Unpleasant Surprises Could Be In Store For Fomento Económico Mexicano, S.A.B. de C.V.'s (BMV:FEMSAUBD) Shares
Dec 19
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Mexican (IPC) Market Analysis & Valuation
UpdatedDec 20, 2024
DataAggregated Company Financials
Companies117
- 7D-3.7%
- 3M-5.1%
- 1Y-14.4%
- YTD-12.4%
Over the last 7 days, the market has dropped 3.7%, driven by a loss of 6.8% in the Materials sector. The market has dropped 14% in the last year. As for the next few years, earnings are expected to grow by 13% per annum.
Market Valuation and Performance
Has the Mexican Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 20 Dec 2024 | Mex$8.6t | Mex$7.5t | Mex$611.6b | 11.6x | 14.1x | 1.1x |
| Sun, 17 Nov 2024 | Mex$8.5t | Mex$7.4t | Mex$602.5b | 11.6x | 14.1x | 1.1x |
| Tue, 15 Oct 2024 | Mex$9.1t | Mex$7.3t | Mex$587.1b | 12.2x | 15.5x | 1.2x |
| Thu, 12 Sep 2024 | Mex$8.9t | Mex$7.4t | Mex$590.8b | 11.7x | 15.1x | 1.2x |
| Sat, 10 Aug 2024 | Mex$9.1t | Mex$7.3t | Mex$585.7b | 11.4x | 15.5x | 1.2x |
| Mon, 08 Jul 2024 | Mex$9.0t | Mex$7.1t | Mex$583.0b | 12.5x | 15.4x | 1.3x |
| Wed, 05 Jun 2024 | Mex$8.8t | Mex$7.1t | Mex$573.5b | 12.9x | 15.3x | 1.2x |
| Fri, 03 May 2024 | Mex$9.4t | Mex$7.1t | Mex$568.9b | 13.3x | 16.5x | 1.3x |
| Sun, 31 Mar 2024 | Mex$9.6t | Mex$7.1t | Mex$580.8b | 13.7x | 16.5x | 1.4x |
| Tue, 27 Feb 2024 | Mex$9.6t | Mex$7.2t | Mex$587.2b | 13.6x | 16.4x | 1.3x |
| Thu, 25 Jan 2024 | Mex$9.6t | Mex$7.4t | Mex$662.1b | 12.8x | 14.4x | 1.3x |
| Sat, 23 Dec 2023 | Mex$9.8t | Mex$7.4t | Mex$656.4b | 13.2x | 15x | 1.3x |
| Mon, 20 Nov 2023 | Mex$9.0t | Mex$7.4t | Mex$657.0b | 11.7x | 13.7x | 1.2x |
| Wed, 18 Oct 2023 | Mex$8.8t | Mex$7.5t | Mex$664.9b | 12.3x | 13.2x | 1.2x |
| Fri, 15 Sep 2023 | Mex$9.1t | Mex$7.4t | Mex$659.2b | 12.7x | 13.7x | 1.2x |
| Sun, 13 Aug 2023 | Mex$9.3t | Mex$7.5t | Mex$659.9b | 13.2x | 14.1x | 1.3x |
| Tue, 11 Jul 2023 | Mex$9.3t | Mex$7.3t | Mex$636.1b | 13.7x | 14.6x | 1.3x |
| Thu, 08 Jun 2023 | Mex$9.3t | Mex$7.3t | Mex$637.7b | 13.3x | 14.6x | 1.3x |
| Sat, 06 May 2023 | Mex$9.5t | Mex$7.4t | Mex$669.9b | 13x | 14.2x | 1.3x |
| Mon, 03 Apr 2023 | Mex$9.5t | Mex$7.2t | Mex$660.7b | 12x | 14.4x | 1.3x |
| Wed, 01 Mar 2023 | Mex$9.3t | Mex$7.4t | Mex$666.7b | 11.5x | 14x | 1.3x |
| Fri, 27 Jan 2023 | Mex$9.7t | Mex$7.2t | Mex$663.8b | 12.1x | 14.6x | 1.3x |
| Sun, 25 Dec 2022 | Mex$9.1t | Mex$7.3t | Mex$649.0b | 11.7x | 14x | 1.2x |
| Tue, 22 Nov 2022 | Mex$9.2t | Mex$7.3t | Mex$649.6b | 11.5x | 14.1x | 1.3x |
| Thu, 20 Oct 2022 | Mex$8.4t | Mex$7.2t | Mex$627.0b | 10.8x | 13.4x | 1.2x |
| Sat, 17 Sep 2022 | Mex$8.5t | Mex$7.2t | Mex$626.6b | 11.3x | 13.5x | 1.2x |
| Mon, 15 Aug 2022 | Mex$8.8t | Mex$7.2t | Mex$625.8b | 11.6x | 14.1x | 1.2x |
| Wed, 13 Jul 2022 | Mex$8.6t | Mex$7.0t | Mex$636.6b | 11.9x | 13.6x | 1.2x |
| Fri, 10 Jun 2022 | Mex$8.6t | Mex$6.9t | Mex$621.9b | 12.1x | 13.9x | 1.3x |
| Sun, 08 May 2022 | Mex$8.6t | Mex$6.9t | Mex$624.1b | 12.1x | 13.8x | 1.3x |
| Tue, 05 Apr 2022 | Mex$9.7t | Mex$6.7t | Mex$567.6b | 14.3x | 17x | 1.5x |
| Thu, 03 Mar 2022 | Mex$9.2t | Mex$6.7t | Mex$590.2b | 13.6x | 15.6x | 1.4x |
| Sat, 29 Jan 2022 | Mex$8.7t | Mex$6.6t | Mex$584.3b | 13.6x | 14.9x | 1.3x |
| Mon, 27 Dec 2021 | Mex$9.1t | Mex$6.6t | Mex$576.5b | 14x | 15.7x | 1.4x |
Price to Earnings Ratio
15.7x
Current Market PE
- Investors are relatively neutral on the Mexican market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
- The market is trading close to its 3-year average PE ratio of 14.6x.
Past Earnings Growth
- The earnings for Mexican listed companies have remained mostly flat over the last three years.
- Meanwhile revenues have grown 4.5% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Sector Trends
Which sectors have driven the changes within the Mexican Market?
| MX Market | -3.73% | |
| Utilities | 0.90% | |
| Tech | 0% | |
| Information Technology | 0% | |
| Financials | 0% | |
| Health Care | 0% | |
| Industrials | 0% | |
| Real Estate | -0.52% | |
| Consumer Discretionary | -1.67% | |
| Industrials | -1.90% | |
| Consumer Staples | -2.19% | |
| Telecom | -5.24% | |
| Financials | -5.82% | |
| Healthcare | -5.89% | |
| Energy | -6.32% | |
| Materials | -6.77% | |
Sector PE
- Investors favour the Telecom sector the most for future growth, which is trading above its 3-year average PE ratio of 18.7x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 27.9%, which is higher than its past year's earnings growth of 6.1% per year.
Forecasted Growth
- Analysts are most optimistic on the Utilities sector, expecting annual earnings growth of 64% over the next 5 years.
- In contrast, the Real Estate sector is expected to see its earnings decline by 27% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| WALMEX * Wal-Mart de México. de | Mex$58.03 | 1.6% +Mex$16.2b | -18.0% | PE18.9x | Consumer Staples | |
| CEMEX CPO CEMEX. de | Mex$11.34 | 2.0% +Mex$3.2b | -17.5% | PE28x | Materials | |
| GIGANTE * Grupo Gigante S. A. B. de C. V | Mex$28.00 | 7.1% +Mex$1.8b | -5.1% | PE16.8x | Consumer Discretionary | |
| VESTA * Corporación Inmobiliaria Vesta. de | Mex$51.62 | 2.5% +Mex$1.1b | -22.8% | PE6.2x | Real Estate | |
| KUO B Grupo KUO. de | Mex$44.00 | 4.8% +Mex$874.7m | 10.0% | PE288.4x | Industrials |
