Fomento Economico Mexicano (FMX) AI Stock Analysis

• Market Cap: $20.22B
• Dividend Yield: 1.5%
• Average Volume (3M): 557.62K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.52
• Revenue Growth: 3.83%
• EPS Growth: -49.90%
• Country: US
• Employees: 391,244
• Sector: Utilities
• Sector Strength: 76
• Industry: Beverages - Alcoholic
• EPS (TTM): 5.03
• Shares Outstanding: 214,845,300
• 10 Day Avg. Volume: 407,654
• 30 Day Avg. Volume: 557,617
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 10.66
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $99.45
• Price Target Upside: -0.48% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

FEMSA demonstrates strong financial performance with solid revenue growth and significant capital returns planned for shareholders, contributing positively to the stock score. The technical indicators support an upward momentum, although caution is warranted due to the approaching overbought levels. Valuation is reasonable, offering a modest dividend yield. While challenges in certain business areas exist, the strategic focus on capital returns and operational improvements enhances the company's attractiveness.

Fomento Economico Mexicano Business Overview & Revenue Model

Company Description

Fomento Económico Mexicano, S.A.B. de C.V., through its subsidiaries, operates as a bottler of Coca-Cola trademark beverages. The company produces, markets, and distributes Coca-Cola trademark beverages in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, Argentina, and Uruguay. It also operates small-box retail chain stores in Mexico, Colombia, Peru, Chile, and Brazil under the OXXO name; retail service stations for fuels, motor oils, lubricants, and car care products under the OXXO GAS name in Mexico; and drugstores in Chile, Colombia, Ecuador, and Mexico under the Cruz Verde, Fybeca, SanaSana, YZA, La Moderna, and Farmacon names. In addition, the company is involved in the production and distribution of chillers, commercial refrigeration equipment, plastic boxes, food processing, and preservation and weighing equipment; and provision of logistic transportation, distribution and maintenance, point-of-sale refrigeration, and plastics solutions, as well as distribution platform for cleaning products and consumables. As of December 31, 2021, it operated 20,431 OXXO stores; 3,652 drugstores; and 567 OXXO GAS service stations. Fomento Económico Mexicano, S.A.B. de C.V. was founded in 1890 and is based in Monterrey, Mexico.

How the Company Makes Money

FMX generates revenue through multiple streams. Coca-Cola FEMSA contributes significantly to its earnings by producing and distributing Coca-Cola beverages across various Latin American markets. It earns money from the sale of a wide range of non-alcoholic beverages, including carbonated drinks, bottled water, and juices. FEMSA Comercio generates revenue through its OXXO convenience stores, which offer everyday consumer products, food, and beverages, as well as financial services through OXXO's banking correspondents. Additionally, FMX derives income from its logistics operations via Solistica, providing integrated supply chain solutions. The company's investment in Heineken N.V. also provides dividend income and strategic advantages in the alcoholic beverage sector. Strategic partnerships with Coca-Cola and other international companies enhance its revenue potential and market reach.

Fomento Economico Mexicano Financial Statement Overview

Summary

Fomento Economico Mexicano presents a strong financial performance with solid revenue growth and stable profit margins. However, increased leverage and a drop in net income raise concerns. The absence of recent cash flow data further complicates complete financial health evaluation. The company should focus on improving profitability and managing debt levels to enhance financial stability.

Income Statement

The company demonstrates strong revenue growth over the years, with a notable increase from 2023 to 2024. The gross profit margin and net profit margin have remained stable, indicating efficient cost management. However, the net income in 2024 is significantly lower than in 2023, suggesting potential challenges in profitability or extraordinary items affecting net income.

Balance Sheet

Fomento Economico Mexicano shows a solid equity base with a healthy equity ratio. However, the debt-to-equity ratio has increased slightly from the previous year, indicating higher leverage. Return on equity has decreased, suggesting that the company might not be utilizing its equity as effectively as before.

Cash Flow

The cash flow statements indicate fluctuations, with operating cash flow and free cash flow not reported in 2024. Over the years, the free cash flow has shown growth, but the lack of recent data hampers a full assessment. The company's cash flow management needs attention to ensure sustainable operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
781.59B	702.69B	673.20B	556.26B	492.97B
	Gross Profit
321.42B	279.51B	251.67B	213.71B	189.65B
	EBIT
70.67B	57.36B	31.39B	28.91B	8.02B
	EBITDA
95.08B	109.03B	61.91B	56.90B	36.07B
	Net Income Common Stockholders
13.50B	65.69B	23.91B	28.50B	4.12B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
183.05B	191.84B	83.49B	121.82B	107.89B
	Total Assets
852.21B	805.86B	798.62B	737.50B	684.64B
	Total Debt
256.29B	232.90B	280.64B	246.85B	241.81B
	Net Debt
116.46B	67.78B	197.20B	149.44B	134.58B
	Total Liabilities
469.62B	427.49B	459.96B	402.68B	377.45B
	Stockholders Equity
382.58B	303.86B	338.66B	334.82B	307.19B
Cash Flow		Free Cash Flow
0.00	11.56B	40.14B	52.79B	33.03B
	Operating Cash Flow
0.00	49.68B	72.58B	73.09B	53.17B
	Investing Cash Flow
0.00	132.29B	-46.43B	-46.17B	-31.37B
	Financing Cash Flow
0.00	-92.55B	-35.90B	-36.99B	19.57B

Fomento Economico Mexicano Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 99.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMX, the sentiment is Positive. The current price of 99.93 is above the 20-day moving average (MA) of 98.31, above the 50-day MA of 92.57, and above the 200-day MA of 96.51, indicating a bullish trend. The MACD of 1.84 indicates Positive momentum. The RSI at 61.90 is Neutral, neither overbought nor oversold. The STOCH value of 74.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FMX.

Fomento Economico Mexicano Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCEP	79 Outperform	$40.10B	26.10	17.43%	2.44%	11.73%	-15.34%
PEP	77 Outperform	$205.64B	21.57	52.42%	3.62%	0.42%	5.77%
FMX	74 Outperform	$20.22B	13.07	9.61%	1.50%	3.83%	-49.90%
BUD	74 Outperform	$121.90B	21.06	7.31%	1.05%	0.64%	10.02%
KOF	73 Outperform	$4.83B	14.82	17.94%	3.12%	8.74%	16.30%
KO	73 Outperform	$309.30B	29.20	41.86%	2.73%	1.96%	-0.45%
Sector *	65 Neutral	$12.17B	16.15	5.32%	4.37%	5.50%	-9.06%