Fomento Económico Mexicano, S.A.B. de C.V. (FEMSAUBD.MX) stock analysis

In our weekly check, Fomento Económico Mexicano, S.A.B. de C.V. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3.

About Fomento Económico Mexicano, S.A.B. de C.V.

Fomento Económico Mexicano, S.A.B. de C.V. is a Consumer Defensive company (Beverages - Alcoholic) based in Mexico, listed on MEX as FEMSAUBD.MX.

What our checks show for FEMSAUBD.MX

Red flags

• The net margin fell by 2.1 points over 5 years, to 3.6%: the company keeps less of each sale as profit.
• The net margin is only 3.6%: little room if costs rise.
• The dividend takes 172% of profit: little cushion if profit falls.

Warning signs

• Net debt is 1.1x a year of EBITDA (debt/equity 1.17). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 3.9 times: a weak year could make the payments hard.
• Analysts expect the net margin to shrink by 0.2 points from today's 3.6%.
• Free cash flow is only 3.3% of revenue.
• The stock has fallen as much as 47% from a peak. Would you have held through that?

Strengths

• Operating cash flow is 2.27x net profit: the profit arrives as real cash.
• Earnings per share grew 13.8% a year over the last 3 years.
• A large company: market value $53.07 billion.
• Beta 0.18: the stock usually moves less than the market.
• Actively traded: about 2.4 million shares a day.
• Pay in shares is only 0% of free cash flow.

Next earnings report: 2026-10-28

Similar companies

KDP · CCEP · KOF · MNST · PEP

Questions

What grade does Fomento Económico Mexicano, S.A.B. de C.V. (FEMSAUBD.MX) have?

In our weekly check, Fomento Económico Mexicano, S.A.B. de C.V. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of FEMSAUBD.MX stock?

This week's biggest flags for Fomento Económico Mexicano, S.A.B. de C.V.: Margins falling, Thin margins, Dividend stretched. In total 8 of 25 checks show a warning or a red flag.

What does Fomento Económico Mexicano, S.A.B. de C.V. do?

Fomento Económico Mexicano, S.A.B. de C.V. is a Consumer Defensive company (Beverages - Alcoholic) based in Mexico, listed on MEX as FEMSAUBD.MX.

When does Fomento Económico Mexicano, S.A.B. de C.V. report earnings next?

The next earnings report is expected on 2026-10-28. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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