Fomento Economico Return On Equity vs. Return On Asset
| FMX Stock | USD 88.50 1.36 1.56% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.21618179 | Current Value 0.13 | Quarterly Volatility 0.04591141 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.47 | 0.3978 |
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| Net Profit Margin | 0.0501 | 0.0935 |
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| Operating Profit Margin | 0.13 | 0.0816 |
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| Pretax Profit Margin | 0.12 | 0.0817 |
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| Return On Assets | 0.0575 | 0.0815 |
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| Return On Equity | 0.13 | 0.2162 |
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For Fomento Economico profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fomento Economico to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fomento Economico Mexicano utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fomento Economico's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fomento Economico Mexicano over time as well as its relative position and ranking within its peers.
Fomento |
Is Soft Drinks & Non-alcoholic Beverages space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Fomento Economico. If investors know Fomento will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Fomento Economico listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.40) | Dividend Share 4.397 | Earnings Share 2 | Revenue Per Share 2.1 K | Quarterly Revenue Growth 0.083 |
The market value of Fomento Economico is measured differently than its book value, which is the value of Fomento that is recorded on the company's balance sheet. Investors also form their own opinion of Fomento Economico's value that differs from its market value or its book value, called intrinsic value, which is Fomento Economico's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Fomento Economico's market value can be influenced by many factors that don't directly affect Fomento Economico's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Fomento Economico's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fomento Economico is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fomento Economico's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Fomento Economico Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Fomento Economico's current stock value. Our valuation model uses many indicators to compare Fomento Economico value to that of its competitors to determine the firm's financial worth. Fomento Economico Mexicano is rated below average in return on equity category among its peers. It is rated below average in return on asset category among its peers reporting about 0.33 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Fomento Economico Mexicano is roughly 3.06 . At this time, Fomento Economico's Return On Equity is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Fomento Economico's earnings, one of the primary drivers of an investment's value.Fomento Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Fomento Economico |
| = | 0.11 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Fomento Economico |
| = | 0.0376 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Fomento Return On Asset Comparison
Fomento Economico is currently under evaluation in return on asset category among its peers.
Fomento Economico Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Fomento Economico, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fomento Economico will eventually generate negative long term returns. The profitability progress is the general direction of Fomento Economico's change in net profit over the period of time. It can combine multiple indicators of Fomento Economico, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -21.7 B | -20.7 B | |
| Operating Income | 57.9 B | 60.8 B | |
| Income Before Tax | 57.4 B | 60.3 B | |
| Total Other Income Expense Net | -468 M | -491.4 M | |
| Net Income | 33.5 B | 21.9 B | |
| Income Tax Expense | 13 B | 6.8 B | |
| Net Income Applicable To Common Shares | 28.5 B | 29.9 B | |
| Net Income From Continuing Ops | 51.8 B | 27.5 B | |
| Interest Income | 14.1 B | 7.3 B | |
| Net Interest Income | 2.4 B | 2.5 B | |
| Change To Netincome | 21.1 B | 22.1 B | |
| Net Income Per Share | 9.35 | 9.82 | |
| Income Quality | 0.76 | 0.72 | |
| Net Income Per E B T | 1.14 | 1.20 |
Fomento Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Fomento Economico. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Fomento Economico position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Fomento Economico's important profitability drivers and their relationship over time.
Use Fomento Economico in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Fomento Economico position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fomento Economico will appreciate offsetting losses from the drop in the long position's value.Fomento Economico Pair Trading
Fomento Economico Mexicano Pair Trading Analysis
The ability to find closely correlated positions to Fomento Economico could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fomento Economico when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Fomento Economico - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Fomento Economico Mexicano to buy it.
The correlation of Fomento Economico is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Fomento Economico moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fomento Economico moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Fomento Economico can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Fomento Economico position
In addition to having Fomento Economico in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for Fomento Stock Analysis
When running Fomento Economico's price analysis, check to measure Fomento Economico's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Fomento Economico is operating at the current time. Most of Fomento Economico's value examination focuses on studying past and present price action to predict the probability of Fomento Economico's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Fomento Economico's price. Additionally, you may evaluate how the addition of Fomento Economico to your portfolios can decrease your overall portfolio volatility.