Stock fact sheet · data as of
Fomento Económico Mexicano, S.A.B. de C.V. (FMX): fair value, margin of safety and Wheel Score
Consumer Defensive · Beverages - Non-Alcoholic · Mexico · ADR · High Yield Income
Is FMX undervalued?
FMX has a margin of safety of 85%: the stock closed at 120.99 on 16 Oct 2026 against a GLS average fair value of 825.52. 3 of the 9 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between DCF (6.18) and 10 Cap (4,888.65). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files FMX under High Yield Income: a dividend yield above 4%.
Nine valuation models for FMX
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 6.18 | -95% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 115.27 | -5% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 115.46 | -5% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 37.63 | -69% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 14.75 | -88% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 4,888.65 | +3941% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 241.39 | +100% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 1,954.35 | +1515% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 55.98 | -54% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -29.86 | -125% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 139.25 | +15% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Fomento Económico Mexicano, S.A.B. de C.V. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 4.6/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 3.9%, ROE 7.9%, ROA 2.4% - with debt at 1.05 times equity and a free-cash-flow yield of 7.7%.
The dividend yield is high at 5.99% (payout ratio 172%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Other Revenue 85%, Interest Revenue 15% (fiscal year FY2025).
Institutional ownership scores 2/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 3.9% |
|---|---|---|---|
| GLS Moat | 4.6 / 10 | ROE | 7.9% |
| Debt / equity | 1.05 | ROA | 2.4% |
| Free-cash-flow yield | 7.7% | Payout ratio | 172% |
| Institutions | 2 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 80: Prime
With a Wheel Score of 80, Fomento Económico Mexicano, S.A.B. de C.V. sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 25/25, Health 16/20, Moat 7/15, Premium 14/20, Stability 18/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 29% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (14 of 20 points). Chain open interest is 4,474 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 977k shares a day on a market cap of $41.2B, with a beta of 0.18 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 85% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 7 / 15 | moat 4.6/10 | |
| Premium | 14 / 20 | implied volatility 29% | |
| Stability | 18 / 20 | 977k shares/day, $41.2B cap, beta 0.18 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Fomento Económico Mexicano, S.A.B. de C.V. reports earnings on 27 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Beverages - Non-Alcoholic
The 12 companies below are the closest to Fomento Económico Mexicano, S.A.B. de C.V. by market cap within the Beverages - Non-Alcoholic industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| KDP Keurig Dr Pepper Inc. | 34.18 | 21.80 | -57% | 58Fair | $46.5B |
| CCEP Coca-Cola Europacific Partners PLC | 109.77 | 80.31 | -37% | 61Fair | $48.7B |
| KOF Coca-Cola FEMSA, S.A.B. de C.V. | 115.67 | 508.81 | +77% | 77Good | $24.3B |
| MNST Monster Beverage Corporation | 45.34 | 26.64 | -70% | 66Good | $88.8B |
| COKE Coca-Cola Consolidated, Inc. | 204.55 | 243.03 | +16% | 80Prime | $16.1B |
| PEP PepsiCo, Inc. | 129.27 | 104.37 | -24% | 58Fair | $176.6B |
| CELH Celsius Holdings, Inc. | 28.16 | 21.08 | -34% | 58Fair | $7.1B |
| PRMB Primo Brands Corporation | 18.78 | 14.56 | -29% | 59Fair | $6.8B |
| KO The Coca-Cola Company | 92.00 | 47.08 | -95% | 59Fair | $395.8B |
| COCO The Vita Coco Company, Inc. | 57.67 | 54.79 | -5% | 70Good | $3.3B |
| FIZZ National Beverage Corp. | 34.31 | 31.86 | -8% | 61Fair | $3.2B |
| SUJA Suja Life, Inc. | 11.94 | 6.78 | -76% | 14No options | $284M |
⚖ Compare FMX with 7 of them All Consumer Defensive stocks →
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Start free See the Sunday ScanQuestions about FMX
Is FMX undervalued right now?
By the GLS models, yes: at 120.99 the stock is 85% below the average fair value of 825.52 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of FMX and what does it mean?
FMX scores 80 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for FMX?
825.52 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Fomento Económico Mexicano, S.A.B. de C.V. report earnings next?
The next earnings report is due on 27 Oct 2026 (before the open), 11 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does FMX have listed options, and how liquid are they?
Yes. The nightly snapshot found 566 listed contracts with 4,474 open interest across all expiries and implied volatility of 29% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.