Fomento Economico Mexicano (FMX) AI Stock Analysis

• Market Cap: $21.17B
• Dividend Yield: 4.33%
• Average Volume (3M): 335.56K
• Price to Earnings (P/E): 45.9
• Beta (1Y): 0.28
• Revenue Growth: 1.44%
• EPS Growth: -38.87%
• Country: US
• Employees: 394,010
• Sector: N/A
• Sector Strength: N/A
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.39
• Shares Outstanding: 214,845,300
• 10 Day Avg. Volume: 493,199
• 30 Day Avg. Volume: 335,559
• PEG Ratio: -0.04
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 2.15
• Enterprise Value/Market Cap: 2.12
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.13
• Enterprise Value/Ebitda: 0.37
• 1Y Price Target: $106.00
• Price Target Upside: 10.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $101.00 ▲(5.65% Upside)

Fomento Economico Mexicano's overall stock score is driven by strong financial performance, particularly in revenue growth and operational efficiency, despite a low net profit margin and increased leverage. The technical analysis indicates a stable trend with no significant momentum, while the valuation suggests the stock may be overvalued, offset by an attractive dividend yield. The earnings call sentiment is neutral, with balanced achievements and challenges.

Fomento Economico Mexicano Business Overview & Revenue Model

Company Description

Fomento Economico Mexicano (FMX) is a leading Mexican company primarily focused on the beverage industry, particularly in the production and distribution of soft drinks, bottled water, and snacks. As a major bottler and distributor of Coca-Cola products in Mexico and Central America, FMX operates in sectors including beverages, retail, and food products. The company's diverse portfolio also includes convenience stores and various food and beverage brands, positioning it as a significant player in the regional market.

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 retailers and distributors alongside its extensive network of convenience stores, where it also sells snacks and other food items. Key revenue streams include the sale of Coca-Cola products, which are sold under franchise agreements, as well as the operation of its own brand products. Additionally, FMX benefits from strategic partnerships with major brands and suppliers, enhancing its distribution capabilities and market reach. Its ability to innovate and adapt to consumer preferences in the beverage and food sectors also plays a crucial role in driving revenue growth.

Fomento Economico Mexicano Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

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 below the 20-day moving average (MA) of 101.05, below the 50-day MA of 97.21, and above the 200-day MA of 95.24, indicating a bullish trend. The MACD of 1.56 indicates Positive momentum. The RSI at 59.60 is Neutral, neither overbought nor oversold. The STOCH value of 53.52 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
Sector *	―	―	―	―	―	―	―
ABEV	80 Outperform	$38.38B	13.17	15.97%	8.22%	-0.68%	4.29%
BUD	75 Outperform	$127.16B	17.73	8.97%	1.83%	-2.06%	21.03%
CCU	70 Outperform	$2.37B	16.56	9.07%	2.53%	16.59%	1.72%
STZ	67 Neutral	$24.45B	20.51	15.91%	2.92%	-5.57%	119.49%
FMX	65 Neutral	$21.17B	45.88	5.48%	4.33%	1.44%	-38.87%
TAP	53 Neutral	$9.18B	―	-17.66%	4.08%	-4.01%	-339.22%

Fomento Economico Mexicano Corporate Events

FEMSA Initiates $260 Million Accelerated Share Repurchase

On December 2, 2025, FEMSA announced it has entered into an accelerated share repurchase (ASR) agreement with a U.S. financial institution to buy back $260 million worth of its American Depositary Shares (ADS). This move aligns with FEMSA’s capital allocation strategy to enhance shareholder returns. The ASR agreement includes an initial delivery of 540,035 ADSs on December 3, 2025, with the final settlement expected by the first quarter of 2026. This strategic financial maneuver is likely to impact FEMSA’s market positioning by potentially increasing shareholder value and demonstrating the company’s commitment to efficient capital management.

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.