Fomento Económico Mexicano, S.A.B. de C.V.
- Open
- 122.13
- Day high
- 122.33
- Day low
- 120.46
- Prev close
- 121.37
- Volume
- 280K
- Mkt cap
- $41.3B
- P/E (TTM)
- 22.9
- EPS (TTM)
- $5.28
- P/B
- 3.3
- P/S
- 0.9
- Yield
- 5.83%
- Per share
- $7.06
- ▲Insiders net buying $155K over the last 3 months (1 open-market buy, 1 sale)
- 🏛Institutions accumulating (13F)
Fomento Económico Mexicano, S.A.B. de C.V. (FMX) is a Consumer Defensive company listed on NYSE. The stock is up 41% over the past year. Over the trailing 3 months, insiders filed 1 open-market buy and 1 sale (SEC Form 4). Drillr has 1 published research article covering FMX.
Fomento Económico Mexicano, S.A.B. de C.V. (FMX) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 5 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
FMX earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 28, 2026 | $0.06 | $0.93 | +1412.2% | $13.2B | +2.0% |
| Apr 30, 2026 | $0.65 | $0.92 | +41.5% | $11.7B | +2.5% |
| Feb 25, 2026 | $1.50 | $1.38 | -8.0% | $12.2B | +3.1% |
| Mar 21, 2025 | — | $1.44 | — | $10.0B | — |
| Jul 24, 2024 | $0.07 | $1.87 | +2474.3% | $10.9B | -2.2% |
| Apr 26, 2024 | $0.06 | $0.47 | +708.4% | $10.6B | -3.9% |
| Mar 22, 2024 | $1.59 | $0.09 | -94.4% | $10.6B | — |
| Oct 27, 2023 | $1.17 | $1.75 | +49.7% | $10.7B | -2.9% |
| Jul 27, 2023 | $1.21 | $1.64 | +35.4% | $11.6B | +1.1% |
| Apr 28, 2023 | $0.76 | $1.16 | +53.0% | $9.9B | +5.3% |
| Feb 24, 2023 | $1.28 | $0.69 | -46.1% | $9.5B | +10.1% |
| Oct 28, 2022 | $1.25 | $1.49 | +19.2% | $8.5B | +6.1% |
FMX insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 12, 2026 | KAHN MICHAEL DAVIDdirector | Buy | 2,100 | $118.13 |
| Jun 15, 2026 | Spas Montesinos Constantinoofficer: Americas & Mobility Division | Sell | 7,481 | $12.38 |
| Apr 10, 2026 | garza garza Alfonsodirector | Sell | 52,316 | $10.79 |
| Apr 10, 2026 | garza garza Alfonsodirector | Sell | 52,311 | $11.19 |
| Mar 25, 2026 | garza garza Alfonsodirector | Sell | 52,316 | $10.60 |
Source: FMX SEC Form 4 filings, latest Aug 12, 2026. For informational purposes only — not investment advice.
See the full FMX insider & 13F page →Fomento Económico Mexicano, S.A.B. de C.V. company profile
Overview
Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) is a Mexican multinational corporation founded in 1890 and headquartered in Monterrey, Mexico. Originally established as a brewery, FEMSA has evolved into one of Latin America's largest retail and beverage companies. The company operates through multiple business segments including convenience stores, pharmacies, gas stations, and maintains a significant stake in Coca-Cola FEMSA, the world's largest Coca-Cola bottler by volume. FEMSA has undergone significant strategic transformation in recent years, divesting from its traditional beer business (Heineken stake) to focus on proximity retail, health services, and digital platforms across Latin America and Europe.
Business
FEMSA operates as a diversified retail and consumer services company with four main business segments. The Proximity Americas division represents the company's largest revenue generator, operating over 20,400 OXXO convenience stores across Mexico, Colombia, Peru, Chile, and Brazil. OXXO stores are small-format retail locations that serve as neighborhood hubs, selling everyday essentials like beverages, snacks, personal care items, and prepared foods, while also offering services such as bill payments, money transfers, and mobile phone top-ups. This segment accounts for approximately 60-65% of total revenues. The Proximity Europe division operates through Valora, a Swiss-based convenience store chain with locations in Germany, Austria, and Luxembourg, focusing on travel retail and urban convenience formats. The Health Division operates approximately 3,650 pharmacies across Chile, Colombia, Ecuador, and Mexico under various banners including Cruz Verde, Fybeca, and SanaSana, providing prescription drugs, over-the-counter medications, and health-related products and services. The Fuel Division operates over 560 OXXO Gas service stations in Mexico, selling gasoline, diesel, lubricants, and convenience items. Additionally, FEMSA maintains a significant investment in Coca-Cola FEMSA, which produces and distributes Coca-Cola products across 10 countries in Latin America, though this is treated as an equity investment rather than a consolidated operating segment. The company also operates Digital@FEMSA, which includes the Spin digital platform offering financial services, loyalty programs, and e-commerce capabilities, primarily serving as a customer engagement and data analytics tool across FEMSA's physical retail network.
Revenue model
FEMSA generates revenue through multiple complementary business models. The primary revenue stream comes from product sales at its retail locations, where the company purchases goods from suppliers and sells them to consumers with markup margins. In convenience stores, this includes beverages, snacks, prepared foods, and everyday essentials, while pharmacies focus on prescription drugs and health products. A significant and growing portion of revenue comes from commercial income, where suppliers pay FEMSA for premium shelf placement, promotional activities, and marketing support within stores. This high-margin revenue stream has been expanding rapidly, contributing to gross margin improvements of 200-300 basis points annually in recent years. The company also generates service fee revenue through its extensive network, offering bill payment services, money transfers, mobile phone top-ups, and other financial services. The Spin digital platform is developing additional revenue streams through transaction fees and potential lending services, though this remains in early monetization stages. FEMSA's fuel division operates on traditional retail margins for gasoline and related products, while also benefiting from convenience store sales at gas station locations. The company's margins are influenced by several factors: commodity price fluctuations affect fuel margins, peso-dollar exchange rates impact costs for imported goods, competitive dynamics in local markets affect pricing power, and operational efficiency improvements through technology and scale provide margin expansion opportunities. Labor cost inflation and regulatory changes, particularly potential work week reductions in Mexico, represent margin pressures the company actively manages through automation and operational optimization.
Competitive moat
FEMSA's competitive moat stems primarily from its extensive physical network and local market dominance in convenience retail. With over 20,400 OXXO stores, the company has achieved unparalleled density in Mexican markets, creating significant barriers to entry for competitors. This network effect is reinforced by exclusive supplier relationships, economies of scale in procurement, and the high cost for competitors to replicate such extensive geographic coverage. The company's integrated ecosystem combining physical retail, digital services, and financial products creates switching costs for customers who use multiple FEMSA services. The Spin loyalty program with over 23 million active users provides valuable customer data and engagement that competitors cannot easily replicate. However, FEMSA's moat faces several challenges. The convenience store format has relatively low barriers to entry at the individual store level, and the company faces increasing competition from e-commerce platforms, traditional supermarkets expanding small formats, and international convenience store chains entering Latin American markets. In the health division, FEMSA competes against established pharmacy chains and faces regulatory pressures that limit pricing power. The company's geographic concentration in Mexico creates both strength and vulnerability - while it provides market leadership, it also exposes FEMSA to country-specific economic and regulatory risks. The moat is moderately strong in core Mexican markets but weaker in international expansion markets where FEMSA lacks the same scale advantages and local market knowledge.
Risks & safety
FEMSA maintains a relatively strong financial position with moderate leverage and adequate liquidity, though valuation metrics suggest limited margin of safety at current prices. • Liquidity and Solvency: Strong cash position of $6.7 billion with current ratio of 1.67x and quick ratio of 1.34x. Debt-to-equity ratio of 0.86x is manageable, with management targeting 2x net debt-to-EBITDA by 2026. • Cash Generation: Positive operating cash flow of $3.4 billion annually with free cash flow of $1.2 billion, indicating healthy cash generation capabilities. • Valuation Concerns: Trading at 47.7x P/E ratio and 69x EV/EBITDA, suggesting significant premium valuation. Price-to-book ratio of 2.16x indicates shares trading above tangible book value. • Other Considerations: Graham number of $83.30 compared to current price of $105.91 suggests overvaluation by traditional value metrics. However, strong market position and growth prospects may justify premium, though this limits downside protection for value-oriented investors.
Recent development
Over the past few years, FEMSA has executed a comprehensive strategic transformation focused on three key areas. The company has significantly accelerated its organic expansion strategy, adding over 1,400 net new stores annually, with particular focus on Mexico where it opened 275 new OXXO locations in Q4 2024 alone. The expansion includes diversification into new formats such as the Bara discount retail concept and exploration of U.S. market entry, with the first OXXO store opening in Texas. FEMSA has prioritized digital ecosystem development through its Spin platform, which has grown to 8.2 million active users with 28% year-over-year growth. The company is transitioning from customer acquisition to monetization, exploring banking licenses, remittance services, and retail media opportunities. The Spin Premia loyalty program has reached 23.8 million active users, representing significant customer engagement and data collection capabilities. The company has implemented aggressive capital allocation strategies, completing major divestitures including the sale of its Heineken stake and refrigeration equipment operations, generating significant cash proceeds. FEMSA has committed to returning approximately $5.3 billion to shareholders through 2025-2026 via share buybacks and dividends, while maintaining disciplined acquisition criteria focused on investments under $1.5 billion. The company has also undergone leadership transitions, with a CEO succession process underway for completion in 2025, signaling potential strategic shifts ahead.
FMX company profile · for informational purposes only — not investment advice.
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