FMXFomento Económico Mexicano, S.A.B. de C.V.
Is the business good?
The checks split: nothing decisive, though thin cash backing (0.5×).
Operating profit outpaces operating cash flow, watch accruals and working capital.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 14% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is FMX?
Fomento Económico Mexicano, S.A.B. de C.V. earns 81% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 72 points above what the capital costs: growth creates value
- Operating margin
- 40%
Operating margin · Beverages - Brewers median 18% · fiscal year to FY2024
- Cash conversion
- 0.53×
Cash conversion · 0.46× a year ago · the operating profit has not turned into cash yet
- Gross margin
- 41%
Gross margin
| Year | Operating margin |
|---|---|
| FY2019 | 37% |
| FY2020 | 36% |
| FY2021 | 40% |
| FY2022 | 40% |
| FY2023 | 39% |
| FY2024 | 40% |
Details›
- Gross marginfiscal year to FY2024
- 41%
- Operating marginfiscal year to FY2024
- 40%
- Net marginfiscal year to FY2024
- 5.1%
- Free cash flow margin
- 6.8%
- Revenue, trailing twelve months
- $781.6B
- Free cash flow, trailing twelve months
- $53.3B
- Net income, trailing twelve months
- $40.2B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 81%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Consumer Defensive
Ranks #1 of 131 by RyuScore