Fomento Economico Mexicano S.A.B. de C.V. (FMX) Company Bio
Fomento Economico Mexicano operates as a bottler of Coca-Cola trademark beverages and a chain of small-format stores. It produces, markets, sells, and distributes Coca-Cola trademark beverages, including sparkling beverages, such as colas and flavored sparkling beverages; waters; and still beverages comprising juice drinks, coffee, teas, milk, value-added dairy products, and isotonic drinks. The company was founded in 1890 and is based in Monterrey, Mexico.
FMX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Mexican Economic Development Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Mexican Economic Development Inc ranked in the 3th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Mexican Economic Development Inc ended up being:
The company's balance sheet shows it gets 100% of its capital from equity, and 0% of its capital from debt. Notably, its equity weight is greater than 97.16% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.02 years, is -0.36% -- higher than only 3.71% of stocks in our DCF forecasting set.
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately just 3.14% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SPB, ARCE, ONE, LRN, and MTEX can be thought of as valuation peers to FMX, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
Fomento Economico Mexicano SAB de CV (FMX) Q2 2020 Earnings Conference Call July 24, 2020, 10:00 ET Company Participants Eduardo Padilla - CEO & Director Juan Fonseca - VP, IR Conference Call Participants Benjamin Theurer - Barclays Bank Bob Ford - Bank of America Merrill Lynch Miguel Tortolero - GBM...
MONTERREY, Mexico, July 24, 2020 (GLOBE NEWSWIRE) -- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD) announced today its operational and financial results for the second quarter of 2020. COVID-19 UPDATE: * We have kept our people and customer’s health and safety as our first priority. Our more than 25,000 vulnerable employees, and most of our administrative personnel remain safe at home, collaborating remotely when possible. We have increased availability of required protective equipment at most of our locations, and we have continued to successfully implement strict social distancing and health risk prevention policies across our operations, helping us in turn to ensure business continuity under a safe environment for our employees and customers. On t...