Grupo Herdezb-series * Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
Is Grupo Herdezb-series * a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = Mex$17.46b | Revenue (TTM) = Mex$29.55b
Market Cap = Mex$17.46b | Estimated Revenue = Mex$41.78b
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = Mex$19.12b | Revenue (TTM) = Mex$29.55b
Enterprise Value = Mex$19.12b | Forward Revenue = Mex$41.78b
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🧮 Calculation
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Grupo Herdezb-series * Stock Analysis
Analyst Opinions
6 Analysts have issued a Grupo Herdezb-series * forecast:
Analyst Opinions
6 Analysts have issued a Grupo Herdezb-series * forecast:
Grupo Herdezb-series * Events
Past Events
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APR
23
Q1 2026 Earnings Call
5 months ago
|
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OCT
23
Q3 2025 Earnings Call
11 months ago
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Grupo Herdezb-series * — Q1 2026 Earnings Call
1. Management Discussion
Good day, and welcome to Grupo Herdez's First Quarter 2026 Earnings Conference Call. This call is being recorded.
Information discussed may include forward-looking statements subject to risks and uncertainties. Please refer to the forward-looking statement disclaimer in the company's press release.
I'll now turn the call over to Andrea Amozurrutia, Chief Financial and Sustainability Officer. Please go ahead.
Thank you, Bailey. Good morning, everyone. Thank you for joining us today to discuss our first quarter 2026 results. I am pleased to walk you through our performance and more importantly, the strategic steps we are taking to solidify our position for the remainder of the year. Before we discuss the numbers, I would like to clarify the structural changes in our financial reporting.
As you know, we successfully finalized the sale of our 25% stake in McCormick de Mexico at the beginning of the year. To ensure total clarity, our stake is now recorded under equity investments in associated companies and the strategic fees are integrated into revenues from related parties. Consequently, the figures we explained in the press release and in this call are on a pro forma basis.
Excluding McCormick de Mexico from our consolidation and removing Grupo Nutresa from the baseline. We believe this is the most accurate way to understand the organic evolution of our core business.
Turning to our quarterly performance, we posted a 17.5% growth in net sales, reaching MXN 5.2 billion. While the market context remains complex, this growth is a direct result of our proactive operational planning ahead of our new SAP S/4HANA, go live on April 1. This was a massive logistical challenge that our teams managed exceptionally well, allowing us to deliver a historic volume of nearly 7,000 tonnes in March.
This milestone proof that our infrastructure is more than capable of handling major technological transition without disrupting our service levels. Furthermore, key categories like pasta, vegetables and homemade products, expanded their market share, which reinforces the strength of our brands even when consumer demand faces headwinds.
Our operating profit grew 27.1% to MXN 620 million and EBITDA rose 23.7% to MXN 810 million. Margins expanded to 11.9% and 15.6%, respectively, primarily driven by the operating leverage resulting from that extraordinary top line performance.
Regarding our financial structure, we are executing a very deliberate deleveraging path. With the proceeds from the McCormick transition or transaction, we have already reduced our debt by MXN 1.4 billion in the first quarter.
Our road map is set to reduce it by almost MXN 4 billion by year-end through additional loan repayments and the settlement of the assets from the 2.2 at maturity. This will bring our net leverage to a very comfortable level under 2.5x, giving us the financial flexibility to continue investing in our future growth.
Please be aware that as a result of our strategic front-loading in the first quarter, we anticipate a compensatory adjustment in the second quarter figures. Consequently, we expect Q2 net sales to show a slight decrease when compared to the 2025 pro forma figures. This volume shift will naturally impact our operating and EBITDA margins as lower expense absorption will temporarily put pressure on profitability.
As a result, we recommend analyzing the full first quarter performance to extract the ERP impact. By year-end, we expect sales to grow in the high single digits and margins to retract around 1 percentage point due to SG&A pressure related to the implementation of the ERP during the year.
Having said that, we are closely monitoring geopolitical tensions in the Middle East and rising crude oil prices, which suggests potential pressure on plastic packaging and logistics for the coming quarters. While we do not expect this impact to be material, our focus remains on securing supply availability and implementing mitigation strategies.
If any guidance updates are required, we will let you know in the following quarters. As well, yesterday, during our Annual Shareholders Meeting, we presented audited financials for 2025. An ordinary dividend of MXN 1.50 per share was approved, payable in 2 equal installments in May and October.
I would also like to take a moment to discuss our approach to governance and climate risk. For the first time, we are reporting under the IFRS S1 and S2 standards alongside our audited financial statements. This is not just a regulatory update. It is an integration of our sustainability strategy into our core financial reality.
Through our core materiality assessment, we have identified water stress as one or our most critical risk. This is not a new focus for us. We have been aggressively managing this since 2022, supported by our sustainability-linked bond. The progress we've made in optimizing water consumption per ton produced has been significant, and we are fully on track to meet our 25% reduction target by 2030. We view this as a fundamental aspect of our business continuity and efficiency.
Finally, regarding our operational strategy, on April 13, we announced the formalization of our 50-50 joint venture with Froneri for our ice cream business, which we expect to close at midyear. This is a strategic pivot that allows us to capture more value. Under this agreement, Froneri, a world-class global leader, will assume operational control of the ice cream business. They bring the technical expertise and global scale that this segment needs to drive, allowing us to focus our resources on the areas where we can deliver most sustainable returns.
In summary, at 112 years young, Grupo Herdez is a company that does not just react to the market, we evolve ahead of it. The results of this quarter, combined with our technological transformation and our rigorous approach to climate risk positions us for a very bright future. Thank you for your time, and I will now turn the call over to Bailey for the Q&A session.
[Operator Instructions] Our first question comes from Regina Carrillo with GBM.
2. Question Answer
We saw a positive contribution to net income from the McCormick participation. But can you tell us more about its performance during the quarter? And what do you expect sales and EBITDA of that business to be during 2026 to grow?
Do you mean the McCormick business?
Yes.
Well, it is performing accordingly to the rest of the portfolio. So even in the case of McCormick categories, we saw double-digit growth in the first quarter. And as we mentioned, it is mainly related to the inventory buildup at the client level. So we don't have any disruptions regarding the go-live of the ERP. According to internal estimations and trying to extract the extraordinary benefit from the ERP, the underlying growth of the core business has been around 4%, 5%. So we believe it is in line with what you are seeing in the consumption environment in Mexico. It is mainly driven by volume, and practically no benefit from pricing.
Excellent. And if I may ask another question, I was wondering if you expect any positive benefit from the World Cup in Mexico and if you are implementing strategies to benefit from that?
Of course, we are. We believe that we have many brands in the space of the World Cup. We have already incorporated the benefits and all the promotional and additional activity that we will have related to the World Cup. However, at year-end, we don't believe that the benefit will be so significant, but definitely, we will need the following months to unwrap in order to give more detailed feedback on that.
[Operator Instructions] At this time, there are no more questions. I would like to turn the call back over to Andrea Amozurrutia for any closing remarks.
Thank you, Bailey, and thank you, everyone, for connecting to this call. We hope to see you and hear you in the following quarter. Have a nice day.
The call has now concluded. Thank you for attending today's presentation. You may now disconnect.
Grupo Herdezb-series * — Q1 2026 Earnings Call
Q1 showed strong top-line and margin expansion driven by ERP front-loading and the McCormick stake sale, but management warns Q2 softness and 2026 ERP costs.
📊 Quarter at a Glance
- Net sales: MXN 5.2 billion (+17.5% YoY, pro forma excluding McCormick de Mexico)
- Operating profit: MXN 620 million (+27.1%)
- EBITDA: MXN 810 million (+23.7%; EBITDA = earnings before interest, taxes, depreciation and amortization)
- Margins: Operating margin 11.9%, EBITDA margin 15.6%, expansion driven by operating leverage from front-loaded volumes
- ERP milestone: SAP S/4HANA go-live April 1 with ~7,000 tonnes shipped in March supporting service levels
🎯 What Management Says
- Reporting change: 25% McCormick stake sold and now recorded as equity investment; Q1 figures presented on a pro forma basis to show core business performance
- Operational focus: Successful ERP implementation without service disruption; teams delivered high volumes and protected market share in pasta, vegetables and homemade categories
- Portfolio & capital: 50/50 joint venture with Froneri for ice cream to transfer operational control and capture more value; active deleveraging using McCormick proceeds
🔭 Outlook & Guidance
- Q2 view: Expect a slight decrease in Q2 net sales vs 2025 pro forma and temporary margin pressure due to lower expense absorption after Q1 front-loading
- Full-year targets: Sales guidance of high single-digit growth; margins expected to retract ~1 percentage point in 2026 due to SG&A related to ERP implementation
- Balance sheet: Plan to reduce debt ~MXN 4 billion by year-end and target net leverage below 2.5x; will update guidance if needed
- Risks: Monitoring Middle East geopolitical tensions and higher crude oil that could pressure packaging and logistics costs
❓ Analyst Q&A
- McCormick performance: McCormick de Mexico showed double-digit growth in Q1 but much of the benefit came from client inventory buildup rather than pricing
- Underlying growth: Management estimates core organic growth around 4–5%, driven mainly by volume
- World Cup impact: Promotions planned across brands; management expects some benefit but not material to full-year results
⚡ Bottom Line
- Investment thesis: Q1 execution validates operational strength and ERP rollout—supports long-term competitiveness—but expect near-term volatility (Q2 sales dip and ~1ppt margin headwind in 2026) as costs normalize; deleveraging, JV with Froneri and dividend (MXN 1.50 per share approved) are shareholder-positive moves.
Disclaimer: This analysis was generated with AI. AI can also make mistakes. This is not investment advice.
Grupo Herdezb-series * — Q3 2025 Earnings Call
1. Management Discussion
Good morning, everyone, and welcome to Grupo Herdez Third Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note, today's event is being recorded.
Also note, information discussed may include forward-looking statements subject to risks and uncertainties. Please refer to the forward-looking statements disclaimer in the company's press release.
I'll now turn the call over to Gerardo Canavati, Chief Financial and Information Officer. Please go ahead.
Thank you, Rocco. Good morning, everyone, and thank you for joining us today to discuss Grupo Herdez third quarter results.
This quarter was marked by significant steps in our company's trajectory, one that designates a new course for continued value creation. We successfully completed the split of Grupo Nutrisa, a move designed to allow the retail division to unleash its full potential and having Grupo Herdez dedicated completely to its core business. This action alongside the divestment of a portion of our stake in McCormick de Mexico fundamentally reconfigures our portfolio to pursue further opportunities.
We will now transition to the details of our operational performance. Andrea, please go ahead.
Thank you, Gerardo. Good morning, everyone. Before diving into the figures, it is important to consider that starting September of 2025, the results of the retail business were deconsolidated from Grupo Herdez. Thus, our third quarter and year-to-date growth rates versus last year are highly distorted.
As you have seen in the press release, we decided to also report pro forma figures that do not consider numbers of the retail business, both in 2024 and this year. As well, we adopted a new segmentation reporting that resulted in domestic and export segments.
Now our domestic sales have incorporated the results of a lot of [indiscernible]. We believe this segmentation will allow the market to better assess the inherent profitability and growth of our core portfolio in the key 2 markets that we attend.
Getting into the results. The consumption environment during the third quarter in Mexico faced persistent pressure. This slowdown was characterized by a flattish consumer environment, largely influenced by structural factors such as the decline in remittances in petitor, inventory adjustments in some clients and extraordinary weather conditions.
Despite this challenging environment, Grupo Herdez demonstrated remarkable resilience. Our disciplined execution allowed us to report a mid-single-digit growth rate in the top line, while increasing our market share in key categories of our portfolio.
Our consolidated net sales would have recorded 1% growth for the quarter. This is a solid performance given the macro headwinds, and it was entirely anchored by our Domestic segment, which saw sales growth of 4.2%. This growth rate supported by our core categories such as mayo, tomato purée and ketchup was crucial in compensating for the 25.9% contraction in the Export segment, which faced challenges, particularly in the U.S. and in the Hispanic consumers.
The structural change from the divestiture have a clear positive effect on our profitability. Gross margin would have expanded by more than 1 percentage point, reaching almost 40%, thanks to effective cost management and favorable sales mix within the Domestic segment.
Operating profit would have grown slightly above 1% with a stable margin of 15.3%, while the Domestic segment would have reached a 16.1% operating margin. EBITDA would have seen modest growth of close to 1%, reaching MXN 1.5 billion. This EBITDA stability is further reinforced by the structural benefit from the elimination of the lease or the IFRS 16, which mitigates the overall depreciation and amortization expense of the retail business.
Moving below the operating line, we saw bottom line resilience too. Our majority net income would have surged more than 23% for the quarter, reaching MXN 426 million. This strong growth underscores the benefits of our operational streamlining and core business efficiency effectively as well as the contribution of our associates MegaMex.
This last result obviously compared with a very low base in 2024, but as you can recall, had a significant pressure from the prices of avocado. So in this quarter, the profitability was driven by a sequential improvement in the profitability of Don Miguel and Wholly Guacamole, which allowed us to largely offset the negative operational impact faced by our Export segment.
Finally, the financial position reflects the benefits of the strategic transformation that we have already mentioned, supporting a stable and strong cash flow. We ended the quarter with a cash position of MXN 2.3 billion. The decline in available cash versus the previous quarter was due to a strategic buildup of inventories and the extraordinary dividend paid in May.
The assets and liabilities related to operating leases significantly decreased to MXN 452 million, reflecting the cleanup of the Retail segments lease portfolio. Our financial position remains sound with a net debt-to-EBITDA ratio of 1.2x.
With that, I will now turn the call over to Gerardo to discuss further on the outlook for the remainder of the year.
Thank you, Andrea. We believe that the third quarter marks the bottom of the consumption environment, and we expect a gradual recovery going forward, despite the softness of the overall economy to end the year on a higher note held by easy comps.
I would like to update you in the implementation of our new program. As you may be aware, we transitioned a subsidiary in June, which carried 80% of the overall processes of the group. It was a huge success. Now we have the confidence to preparing the rollout to go live in April of next year. This obviously will require significant working capital for the next quarters.
Talking about the closing of the year, I'm going to refer to our guidance and the pro forma figures, that is excluding Grupo Nutrisa for the fourth quarter. So in all our lines, net sales, operating income and EBITDA, we are hitting the target discussed in the start of the year. We have seen a performance in MegaMex better than expected, and we are confident that, that's going to continue going forward.
In terms of our CapEx, even though that the figures are lower in the third quarter, we are expecting to complete our guidance near between MXN 1.502 billion.
That will conclude my prepared remarks, and we're open for your questions. Rocco?
[Operator Instructions] And that concludes our question-and-answer session. I'd like to turn the conference back over to the management team for any closing remarks.
Thank you for participating in our earnings call. If you have any questions, don't hesitate to contact our team, and have a good day. Thank you, Rocco.
Yes, sir. Thank you. And we thank you all for attending today's presentation. You may now disconnect your lines. Have a wonderful day.
Grupo Herdezb-series * — Q3 2025 Earnings Call
Herdez refocuses on core branded-food business after the Nutrisa split; pro forma sales held up, margins improved, and EBITDA stayed roughly stable.
📊 Quarter at a Glance
- Consolidated sales: Pro forma net sales +1% YoY in Q3 after deconsolidating the retail business
- Domestic sales: +4.2% YoY, driven by mayonnaise, tomato purée and ketchup
- Export sales: -25.9% YoY, weakness concentrated in the U.S. Hispanic channel
- Gross margin: Expanded >1 percentage point to ~40% due to better mix and cost control
- EBITDA: ~MXN 1.5 billion (EBITDA = earnings before interest, taxes, depreciation and amortization), roughly +1% YoY
🎯 What Management Says
- Portfolio restructuring: Completed the split of Grupo Nutrisa (retail) and partially divested McCormick de Mexico stake to concentrate Grupo Herdez on its core branded-food operations
- Reporting & margins: Adopted new domestic vs export segmentation; management attributes margin expansion to mix improvement, cost discipline and removal of retail lease burdens
- Systems rollout: June transition of a subsidiary covering ~80% of processes succeeded; full rollout planned for April next year and will require elevated working capital in the near term
🔭 Outlook & Guidance
- Near-term view: Management sees Q3 as the consumption trough and expects a gradual recovery with stronger year-end comps
- Guidance: Reiterates pro forma targets for net sales, operating income and EBITDA; MegaMex (joint-venture) is performing above expectations
- CapEx & cash: CapEx expected near MXN 1.502 billion; cash at MXN 2.3 billion and net debt-to-EBITDA ratio ~1.2x, though working-capital needs will rise ahead of the systems rollout
⚡ Bottom Line
- Conclusion: The company is now a purer branded-food operator with improved margins and stable EBITDA, but comparatives are distorted by the retail deconsolidation; monitor working-capital demands from the April systems rollout and export recovery for clearer earnings momentum.
Disclaimer: This analysis was generated with AI. AI can also make mistakes. This is not investment advice.
Financial data from Grupo Herdezb-series *
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 29,545 29,545 |
24%
24%
100%
|
|
| - Direct Costs | 17,475 17,475 |
25%
25%
59%
|
|
| Gross Profit | 12,070 12,070 |
22%
22%
41%
|
|
| - Selling and Administrative Expenses | 8,780 8,780 |
14%
14%
30%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | 4,287 4,287 |
37%
37%
15%
|
|
| - Depreciation and Amortization | 809 809 |
34%
34%
3%
|
|
| EBIT (Operating Income) EBIT | 3,478 3,478 |
37%
37%
12%
|
|
| Net Profit | 20,138 20,138 |
1,315%
1,315%
68%
|
|
In millions MXN.
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Company Profile
Grupo Herdez SAB de CV engages in the manufacture, sale, and distribution of canned, bottled and packaged processed food, and beverage products. The company is headquartered in Mexico City, Mexico, D.F. and currently employs 9,090 full-time employees. The firm's activities are divided into two business segments: Food and Frozen. The Food division focuses on the manufacture and distribution of canned and packed food products in Mexico and the United States. Its offer includes burritos, canned vegetables, guacamole, home-style salsa, honey, jam, ketchup, mayonnaise, mole, mustard, organic food, pasta, spices, tea, tomato puree and tuna, among others. The company sells products through a number of brand names, such as Aires de Campo, Barilla, Bufalo, Chi-Chi's, Del Fuerte, Don Miguel, Dona Maria, Embasa, Herdez, La Victoria, McCormick, Wholly Guacamole and Yemina. In addition, it has distribution agreements in Mexico for GoGoSqueez, Kikkoman, Ocean Spray, Reynolds and Truvia products. The Frozen division is responsible for the manufacture and distribution of frozen yogurts and ice creams under the Nutrisa and Helados Nestle brand names.
StocksGuide Premium
| Head office | Mexico |
| CEO | Mr. Torres |
| Employees | 9,090 |
| Website | grupoherdez.com.mx |
