We award a narrow economic moat rating to Femsa based on the intangible assets and cost advantages of its major subsidiaries, Coca-Cola Femsa and the Oxxo small-format retail chain, which jointly make up over 70% of total sales and over 90% of operating profits.
Oxxo dominates Mexico’s convenience store market, with an attractive return profile and plenty of room to expand its store base.
Femsa will face stringent business regulations and higher costs of labor and real estate in developed Europe and the US as it looks to drive sales growth in those markets.
|
Metric
|
FMX
|
3382
|
PEP
|
|---|---|---|---|
Price/Earnings (Normalized) | 24.71 | 11.17 | 15.99 |
Price/Book Value | 3.53 | 1.30 | 8.31 |
Price/Sales | 0.88 | 0.48 | 1.89 |
Price/Cash Flow | 10.51 | 6.75 | 12.58 |
|
Metric
|
FMX
|
3382
|
PEP
|
|---|---|---|---|
Quick Ratio | 0.68 | 0.43 | 0.72 |
Current Ratio | 1.14 | 0.87 | 0.94 |
Interest Coverage | 4.17 | 9.45 | 13.41 |
|
Metric
|
FMX
|
3382
|
PEP
|
|---|---|---|---|
Return on Assets (Normalized) | 5.73% | 4.42% | 10.50% |
Return on Equity (Normalized) | 20.00% | 11.41% | 54.58% |
Return on Invested Capital (Normalized) | 9.65% | 5.85% | 17.00% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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United States