(FMX) Fomento Economico Mexicano - Overview
Sector: Consumer Defensive | Industry: Beverages - Brewers | Exchange: NYSE (USA) | Market Cap: 41.515m USD | Total Return: 22.4% in 12m
Avg Turnover: 55.8M
EPS Trend: 50.3%
Qual. Beats: -1
Rev. Trend: -82.3%
Qual. Beats: 0
Warnings
Earnings expected to drop: P/E 26.7 → Forward 129.9
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: 6.43b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.55 > 0.02 and ΔFCF/TA 50.70 > 1.0 |
| NWC/Revenue: 4.32% < 20% (prev 15.82%; Δ -11.50% < -1%) |
| CFO/TA 0.98 > 3% & CFO 43.4b > Net Income 6.43b |
| Net Debt (250b) to EBITDA (88.9b): 2.82 < 3 |
| Current Ratio: 1.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (34.1m) vs 12m ago -1.82% < -2% |
| Gross Margin: error (current vs previous; cannot be calculated due to missing/invalid data or negative margin) |
| Asset Turnover: 10.40% > 50% (prev 96.11%; Δ -85.71% > 0%) |
| Interest Coverage Ratio: 4.93 > 6 (EBITDA TTM 88.9b / Interest Expense TTM 11.4b) |
| 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: 0.13 (EBIT TTM 56.1b / Avg Total Assets 449b) |
| D: 0.46 (Book Value of Equity 13.1b / Total Liabilities 28.1b) |
| Altman-Z'' = 2.66 = A |
| DSRI: 1.02 (Receivables 4.26b/73.0b, Revenue 46.6b/819b) |
| GMI: 1.00 (fallback, negative margins) |
| AQI: 1.05 (AQ_t 0.29 / AQ_t-1 0.28) |
| SGI: 0.06 (Revenue 46.6b / 819b) |
| TATA: -0.83 (NI 6.43b - CFO 43.4b) / TA 44.4b) |
| Beneish M = -4.51 (Cap -4..+1) = AAA |
As of May 26, 2026, the stock is trading at USD 121.28 with a total of 342,700 shares traded.
Over the past week, the price has changed by -0.08%,
over one month by +6.64%,
over three months by +10.13% and
over the past year by +22.37%.
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 | 2.2% |
P/E Trailing = 26.7237
P/E Forward = 129.8701
P/S = 0.0487
P/B = 3.3946
P/EG = 6.8527
Revenue TTM = 46.6b USD
EBIT TTM = 56.1b USD
EBITDA TTM = 88.9b USD
Long Term Debt = 137b USD (from longTermDebt, last quarter)
Short Term Debt = 5.21b USD (from shortTermDebt, last quarter)
Debt = 256b USD (corrected: LT Debt 137b + ST Debt 5.21b) + Leases 114b
Net Debt = 250b USD (calculated: Debt 256b - CCE 5.93b)
Enterprise Value = 292b USD (41.5b + Debt 256b - CCE 5.93b)
Interest Coverage Ratio = 4.93 (Ebit TTM 56.1b / Interest Expense TTM 11.4b)
EV/FCF = 11.98x (Enterprise Value 292b / FCF TTM 24.4b)
FCF Yield = 8.35% (FCF TTM 24.4b / Enterprise Value 292b)
FCF Margin = 52.23% (FCF TTM 24.4b / Revenue TTM 46.6b)
Net Margin = 13.78% (Net Income TTM 6.43b / Revenue TTM 46.6b)
Gross Margin = unknown ((Revenue TTM 46.6b - Cost of Revenue TTM 268b) / Revenue TTM)
Tobins Q-Ratio = 6.57 (Enterprise Value 292b / Total Assets 44.4b)
Interest Expense / Debt = 4.44% (Interest Expense 11.4b / Debt 256b)
Taxrate = 17.20% (204.9m / 1.19b)
NOPAT = 46.5b (EBIT 56.1b * (1 - 17.20%))
Current Ratio = 1.16 (Total Current Assets 14.9b / Total Current Liabilities 12.9b)
Debt / Equity = 21.69 (Debt 256b / totalStockholderEquity, last quarter 11.8b)
Debt / EBITDA = 2.82 (Net Debt 250b / EBITDA 88.9b)
Debt / FCF = 10.28 (Net Debt 250b / FCF TTM 24.4b)
Total Stockholder Equity = 129b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.43% (Net Income 6.43b / Total Assets 44.4b)
RoE = 4.99% (Net Income TTM 6.43b / Total Stockholder Equity 129b)
RoCE = 21.08% (EBIT 56.1b / Capital Employed (Equity 129b + L.T.Debt 137b))
RoIC = 126.8% (NOPAT 46.5b / Invested Capital 36.6b)
WACC = 4.14% (E(41.5b)/V(298b) * Re(7.01%) + D(256b)/V(298b) * Rd(4.44%) * (1-Tc(0.17)))
Discount Rate = 7.01% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -62.86 | Cagr: -82.80%
[DCF] Terminal Value 73.10% ; FCFF base≈28.8b ; Y1≈25.2b ; Y5≈20.4b
[DCF] Fair Price = 225.8 (EV 327b - Net Debt 250b = Equity 76.9b / Shares 340.7m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 50.30 | EPS CAGR: 54.90% | SUE: -1.14 | # QB: -1
Revenue Correlation: -82.33 | Revenue CAGR: -73.92% | SUE: -0.60 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.24 | Chg30d=+2.62% | Revisions=+20% | Analysts=4
EPS next Quarter (2026-09-30): EPS=1.27 | Chg30d=+2.43% | Revisions=-20% | Analysts=4
EPS current Year (2026-12-31): EPS=4.83 | Chg30d=+0.89% | Revisions=+0% | GrowthEPS=+69.0% | GrowthRev=+7.0%
EPS next Year (2027-12-31): EPS=5.33 | Chg30d=+1.83% | Revisions=+50% | GrowthEPS=+10.3% | GrowthRev=+7.3%
[Analyst] Revisions Ratio: +50%