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Fomento Economico Mexicano S.A.B. de C.V. ADR logoFomento Economico Mexicano S.A.B. de C.V. ADRFMX
$126.46+4.52%
Fomento Economico Mexicano S.A.B. de C.V. ADR logo

Fomento Economico Mexicano S.A.B. de C.V. ADR

FMX

$126.46

+$5.47 (+4.52%)

⊜ Compare
ProfitabilityThin marginsGrowthSteady growthCash FlowN/AValuationNot cheap
What stands out

Operating margin is thin at 8.58%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.

What's changing

Revenue grew 7.6%, steady but not accelerating.

What deserves caution

At 26x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Net debt of MXN 129.53B represents 4.5x FCF, leverage limits flexibility.

Valuation context

25.6x earnings, 27.4x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.

Price History

+32.6%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market CapMXN 796.66B
EPSMXN 91.27
P/E25.62
P/FCF27.44
EV/EBITDA10.28
FCF Yield3.6%
Div. Yield0.16%
Net Debt/FCF—
52-Week Range
$92.35$133.17

Profitability & Returns

Revenue (TTM)

MXN 873.53B

▲ +7.6% YoY

Net Income (TTM)

MXN 45.39B

▼ -17.9% YoY

Op. Margin

8.50%

▼ -0.4pp YoY

ROIC

7.36%

▲ +0.4pp YoY

Cash Flow & Balance Sheet

FCF (FY)

MXN 29.03B

▲ +20.0% YoY

Op. Cash Flow (FY)

MXN 71.08B

▼ -31.8% YoY

Net Debt

MXN 129.53B

Cash & Equiv.

MXN 128.02B

3Y CAGR: +12.1%

3Y CAGR: -10.9%

Continue Research

Is Fomento Economico Mexicano S.A.B. de C.V. ADR (FMX) overvalued?

At a P/E of 25.6 and a price-to-free-cash-flow of 27.4, Fomento Economico Mexicano S.A.B. de C.V. ADR (FMX) trades below a two-stage DCF intrinsic value of about MXN 1,096.60 per share, so at MXN 126.46 the stock looks undervalued (767.1% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Fomento Economico Mexicano S.A.B. de C.V. ADR scores 36/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 0.2%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is Fomento Economico Mexicano S.A.B. de C.V. ADR's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about MXN 1,096.60 per share for FMX, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around MXN 822.45. At today's MXN 126.46, that puts the stock about 767.1% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is Fomento Economico Mexicano S.A.B. de C.V. ADR a high-quality business?+

Fomento Economico Mexicano S.A.B. de C.V. ADR scores 36 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 8.5% operating margin and a 7.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Does Fomento Economico Mexicano S.A.B. de C.V. ADR (FMX) pay a dividend, and how much?+

Yes, Fomento Economico Mexicano S.A.B. de C.V. ADR pays a regular dividend of about MXN 3.79 per share per year (typically in quarterly installments), a yield of roughly 0.2% at the current price. That is a payout ratio of about 2.8% of earnings, so the dividend is amply covered by earnings. Fomento Economico Mexicano S.A.B. de C.V. ADR has grown the dividend at roughly 55.4% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For FMX's full payout history, growth streak and dividend-safety score, see the dividends tab.

Is Fomento Economico Mexicano S.A.B. de C.V. ADR a good stock to buy right now?+

That depends on valuation and quality together, not either alone. FMX currently trades below its estimated intrinsic value and scores 36/100 on quality (lower-quality). It also yields about 0.2%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.

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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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Intrinsiqq is a Netherlands-based company operating in Rotterdam, KvK 73238007.