(FMX) Fomento Economico Mexicano - Ratings and Ratios

Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX), founded in 1890 and headquartered in Monterrey, Mexico, is a diversified conglomerate with a dominant presence in the beverage and retail industries. As the largest Coca-Cola bottler in Latin America, FMX produces, markets, and distributes Coca-Cola beverages across Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, Argentina, and Uruguay. Its portfolio includes not only Coca-Cola but also other beverages such as juices, waters, and sparkling drinks, catering to a broad consumer base.

FMX operates a vast retail network under the OXXO brand, which is Mexico’s largest convenience store chain. OXXO stores offer a wide range of products, including food, beverages, personal care items, and financial services. Beyond Mexico, OXXO has expanded to Colombia, Peru, Chile, and Brazil. Additionally, FMX operates OXXO GAS service stations in Mexico, providing fuels, motor oils, and car care products. The company also runs drugstore chains in Chile, Colombia, Ecuador, and Mexico under brands like Cruz Verde, Fybeca, and SanaSana, offering pharmaceuticals, personal care products, and health services.

FMX’s operations extend beyond beverages and retail. The company manufactures coolers, commercial refrigeration equipment, and plastic packaging solutions, supporting its beverage distribution network. It also provides logistics, transportation, and maintenance services, as well as point-of-sale refrigeration solutions. Furthermore, FMX has expanded into food processing, preservation, and weighing equipment, and it operates a distribution platform for cleaning products and consumables.

In Europe, FMX owns and operates small-box retail and food convenience chains under brands such as k kiosk, Brezelkönig, BackWerk, and Ditsch, with a presence in Switzerland, Germany, Austria, Luxembourg, and the Netherlands. These stores offer snacks, beverages, and quick-service food items, including pretzels under the Ditsch brand. This diversified business model allows FMX to maintain a strong foothold in both emerging and developed markets.

From a financial perspective, FMX is a large-cap company with a market capitalization of $174.5 billion USD. Its trailing P/E ratio of 88.01 reflects its premium valuation, while the forward P/E of 20.24 suggests expectations of earnings growth. The company’s price-to-book ratio of 8.58 indicates a significant intangible asset base or high growth expectations. FMX’s price-to-sales ratio of 0.22 highlights its efficient revenue generation relative to its market value. The return on equity (RoE) of 6.28% reflects modest profitability compared to its valuation multiples.

Technically, FMX’s stock has shown recent strength, with the last price of $105.82 exceeding its 20-day SMA of $98.66 and 50-day SMA of $95.54. However, it remains slightly below its 200-day SMA of $96.07, indicating a potential trend reversal. The average true range (ATR) of 2.75 suggests moderate volatility. The average 20-day volume of 562,877 shares indicates steady trading activity.