.22 indicates potential undervaluation.
Price to Book
The market values Gruma, S.A.B. de C.V. at 2.93 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.14 times EBITDA. This is generally considered low.
How Well Does GPAGF Make Money?
Net Profit Margin
For every $100 in sales, Gruma, S.A.B. de C.V. keeps $8.15 as profit after all expenses.
Operating Margin
Core operations generate 13.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.58 in profit for every $100 of shareholder equity.
ROA
Gruma, S.A.B. de C.V. generates $10.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gruma, S.A.B. de C.V. produces operating cash flow of $729.00M, showing steady but balanced cash generation.
Free Cash Flow
Gruma, S.A.B. de C.V. produces free cash flow of $502.59M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.44 in free cash annually.
FCF Yield
GPAGF converts 7.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.01
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.97
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How GPAGF Stacks Against Its Sector Peers
| Metric | GPAGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.47 | 22.36 | Better (Cheaper) |
| ROE | 24.58% | 1238.00% | Weak |
| Net Margin | 8.15% | -5096.00% (disorted) | Weak |
| Debt/Equity | 0.97 | 1.23 | Strong (Low Leverage) |
| Current Ratio | 2.60 | 2.47 | Strong Liquidity |
| ROA | 10.36% | -191998.00% (disorted) | Strong |
GPAGF outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Gruma, 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
82.13%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
138.99%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
148.61%
Industry Style: Defensive, Dividend, Low Volatility
High Growth