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Fomento Economico Mexicano S.a.b. De C.v. (FMX)
:FMX
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Fomento Economico Mexicano
(NYSE:FMX)
Rating:67Neutral
Price Target:
$98.00
▲(12.66% Upside)
Fomento Economico Mexicano (FMX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.90B
Dividend Yield5.19%
Average Volume (3M)1.12M
Price to Earnings (P/E)32.3
Beta (1Y)0.38
Revenue Growth-2.73%
EPS Growth-37.93%
CountryUS
Employees394,010
SectorConsumer Defensive
Sector Strength46
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)0.42
Shares Outstanding214,845,300
10 Day Avg. Volume1,455,214
30 Day Avg. Volume1,116,314
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.57
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit0.14
Enterprise Value/Ebitda0.52
Forecast
1Y Price Target
$107.83Price Target Upside23.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Fomento Economico Mexicano Business Overview & Revenue Model
Company DescriptionFomento 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 MoneyFMX 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 Earnings Call Summary
Earnings Call Date:Jul 28, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 24, 2025
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.Q2-2025 Updates
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.
Proximity Americas Store Expansion
Proximity Americas division added 334 new stores in the quarter and delivered total revenue growth of 6.9%, driven by the expansion of the network by 1,500 stores year-on-year.
Valora Retail Performance
Valora delivered solid results with total revenues increasing by 31.4% in pesos or 5.9% on a currency-neutral basis, driven by strong performance in the retail business in Switzerland.
Spin Premia Program Adoption
In Spin Premia, there are over 58 million accounts with 26.6 million transactions in the last 90 days. Almost 46% of OXXO sales are identified through the loyalty and rewards program.
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.
Traffic Decline in Mexico
OXXO's same-store sales in Mexico declined modestly by 0.4%, with weaker traffic contracting 6.6%, attributable to a weak consumer environment and adverse weather conditions.
Health Division Challenges
Health division faced a challenging environment in Mexico, closing 432 underperforming stores. Operating income rose by 5.7% but declined 5.2% on a currency-neutral basis.
Coca-Cola FEMSA Volume Decline
Coca-Cola FEMSA faced a volume decline of nearly 10% in Mexico and Central America due to adverse weather conditions and a tougher demand environment.
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
Fomento Economico Mexicano exhibits strong revenue growth and solid profitability metrics, supported by effective cost management. The balance sheet shows stable leverage, with a healthy equity base. Cash flow generation is strong, although Free Cash Flow has seen a decline recently. Overall, the company is in a stable financial position with good growth potential, although careful management of leverage and cash flow is advisable.Income Statement
The company shows strong revenue growth with a 16.95% increase from 2023 to the TTM period. Gross Profit Margin remains solid at 41.47% for TTM, reflecting efficient cost management. Net Profit Margin improved to 4.41% in TTM, indicating enhanced profitability. EBIT and EBITDA Margins are healthy at 8.87% and 11.01% respectively, showing stable operational performance.86
Very Positive
Balance Sheet
The balance sheet indicates a stable equity ratio of 36.00% in TTM, suggesting good asset leverage. The Debt-to-Equity Ratio is 0.85, reflecting manageable debt levels. Return on Equity is moderate at 11.45%, showing decent returns for shareholders. The financial position is stable but slightly leveraged.78
Positive
Cash Flow
The cash flow performance is robust, with a Free Cash Flow growth rate of -31.84% from 2023 to TTM. The Operating Cash Flow to Net Income Ratio is strong at 1.81, indicating efficient cash generation. The Free Cash Flow to Net Income Ratio is 0.47, which is satisfactory but indicates room for improvement.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 800.05B | 781.59B | 702.69B | 673.20B | 556.26B | 492.97B |
| Gross Profit | 331.87B | 321.51B | 279.51B | 251.67B | 213.71B | 189.65B |
| EBITDA | 88.13B | 123.43B | 109.03B | 61.91B | 56.90B | 36.07B |
| Net Income | 35.28B | 26.73B | 65.69B | 23.91B | 28.50B | 4.12B |
Balance Sheet | ||||||
| Total Assets | 855.88B | 851.54B | 805.86B | 798.62B | 737.50B | 684.64B |
| Cash, Cash Equivalents and Short-Term Investments | 169.72B | 183.05B | 191.84B | 83.49B | 121.82B | 107.89B |
| Total Debt | 261.63B | 256.30B | 232.90B | 280.64B | 246.85B | 241.81B |
| Total Liabilities | 464.11B | 470.40B | 427.49B | 459.96B | 402.68B | 377.45B |
| Stockholders Equity | 308.15B | 297.50B | 303.86B | 338.66B | 334.82B | 307.19B |
Cash Flow | ||||||
| Free Cash Flow | 16.48B | 24.20B | 11.56B | 40.14B | 52.79B | 33.03B |
| Operating Cash Flow | 63.77B | 71.51B | 49.68B | 72.58B | 73.09B | 53.17B |
| Investing Cash Flow | -35.87B | -33.12B | 132.29B | -46.43B | -46.17B | -31.37B |
| Financing Cash Flow | -82.59B | -84.05B | -92.55B | -35.90B | -36.99B | 19.57B |
Fomento Economico Mexicano Technical Analysis
Negative
86.99
Price Trends
94.24
Negative
97.83
Negative
92.38
Negative
Market Momentum
-2.09
Negative
40.05
Neutral
68.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMX, the sentiment is Negative. The current price of 86.99 is below the 20-day moving average (MA) of 87.10, below the 50-day MA of 94.24, and below the 200-day MA of 92.38, indicating a bearish trend. The MACD of -2.09 indicates Negative momentum. The RSI at 40.05 is Neutral, neither overbought nor oversold. The STOCH value of 68.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 0 New Risks
Fomento Economico Mexicano Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.24B | 14.37 | 10.15% | 3.69% | 13.92% | 32.69% | |
75 Outperform | $123.80B | 17.51 | 8.97% | 1.67% | -2.06% | 21.03% | |
74 Outperform | $2.35B | 30.44 | 8.15% | ― | 2.46% | -7.28% | |
73 Outperform | $35.33B | 13.42 | 15.08% | 2.05% | -0.79% | -10.83% | |
68 Neutral | $9.97B | 10.16 | 7.79% | 3.56% | -5.48% | -6.99% | |
67 Neutral | $17.90B | 32.33 | 6.88% | 5.19% | -2.73% | -37.93% | |
63 Neutral | $20.46B | 14.47 | -3.60% | 3.13% | 2.63% | -6.18% |
* Consumer Defensive Sector Average
Performance Comparison
FMX
Fomento Economico Mexicano
86.99
-12.21
-12.31%
BUD
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62.79
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3.41%
SAM
Boston Beer
221.97
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-18.85%
CCU
Compania Cervecerias Unidas SA
12.28
1.04
9.25%
TAP
Molson Coors
51.13
-0.64
-1.24%
ABEV
Ambev SA
2.21
0.05
2.31%
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.