Stock of the Day

Fomento Económico Mexicano (FMX)

$104.87

+$0.01 (+0.0%)

Market Cap: $37.71B

About Fomento Económico Mexicano

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 in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, Argentina, and Uruguay.

It also operates small-box retail chain stores in Mexico, Colombia, Peru, Chile, and Brazil under the OXXO name; retail service stations for fuels, motor oils, lubricants, and car care products under the OXXO GAS name in Mexico; and drugstores in Chile, Colombia, Ecuador, and Mexico under the Cruz Verde, Fybeca, SanaSana, YZA, La Moderna, and Farmacon names. In addition, the company is involved in the production and distribution of collers, commercial refrigeration equipment, plastic boxes, food processing, and preservation and weighing equipment; and provision of logistic transportation, distribution and maintenance, point-of-sale refrigeration, and plastics solutions, as well as distribution platform for cleaning products and consumables. Further, it operates small-box retail and food convenience chain stores in Switzerland, Germany, Austria, Luxembourg, and the Netherlands under the k kiosk, Brezelkönig, BackWerk, Ditsch, Press & Books, avec, Caffè Spettacolo, and ok.) names, as well as pretzels under the Ditsch name. The company was founded in 1890 and is based in Monterrey, Mexico.

Fomento Económico Mexicano Bull Case

Here are some ways that investors could benefit from investing in Fomento Económico Mexicano, S.A.B. de C.V.:

• The current stock price is around $102.88, which reflects a stable market position and potential for growth.
• The company recently increased its dividend to $1.628 per share, representing a yield of 1.57%, indicating strong cash flow and commitment to returning value to shareholders.
• Fomento Económico Mexicano, S.A.B. de C.V. has a solid debt-to-equity ratio of 0.37, suggesting a conservative approach to leverage and financial stability.
• Analysts forecast earnings per share of 5.32 for the current fiscal year, which could signal potential profitability and growth opportunities.
• The stock has a relatively low beta of 0.69, indicating lower volatility compared to the market, which may appeal to risk-averse investors.

Fomento Económico Mexicano Bear Case

Investors should be bearish about investing in Fomento Económico Mexicano, S.A.B. de C.V. for these reasons:

• The company reported earnings per share of $0.45, missing the consensus estimate of $0.52, which may raise concerns about its short-term performance.
• Fomento Económico Mexicano, S.A.B. de C.V. has a net margin of 3.22%, which is relatively low and could indicate challenges in maintaining profitability.
• Recent revenue figures of $9.65 billion fell significantly short of analyst estimates, suggesting potential issues with sales growth or market demand.
• With a price-to-earnings ratio of 26.48, the stock may be considered overvalued compared to its earnings, which could deter value-focused investors.
• Analysts have mixed ratings, with a consensus rating of "Hold," indicating uncertainty about the stock's future performance.