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FMX (Fomento Economico MexicanoB de CV) Piotroski F-Score : 7 (As of Oct. 31, 2024)


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What is Fomento Economico MexicanoB de CV Piotroski F-Score?

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Fomento Economico MexicanoB de CV has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Fomento Economico MexicanoB de CV's Piotroski F-Score or its related term are showing as below:

FMX' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 7
Current: 7

During the past 13 years, the highest Piotroski F-Score of Fomento Economico MexicanoB de CV was 7. The lowest was 2. And the median was 5.


Fomento Economico MexicanoB de CV Piotroski F-Score Historical Data

The historical data trend for Fomento Economico MexicanoB de CV's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Fomento Economico MexicanoB de CV Piotroski F-Score Chart

Fomento Economico MexicanoB de CV Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 5.00 7.00 6.00 7.00

Fomento Economico MexicanoB de CV Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 7.00 - - -

Competitive Comparison of Fomento Economico MexicanoB de CV's Piotroski F-Score

For the Beverages - Brewers subindustry, Fomento Economico MexicanoB de CV's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Fomento Economico MexicanoB de CV's Piotroski F-Score Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Fomento Economico MexicanoB de CV's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Fomento Economico MexicanoB de CV's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was $3,870 Mil.
Cash Flow from Operations was $2,927 Mil.
Revenue was $41,398 Mil.
Gross Profit was $16,467 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was (40973.277 + 47475.211) / 2 = $44224.244 Mil.
Total Assets at the begining of this year (Dec22) was $40,973 Mil.
Long-Term Debt & Capital Lease Obligation was $12,502 Mil.
Total Current Assets was $20,982 Mil.
Total Current Liabilities was $10,745 Mil.
Net Income was $1,226 Mil.

Revenue was $30,622 Mil.
Gross Profit was $12,388 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was (35951.058 + 40973.277) / 2 = $38462.1675 Mil.
Total Assets at the begining of last year (Dec21) was $35,951 Mil.
Long-Term Debt & Capital Lease Obligation was $13,060 Mil.
Total Current Assets was $11,615 Mil.
Total Current Liabilities was $9,075 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Fomento Economico MexicanoB de CV's current Net Income (TTM) was 3,870. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Fomento Economico MexicanoB de CV's current Cash Flow from Operations (TTM) was 2,927. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=3869.921/40973.277
=0.09444988

ROA (Last Year)=Net Income/Total Assets (Dec21)
=1226.354/35951.058
=0.03411176

Fomento Economico MexicanoB de CV's return on assets of this year was 0.09444988. Fomento Economico MexicanoB de CV's return on assets of last year was 0.03411176. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Fomento Economico MexicanoB de CV's current Net Income (TTM) was 3,870. Fomento Economico MexicanoB de CV's current Cash Flow from Operations (TTM) was 2,927. ==> 2,927 <= 3,870 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=12501.879/44224.244
=0.28269288

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=13060.217/38462.1675
=0.33956009

Fomento Economico MexicanoB de CV's gearing of this year was 0.28269288. Fomento Economico MexicanoB de CV's gearing of last year was 0.33956009. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=20982.314/10744.57
=1.95282957

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=11615.152/9074.785
=1.27993688

Fomento Economico MexicanoB de CV's current ratio of this year was 1.95282957. Fomento Economico MexicanoB de CV's current ratio of last year was 1.27993688. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Fomento Economico MexicanoB de CV's number of shares in issue this year was 357.823. Fomento Economico MexicanoB de CV's number of shares in issue last year was 357.823. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=16466.532/41397.533
=0.39776602

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=12388.08/30622.076
=0.40454736

Fomento Economico MexicanoB de CV's gross margin of this year was 0.39776602. Fomento Economico MexicanoB de CV's gross margin of last year was 0.40454736. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=41397.533/40973.277
=1.01035446

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=30622.076/35951.058
=0.85177121

Fomento Economico MexicanoB de CV's asset turnover of this year was 1.01035446. Fomento Economico MexicanoB de CV's asset turnover of last year was 0.85177121. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+1+1+1+0+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Fomento Economico MexicanoB de CV has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Fomento Economico MexicanoB de CV  (NYSE:FMX) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Fomento Economico MexicanoB de CV Piotroski F-Score Related Terms

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Fomento Economico MexicanoB de CV Business Description

Address
General Anaya No. 601 Pte., Colonia Bella Vista, Monterrey, NL, MEX, 64410
Mexico-based Femsa is a beverage and retail conglomerate in Central and South America. The holding company owns controlling stakes in bottler Coca-Cola Femsa (47% economic stake, 56% voting rights), in addition to operating 100%-owned retail assets, including convenience stores under the Oxxo banner, drugstores, and gas stations. The firm divested its 15% stake in Heineken and its distribution business in 2023. Coca-Cola Femsa and the Oxxo chain made up 75% of total company revenue and around 90% of profits in 2023.