Fomento Economico Mexicano (FMX) AI Stock Analysis

• Market Cap: $19.31B
• Dividend Yield: 4.74%
• Average Volume (3M): 371.17K
• Price to Earnings (P/E): 41.7
• Beta (1Y): 0.32
• Revenue Growth: 1.44%
• EPS Growth: -38.87%
• Country: US
• Employees: 394,010
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.38
• Shares Outstanding: 214,845,300
• 10 Day Avg. Volume: 264,753
• 30 Day Avg. Volume: 371,168
• PEG Ratio: -0.04
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 2.56
• Enterprise Value/Market Cap: 2.32
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.13
• Enterprise Value/Ebitda: 0.37
• 1Y Price Target: $105.40
• Price Target Upside: 10.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 4.53
• Revenue Forecast (FY): $45.35B

• Rating: 73 Outperform
• Price Target: $106.00 ▲(10.88% Upside)

Fomento Economico Mexicano's overall stock score is driven by strong technical indicators and stable financial performance, despite challenges in profitability and leverage. The valuation is on the higher side, but the dividend yield provides some compensation. The earnings call reflects a balanced sentiment with both achievements and challenges, contributing to a stable outlook.

Fomento Economico Mexicano Business Overview & Revenue Model

Company Description

Fomento Economico Mexicano (FMX) is a leading Mexican multinational company primarily engaged in the beverage, retail, and food sectors. Known for its significant presence in the soft drink and bottled water markets, FMX operates various production and distribution facilities across Mexico and other countries. The company also has a retail division that includes convenience stores and restaurants, providing a diverse portfolio of products and services that cater to a wide range of consumer needs.

How the Company Makes Money

FMX generates revenue through multiple key streams, with its primary source being the production and sale of beverages, including soft drinks and bottled water. The company benefits from high-volume sales and economies of scale in its manufacturing processes. Additionally, FMX's retail operations, which encompass convenience stores and dining establishments, contribute significantly to its earnings through direct sales to consumers. Strategic partnerships with major brands and suppliers enhance its market presence and product offerings. Furthermore, FMX capitalizes on market expansion opportunities in international markets, allowing for diversified revenue generation. Overall, the combination of its beverage manufacturing and retail operations, along with strong brand partnerships, forms the backbone of FMX's revenue model.

Fomento Economico Mexicano Financial Statement Overview

Summary

Fomento Economico Mexicano shows strong revenue growth and a solid asset base, but faces challenges with profitability margins and increased financial leverage. Cash flow generation has improved, yet efficiency in cash conversion remains an area for improvement. Overall, the financial health is stable with room for enhancing profitability and managing leverage.

Income Statement

Fomento Economico Mexicano shows a strong revenue growth trajectory, with a notable increase in gross profit margins over the years, reaching 41.27% in TTM. However, the net profit margin has slightly decreased to 3.13% in TTM from 3.42% in 2024, indicating some pressure on profitability. The EBIT and EBITDA margins have also seen a decline in TTM, suggesting potential operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.10 in TTM, indicating higher leverage, which could pose financial risks. However, the equity ratio remains stable, and the return on equity, although slightly reduced, is still healthy at 8.84% in TTM. The balance sheet reflects a solid asset base but with increased financial leverage.

Cash Flow

The cash flow statement shows a positive free cash flow growth rate of 12.86% in TTM, indicating improved cash generation capabilities. However, the operating cash flow to net income ratio has decreased, suggesting less efficiency in converting income into cash. The free cash flow to net income ratio also reflects a moderate level of cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	827.78B	890.08B	685.68B	581.76B	562.57B	456.33B
Gross Profit	340.76B	363.22B	270.72B	232.92B	213.67B	173.54B
EBITDA	120.67B	139.03B	105.43B	88.22B	84.60B	58.52B
Net Income	15.36B	25.70B	64.04B	23.30B	28.82B	-1.79B
Balance Sheet
Total Assets	171.00M	851.54B	805.86B	798.82B	737.50B	34.37B
Cash, Cash Equivalents and Short-Term Investments	81.00M	183.05B	191.84B	83.49B	121.82B	5.44B
Total Debt	20.00M	256.30B	232.90B	285.06B	252.94B	12.39B
Total Liabilities	56.00M	470.40B	427.49B	461.01B	402.38B	18.95B
Stockholders Equity	115.00M	297.50B	303.86B	262.60B	262.60B	11.93B
Cash Flow
Free Cash Flow	20.12B	28.80B	11.56B	41.10B	52.79B	33.03B
Operating Cash Flow	51.69B	72.49B	49.68B	72.58B	73.09B	53.17B
Investing Cash Flow	-25.19B	-33.12B	132.29B	-46.43B	-46.17B	-31.37B
Financing Cash Flow	-52.47B	-84.05B	-92.55B	-35.90B	-36.99B	19.57B

Fomento Economico Mexicano Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 95.60
• 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 95.6 is above the 20-day moving average (MA) of 94.87, above the 50-day MA of 93.88, and above the 200-day MA of 93.59, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 50.48 is Neutral, neither overbought nor oversold. The STOCH value of 30.94 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
ABEV	80 Outperform	$40.48B	14.17	15.97%	1.79%	-0.68%	4.29%
BUD	75 Outperform	$125.82B	17.73	8.97%	1.91%	-2.06%	21.03%
FMX	73 Outperform	$19.31B	41.72	5.48%	4.74%	1.44%	-38.87%
CCU	70 Neutral	$2.43B	16.94	9.07%	3.71%	16.59%	1.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
STZ	57 Neutral	$22.48B	18.85	15.91%	3.12%	-5.57%	119.49%
TAP	56 Neutral	$9.19B	―	-17.66%	3.98%	-4.01%	-339.22%

Fomento Economico Mexicano Corporate Events

FEMSA Reports Strong Q3 2025 Results Amid Market Challenges

On October 28, 2025, FEMSA reported its third-quarter financial results, highlighting a 9.1% increase in total consolidated revenues and a 4.3% rise in income from operations compared to the same period in 2024. The company’s retail segment, particularly Proximity Americas, showed significant growth with a 9.2% increase in revenues. Additionally, the digital payment platform Spin by OXXO expanded its user base by 20.5%. Despite challenges in the Mexican market, FEMSA’s diversified operations in South America and Europe helped mitigate local market softness. The company remains optimistic about future growth, especially with upcoming events like the FIFA World Cup and Coca-Cola’s 100th anniversary in Mexico.

FEMSA Reports Strong Revenue Growth in First Half of 2025

Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) reported its financial results for the first half of 2025, showing an increase in total revenues to U.S. $21,606 million compared to the same period in 2024. The company experienced growth in gross profit and managed to maintain steady operations despite challenges such as fluctuating raw material prices and changes in economic conditions. These results reflect FEMSA’s resilience and strategic positioning in the market, which could have positive implications for its stakeholders.

FEMSA Announces New CEO Appointment Effective November 2025

On September 17, 2025, FEMSA announced a leadership transition, appointing Jose Antonio Fernández Garza-Lagüera as the new CEO, effective November 1, 2025. This decision follows a comprehensive succession planning process led by FEMSA’s Board of Directors and a Special Committee. José Antonio Fernández Carbajal, who served as interim CEO since July 2023, will continue as Executive Chairman. The transition is expected to guide FEMSA into a new phase of growth and innovation, emphasizing economic and social value creation.

FEMSA to Fully Control OXXO Stores in Brazil After Ending Joint Venture

On September 4, 2025, FEMSA announced the termination of its joint venture with Raízen, S.A. in Brazil, allowing FEMSA to take full control of OXXO stores in the country. This strategic move aligns with FEMSA’s focus on expanding its retail operations in Brazil, a market with significant growth potential due to its large size and fragmented retail landscape. The separation agreement, which is cash-neutral, will see FEMSA assume the existing debt of the joint venture and is expected to close in the coming months, pending regulatory approvals.