# FEMSA (FMX)

Sector: Convenience retail & beverage bottling

| Field | Value |
|---|---|
| Price | $132.53 |
| Market cap | $45B |
| Intrinsic value source | Analysts |
| Data as of | 2026-11-12 |
| Next earnings | 2027-02-24 (estimate) |

Analysts: Bullish

Picks: Research only

Discount category: Far above intrinsic value

## In short

FEMSA trades above its intrinsic value because investors pay for strong OXXO Mexico and Coca-Cola FEMSA results, and only steady traffic growth with smaller losses in Brazil, Europe and Health can support this price.

## Themes and gap

- Themes: Weak consumer (weak-consumer)
- Gap type: Slow (slow)
- Why: Only several quarters of steady OXXO Mexico traffic and smaller losses in Brazil, Europe and Health can lift earnings toward the price.

## About

Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) is a Mexican company based in Monterrey. It reports five segments: OXXO Mexico, Americas & Mobility, Europe, Health and Coca-Cola FEMSA. OXXO Mexico had 24,759 stores at September 30, 2026. Americas & Mobility holds the OXXO stores in Brazil, Colombia, Chile, Peru and the United States, and the fuel stations in Mexico and the United States. Europe runs convenience and food service businesses and had 2,762 stores. Health runs pharmacies and had 4,569 locations. FEMSA owns 47.2% of Coca-Cola FEMSA, the largest Coca-Cola bottler in the world by sales volume, and it consolidates the bottler. FEMSA also runs Spin by OXXO, a digital wallet with 11.7 million active users in Q3 2026, and Bara, a grocery chain with 898 stores that is not in the reported segments. Total revenues were Ps. 235,609 million in Q3 2026. The American Depositary Shares (ADS) trade on the NYSE in US dollars. Each ADS represents 10 BD Units, and each BD Unit has five shares (20-F, April 24, 2026). José Antonio Fernández Garza-Lagüera is Chief Executive Officer. FEMSA files a 20-F each year and furnishes its quarterly results on Form 6-K.

## Thesis

FEMSA trades above its intrinsic value because investors pay for a group of uneven businesses and look past the losses of its newer units. Its profit growth comes mostly from OXXO Mexico and Coca-Cola FEMSA. OXXO Mexico same-store sales rose 9.2% in Q3 2026, and customer traffic grew 3.5%, which the company calls its best in more than two years. But OXXO Mexico operating income grew only 5.8%, because its gross margin fell. Coca-Cola FEMSA operating income rose 15.4%. Other units pull the result down. Americas & Mobility operating income fell 75.9%, as FEMSA took on the losses of OXXO Brazil and weaker fuel margins in Mexico. Europe and Health also lost profit. Spin and Bara spend money to grow. For the price to hold, three things must be true. OXXO Mexico must keep its traffic growth with a stable margin. The losses in Brazil, Europe and Health must narrow. FEMSA must also keep returning cash through its dividend and buybacks, including an accelerated repurchase of up to US$280 million. The Q4 report in February 2027 is the next test, and the company says that it will face a harder comparison base.

## Checkpoints

- Oct 28, 2026: Q3 2026 results: OXXO Mexico traffic. Status: Passed. Watch: OXXO Mexico same-store sales growth of 5% or more with rising traffic passes; falling traffic fails. Outcome: Same-store sales rose 9.2% and traffic rose 3.5%.
- Dec 2026 (estimate): Accelerated share repurchase settles. Status: Pending. Watch: The accelerated repurchase of up to US$280 million settles before the end of 2026 passes; a delay fails.
- Feb 24, 2027 (estimate): Q4 2026 results: OXXO Mexico and the new units. Status: Pending. Watch: OXXO Mexico same-store sales growth of 5% or more with a stable operating margin, and a smaller loss in Americas & Mobility, passes; slower growth or a lower margin fails.

## Balance sheet

At September 30, 2026, FEMSA without Coca-Cola FEMSA had cash and investments of Ps. 70,403 million (US$3,898 million), financial debt of Ps. 54,762 million and lease liabilities of Ps. 110,844 million. Net debt was Ps. 95,203 million, or 1.19 times adjusted EBITDA of the last twelve months (0.91 times a year before). The increase mainly reflects the cash that FEMSA paid out in buybacks and dividends. FEMSA received about US$420 million of dividends from Coca-Cola FEMSA in the last twelve months. Coca-Cola FEMSA had net debt including hedges of Ps. 39,892 million, or 0.63 times its adjusted EBITDA. FEMSA has 3,385,664,115 units outstanding. The Swiss franc bonds of CHF 300 million settled on October 14, 2026.

As of 2026-09-30.

Sources:

- https://www.sec.gov/Archives/edgar/data/1061736/000110465926119381/tm2628435d1_ex99-1.htm

## Dividends

- Dividend yield: 4.1% (last 12 months, at the current price)
- Paid per share, last 12 months: $5.402 (3 payments)
- Current annual rate: $7.12 ($1.78 x 4 a year)
- Latest ex-dividend date: 2026-10-14, $1.78 per share
- Growth from 2020 to 2025: 26.9% a year
- Growth from 2015 to 2025: 12.7% a year

Dividends per share by year: 2016: $1.404, 2017: $1.363, 2018: $1.491, 2019: $1.527, 2020: $1.423, 2021: $1.145, 2022: $1.695, 2023: $2.084, 2024: $3.072, 2025: $4.687.

Source: company filings and market data, read on 2026-11-13.

## Recent events

- 2026-10-28: FEMSA reported Q3 2026 results. Total revenues were Ps. 235,609 million, up 9.8%, and income from operations was Ps. 19,918 million, up 9.9%. Net majority income was Ps. 6,810 million, or US$1.10 per ADS. Net debt without Coca-Cola FEMSA was Ps. 95,203 million, or 1.19 times adjusted EBITDA. FEMSA also changed its reporting segments.
- 2026-09-23: FEMSA announced CHF 300 million of five-year senior unsecured bonds on the Swiss market, at a yield of 1.73%. The sale settled on October 14, 2026. FEMSA will use the money for general purposes.
- 2026-09-14: FEMSA signed an accelerated share repurchase agreement for up to US$280 million of its ADSs. The final number of ADSs depends on the average price, and settlement is expected before the end of 2026.
- 2026-07-28: FEMSA reported Q2 2026 results. Total revenues rose 9.3%. OXXO Mexico returned to positive customer traffic after several quarters of decline. Net debt without Coca-Cola FEMSA was Ps. 90,020 million.
- 2026-03-27: At its annual meeting, FEMSA approved a cash dividend in four installments through January 14, 2027, of Ps. 1.1880 per BD Unit each, and an extraordinary dividend. It also approved Ps. 34,000 million for share repurchases and the cancellation of 56,737,112 units.
- 2026-03-12: BradyPLUS, in which FEMSA owns a non-controlling stake, closed its all-equity merger with Imperial Dade. FEMSA recorded a one-time non-cash gain in Q1 2026.

## Latest news and filings

- Next earnings: 2027-02-24 (expected; the company has not confirmed it)

| Filed | Form | Headline | Period end | XBRL document | Link |
| --- | --- | --- | --- | --- | --- |
| 2026-04-24 | 20-F | Annual report for the period ended Dec 31, 2025 | 2025-12-31 | fmx-20251231 | https://www.sec.gov/Archives/edgar/data/1061736/000162828026027231/fmx-20251231.htm |
| 2025-04-24 | 20-F | Annual report for the period ended Dec 31, 2024 | 2024-12-31 | fmx-20241231 | https://www.sec.gov/Archives/edgar/data/1061736/000162828025019714/fmx-20241231.htm |

Every filing on SEC EDGAR (CIK 1061736): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001061736&type=&dateb=&owner=include&count=40

## Risks

- Medium: The OXXO Mexico recovery may fade. The CEO says that the consumer in Mexico is still soft and that comparison bases get harder. Gross margin fell 120 basis points in Q3 2026, partly because Q3 2025 had a high amount of commercial income. Labor costs are rising.
- Medium: The new units may keep losing money. Operating income of Americas & Mobility was Ps. 170 million in Q3 2026 against Ps. 706 million a year before, after OXXO Brazil joined on February 1, 2026. Europe operating income fell 24.8% and Health fell 63.2%.
- Medium: Coca-Cola FEMSA is a large part of profit, and Mexico is weak there. Its operating income in Mexico and Central America fell 8.6% in nine months, with weak demand and higher taxes in Mexico, while South America grew.
- Medium: Currency moves net income. FEMSA reports in pesos, and the ADS price is in US dollars. A non-cash foreign exchange gain of Ps. 1,121 million helped Q3 2026, and a loss of Ps. 1,261 million hurt Q3 2025.
- Low: Debt and leases add fixed costs. Net debt without Coca-Cola FEMSA was Ps. 95,203 million, of which lease liabilities were Ps. 110,844 million. Financial debt was Ps. 54,762 million and cash and investments were Ps. 70,403 million.

## Links

- Page: https://picks.utilarium.app/company/FMX/
- History of changes: https://picks.utilarium.app/company/FMX/history/
- JSON with full history: https://picks.utilarium.app/data/company/FMX.json

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