Grupo Mexico (GMEXICOB.MX)
Materials · BMV · Mexico
Fundamentals
Valuation and ratings
Grupo Mexico trades at Mex$199.24, which is 120% below the Mex$438.31 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 92 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 16.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Grupo Mexico
Grupo México, S.A.B. de C.V. produces copper worldwide. It operates through Mining, Transportation, and Infrastructure divisions. The Mining division is involved in the operation of underground and open pit mines, smelters, refineries, and other plants. This division also provides copper, silver, molybdenum, zinc, sulfuric acid, gold, and selenium products. The Transportation division offers general and intermodal freight services by rail, passenger services, as well as auxiliary management services for terminals and intra-terminal hauls; and ground transportation and warehousing. The Infrastructure division engages in building infrastructure and industrial plants, and ocean and land drilling; provision of engineering services, drilling services for oil and water exploration, and energy production services; construction of infrastructure works, project engineering services; operation and highway conservation; real estate project development, and construction and administration of shopping centers. In addition, it is involved in operation of cycle plants and wind farm; generation of energy; and oil transportation. Grupo México, S.A.B. de C.V. was founded in 1890 and is headquartered in Mexico City, Mexico.
GMEXICOB.MX passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Grupo Mexico (GMEXICOB.MX) undervalued?
Against our discounted cash flow estimate of Mex$438.31, GMEXICOB.MX at Mex$199.24 is 120% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is GMEXICOB.MX's P/E ratio?
GMEXICOB.MX trades at 16.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for GMEXICOB.MX, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.