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Fomento Económico Mexicano. de

DB:FOMC
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FOMC
DB
MX$587B
Market Cap
  1. Home
  2. DE
  3. Food, Beverage & Tobacco
Company description

Fomento Económico Mexicano, S.A.B. de C.V., through its subsidiaries, operates as a bottler of Coca-Cola trademark beverages. The last earnings update was 16 days ago. More info.


Add to Portfolio Compare Print
  • Fomento Económico Mexicano. de is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.
FOMC Share Price and Events
7 Day Returns
0.9%
DB:FOMC
-0.5%
DE Beverage
2.8%
DE Market
1 Year Returns
-0.4%
DB:FOMC
5.6%
DE Beverage
3%
DE Market
FOMC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Fomento Económico Mexicano. de (FOMC) 0.9% 0.6% -3.7% -0.4% -4.6% 24.8%
DE Beverage -0.5% 2.4% -0.7% 5.6% 30% 68%
DE Market 2.8% 0.2% 1.3% 3% 8% 23.6%
1 Year Return vs Industry and Market
  • FOMC underperformed the Beverage industry which returned 5.6% over the past year.
  • FOMC underperformed the Market in Germany which returned 3% over the past year.
Price Volatility
FOMC
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Fomento Económico Mexicano. de undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Fomento Económico Mexicano. de to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Fomento Económico Mexicano. de.

DB:FOMC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:FOMC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.51
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.508 (1 + (1- 30%) (29.5%))
0.74
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.8 * 5.96%)
5%

Discounted Cash Flow Calculation for DB:FOMC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Fomento Económico Mexicano. de is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:FOMC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (MXN, Millions) Source Present Value
Discounted (@ 5%)
2020 34,162.75 Analyst x4 32,537.19
2021 38,836.00 Analyst x4 35,228.08
2022 47,263.00 Analyst x1 40,832.22
2023 51,520.00 Analyst x1 42,392.09
2024 54,416.59 Est @ 5.62% 42,644.95
2025 56,595.43 Est @ 4% 42,242.04
2026 58,220.39 Est @ 2.87% 41,387.18
2027 59,430.35 Est @ 2.08% 40,237.06
2028 60,335.57 Est @ 1.52% 38,906.19
2029 61,020.15 Est @ 1.13% 37,475.35
Present value of next 10 years cash flows MX$393,882.00
DB:FOMC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= MX$61,020.15 × (1 + 0.23%) ÷ (5% – 0.23%)
MX$1,282,702.95
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= MX$1,282,702.95 ÷ (1 + 5%)10
MX$787,768.39
DB:FOMC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= MX$393,882.00 + MX$787,768.39
MX$1,181,650.39
Equity Value per Share
(MXN)
= Total value / Shares Outstanding
= MX$1,181,650.39 / 3,578.23
MX$330.23
DB:FOMC Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:FOMC represents 0.04694x of BMV:FEMSA UBD
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.04694x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (MXN) x Listing Adjustment Factor
= MX$ 330.23 x 0.04694
€15.50
Value per share (EUR) From above. €15.50
Current discount Discount to share price of €8.31
= -1 x (€8.31 - €15.50) / €15.50
46.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Fomento Económico Mexicano. de is available for.
Intrinsic value
46%
Share price is €8.31 vs Future cash flow value of €15.5
Current Discount Checks
For Fomento Económico Mexicano. de to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Fomento Económico Mexicano. de's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Fomento Económico Mexicano. de's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Fomento Económico Mexicano. de's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Fomento Económico Mexicano. de's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:FOMC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in MXN MX$6.01
BMV:FEMSA UBD Share Price ** BMV (2019-10-11) in MXN MX$176.97
Germany Beverage Industry PE Ratio Median Figure of 7 Publicly-Listed Beverage Companies 27.57x
Germany Market PE Ratio Median Figure of 417 Publicly-Listed Companies 19.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Fomento Económico Mexicano. de.

DB:FOMC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BMV:FEMSA UBD Share Price ÷ EPS (both in MXN)

= 176.97 ÷ 6.01

29.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fomento Económico Mexicano. de is overvalued based on earnings compared to the DE Beverage industry average.
  • Fomento Económico Mexicano. de is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Fomento Económico Mexicano. de's expected growth come at a high price?
Raw Data
DB:FOMC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
16.2%per year
Europe Beverage Industry PEG Ratio Median Figure of 31 Publicly-Listed Beverage Companies 2.84x
Germany Market PEG Ratio Median Figure of 265 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

DB:FOMC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.43x ÷ 16.2%

1.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fomento Económico Mexicano. de is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Fomento Económico Mexicano. de's assets?
Raw Data
DB:FOMC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in MXN MX$71.11
BMV:FEMSA UBD Share Price * BMV (2019-10-11) in MXN MX$176.97
Germany Beverage Industry PB Ratio Median Figure of 8 Publicly-Listed Beverage Companies 1.56x
Germany Market PB Ratio Median Figure of 598 Publicly-Listed Companies 1.74x
DB:FOMC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BMV:FEMSA UBD Share Price ÷ Book Value per Share (both in MXN)

= 176.97 ÷ 71.11

2.49x

* Primary Listing of Fomento Económico Mexicano. de.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fomento Económico Mexicano. de is overvalued based on assets compared to the DE Beverage industry average.
X
Value checks
We assess Fomento Económico Mexicano. de's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. Fomento Económico Mexicano. de has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Fomento Económico Mexicano. de expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Fomento Económico Mexicano. de expected to grow at an attractive rate?
  • Fomento Económico Mexicano. de's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Fomento Económico Mexicano. de's earnings growth is expected to exceed the Germany market average.
  • Fomento Económico Mexicano. de's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:FOMC Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:FOMC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 16.2%
DB:FOMC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts -0.6%
Germany Beverage Industry Earnings Growth Rate Market Cap Weighted Average -0.6%
Europe Beverage Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:FOMC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in MXN Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:FOMC Future Estimates Data
Date (Data in MXN Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 275,222 1
2022-12-31 249,879 1
2021-12-31 619,098 68,714 34,235 10
2020-12-31 563,799 56,853 30,121 15
2019-12-31 512,004 69,565 25,635 14
2019-10-13
DB:FOMC Past Financials Data
Date (Data in MXN Millions) Revenue Cash Flow Net Income *
2019-06-30 487,176 60,290 21,515
2019-03-31 476,155 51,443 24,853
2018-12-31 469,744 49,376 22,560
2018-09-30 458,709 41,504 16,161
2018-06-30 450,087 44,705 44,314
2018-03-31 440,460 48,281 37,223
2017-12-31 439,932 40,135 40,863
2017-09-30 444,070 48,067 45,331
2017-06-30 434,646 49,980 19,586
2017-03-31 423,254 48,158 21,740
2016-12-31 399,507 50,131 21,140
2016-09-30 373,563 43,812 20,114

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Fomento Económico Mexicano. de's earnings are expected to grow by 16.2% yearly, however this is not considered high growth (20% yearly).
  • Fomento Económico Mexicano. de's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:FOMC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Fomento Económico Mexicano. de Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:FOMC Future Estimates Data
Date (Data in MXN Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 10.94 10.94 10.94 1.00
2022-12-31 10.31 10.31 10.31 1.00
2021-12-31 9.88 10.37 9.19 4.00
2020-12-31 8.78 9.61 7.88 7.00
2019-12-31 7.30 8.52 6.05 7.00
2019-10-13
DB:FOMC Past Financials Data
Date (Data in MXN Millions) EPS *
2019-06-30 6.01
2019-03-31 6.95
2018-12-31 6.30
2018-09-30 4.52
2018-06-30 12.38
2018-03-31 10.40
2017-12-31 11.42
2017-09-30 12.67
2017-06-30 5.47
2017-03-31 6.08
2016-12-31 5.91
2016-09-30 5.62

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Fomento Económico Mexicano. de is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Fomento Económico Mexicano. de's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Fomento Económico Mexicano. de has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Fomento Económico Mexicano. de performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Fomento Económico Mexicano. de's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Fomento Económico Mexicano. de's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Fomento Económico Mexicano. de's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Fomento Económico Mexicano. de's 1-year earnings growth is negative, it can't be compared to the DE Beverage industry average.
Earnings and Revenue History
Fomento Económico Mexicano. de's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Fomento Económico Mexicano. de Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:FOMC Past Revenue, Cash Flow and Net Income Data
Date (Data in MXN Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 487,176.27 21,514.63 136,958.37
2019-03-31 476,154.65 24,853.07 134,566.09
2018-12-31 469,744.00 22,560.00 132,259.00
2018-09-30 458,708.79 16,161.20 127,631.94
2018-06-30 450,086.65 44,314.13 124,698.09
2018-03-31 440,459.99 37,222.84 121,658.27
2017-12-31 439,932.00 40,863.00 121,419.00
2017-09-30 444,070.41 45,330.64 123,081.42
2017-06-30 434,645.82 19,586.19 120,193.83
2017-03-31 423,253.58 21,740.39 117,229.78
2016-12-31 399,507.00 21,140.00 110,478.00
2016-09-30 373,562.64 20,114.41 103,547.99
2016-06-30 352,001.19 18,397.58 98,194.42
2016-03-31 331,738.68 17,532.79 92,794.13
2015-12-31 311,589.00 17,683.00 88,201.00
2015-09-30 274,662.90 18,356.31 77,088.30
2015-06-30 268,290.44 18,188.16 77,573.56
2015-03-31 263,265.63 17,267.59 78,145.39
2014-12-31 263,449.00 16,701.00 79,601.00
2014-09-30 282,262.12 15,562.86 86,890.47
2014-06-30 273,848.34 15,235.65 84,408.99
2014-03-31 266,360.92 15,843.64 82,200.40
2013-12-31 258,097.00 15,922.00 79,704.00
2013-09-30 249,747.83 20,487.09 76,738.77
2013-06-30 245,445.49 20,733.80 74,923.84
2013-03-31 241,283.07 20,996.28 73,516.53
2012-12-31 238,309.00 20,707.00 71,856.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Fomento Económico Mexicano. de has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Fomento Económico Mexicano. de used its assets more efficiently than the DE Beverage industry average last year based on Return on Assets.
  • Fomento Económico Mexicano. de's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Fomento Económico Mexicano. de's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Fomento Económico Mexicano. de has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Fomento Económico Mexicano. de's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Fomento Económico Mexicano. de's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Fomento Económico Mexicano. de is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Fomento Económico Mexicano. de's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Fomento Económico Mexicano. de's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Fomento Económico Mexicano. de Company Filings, last reported 3 months ago.

DB:FOMC Past Debt and Equity Data
Date (Data in MXN Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 331,721.35 121,698.33 92,784.68
2019-03-31 321,638.84 121,763.87 94,172.91
2018-12-31 335,542.00 128,573.00 92,971.00
2018-09-30 322,909.87 136,846.42 78,041.39
2018-06-30 324,712.91 143,233.51 79,327.66
2018-03-31 312,509.28 125,277.67 94,830.78
2017-12-31 336,912.00 131,348.00 99,104.00
2017-09-30 313,199.85 126,110.46 103,259.99
2017-06-30 274,883.15 133,913.54 53,164.69
2017-03-31 275,454.88 128,743.42 43,613.17
2016-12-31 286,170.00 139,248.00 43,757.00
2016-09-30 267,851.37 124,623.13 59,088.42
2016-06-30 257,571.27 120,629.85 52,127.39
2016-03-31 238,901.89 113,984.80 52,323.77
2015-12-31 241,856.00 91,854.00 29,415.00
2015-09-30 235,148.27 106,601.08 43,377.30
2015-06-30 223,733.10 88,661.45 36,675.62
2015-03-31 213,091.86 86,206.73 34,525.47
2014-12-31 230,122.00 84,488.00 35,641.00
2014-09-30 227,335.05 78,693.09 41,750.70
2014-06-30 223,298.46 76,613.11 36,784.85
2014-03-31 217,691.07 77,249.26 32,993.56
2013-12-31 222,550.00 76,748.00 27,385.00
2013-09-30 220,946.48 64,430.64 50,322.14
2013-06-30 212,687.81 57,216.13 46,572.25
2013-03-31 194,247.08 36,166.31 28,855.02
2012-12-31 210,161.00 37,342.00 38,116.00
  • Fomento Económico Mexicano. de's level of debt (36.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (34.3% vs 36.7% today).
  • Debt is well covered by operating cash flow (49.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.2x coverage).
X
Financial health checks
We assess Fomento Económico Mexicano. de's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Fomento Económico Mexicano. de has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Fomento Económico Mexicano. de's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.64%
Current annual income from Fomento Económico Mexicano. de dividends. Estimated to be 2.12% next year.
If you bought €2,000 of Fomento Económico Mexicano. de shares you are expected to receive €33 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Fomento Económico Mexicano. de's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Fomento Económico Mexicano. de's dividend is below the markets top 25% of dividend payers in Germany (3.86%).
Upcoming dividend payment

Purchase Fomento Económico Mexicano. de before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:FOMC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
Germany Beverage Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 1.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 337 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:FOMC Future Dividends Estimate Data
Date (Data in MX$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 6.19 1.00
2022-12-31 5.52 1.00
2021-12-31 3.93 5.00
2020-12-31 3.27 6.00
2019-12-31 3.22 4.00
2019-10-13
DB:FOMC Past Annualized Dividends Data
Date (Data in MX$) Dividend per share (annual) Avg. Yield (%)
2019-03-22 2.900 1.596
2018-03-16 2.759 1.572
2017-03-16 2.584 1.477
2016-03-08 2.500 1.494
2015-04-30 2.199 1.440
2015-04-21 2.200 1.544
2013-12-06 2.000 1.589
2013-03-15 2.000 1.532
2012-07-30 1.855 1.486
2012-07-27 1.855 1.569
2012-04-27 1.855 1.635
2012-03-23 1.855 1.753
2012-02-27 1.855 1.937
2011-03-25 1.376 1.657
2010-04-27 0.778 1.225
2009-06-30 0.484 0.893
2009-03-25 0.485 1.196
2009-02-26 0.484 1.417
2008-12-31 0.484 1.238

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Fomento Económico Mexicano. de's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess Fomento Económico Mexicano. de's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Fomento Económico Mexicano. de afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Fomento Económico Mexicano. de has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Fomento Económico Mexicano. de's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Miguel Eduardo Padilla Silva
AGE 64
TENURE AS CEO 1.8 years
CEO Bio

Mr. Miguel Eduardo Padilla Silva has been Chief Executive Officer at Fomento Economico Mexicano S.A.B. de C.V. since January 1, 2018 and serves as its Director since 2014. Mr. Padilla Silva was Chief Financial Officer & Strategic Development Officer of Fomento Económico Mexicano, S.A.B de C.V. since January 2016 until January 1, 2018. He served as the Chief Executive Officer and Member of the Management Board of Femsa Comercio, S.A. de C.V. since 2004 until January 18, 2016. He served as the Chief Financial and Corporate Officer of Fomento Económico Mexicano, S.A.B de C.V since January 18, 2016 until February 10, 2016. Mr. Padilla Silva joined FEMSA in 1997. He had a 20-year career in Grupo Alfa, culminating with ten year tenure as Chief Executive Officer of Terza, S.A. de C.V. He served as a Director of Planning and Control of FEMSA from 1997 to 1999 and Chief Executive Officer of the Strategic Procurement Business Division of FEMSA from 2000 to 2003. His major areas of expertise are operational control, strategic planning and financial restructuring. He has been a Director at Grupo Lamosa, SAB de CV since 2004. He has been Director of Coca-Cola FEMSA S.A.B de C.V. since 2016. Mr. Padilla Silva serves as a Member of the Boards of Directors of Club Industrial, Casino de Monterrey, NACS and the Asociación Nacional de Tiendas de Conveniencia y Departamentales. He joined as a Director of Coca-cola Femsa Sa De Cv in 1997. Mr. Padilla Silva holds a Bachelor's Degree in Mechanical Engineering and industrial engineering from ITESM, MBA from Cornell University and graduate studies from IPADE.

CEO Compensation
  • Insufficient data for Miguel Eduardo to compare compensation growth.
  • Insufficient data for Miguel Eduardo to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Fomento Económico Mexicano. de management team in years:

5.1
Average Tenure
62
Average Age
  • The average tenure for the Fomento Económico Mexicano. de management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

José Antonio Vicente Fernández Carbajal

TITLE
Executive Chairman of the Board
AGE
65

Javier Gerardo Astaburuaga Sanjines

TITLE
VP of Corporate Development & Director
AGE
60
TENURE
4.5 yrs

Miguel Eduardo Padilla Silva

TITLE
CEO & Director
AGE
64
TENURE
1.8 yrs

Gerardo Estrada Attolini

TITLE
Director of Corporate Finance
AGE
62

José González Ornelas

TITLE
Vice President of Administration & Corporate Control
AGE
68
TENURE
18.8 yrs

Juan Fonseca

TITLE
Vice President of Investor Relations

Carlos Eduardo Aldrete Ancira

TITLE
General Counsel & Secretary
AGE
63
TENURE
23.8 yrs

Alfonso Garza Garza

TITLE
VP of Strategic Businesses & Director
AGE
57

John Santa Maria Otazua

TITLE
Chief Executive Officer of Coca-Cola FEMSA
AGE
62
TENURE
5.8 yrs

Daniel Alberto Rodríguez Cofré

TITLE
Chief Executive Officer of FEMSA Comercio
AGE
54
TENURE
3.8 yrs
Board of Directors Tenure

Average tenure and age of the Fomento Económico Mexicano. de board of directors in years:

14.8
Average Tenure
64.5
Average Age
  • The average tenure for the Fomento Económico Mexicano. de board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Javier Gerardo Astaburuaga Sanjines

TITLE
VP of Corporate Development & Director
AGE
60
TENURE
13.8 yrs

Miguel Eduardo Padilla Silva

TITLE
CEO & Director
AGE
64
TENURE
5.8 yrs

Alfonso Garza Garza

TITLE
VP of Strategic Businesses & Director
AGE
57
TENURE
18.8 yrs

Ricardo Guajardo Touché

TITLE
Independent Director
AGE
71
TENURE
31.8 yrs

José Antonio Vicente Fernández Carbajal

TITLE
Executive Chairman of the Board
AGE
65
TENURE
18.8 yrs

Ricardo Ernesto Saldívar Escajadillo

TITLE
Independent Director
AGE
67
TENURE
13.8 yrs

Víctor Alberto Tiburcio Celorio

TITLE
Independent Director
AGE
68
TENURE
1.8 yrs

Bob Denham

TITLE
Independent Director
AGE
74
TENURE
18.8 yrs

Paulina Garza Lagüera Gonda de Marroqun

TITLE
Director
AGE
47
TENURE
10.8 yrs

Francisco Javier Fernández Carbajal

TITLE
Director
AGE
64
TENURE
15.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Fomento Económico Mexicano. de's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Fomento Económico Mexicano. de has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

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, including sparkling beverages; and waters, juices, coffee, tea, sports and energy drinks, and dairy and plant-based protein beverages. It also operates small-box retail chain stores in Mexico, Colombia, the United States, and Chile under the OXXO and Big John names; retail service stations for fuels, motor oils, lubricants, and car care products under the OXXO GAS name in Mexico; and drugstores in Chile and Colombia under the Cruz Verde, YZA, La Moderna, and Farmacon names. In addition, the company engages in the production and distribution of coolers, commercial refrigeration equipment, and plastic cases, as well as food processing, preservation, and weighing equipment; and provision of logistic transportation and maintenance, point-of-sale refrigeration, and plastics solutions. As of December 31, 2018, it operated 17,999 OXXO small-format stores in Mexico, Colombia, Chile, and Peru; 2,361 drugstores in Mexico, Chile, and Colombia; and 539 OXXO GAS service stations. Fomento Económico Mexicano, S.A.B. de C.V. was founded in 1890 and is headquartered in Monterrey, Mexico.

Details
Name: Fomento Económico Mexicano, S.A.B. de C.V.
FOMC
Exchange: DB
Founded: 1890
MX$27,484,186,509
3,578,226,270
Website: http://www.femsa.com
Address: Fomento Económico Mexicano, S.A.B. de C.V.
General Anaya No. 601 Pte.,
Colonia Bella Vista,
Monterrey,
Nuevo Leon, 64410,
Mexico
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BMV FEMSA UBD FEMSA UBD Units Bolsa Mexicana de Valores MX MXN 14. May 1998
OTCPK FMXU.F FEMSA UBD Units Pink Sheets LLC US USD 14. May 1998
DB FOMC FEMSA UBD Units Deutsche Boerse AG DE EUR 14. May 1998
NYSE FMX SPON ADR UNITS New York Stock Exchange US USD 11. May 1998
BMV FEMSA UB FEMSA UB Units Bolsa Mexicana de Valores MX MXN 28. May 1998
DB FOMA SPON ADR UNITS Deutsche Boerse AG DE EUR 11. May 1998
LSE 0TD7 SPON ADR UNITS London Stock Exchange GB USD 11. May 1998
Number of employees
Current staff
Staff numbers
304,772
Fomento Económico Mexicano. de employees.
Industry
Soft Drinks
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 21:47
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/09
Last earnings filing: 2019/09/27
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.