About MEXICAN ECONOMIC DEVELOPMENT INC
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 chillers, 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.
As of December 31, 2021, it operated 20,431 OXXO stores; 3,652 drugstores; and 567 OXXO GAS service stations. Fomento Económico Mexicano, S.A.B. de C.V. was founded in 1890 and is based in Monterrey, Mexico.
FMX operates in the Manufacturing | Candy & Soda | approximately 320,800 employees | led by CEO Daniel Alberto Rodríguez Cofré.
$29.7 billion 0.4x P/E 0.1x P/B 1.3x EV/EBITDA 21.2% ROE 11.2% rev. growth 5.5% yield
MEXICAN ECONOMIC DEVELOPMENT INC earns a Buy rating from our quantitative model with a composite score of 75/100, ranking #13 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 99/100, which places FMX in the top 1 percent of all stocks on this measure. stability at 94/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Manufacturing sector, FMX ranks 6th out of 50 peers, placing it in the 88th percentile. At $29.7 billion, the company is a well-established large cap.
Quality Analysis
MEXICAN ECONOMIC DEVELOPMENT INC's quality score of 83/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 21.2% exceeds the sector median of -2.0%. Gross margins of 41.1% are competitive for the sector. Operating margins of 9.0% sit above the 3.0% sector average.
Net margins of 10.3% show the company is profitable, though not with exceptional efficiency.
Valuation Assessment
A value score of 99/100 puts FMX in the top 1 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 0.4x, an EV/EBITDA of 1.3x, a price-to-book of 0.1x, a price-to-sales of 0.0x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 63/100 shows FMX is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of 11.2% provides a moderate fundamental underpinning. A beta of 0.42 means MEXICAN ECONOMIC DEVELOPMENT INC moves with less volatility than the market, which can be attractive for risk-conscious investors.
Our entry timing model currently signals Neutral, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support MEXICAN ECONOMIC DEVELOPMENT INC's rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
MEXICAN ECONOMIC DEVELOPMENT INC earns a Buy rating with a composite score of 75/100 and 4 out of 5 stars, ranking #13 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position FMX above the majority of the market.
Explore the full FMX analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
