Mexican Economic Development Inc (FMX)

Price$120.41Cached quoteAs of 2026-09-06 08:44 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because solid growth is already reflected in a demanding earnings multiple.

The stock trades at about 21 times trailing earnings, meaning investors pay roughly 21 dollars for each dollar of recent annual profit per share. Recent market data also show a free cash flow yield near 10%; free cash flow is cash left after running and investing in the business. But the supplied 2024 history shows only 27.8 billion pesos of that cash, down from 55.5 billion in 2021 after capital spending rose sharply. Today’s valuation needs the newer cash improvement to persist.

Big pictureRevenue has grown steadily, but reported profit swings make underlying earning power more useful than headline income.

Revenue rose from 506.7 billion pesos in 2019 to 781.6 billion pesos in 2024, about 9% annual growth. Gross profit margin, the share of sales left after direct product costs, improved from 37.8% to 41.1%. Cash from operations stayed positive even in 2020 at 53.2 billion pesos. Reported net income was much less stable: it fell to 3.8 billion in 2020, jumped to 76.7 billion in 2023, then dropped to 40.2 billion in 2024. Asset sales, currency moves, and one-time gains can distort headline profit.

Business strengthThe company has ample cash, and recent share repurchases strengthen each remaining investor’s ownership claim.

At the end of 2024, cash was 139.8 billion pesos against 145.3 billion of debt, while short-term assets were about 1.7 times short-term obligations. Operating cash flow rebounded to 71.5 billion pesos. However, dividends of 31.8 billion exceeded that year’s 27.8 billion of free cash flow. More recently, FEMSA returned 45.5 billion pesos through dividends and 10.4 billion through share repurchases over twelve months. Later filings also show shares being cancelled, so capital returns are reducing ownership dilution rather than merely offsetting new issuance.

What could change the storyA better outcome needs OXXO growth and lower spending to last; weak Mexico demand would challenge it.

The strongest bull case is better store economics plus lower investment needs. In the second quarter of 2026, consolidated revenue grew 9.3% and operating profit 7.2%; OXXO Mexico revenue rose 11.8%, while sales at stores open at least a year grew 9.5% and customer traffic turned positive after eight quarters. First-half capital spending also fell 16.2%. The bear case is that weak Mexican demand, beverage tax pressure, or renewed expansion spending slows cash generation. At about 21 times earnings, the market already assumes several years of dependable growth.

AI: News

Second-Quarter ResultsSecond-quarter sales and operating profit grew, but investors focused on thinner profit rates and a softer outlook.

On July 28, FEMSA reported second-quarter revenue growth of 9.3% and operating-profit growth of 7.2%. OXXO Mexico revenue rose 11.8%, operating profit 12.3%, and sales at established stores 9.5%, with customer traffic turning positive after eight quarters. Investing.com reported the shares down about 2% before the open as investors weighed profit-rate pressure and a softer second-half view. The stock then fell over the next two sessions, but timing alone does not prove the results caused the full move.

Share Repurchase CompletedFEMSA completed a large share repurchase near recent trading levels, shrinking the share base while using substantial cash.

On June 24, FEMSA completed a $300 million accelerated share repurchase, buying about 2.6 million U.S.-listed shares. Over the preceding twelve months, the company said share repurchases totaled 10.4 billion pesos. Repurchases reduce the number of ownership claims when shares are retired, which can raise value per remaining share. The program also used cash and helped lift debt after subtracting cash versus a year earlier, so the benefit depends on management buying shares below their long-term business value.

Large Dividend InstallmentA large ordinary-plus-extraordinary dividend installment returned cash, but investors should not treat the extra payment as permanent.

Shareholders approved ordinary and extraordinary dividends totaling 128.117 pesos per U.S.-listed share for the full payment schedule, split into four installments. The second installment was paid on July 16, with the shares trading without that payment from July 15. A dividend transfers cash from the company to shareholders, so the stock price normally adjusts downward around the payment cutoff. The extra dividend is meaningful cash return, but it reflects capital distribution and should not be treated as a permanently recurring level.

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Revenue

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017
Revenue	—	$37.48B	$41.58B	$34.53B	$27.12B	$24.78B	$26.87B	$23.92B	$23.45B
Gross profit	—	$15.42B	$16.54B	$12.91B	$10.42B	$9.53B	$10.15B	$8.92B	$8.67B
Gross margin	—	41.14%	39.78%	37.38%	38.42%	38.47%	37.79%	37.29%	36.98%
Net income	—	$1.93B	$4.54B	$1.78B	$1.84B	$188.0M	$1.49B	$1.68B	$1.90B
Net profit margin	—	5.15%	10.91%	5.17%	6.77%	0.76%	5.54%	7.04%	8.08%

Review official source filings ↗

Owners

Reported shareholders

Ownership data is not available for this listing yet.

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)9$4.58M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 10, 2026Form 4	Spas Montesinos ConstantinoAmericas & Mobility Division	SellBD Units	7.5K	$12.38	$92.6K	139.3K
Mar 27, 2026Form 4	garza garza AlfonsoDirector	SellBD Units	52.3K	$11.19	$585.4K	1.13M
Mar 26, 2026Form 4	garza garza AlfonsoDirector	SellBD Units	52.3K	$11.04	$577.6K	1.18M
Mar 25, 2026Form 4	garza garza AlfonsoDirector	SellBD Units	52.3K	$11.07	$579.1K	1.23M
Mar 24, 2026Form 4	garza garza AlfonsoDirector	SellBD Units	52.3K	$10.79	$564.5K	1.29M

Review ownership filings at SEC.gov ↗

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Mexican Economic Development Inc (FMX)

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