(FMX) Fomento Economico Mexicano - Overview
Sector: Consumer Defensive | Industry: Beverages - Brewers | Exchange: NYSE (USA) | Market Cap: 41.996m USD | Total Return: 26.4% in 12m
Avg Turnover: 56.3M
EPS Trend: -55.4%
Qual. Beats: -1
Rev. Trend: -65.1%
Qual. Beats: 0
Warnings
Earnings expected to drop: P/E 27.0 → Forward 91.7
Tailwinds
No distinct edge detected
Fomento Económico Mexicano (FMX) is a diversified multinational conglomerate based in Mexico, primarily known as the world’s largest franchise bottler of Coca-Cola products by volume. The company operates a multi-segment business model that integrates beverage production, distribution, and retail operations across Latin America and Europe.
A core driver of the companys valuation is its Proximity Division, which operates OXXO, the dominant convenience store chain in Mexico. This retail footprint allows the company to leverage high-frequency consumer traffic to cross-sell financial services through its Spin platform and fuel via OXXO GAS. In the beverage sector, franchise bottlers like FMX benefit from exclusive territorial rights, which create significant barriers to entry and provide stable localized monopolies for global brands.
Beyond beverages and convenience, FMX maintains a significant presence in the pharmaceutical retail sector through various drugstore brands and provides third-party logistics services. You can further analyze these diverse revenue streams and their impact on valuation at ValueRay. The companys recent expansion into the European foodvenience market through the acquisition of Valora demonstrates a strategic shift toward geographic diversification outside of its traditional Latin American strongholds.
- OXXO store expansion and digital fintech adoption drive proximity segment revenue growth
- Coca-Cola FEMSA volume growth depends on Latin American consumer purchasing power
- Divestment of non-core assets improves capital allocation and shareholder returns
- Fluctuations in the Mexican Peso exchange rate impact consolidated earnings reports
- Regulatory changes in Mexico regarding labor costs and sugar taxes affect margins
| Net Income: 1.58b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 3.81 > 1.0 |
| NWC/Revenue: 4.30% < 20% (prev 16.28%; Δ -11.97% < -1%) |
| CFO/TA 0.11 > 3% & CFO 4.76b > Net Income 1.58b |
| Net Debt (246b) to EBITDA (4.95b): 49.71 < 3 |
| Current Ratio: 1.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (335.1m) vs 12m ago -3.44% < -2% |
| Gross Margin: 40.66% > 18% (prev 41.48%; Δ -0.82% > 0.5%) |
| Asset Turnover: 10.40% > 50% (prev 93.43%; Δ -83.03% > 0%) |
| Interest Coverage Ratio: 2.98 > 6 (EBIT TTM 3.06b / Interest Expense TTM 1.03b) |
| A: 0.05 (Total Current Assets 14.9b - Total Current Liabilities 12.9b) / Total Assets 44.4b |
| B: 0.32 (Retained Earnings 14.0b / Total Assets 44.4b) |
| C: 0.01 (EBIT TTM 3.06b / Avg Total Assets 450b) |
| D: 0.42 (Book Value of Equity 11.8b / Total Liabilities 28.1b) |
| Altman-Z'' = 1.81 = BBB |
| DSRI: 1.00 (Receivables 2.45b/41.8b, Revenue 46.8b/800b) |
| GMI: 1.02 (GM 41.48% / 40.66%) |
| AQI: 1.04 (AQ_t 0.29 / AQ_t-1 0.28) |
| SGI: 0.06 (Revenue 46.8b / 800b) |
| TATA: -0.07 (NI 1.58b - CFO 4.76b) / TA 44.4b) |
| Beneish M = -3.66 (Cap -4..+1) = AAA |
As of June 09, 2026, the stock is trading at USD 122.51 with a total of 753,336 shares traded.
Over the past week, the price has changed by +4.06%,
over one month by +1.08%,
over three months by +13.84% and
over the past year by +26.35%.
Fomento Economico Mexicano has received a consensus analysts rating of 3.77. Therefore, it is recommended to hold FMX.
- StrongBuy: 3
- Buy: 4
- Hold: 6
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 124.6 | 1.7% |
P/E Trailing = 26.9737
P/E Forward = 91.7431
P/S = 0.0487
P/B = 3.3847
P/EG = 4.8248
Revenue TTM = 46.8b USD
EBIT TTM = 3.06b USD
EBITDA TTM = 4.95b USD
Long Term Debt = 137b USD (from longTermDebt, last quarter)
Short Term Debt = 1.26b USD (from shortTermDebt, last quarter)
Debt = 252b USD (corrected: LT Debt 137b + ST Debt 1.26b) + Leases 114b
Net Debt = 246b USD (calculated: Debt 252b - CCE 6.41b)
Enterprise Value = 288b USD (42.0b + Debt 252b - CCE 6.41b)
Interest Coverage Ratio = 2.98 (Ebit TTM 3.06b / Interest Expense TTM 1.03b)
EV/FCF = 113.0x (Enterprise Value 288b / FCF TTM 2.55b)
FCF Yield = 0.89% (FCF TTM 2.55b / Enterprise Value 288b)
FCF Margin = 5.44% (FCF TTM 2.55b / Revenue TTM 46.8b)
Net Margin = 3.37% (Net Income TTM 1.58b / Revenue TTM 46.8b)
Gross Margin = 40.66% ((Revenue TTM 46.8b - Cost of Revenue TTM 27.8b) / Revenue TTM)
Gross Margin QoQ = 40.47% (prev 41.54%)
Tobins Q-Ratio = 6.48 (Enterprise Value 288b / Total Assets 44.4b)
Interest Expense / Debt = 0.41% (Interest Expense 1.03b / Debt 252b)
Taxrate = 30.47% (1.03b / 3.39b)
NOPAT = 2.13b (EBIT 3.06b * (1 - 30.47%))
Current Ratio = 1.16 (Total Current Assets 14.9b / Total Current Liabilities 12.9b)
Debt / Equity = 21.36 (Debt 252b / totalStockholderEquity, last quarter 11.8b)
Debt / EBITDA = 49.71 (Net Debt 246b / EBITDA 4.95b)
Debt / FCF = 96.51 (Net Debt 246b / FCF TTM 2.55b)
Total Stockholder Equity = 12.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.35% (Net Income 1.58b / Total Assets 44.4b)
RoE = 12.23% (Net Income TTM 1.58b / Total Stockholder Equity 12.9b)
RoCE = 2.04% (EBIT 3.06b / Capital Employed (Equity 12.9b + L.T.Debt 137b))
RoIC = 7.00% (NOPAT 2.13b / Invested Capital 30.4b)
WACC = 1.25% (E(42.0b)/V(294b) * Re(7.07%) + D(252b)/V(294b) * Rd(0.41%) * (1-Tc(0.30)))
Discount Rate = 7.07% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -71.07 | Cagr: -52.50%
[DCF] Terminal Value 73.10% ; FCFF base≈8.12b ; Y1≈7.12b ; Y5≈5.76b
[DCF] Fair Price = N/A (negative equity: EV 92.4b - Net Debt 246b = -154b; debt exceeds intrinsic value)
EPS Correlation: -55.44 | EPS CAGR: -17.21% | SUE: -4.0 | # QB: -1
Revenue Correlation: -65.07 | Revenue CAGR: -44.70% | SUE: -0.49 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.07 | Chg30d=-13.41% | Revisions=-14% | Analysts=3
EPS next Quarter (2026-09-30): EPS=1.11 | Chg30d=-13.04% | Revisions=-14% | Analysts=3
EPS current Year (2026-12-31): EPS=5.96 | Chg30d=+23.57% | Revisions=+43% | GrowthEPS=+108.5% | GrowthRev=+6.4%
EPS next Year (2027-12-31): EPS=5.30 | Chg30d=-0.60% | Revisions=-14% | GrowthEPS=-11.1% | GrowthRev=+7.8%
[Analyst] Revisions Ratio: +43%