Fomento Economico Mexicano S.a.b. De C.v. (FMX)
NYSE:FMX
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Fomento Economico Mexicano
(NYSE:FMX)
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Rating:70Outperform
Price Target:
$131.00
▲(11.28% Upside)
Action:Upgraded
Date:05/05/26
FMX scores 70 primarily due to solid cash flow resilience and constructive price momentum, supported by very low P/E valuation and an ongoing shareholder return program. The score is held back by weaker recent fundamentals (sharp TTM revenue decline and compressed net margins), plus earnings-call risks including underlying net income pressure, Health division underperformance/receivables exposure, and cautious H2 outlook amid FX/financing headwinds.
Positive Factors
Diversified scale & distribution
FEMSA’s multi‑business model combines one of Latin America’s largest proximity retail networks (OXXO) with a major bottling stake and adjacent retail services. This scale and channel breadth create durable procurement, distribution and customer data advantages that support resilient revenue and cross‑sell over cycles.
Negative Factors
Earnings quality & volatility
Reported net income was materially boosted by a non‑cash accounting gain, masking a large underlying decline. This raises concerns about earnings sustainability and signals that operating cash conversion and recurring profitability are weaker than headline results imply, complicating multi‑period planning and investor visibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified scale & distribution
FEMSA’s multi‑business model combines one of Latin America’s largest proximity retail networks (OXXO) with a major bottling stake and adjacent retail services. This scale and channel breadth create durable procurement, distribution and customer data advantages that support resilient revenue and cross‑sell over cycles.
Read all positive factors
Fomento Economico Mexicano (FMX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.44B
Dividend Yield4.33%
Average Volume (3M)458.45K
Price to Earnings (P/E)1.1
Beta (1Y)0.26
Revenue Growth10.32%
EPS Growth5.93%
CountryUS
Employees394,010
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)419.10
Shares Outstanding201,518,510
10 Day Avg. Volume485,301
30 Day Avg. Volume458,447
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)0.01
Price to Sales (P/S)0.07
P/FCF Ratio2.07
Enterprise Value/Market Cap41.73
Enterprise Value/Revenue1.55
Enterprise Value/Gross Profit3.81
Enterprise Value/Ebitda18.10
Forecast
1Y Price Target
$124.50Price Target Upside5.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)90.28
Revenue Forecast (FY)$896.98B
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
FEMSA generates revenue primarily from (1) proximity retail, (2) beverage operations through its equity interest in Coca-Cola FEMSA, and (3) other retail and service activities. In proximity retail, FEMSA earns sales revenue from in-store transact...
Fomento Economico Mexicano Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call highlighted a clear operational recovery and margin expansion at OXXO Mexico, strong growth in Americas & Mobility (notably OXXO LatAm ex-Brazil), encouraging progress at Bara and Spin, and comparable strength at Coca-Cola FEMSA. Consolidated revenues and operating income showed solid comparable currency-neutral growth. However, results were tempered by a one-time accounting gain that inflated reported net income, meaningful underlying net income decline, continued underperformance and credit exposure in the Health division (notably Colombia institutional receivables and Mexico losses), OXXO Brazil operating losses, FX/financing headwinds, and lingering traffic/security effects in some Mexican regions. Management emphasized cost containment, capital discipline and continued focus on traffic recovery, while retaining cautious guidance for the back half of the year.Positive Updates
OXXO Mexico Revenue and Same-Store Sales Recovery
Total revenue growth of 8.3% YoY driven by same-store sales growth of 6.0% and 158 net new stores added during the quarter; average traffic improved materially vs. last year despite remaining slightly negative.
Negative Updates
Health Division Underperformance
Health revenues 22.2 billion pesos grew 0.9% YoY (6.5% currency-neutral) but gross profit decreased 10% and gross margin was 26.2% (mechanically impacted by a ~666 million peso reclassification); operating income fell 14.9% YoY (4.9% on a comparable basis) due to weak margins in Chile, continued losses in Mexico and institutional challenges in Colombia.
Read all updates
Q1-2026 Updates
Positive
Negative
OXXO Mexico Revenue and Same-Store Sales Recovery
Total revenue growth of 8.3% YoY driven by same-store sales growth of 6.0% and 158 net new stores added during the quarter; average traffic improved materially vs. last year despite remaining slightly negative.
Read all positive updates
Company Guidance
Guidance from the call was fairly specific: Q1 CapEx was Ps.6.2bn (~3% of revenues, down 29.5% YoY) but management expects CapEx to accelerate through the year and trend toward a more typical 5–6% of sales; ordinary dividends of Ps.15.2bn (Mar‑2026 to Mar‑2027, +4.5% per share) plus an extraordinary dividend of Ps.25.8bn were approved (total expected capital distributions ≈ Ps.41bn for Mar‑2026–Mar‑2027) and a separate 300m‑share buyback (part of 2025 returns) should complete in Q2; leverage is expected to finish the year slightly below a 2.0x net debt/EBITDA target absent opportunistic M&A, cost‑reduction benefits should begin to cycle in over the next three quarters, Spin losses are expected to decline beginning next quarter (and Spin metrics show ~11m active users and >100m monthly transactions), and management tempered optimism for H2 given macro uncertainty.Fomento Economico Mexicano Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 657.73B | 46.65B | 890.08B | 685.68B | 581.76B | 562.57B |
| Gross Profit | 267.76B | 18.95B | 363.22B | 270.72B | 232.92B | 213.67B |
| EBITDA | 56.36B | 6.40B | 139.03B | 105.43B | 88.22B | 84.60B |
| Net Income | 14.47B | 1.08B | 25.70B | 64.04B | 23.30B | 28.82B |
Balance Sheet | ||||||
| Total Assets | 44.42B | 797.17B | 854.90B | 823.78B | 803.81B | 739.48B |
| Cash, Cash Equivalents and Short-Term Investments | 5.93B | 128.34B | 183.85B | 196.04B | 85.09B | 122.82B |
| Total Debt | 18.82B | 257.98B | 257.31B | 238.08B | 286.84B | 253.62B |
| Total Liabilities | 28.10B | 467.29B | 472.26B | 437.00B | 463.90B | 403.46B |
| Stockholders Equity | 11.82B | 245.38B | 298.68B | 310.62B | 264.25B | 263.31B |
Cash Flow | ||||||
| Free Cash Flow | 24.36B | 1.63B | 35.40B | 16.20B | 42.88B | 52.67B |
| Operating Cash Flow | 43.40B | 3.63B | 85.15B | 50.17B | 71.49B | 71.17B |
| Investing Cash Flow | 18.74B | -664.55M | -50.11B | 117.07B | -35.03B | -53.53B |
| Financing Cash Flow | -42.61B | -4.16B | -85.92B | -79.98B | -25.48B | -27.83B |
Fomento Economico Mexicano Technical Analysis
Positive
117.72
Price Trends
113.28
Positive
109.28
Positive
99.64
Positive
Market Momentum
2.63
Positive
60.15
Neutral
41.12
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 below the 20-day moving average (MA) of 119.01, above the 50-day MA of 113.28, and above the 200-day MA of 99.64, indicating a bullish trend. The MACD of 2.63 indicates Positive momentum. The RSI at 60.15 is Neutral, neither overbought nor oversold. The STOCH value of 41.12 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 | $49.24B | 15.66 | 17.19% | 8.22% | -0.41% | 13.36% | |
70 Outperform | $24.44B | 1.14 | 12.11% | 4.33% | 10.32% | 5.93% | |
68 Neutral | $160.18B | 18.58 | 8.66% | 1.83% | -0.33% | 18.34% | |
63 Neutral | $2.17B | 8.72 | 7.53% | 2.53% | 0.23% | -28.74% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $8.25B | 13.44 | -19.15% | 4.08% | -1.30% | -312.85% | |
55 Neutral | $25.41B | 33.92 | 22.08% | 2.92% | -10.48% | ― |
* Consumer Defensive Sector Average
FMX
Fomento Economico Mexicano
121.86
21.25
21.12%
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TAP
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ABEV
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33.08%
Fomento Economico Mexicano Corporate Events
FEMSA Posts Solid 1Q 2026 Results and Overhauls Segment Reporting
Apr 30, 2026
On April 30, 2026, FEMSA reported its first-quarter 2026 results, unveiling a refreshed reporting structure that separates OXXO Mexico from a new Americas Mobility segment to improve transparency around its growing international and fuel operatio...
FEMSA Files 2025 Annual Reports with U.S. and Mexican Regulators
Apr 24, 2026
On April 24, 2026, FEMSA reported that it had filed its Form 20-F annual report for the fiscal year ended December 31, 2025 with the U.S. Securities and Exchange Commission. The company also submitted its corresponding annual report for the same p...
FEMSA Adopts IFRS Sustainability Standards in New ESG Financial Disclosures
Mar 27, 2026
On March 27, 2026, FEMSA released its Sustainability-Related Financial Disclosures prepared under the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board. By aligning its reporting with these globall...
FEMSA Shareholders Approve Bylaw Change, 2025 Results and Dual Dividend Payouts
Mar 27, 2026
On March 27, 2026, FEMSA held its Annual Ordinary and Extraordinary Shareholders’ Meetings in Monterrey, where investors approved the amendment of Article 6 of the company’s bylaws and ratified the 2025 consolidated financial statement...
FEMSA Completes $260 Million Buyback and Launches New $300 Million ADS Repurchase Program
Mar 23, 2026
On March 23, 2026, FEMSA completed an accelerated share repurchase program launched in December 2025, having bought about 2.5 million American Depositary Shares at an average price of $104.41 per ADS for a total of $260 million, with final settlem...
FEMSA Retains 19% Stake as BradyPLUS–Imperial Dade Merger Closes
Mar 12, 2026
On March 12, 2026, FEMSA reported that the all‑equity merger between BradyPLUS and Imperial Dade had closed, creating a combined company in which FEMSA holds roughly a 19% stake. FEMSA will keep representation on the merged company’s b...
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. ...
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.