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Fomento Economico Mexicano SAB de CV (NYSE:FMX)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Fomento Economico Mexicano SAB de CV has an F-score of 4 indicating the company's financial situation is typical for a stable company.

FMX' s 10-Year Piotroski F-Score Range
Min: 4   Max: 8
Current: 5

4
8

During the past 13 years, the highest Piotroski F-Score of Fomento Economico Mexicano SAB de CV was 8. The lowest was 4. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 190.403306038 + 53.3202238693 + 469.981527094 + 279.344930262 = $993 Mil.
Cash Flow from Operations was 0 + 812.10974134 + 0 + 0 = $812 Mil.
Revenue was 4915.2827734 + 5557.40432612 + 4924.33805419 + 4861.85550854 = $20,259 Mil.
Gross Profit was 2028.85130481 + 2408.33459386 + 2081.04987685 + 2062.76445698 = $8,581 Mil.
Total Assets at the begining of this year (Mar13) was $23,380 Mil.
Total Assets was $27,368 Mil.
Long-Term Debt was $5,665 Mil.
Total Current Assets was $5,657 Mil.
Total Current Liabilities was $3,818 Mil.
Net Income was 214.07504506 + 381.064902331 + 515.893937045 + 291.604310087 = $1,403 Mil.

Revenue was 4604.53875143 + 5130.04095778 + 4626.68630795 + 4458.6950015 = $18,820 Mil.
Gross Profit was 1905.21055219 + 2273.39319471 + 1970.61559932 + 1870.17360072 = $8,019 Mil.
Total Assets at the begining of last year (Mar12) was $19,592 Mil.
Total Assets was $23,380 Mil.
Long-Term Debt was $2,180 Mil.
Total Current Assets was $5,144 Mil.
Total Current Liabilities was $4,485 Mil.

Profitability

Q1. 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 Mexicano SAB de CV's current net income was 993. ==> Positive ==> Score 1.

Q2. 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 Mexicano SAB de CV's current cash flow from operations was 812. ==> Positive ==> Score 1.

Q3. 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 at the beginning of this year (Mar13)
=993.049987263/23379.9770605
=0.04247438

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=1402.63819452/19592.2181373
=0.0715916

Fomento Economico Mexicano SAB de CV's return on assets of this year was 0.04247438. Fomento Economico Mexicano SAB de CV's return on assets of last year was 0.0715916. ==> Last year is higher ==> Score 0.

Q4. 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 Mexicano SAB de CV's current net income was 993. Fomento Economico Mexicano SAB de CV's current cash flow from operations was 812. ==> 812 =< 993 ==> CFROA =< ROA ==> Score 0.

Funding

Q5. 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)=Long-Term Debt/Total Assets
=5665.18711257/27367.5671539
=0.20700368

Gearing (Last Year)=Long-Term Debt/Total Assets
=2180.07537277/23379.9770605
=0.0932454

Fomento Economico Mexicano SAB de CV's gearing of this year was 0.20700368. Fomento Economico Mexicano SAB de CV's gearing of last year was 0.0932454. ==> Last year is lower than this year ==> Score 0.

Q6. 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)=Total Current Assets/Total Current Liabilities
=5656.76895998/3817.5556746
=1.48177772

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=5144.19138129/4485.33508111
=1.14689121

Fomento Economico Mexicano SAB de CV's current ratio of this year was 1.48177772. Fomento Economico Mexicano SAB de CV's current ratio of last year was 1.14689121. ==> This year's current ratio is higher. ==> Score 1.

Q7. 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 Mexicano SAB de CV's number of shares in issue this year was 0. Fomento Economico Mexicano SAB de CV's number of shares in issue last year was 0. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Q8. 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)=Gross Profit/Revenue
=8581.0002325/20258.8806622
=0.42356734

Gross Margin (Last Year)=Gross Profit/Revenue
=8019.39294693/18819.9610187
=0.42611103

Fomento Economico Mexicano SAB de CV's gross margin of this year was 0.42356734. Fomento Economico Mexicano SAB de CV's gross margin of last year was 0.42611103. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales 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 (Mar13)
=20258.8806622/23379.9770605
=0.86650558

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=18819.9610187/19592.2181373
=0.96058348

Fomento Economico Mexicano SAB de CV's asset turnover of this year was 0.86650558. Fomento Economico Mexicano SAB de CV's asset turnover of last year was 0.96058348. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+0+0+1+1+0+0
=4

Good or high score = 8 or 9

Bad or low score = 0 or 1

Fomento Economico Mexicano SAB de CV has an F-score of 4 indicating the company's financial situation is typical for a stable company.


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.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Fomento Economico Mexicano SAB de CV Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111110111
Q3 1001011010
Q4 1111110111
Q5 1101110100
Q6 0100011010
Q7 0010101011
Q8 0000100110
Q9 0101010110
F-score 5646674684

Fomento Economico Mexicano SAB de CV Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111111
Q2 1111111111
Q3 0011111000
Q4 1100111100
Q5 1011000000
Q6 0100101001
Q7 1011011111
Q8 1111111100
Q9 1111111000
F-score 7677778545
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