Grupo Mexico SAB de CV

Grupo Mexico maintains a capital structure with a debt-to-equity ratio of 0.45, indicating a relatively balanced approach to financing. The company's liquidity position is characterized by a current ratio of 4.05, suggesting strong short-term liquidity. However, the company's net cash position is negative after subtracting total debt, which raises some liquidity concerns. The price-to-book ratio of 83.39 and the price-to-tangible-book ratio of 83.39 indicate that the company is trading at a premium relative to its book value.

In terms of profitability, Grupo Mexico's return on equity (ROE) is 5.6%, and its return on assets (ROA) is 3.09%. These figures are below the typical thresholds for strong performance in the mining industry, suggesting that the company is not generating particularly high returns relative to its equity and asset base. The company's operating margin, calculated as operating income divided by revenue, is 4.55%, which is in line with the industry median for diversified mining firms.

The company's revenue is derived from a diversified set of segments, including copper, silver, and zinc production. However, the exact distribution of revenue across these segments is not disclosed in the available data. Geographically, the company is primarily focused on operations in Mexico, with limited exposure to international markets. This concentration may expose the company to regional economic and political risks.

Looking at the company's growth trajectory, the available data does not provide specific numeric deltas for the current or next fiscal year. However, the company's capital expenditure of -824.4 million USD suggests a reduction in investment in new projects or infrastructure. This could indicate a strategic shift or a response to market conditions.

The risk assessment for Grupo Mexico highlights a medium liquidity risk and a low dilution risk. The company's liquidity risk is primarily due to its negative net cash position after accounting for total debt. The dilution risk is considered low, as there is no indication of significant share issuance or dilution potential. The company's capital structure and financial leverage are relatively stable, but the high price-to-book and price-to-tangible-book ratios suggest that the market is valuing the company at a premium, which may not be sustainable if earnings do not meet expectations.

Recent events and disclosures do not provide specific details on recent filings or transcripts. However, the company's financial performance and market valuation suggest that it is under scrutiny by analysts, as evidenced by the wide range of price targets and the mean recommendation of 2.57, which is closer to a "hold" than a "buy". The company's financial health and strategic direction will likely be a focus of investor attention in the coming months.

Projected 2026 net income surges 39.4% year-over-year to $5.04 billion, driven by strong revenue growth.

Free cash flow is projected to jump 49.7% to $2.6 billion in 2026, enhancing financial flexibility.

Cash conversion ratio of 2.08 ranks as best-in-class compared to the cohort median of 0.66.

Revenue demonstrates consistent growth with a 5.3% CAGR over the four-year period ending in 2026.

Long-term debt is projected to increase to $10.6 billion in 2026, rising from $9.1 billion in 2025.

The company faces medium liquidity and credit risks, which could constrain financial operations during market stress.

Return on equity of 5.6% remains modest despite high margins, suggesting potential inefficiencies in capital utilization.

Debt-to-equity ratio of 0.45 places the company in the bottom quartile of its diversified mining cohort.

Revenue $5.57B, +32,6% YoY; Operating income +55,7% YoY.

• ▍Revenue $5.57B, +32,6% YoY
• ▍Operating income +55,7% YoY
• ▍Net income +57,4% YoY
• ▍Free cash flow +84,8% YoY
• ▍Net margin 30.8%

Revenue $5.15B, +34,0% YoY; Operating income +83,5% YoY.

• ▍Revenue $5.15B, +34,0% YoY
• ▍Operating income +83,5% YoY
• ▍Net income +92,2% YoY
• ▍Free cash flow +66,2% YoY
• ▍Net margin 27.8%

Revenue $4.59B, +11,3% YoY; Operating income +16,5% YoY.

• ▍Revenue $4.59B, +11,3% YoY
• ▍Operating income +16,5% YoY
• ▍Net income +56,8% YoY
• ▍Free cash flow +363,2% YoY
• ▍Net margin 28.0%

Revenue $4.24B, −3,6% YoY; Operating income −1,1% YoY.

• ▍Revenue $4.24B, −3,6% YoY
• ▍Operating income −1,1% YoY
• ▍Net income +10,0% YoY
• ▍Free cash flow +24,2% YoY
• ▍Net margin 29.1%

Revenue $4.20B; Operating income $1.91B.

• ▍Revenue $4.20B
• ▍Operating income $1.91B
• ▍Net margin 25.9%

Revenue $3.85B; Operating income $1.36B.

• ▍Revenue $3.85B
• ▍Operating income $1.36B
• ▍Net margin 19.3%

Revenue $4.13B; Operating income $1.85B.

• ▍Revenue $4.13B
• ▍Operating income $1.85B
• ▍Net margin 19.9%

Revenue $4.40B; Operating income $2.00B.

• ▍Revenue $4.40B
• ▍Operating income $2.00B
• ▍Net margin 25.5%

Revenue $18.18B, +12,4% YoY; Operating income +25,1% YoY.

• ▍Revenue $18.18B, +12,4% YoY
• ▍Operating income +25,1% YoY
• ▍Net income +39,4% YoY
• ▍Free cash flow +49,7% YoY
• ▍Net margin 27.7%

Revenue $16.17B, +12,6% YoY; Operating income +17,2% YoY.

• ▍Revenue $16.17B, +12,6% YoY
• ▍Operating income +17,2% YoY
• ▍Net income +7,1% YoY
• ▍Free cash flow +25,5% YoY
• ▍Net margin 22.4%

Revenue $14.37B, +3,6% YoY; Operating income −2,6% YoY.

• ▍Revenue $14.37B, +3,6% YoY
• ▍Operating income −2,6% YoY
• ▍Net income +7,2% YoY
• ▍Free cash flow +15,2% YoY
• ▍Net margin 23.5%

Revenue $13.87B, −6,1% YoY; Operating income −22,4% YoY.

• ▍Revenue $13.87B, −6,1% YoY
• ▍Operating income −22,4% YoY
• ▍Net income −20,4% YoY
• ▍Free cash flow −31,3% YoY
• ▍Net margin 22.7%