Fomento Economico Mexicano (FMX)
NYSE:FMX
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Fomento Economico Mexicano
(NYSE:FMX)
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Rating:70Outperform
Price Target:
$124.00
▲(5.33% Upside)
Action:UpgradedDate:03/03/26
Overall score reflects solid underlying financial quality and improving cash generation, tempered by weakening net profitability and returns. Technicals add support with a clear uptrend and positive momentum, while valuation is reasonable with an attractive dividend but not clearly cheap. Earnings call takeaways were balanced, with growth and margin positives offset by a sizable net income decline and a challenging Mexico backdrop.
Positive Factors
Robust free cash flow
Sustained operating cash flow and sharply improved free cash flow provide durable internal funding for dividends, buybacks and reinvestment. Strong cash generation cushions earnings volatility, supports deleveraging and enables strategic capital allocation without immediate reliance on external financing.
Negative Factors
Sharp net income decline
A near-37% drop in net income driven by FX and higher interest costs highlights vulnerability to below-the-line volatility. Lower net income reduces retained earnings and ROE, constrains reinvestment capacity and makes distributable cash more sensitive to currency and rate cycles going forward.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust free cash flow
Sustained operating cash flow and sharply improved free cash flow provide durable internal funding for dividends, buybacks and reinvestment. Strong cash generation cushions earnings volatility, supports deleveraging and enables strategic capital allocation without immediate reliance on external financing.
Read all positive factors
Fomento Economico Mexicano (FMX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.80B
Dividend Yield4.33%
Average Volume (3M)370.94K
Price to Earnings (P/E)35.4
Beta (1Y)0.25
Revenue Growth2.78%
EPS Growth-40.36%
CountryUS
Employees394,010
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)N/A
Shares Outstanding201,518,510
10 Day Avg. Volume415,589
30 Day Avg. Volume370,941
Financial Highlights & Ratios
PEG Ratio-0.36
Price to Book (P/B)2.80
Price to Sales (P/S)0.82
P/FCF Ratio23.22
Enterprise Value/Market Cap42.05
Enterprise Value/Revenue20.55
Enterprise Value/Gross Profit3.81
Enterprise Value/Ebitda10.99
Forecast
1Y Price Target
$123.33Price Target Upside4.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)86.11
Revenue Forecast (FY)$894.75B
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,...
How the Company Makes Money
FMX generates revenue primarily through the sale of beverages, including soft drinks, bottled water, and flavored drinks, which contribute significantly to its earnings. The company operates on a business model that combines direct sales to retail...
Fomento Economico Mexicano Earnings Call Summary
Earnings Call Date:Jul 28, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in Spin by OXXO and store expansion across divisions, yet these positives were overshadowed by substantial declines in net income, challenges in the Mexican market, and volume declines in key segments. The ongoing strategic initiatives and market expansions offer positive outlooks, but current economic and environmental challenges present significant hurdles.Positive Updates
Spin by OXXO Growth
Spin by OXXO has achieved major milestones, including more than 14.5 million accounts, with over 9.4 million active in the last 56 days. The customer base is young and dynamic, with over 50% being women, a historically underserved group by financial institutions.
Negative Updates
Decrease in Net Income
Net consolidated income decreased by 64.3% to MXN 5.6 billion, mainly due to a noncash foreign exchange loss of MXN 4.1 billion and lower interest income.
Read all updates
Q2-2025 Updates
Positive
Negative
Spin by OXXO Growth
Spin by OXXO has achieved major milestones, including more than 14.5 million accounts, with over 9.4 million active in the last 56 days. The customer base is young and dynamic, with over 50% being women, a historically underserved group by financial institutions.
Read all positive updates
Company Guidance
During the second quarter of 2025, FEMSA reported a total revenue growth of 6.3%, driven by strong performances outside of Mexico and currency tailwinds, despite challenges in the Mexican market. Operating income increased by 1.2% year-over-year, while net consolidated income decreased by 64.3% to MXN 5.6 billion, primarily due to a non-cash foreign exchange loss of MXN 4.1 billion and lower interest income. The Proximity Americas division saw a 6.9% revenue growth, with a 0.4% decrease in same-store sales due to weaker traffic in Mexico, though strong performance was noted in Latin American markets. Spin by OXXO, FEMSA's digital wallet, achieved 14.5 million accounts with more than 9.4 million active in the last 56 days, and Spin Premia had over 58 million accounts, with significant transaction activity. Spin Negocios reached almost 20,000 merchants, processing MXN 12 billion monthly. The company's capital allocation plan included MXN 66 billion in shareholder remuneration between March 2025 and March 2026, with $374 million executed in share buybacks by the end of July 2025.Fomento Economico Mexicano Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
66
Positive
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 46.65B | 890.08B | 685.68B | 581.76B | 562.57B |
| Gross Profit | 18.95B | 363.22B | 270.72B | 232.92B | 213.67B |
| EBITDA | 5.66B | 139.03B | 105.43B | 88.22B | 84.60B |
| Net Income | 1.08B | 25.70B | 64.04B | 23.30B | 28.82B |
Balance Sheet | |||||
| Total Assets | 44.15B | 851.54B | 805.86B | 798.82B | 737.50B |
| Cash, Cash Equivalents and Short-Term Investments | 7.10B | 183.05B | 191.84B | 83.49B | 121.82B |
| Total Debt | 14.29B | 256.30B | 232.90B | 285.06B | 252.94B |
| Total Liabilities | 25.88B | 470.40B | 427.49B | 461.01B | 402.38B |
| Stockholders Equity | 13.61B | 297.50B | 303.86B | 262.60B | 262.60B |
Cash Flow | |||||
| Free Cash Flow | 1.64B | 28.80B | 11.56B | 41.10B | 52.79B |
| Operating Cash Flow | 3.65B | 72.49B | 49.68B | 72.58B | 73.09B |
| Investing Cash Flow | -496.71M | -33.12B | 132.29B | -46.43B | -46.17B |
| Financing Cash Flow | -4.33B | -84.05B | -92.55B | -35.90B | -36.99B |
Fomento Economico Mexicano Technical Analysis
Positive
117.72
Price Trends
111.10
Positive
105.97
Positive
98.16
Positive
Market Momentum
2.38
Negative
65.43
Neutral
77.18
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 117.72 is above the 20-day moving average (MA) of 112.02, above the 50-day MA of 111.10, and above the 200-day MA of 98.16, indicating a bullish trend. The MACD of 2.38 indicates Negative momentum. The RSI at 65.43 is Neutral, neither overbought nor oversold. The STOCH value of 77.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FMX.
Fomento Economico Mexicano Risk Analysis
Fomento Economico Mexicano disclosed 34 risk factors in its most recent earnings report. Fomento Economico Mexicano reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
If we fail to comply with privacy and data protection laws, we could be subject to adverse publicity, business disruption, data loss, government enforcement actions and/or private litigation, any of which could negatively affect our business and operating results. Q4, 2023
Fomento Economico Mexicano Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $45.87B | 12.14 | 16.90% | 8.22% | -4.48% | 5.31% | |
70 Outperform | $22.80B | 35.40 | 7.60% | 4.33% | 2.78% | -40.36% | |
68 Neutral | $145.54B | 10.54 | 8.17% | 1.83% | -0.33% | 18.34% | |
65 Neutral | $26.70B | 16.42 | 22.08% | 2.92% | -10.48% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
53 Neutral | $2.13B | 19.13 | 7.86% | 2.53% | -0.21% | -27.12% | |
53 Neutral | $8.47B | -4.26 | -18.18% | 4.08% | -4.18% | -301.58% |
* Consumer Defensive Sector Average
FMX
Fomento Economico Mexicano
113.68
15.43
15.71%
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TAP
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ABEV
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Fomento Economico Mexicano Corporate Events
FEMSA Sets March 27 Shareholder Meetings and Proposes Higher Ordinary and Extraordinary Dividends
Feb 27, 2026
On February 27, 2026, FEMSA announced it will convene both its Annual Ordinary Shareholders’ Meeting and an Extraordinary Shareholders’ Meeting on March 27, 2026 in Monterrey, Mexico. The company said detailed agenda items and board an...
FEMSA Posts Solid 4Q 2025 Results and Launches Major Restructuring Under New CEO
Feb 25, 2026
On February 25, 2026, FEMSA reported its fourth-quarter 2025 results, highlighting a 5.7% year-on-year rise in total consolidated revenues and an 8.5% increase in income from operations, supported by solid performance at OXXO and Coca-Cola FEMSA. ...
FEMSA Takes Full Control of OXXO Convenience Operations in Brazil After Grupo Nós Split
Feb 2, 2026
On February 2, 2026, FEMSA completed the separation of its Grupo Nós joint venture in Brazil with Raízen S.A., resulting in FEMSA assuming full ownership and operational control of the OXXO convenience stores in Brazil and the associated...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.