Update shared on 08 Nov 2025
Fair value Decreased 0.50%Analysts have slightly lowered their price target for Fomento Económico Mexicano, de from $226.51 to $225.38. They cited modest shifts in discount rates and revenue growth projections.
What's in the News
- Jose Antonio Fernández Garza-Lagüera has been appointed as CEO, effective November 1, 2025. He brings experience from various FEMSA divisions, including leadership roles in FEMSA Proximity & Health, OXXO, and Coca-Cola FEMSA Central America (company statement).
- Current interim CEO José Antonio Fernández Carbajal will continue as Executive Chairman (company statement).
- FEMSA and Raen, S.A. are amicably terminating their joint venture in Brazil. FEMSA will retain all OXXO stores in the country and the Cajamar distribution center, while Raen will keep Shell Select stores (company statement).
- The realignment in Brazil supports FEMSA's focus on OXXO’s accelerated store expansion and adapting retail formats to local consumer needs. The company is aiming for long-term growth and efficiency (company statement).
Valuation Changes
- Fair Value Estimate: Decreased slightly from MX$226.51 to MX$225.38.
- Discount Rate: Increased modestly from 14.12% to 14.27%.
- Revenue Growth: Eased marginally from 7.84% to 7.82%.
- Net Profit Margin: Improved slightly from 3.93% to 3.95%.
- Future P/E: Declined from 26.60x to 25.89x.
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