1. Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX)
Current share price: $98.71
52 Week Range: $98.58 – $143.43
Year to date Gain as of October 1: -23.24%
Number of Hedge Fund Holders: 26
Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) operates as a bottler of Coca-Cola trademark beverages. It produces, markets, and distributes Coca-Cola’s trademark beverages in Latin America. It also operates small-box retail chain stores under the OXXO name and retail service stations for fuels, motor oils, lubricants, and car care products under the OXXO GAS name.
The company has felt the full effects of the Mexican Peso depreciating, significantly affecting its returns. The uncertainty over the Mexican presidential election also had a hand in the stock imploding, a situation exacerbated following the exit of the respected chief financial officer.
Amid the headwinds, Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) has continued to fire from all angles regarding operational efficiency. Femsa’s Oxxo stores boast the highest margins of any convenience store operator worldwide, at 10%. Furthermore, given that Oxxo has a growing financial-technology component, Femsa would not necessarily face the same obstacles as other companies from an uneven economic outlook for the region, even though investors may be concerned about it.
Additionally, Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) has been selling non-essential businesses to fund its bottling business, which is growing steadily and steadily and enabling the company to continue paying dividends and buybacks to its shareholders. The real story, though, is its convenience store business, which is expected to grow throughout Central and South America, possibly even Texas.
Amid the underlying growth and operational efficiencies, Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX), still trades at a discount with a price-to-earnings multiple of 6 while offering a 2.15% dividend yield.
By the end of Q2 2024, 26 hedge funds held shares of Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX), according to Insider Monkey’s database. The largest stake was held by First Eagle Investment Management, which owned approximately 9.58 million shares valued at around $1.03 billion.
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