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 25, 2024
DataAggregated Company Financials
Companies117
- 7D-2.4%
- 3M-7.7%
- 1Y-14.9%
- YTD-12.6%
Over the last 7 days, the market has dropped 2.4%, driven by losses in the Communication Services and Consumer Staples sectors of 5.2% and 1.7%, respectively. As for last year, the market is also down 15%. Earnings are forecast to grow by 13% annually.
Market Valuation and Performance
Has the Mexican Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 25 Dec 2024 | Mex$8.5t | Mex$7.5t | Mex$610.6b | 11.7x | 13.9x | 1.1x |
| Fri, 22 Nov 2024 | Mex$8.4t | Mex$7.4t | Mex$602.6b | 11.7x | 14x | 1.1x |
| Sun, 20 Oct 2024 | Mex$9.2t | Mex$7.4t | Mex$594.4b | 12.3x | 15.5x | 1.2x |
| Tue, 17 Sep 2024 | Mex$9.0t | Mex$7.3t | Mex$587.8b | 11.7x | 15.4x | 1.2x |
| Thu, 15 Aug 2024 | Mex$9.2t | Mex$7.3t | Mex$586.2b | 11.7x | 15.7x | 1.3x |
| Sat, 13 Jul 2024 | Mex$9.3t | Mex$7.1t | Mex$581.1b | 13.6x | 16x | 1.3x |
| Mon, 10 Jun 2024 | Mex$9.0t | Mex$7.1t | Mex$576.6b | 12.6x | 15.5x | 1.3x |
| Wed, 08 May 2024 | Mex$9.5t | Mex$7.1t | Mex$568.3b | 13.2x | 16.7x | 1.3x |
| Fri, 05 Apr 2024 | Mex$9.6t | Mex$7.1t | Mex$580.9b | 13.6x | 16.5x | 1.4x |
| Sun, 03 Mar 2024 | Mex$9.5t | Mex$7.1t | Mex$584.2b | 13.7x | 16.3x | 1.3x |
| Tue, 30 Jan 2024 | Mex$9.8t | Mex$7.4t | Mex$662.6b | 13.3x | 14.7x | 1.3x |
| Thu, 28 Dec 2023 | Mex$9.9t | Mex$7.4t | Mex$656.0b | 13.3x | 15.1x | 1.3x |
| Sat, 25 Nov 2023 | Mex$9.2t | Mex$7.4t | Mex$657.1b | 11.9x | 14x | 1.2x |
| Mon, 23 Oct 2023 | Mex$8.6t | Mex$7.5t | Mex$659.9b | 11.9x | 13.1x | 1.1x |
| Wed, 20 Sep 2023 | Mex$9.0t | Mex$7.4t | Mex$659.0b | 12.7x | 13.7x | 1.2x |
| Fri, 18 Aug 2023 | Mex$9.3t | Mex$7.4t | Mex$655.0b | 13.1x | 14.2x | 1.2x |
| Sun, 16 Jul 2023 | Mex$9.3t | Mex$7.3t | Mex$645.4b | 13.1x | 14.3x | 1.3x |
| Tue, 13 Jun 2023 | Mex$9.3t | Mex$7.3t | Mex$638.1b | 13.5x | 14.6x | 1.3x |
| Thu, 11 May 2023 | Mex$9.7t | Mex$7.4t | Mex$666.8b | 13.2x | 14.5x | 1.3x |
| Sat, 08 Apr 2023 | Mex$9.4t | Mex$7.0t | Mex$662.6b | 12x | 14.2x | 1.3x |
| Mon, 06 Mar 2023 | Mex$9.5t | Mex$7.3t | Mex$661.6b | 11.5x | 14.4x | 1.3x |
| Wed, 01 Feb 2023 | Mex$9.6t | Mex$7.2t | Mex$665.7b | 11.9x | 14.4x | 1.3x |
| Fri, 30 Dec 2022 | Mex$8.9t | Mex$7.2t | Mex$663.0b | 11.8x | 13.4x | 1.2x |
| Sun, 27 Nov 2022 | Mex$9.2t | Mex$7.3t | Mex$648.8b | 11.5x | 14.2x | 1.3x |
| Tue, 25 Oct 2022 | Mex$8.5t | Mex$7.3t | Mex$635.8b | 10.8x | 13.4x | 1.2x |
| Thu, 22 Sep 2022 | Mex$8.6t | Mex$7.2t | Mex$626.4b | 11.1x | 13.7x | 1.2x |
| Sat, 20 Aug 2022 | Mex$8.8t | Mex$7.2t | Mex$627.6b | 11.5x | 13.9x | 1.2x |
| Mon, 18 Jul 2022 | Mex$8.6t | Mex$7.0t | Mex$610.7b | 11.9x | 14x | 1.2x |
| Wed, 15 Jun 2022 | Mex$8.5t | Mex$6.9t | Mex$628.4b | 11.9x | 13.5x | 1.2x |
| Fri, 13 May 2022 | Mex$8.5t | Mex$6.9t | Mex$618.5b | 12x | 13.7x | 1.2x |
| Sun, 10 Apr 2022 | Mex$9.4t | Mex$6.7t | Mex$569.9b | 14.2x | 16.6x | 1.4x |
| Tue, 08 Mar 2022 | Mex$9.2t | Mex$6.7t | Mex$592.6b | 13.6x | 15.6x | 1.4x |
| Thu, 03 Feb 2022 | Mex$8.9t | Mex$6.6t | Mex$586.4b | 13.9x | 15.2x | 1.3x |
| Sat, 01 Jan 2022 | Mex$9.2t | Mex$6.6t | Mex$575.8b | 14.4x | 15.9x | 1.4x |
Price to Earnings Ratio
15.9x
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 | -2.40% | |
| Consumer Discretionary | 0.58% | |
| Tech | 0% | |
| Information Technology | 0% | |
| Financials | 0% | |
| Health Care | 0% | |
| Industrials | 0% | |
| Utilities | -0.16% | |
| Real Estate | -1.05% | |
| Consumer Staples | -1.69% | |
| Materials | -2.13% | |
| Industrials | -2.32% | |
| Financials | -2.83% | |
| Healthcare | -3.60% | |
| Telecom | -5.16% | |
| Energy | -7.84% | |
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 27.8%, 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 | |
|---|---|---|---|---|---|---|
| ICH B Industrias CH S. A. B. de C. V | Mex$184.10 | 3.1% +Mex$2.3b | -5.5% | PE8.9x | Materials | |
| Q * Quálitas Controladora. de | Mex$171.20 | 3.1% +Mex$2.0b | 2.2% | PE13.9x | Financials | |
| KIMBER A Kimberly-Clark de México S. A. B. de C. V | Mex$28.68 | 2.2% +Mex$1.9b | -24.3% | PE11x | Consumer Staples | |
| GIGANTE * Grupo Gigante S. A. B. de C. V | Mex$28.00 | 7.1% +Mex$1.8b | -5.1% | PE16.8x | Consumer Discretionary | |
| GFNORTE O Grupo Financiero Banorte. de | Mex$135.68 | 0.4% +Mex$1.6b | -21.9% | PB1.5x | Financials |
