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FEMSA UBD Leadership Transition Will Shape Modest Long-Term Earnings Outlook

Digital Expansion Will Erode Mexican Retail Yet Spur Recovery

FEMSA UBD logo
FEMSA UBD
AnalystLowTarget
Not Invested
Published 31 Aug 2025

Update shared on 12 Dec 2025

Fair value Increased 1.62%
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AnalystLowTarget's Fair Value
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1Y
4.0%
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1.0%

Analysts have modestly raised their price target on Fomento Económico Mexicano, de from $185.00 to $188.00. This reflects slightly higher long term valuation multiples, despite tempering assumptions for revenue growth and profit margins and applying a marginally higher discount rate.

What's in the News

  • The board has appointed Jose Antonio Fernández Garza-Lagüera, currently CEO of FEMSA Proximity and Health, as Chief Executive Officer effective November 1, 2025 (Key Developments)
  • The new CEO brings experience leading more than 28,000 proximity stores, 4,300 drugstores, and 550 fuel stations across multiple countries in the Americas and Europe (Key Developments)
  • The leadership transition aims to drive a new stage of economic and social value creation focused on growth, innovation, sustainability, and people development (Key Developments)
  • Executive Chairman José Antonio Fernández Carbajal will remain in his role after serving as interim CEO since July 2023, providing continuity in governance (Key Developments)

Valuation Changes

  • Consensus Analyst Price Target has risen slightly from MX$185.00 to MX$188.00, reflecting a modest upward adjustment in fair value.
  • Discount Rate has increased marginally from 14.12% to 14.27%, implying a slightly higher required return and a more conservative risk assessment.
  • Revenue Growth has eased slightly from 5.12% to 4.93%, indicating somewhat more cautious expectations for top line expansion.
  • Net Profit Margin has edged down from 4.04% to 3.97%, signaling a modestly lower profitability outlook.
  • Future P/E has risen slightly from 22.57x to 23.34x, suggesting a small increase in the valuation multiple applied to projected earnings.

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