Fomento Economico Mexicano S.A.B. de C.V. Common Stock (FMX)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business. FEMSA is a Coca-Cola franchise bottler with broad Latin American distribution and additional proximity, health, and fuel segments. That gives it a recognizable brand and scale—381,480 employees—but scale alone is not a moat if returns are modest. The latest filed quarter, 2026-Q2, showed revenue of $231.0B and net income of $5.5B, a thin 2.40% net margin. The data set lists revenue growth of 9.29% and profit growth of 104.24%, though the period is not named in the provided figures, so I treat that profit jump cautiously. Returns are mixed: ROE is 14.75%, yet ROCE is only 6.36%, suggesting capital intensity and limited pricing power. The balance sheet carries a D/E of 0.84; FairStock’s Altman Z-Score of 0.46 and Piotroski F-Score of 4/9 signal financial fragility. On valuation, at the 2026-10-13 close of $121.18, FairStock calculates P/E 23.90, P/B 3.25, dividend yield 4.97%, PEG 0.23, and EV/EBITDA 2.20. The Graham Number is $85.16, giving a negative margin of safety of -42.30%. So the stock is not a Graham bargain. The low beta of 0.17 and near-5% dividend offer defense, but a 23.9 P/E for a 6.36% ROCE business leaves little room for error. I would want proof that margins and returns on capital are improving before calling this cheap.

In plain English: Fomento Económico Mexicano bottles and sells Coca-Cola drinks and runs other retail businesses, mainly in Latin America. Sales and profit have been growing, and the dividend is close to 5%, so the business looks reasonably sturdy. But the stock price looks expensive compared with its earnings power and asset value, and its latest quarterly profit margin was thin.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer