Gruma SAB de CV
BMV:GRUMAB

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Gruma SAB de CV Logo
Gruma SAB de CV
BMV:GRUMAB
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Price: 303.16 MXN 2.96% Market Closed
Market Cap: Mex$103.7B

P/FCFE

13.4
Current
27%
Cheaper
vs 3-y average of 18.4

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
13.4
=
Market Cap
Mex$108.7B
/
Free Cash Flow to Equity
$459.8m

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
13.4
=
Market Cap
Mex$108.7B
/
Free Cash Flow to Equity
$459.8m

Valuation Scenarios

Gruma SAB de CV is trading below its 3-year average

If P/FCFE returns to its 3-Year Average (18.4), the stock would be worth Mex$415.96 (37% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+37%
Average Upside
24%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 13.4 Mex$303.16
0%
3-Year Average 18.4 Mex$415.96
+37%
5-Year Average 17.5 Mex$396.82
+31%
Industry Average 16.8 Mex$379.51
+25%
Country Average 13.9 Mex$313.54
+3%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
Market Cap P/FCFE P/E
MX
Gruma SAB de CV
BMV:GRUMAB
105.8B MXN 13.4 11.9
JP
Goyo Foods Industry Co Ltd
TSE:2230
53.2T JPY -621 880.5 540 752.8
CH
Nestle SA
SIX:NESN
203.3B CHF 28.5 22.5
US
Mondelez International Inc
NASDAQ:MDLZ
78.7B USD 15.9 32.1
FR
Danone SA
PAR:BN
42.7B EUR 15.3 23.5
ZA
Tiger Brands Ltd
JSE:TBS
47.6B ZAR 347.5 12.5
US
Hershey Co
NYSE:HSY
37B USD 19.6 41.9
CN
Muyuan Foods Co Ltd
SZSE:002714
244.2B CNY -46.5 25
ZA
Avi Ltd
JSE:AVI
33.1B ZAR 16.6 12.8
CN
Foshan Haitian Flavouring and Food Co Ltd
SSE:603288
225.7B CNY 35.9 32.1
CH
Chocoladefabriken Lindt & Spruengli AG
SIX:LISN
23.2B CHF 198.9 31.9

Market Distribution

In line with most companies in Mexico
Percentile
48th
Based on 207 companies
48th percentile
13.4
Low
0.2 — 10.8
Typical Range
10.8 — 18.3
High
18.3 —
Distribution Statistics
Mexico
Min 0.2
30th Percentile 10.8
Median 13.9
70th Percentile 18.3
Max 3 172.8

Gruma SAB de CV
Glance View

Market Cap
103.7B MXN
Industry
Food Products

In the bustling landscape of global food production, Gruma SAB de CV stands out as a trailblazer in the realm of corn flour and tortilla manufacturing. Founded in 1949 in Monterrey, Mexico, the company embarked on its journey with a simple yet ambitious mission: to provide high-quality, ready-to-use corn flour to simplify the tortilla-making process, a Mexican staple. Over the decades, Gruma flourished under this mission, leveraging innovation and efficiency to transform the traditional process into a more accessible and commercially viable business. This approach enabled the company to not only dominate the Mexican market but also expand its reach internationally, thereby solidifying its position as a key player in the food industry. Central to Gruma's success is its vertically integrated business model, which ensures tight control over its supply chain—from sourcing raw materials to production and distribution. Their core products, such as packaged corn flour and ready-to-eat tortillas, cater to both individual consumers and foodservice businesses. By ensuring consistent quality and tapping into the rising global demand for convenient and authentic cuisine, Gruma generates substantial revenues. Its strategic expansion into diverse markets, including the United States and Europe, capitalizes on the global appetite for Mexican food. This wide geographical footprint not only diversifies its revenue streams but also buffers the company against regional economic fluctuations. Thus, Gruma’s business model not only reimagines traditional culinary staples but ensures they are lucrative, scalable offerings in today's global food economy.

GRUMAB Intrinsic Value
416.28 MXN
Undervaluation 27%
Intrinsic Value
Price Mex$303.16
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