We award a narrow economic moat rating to Femsa based on the intangible assets and cost advantages at major subsidiaries Coca-Cola Femsa and the Oxxo small-format retail chain, which jointly made up 70% of 2022 revenue and around 75% of pretax profits.
Oxxo dominates the convenience store market in Mexico, with an attractive return profile and plenty of room to expand the store base.
Femsa will face stringent business regulations and high costs of labor and real estate in Europe as it looks to turn around the newly acquired Valora convenience chain.
|
Metric
|
FMX
|
ABEV
|
PEP
|
|---|---|---|---|
Price/Earnings (Normalized) | 107.71 | 13.27 | 22.46 |
Price/Book Value | 13.25 | 2.57 | 12.33 |
Price/Sales | 1.15 | 2.78 | 2.55 |
Price/Cash Flow | 15.57 | 9.41 | 17.02 |
|
Metric
|
FMX
|
ABEV
|
PEP
|
|---|---|---|---|
Quick Ratio | 1.42 | 0.75 | 0.68 |
Current Ratio | 1.93 | 1.11 | 0.88 |
Interest Coverage | 5.63 | 9.93 | 12.87 |
|
Metric
|
FMX
|
ABEV
|
PEP
|
|---|---|---|---|
Return on Assets (Normalized) | 6.68% | 11.30% | 10.91% |
Return on Equity (Normalized) | 18.94% | 18.12% | 57.89% |
Return on Invested Capital (Normalized) | 8.41% | 16.62% | 18.52% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|
BUDFF
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BUD
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HINKF
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HEINY
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ABEV
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BDWBF
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CABGY
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TAP
| Molson Coors Beverage Co Shs -B- Non-Voting | Lnqv | $13.4 Bil | |
SAM
| Boston Beer Co Inc Class A | Pgtrbjc | $4.3 Bil |
