Grupo Mexico 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.
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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$1.75t | Revenue (TTM) = Mex$381.89b
Market Cap = Mex$1.75t | Estimated Revenue = Mex$416.02b
🎯 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$1.73t | Revenue (TTM) = Mex$381.89b
Enterprise Value = Mex$1.73t | Forward Revenue = Mex$416.02b
🎯 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) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 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) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain 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 | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 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.
📘 Revenue 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 Mexico Stock Analysis
Analyst Opinions
22 Analysts have issued a Grupo Mexico forecast:
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22 Analysts have issued a Grupo Mexico forecast:
Grupo Mexico Events
Past Events
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JAN
28
Q4 2025 Earnings Call
8 months ago
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StocksGuide Free
Grupo Mexico — Q4 2025 Earnings Call
1. Management Discussion
Good day, and thank you for holding, and welcome to Grupo Mexico's Fourth Quarter Earnings Conference Call. With us this morning are Grupo Mexico's top executives, who will discuss the financial performance of the company during the fourth quarter 2025 results, giving you a summary of the latest news and addressing any questions you may have at the end of the call.
Before we begin, I would like to remind you that information discussed on today's call may include forward-looking statements regarding the company's results and prospects, which are subject to risks and uncertainties. Actual results may differ materially, and the company cautions not to place undue reliance on these forward-looking statements. Grupo Mexico undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All results are expressed in full U.S. GAAP. The presentation may be followed through our webcast. [Operator Instructions] A copy of the slides and the company will be reviewing today is available on the website at grupomexico.com. [Operator Instructions]
Now we will begin with Ms. Marlene Finny.
Thank you so much, Carmen. Good morning, everyone, and thank you for joining us today for Grupo Mexico's Fourth Quarter Earnings Conference Call and 2025 full year as well. Sitting with me today are the top executives from all of our three divisions. During this call, as Carmen mentioned before, we will be following a presentation that can be downloaded from our website or followed by accessing the webcast. So if you want to go and see a presentation, you have a text.
You can find on Slide #3, the program we will be following today. So I'll kick off with Grupo Mexico's ESG highlights. followed by the quarter's scorecard and financial highlights. Then Mr. Leonardo Contreras will provide detailed information regarding our Mining division's main highlights and projects and comment on the industry's economic environment. She will be then followed by Mr. Fernando Lopez-Guerra, who will go through the financial results and main events of our Transportation division. And last but not least, Mr. Francisco Zinser will comment on the Infrastructure division's relevant events and financial highlights. As usual, at the end, the line will be open for questions and answers.
With that being said, let's go to our main ESG highlights in Slide #5. In 2025, we made significant progress in the road safety program for railway crossings, intervening in 33 level crossings across various regions of Mexico, reducing the risk for both communities and transportation operators. The second phase was completed during this last quarter, reaching 110 crossings and additional improvements along Ferromex and Ferrosur lines. This was an annual investment that reached almost $14 million.
The SX-EW plant at La Caridad unit in Sonora in Mexico was awarded the Casco de Plata, silver helmet in English, Casco de Plata, in the category of metallurgical plant with up to 500 workers granted by the Mexican Mining Chamber recognizing the company's commitment to risk prevention and employee safety.
The Infrastructure division obtained its environmental management system as part of its commitment to energy efficiency and environmental responsibility. This reduces environmental impact, ensures compliance with the regulatory requirements and establishes continuous improvement processes for the environmental performance of these facilities.
Continuing on Slide #6, our Buenavista del Cobre mine in Mexico, along with the Toquepala and Cuajone mines in Peru received The Copper Mark accreditation for compliance with the global industry standard on tailings management established by the International Council of Mining and Metals. This accreditation confirms commitment to international best practices, providing assurance to authorities, neighboring communities and other stakeholders that operations are conducted safely. And lastly, Southern Peru was recognized by the Peruvian government as the mining company with the largest number of projects awarded under public work for taxes in 2025. Through this mechanism, the company has carried out 40 projects and invested more than $400 million in infrastructure to help bridge to help bridge social gaps. It is currently implementing four additional projects totaling $28 million, which will benefit more than 5,000 people.
Now we will continue on Slide #7. Here, you have the scorecard with the main numbers for this quarter. Our revenues in 2025 reached a record high of more than $18 billion, representing an increase of 12.4% when compared to 2024 and a 34% increase year-over-year on a quarterly basis. Our EBITDA also reached a record high with almost $10 billion in 2025, an increase of almost 19% compared to 2024 and more than 50% when compared to the fourth quarter of last year. Our copper production in 2025 remained stable, showing a slight reduction of around 1% compared to the same period of 2024, totaling almost 1,070,000 tonnes compared to the same quarter of last year. We saw an increase of almost 2%. Our net cash cost amounted $89 per pound -- $0.89 per pound actually. This was a 22% improvement when compared to 2024, reflecting a reduction of $0.26 and a 34.2% improvement when compared to the fourth quarter of 2024. So we keep on -- as you know, we are -- we keep on being the mining company with the lowest cash cost worldwide.
As usual, you can find this summary of our financial highlights on Slide #8, which is there for you to have in case you need at any point in the presentation. It is also important to mention that our Board approved a MXN 1.50 per share during this quarter dividend, which translates into a 3.1% dividend yield and an almost 50% payout ratio.
On Slide #9. Thank you. Grupo Mexico continues to have a solid balance sheet with over $581 million generated during the fourth quarter of 2025. As you might already know, our debt is mainly issued in U.S. dollars, representing 79% of the total debt, while the rest is denominated in Mexican pesos and 87% of our total debt was issued at a fixed rate. Our stock had an excellent performance during the year. It increased over 99% in U.S. dollars and just shy of 72% in pesos.
On this slide, you can also see the dividend paid in 2024 and 2025. The payout ratio and the implied dividend yields, including the MXN 1.5 dividend for the quarter approved by the Board, which will be paid on March 22, 2026.
On the next slide, Slide #10, we show that we continue to have a comfortable debt maturity profile with no payments over $1 billion until 2028, while our cash position ended the quarter at $10.2 billion.
Now I'll pass the word to Mr. Leonardo Contreras to comment on the Mining division's performance.
Thank you, Marlene. Good afternoon, everyone, and thank you again for joining us today. I will start today with a brief remark on the current copper market on Slide 12. As you can see here, the LME copper price increased over 21% from an average of $4.16 per pound in the fourth quarter of 2024 to $5.03 this past quarter. For the COMEX market, we saw a 22% increase average during the past quarter, the fourth quarter of 2025 to $5.15 per pound. Now based on current supply and demand dynamics, we're currently estimating a copper market deficit of 320,000 tonnes for this year. Copper inventories worldwide at the end of September were around 1,054,000 tonnes. We estimate that this inventory currently covers approximately 14 days of global demand.
Now let's move on with the Mining division's financial highlights on Slide 13. Our accumulated sales reached $14.6 billion, 17.5% higher than last year due to volume increases of molybdenum, zinc and silver, together with an increase in prices of copper, LME was 8.7% more; molybdenum, 3.8% zinc, 3.2% and silver 41.6%. Sales showed a 42.5% increase compared to the fourth quarter of 2024. Our EBITDA totaled $8.2 billion for the year, 23.3% higher than 2024, with a margin of 56.2% and a 60.8% increase compared to the fourth quarter of 2024.
Now let's move to production. Our copper production remained relatively stable, totaling almost 1,070,000 tonnes, a slight reduction of 1% compared to the same period of 2024. Production increases were achieved at Asarco, IMMSA and Caridad operations as well as byproduct production showed excellent results. In cumulative terms, zinc, molybdenum and silver production grew 36%, 7.4% and 14.5%, respectively. Our net cash cost amounted $0.89 per pound, a 22.3% improvement compared to 2024, reflecting a reduction of $0.26 and a 30.2% improvement, a $0.02 reduction when compared to the fourth quarter of 2024, mainly due to higher byproduct credits. Regarding CapEx, we invested $1.4 billion in 2025.
And I would like to continue talking about our projects and the progress in Slide 14. Let's start with our Peruvian projects on Slide 14. As of December 31, 2025, Tia Maria has reached 24% completion. The company committed almost $800 million to project development, including mobilization of 1.7 million tonnes of material from La Tapada deposit. Completion of access roads, platforms and temporary contractor camp, issuance of purchase orders for metallic structures for the dry area and the selection of state-of-the-art technology for the SX-EW process. Significant progress also being made in energy infrastructure for Tia Maria. Now let's move on to Los Chancas, where environmental and social programs continue to be implemented throughout the year in the communities of Tapayrihua and Tiaparo located within the project's direct area of influence. Despite these efforts, the presence of illegal miners in the project area has hindered progress. In response, the company continues to work with the relevant authorities to restore control within that area. Lastly, in our Michiquillay project, the comprehensive review of geological information used to estimate the project's mineral resources has been duly audited in accordance with applicable SEC mining disclosure standards. Based on this information, the company intends to estimate mineral reserves and develop the corresponding mine plan going forward.
Now let's move on to Slide 15. To continue with our projects in the United States. We are analyzing the following projects with feasibility studies with a view to double our mine production and vertically integrate SX-EW operations with smelting and refining capacity. At our Ray mine, we are considering an expansion. We currently produce around 36,000 tonnes of concentrates, and it has a potential production increase of 58,000 tonnes of additional copper per year to reach a production total shy of 100,000 tonnes at around 95,000 tonnes, which is 161% increase. This requires an investment of $1.8 billion and will likely take approximately three years to be completed. Now let's move on to our Silver Bell mine, where we're looking to maximize lower ore grade sulfides through a concentrator plant that would represent an investment of USD 1.9 billion and resulting in an increase of 65,000 tonnes of copper per year as well as considerable silver and molybdenum byproducts. Currently, the feasibility studies are being completed, and we will have them by the end of the year. And we are proceeding with technical evaluation to reopen, expand and modernize the Hayden smelter and Amarillo refinery. This project could increase to initially smelt around 600,000 tonnes of copper concentrate and refine up to 450,000 tonnes of copper content per year in the United States. And lastly, we are proud to announce almost the completion of the pioneering autonomous haulage system at Asarco mine in Ray, Arizona, which is redirecting the future of the operation with 11 autonomous trucks with a capacity of 300 short tonnes.
Now continuing on Slide 16 with our project Los Frailes in Andalucia, Spain. This deposit is located within the Aznalcollar Mining District in the Iberian Pyritic Belt, a metallurgical zone of worldwide importance. The project consists of an underground mine with a milling plant of over 8,000 tonnes per day capacity that will produce zinc and copper concentrates with a reserve-based mine life of around 20 years and potential for exploration. Silver will also be obtained as a byproduct. The project will implement technology at the service of the circular economy in areas such as water management and waste treatment. In May 2025 last year, we obtained the mining project permit from Junta de Andalucia. And with this permit, the final engineering work started in order to begin construction in 2026 and production by 2029. It is estimated to require an initial investment of around $440 million. In 2026, a water treatment plant will be built to ensure the quality of the water currently in the pit. Additionally, in the first half of 2026, the company will initiate a diamond drilling exploration campaign on a satellite ore body, where 8.5 million tonnes of inferred resources have been identified.
Now going to Slide 17 with our Mexican projects. We have El Arco, where detailed engineering is still underway for the concentrator SX-EW plant, water desal, logistics infrastructure and power delivery. Lastly, El Pilar is a project that is approximately 45 kilometers away from our Buenavista mine and will operate as a conventional open pit mine with an annual capacity of 36,000 tonnes of copper cathodes. This operation will use a highly cost-efficient and environmentally friendly SX-EW technology.
Please, if you happen to have any follow-up questions, we'd be happy to address them during the Q&A session.
Now I will let Fernando comment on the Transportation division.
Thank you, Leo. Good morning, everyone, and thank you for joining us. Continuing with the Transportation division's results on Slide 19. I would like to talk about our financial highlights for this quarter. Our sales reached $3.4 billion. This is a 1.2% increase versus 2024, slightly impacted by an FX rate as it ended the year with a 6.6% increase in Mexican pesos. Our accumulated EBITDA by the end of the quarter has totaled $1.4 billion, which is basically flat versus 2024 and an 8.5% higher versus fourth quarter of 2024. Our EBITDA margin stood at 41.8%. Accumulated transported volume decreased 1.4% and 2.4% in net ton kilometers and carloads, respectively, ending the year with 1,986,000 railcars hauled. As for our net income, it totaled $487 million for the year, 2% lower than 2024, again, impacted by FX effect as it ended the year with a 5% increase in pesos. Lastly, a dividend of MXN 0.40 per share was approved by our Board.
As we continue with the main variations of our revenue on Slide 20, these variations consider the results in Mexican pesos. So this might vary using different currency. I'll start with the segment that delivered the strongest revenue growth this quarter. The auto segment led with a 15% increase driven by additional volume in longer hauls and production increase. These are automotive automakers shifting from over -- from using boats and vessels to get to the U.S. to return to the rail as efficiencies and time and velocity has improved throughout the network. The Agricultural segment grew by 14% due to the increase of grain border imports and the Minerals segment with an 11% increase driven by increased monthly programs due to higher demand of iron ore. The mid growth range, we have an Energy segment that showed a 7% increase in revenue with an increase in refined product imports from the U.S. into Mexico. Metal segment increased only 2% due to additional copper and pipeline volumes in longer hauls. This is partially offset by the lower demand in construction products, which also impacted cement shipments and partially offset by a lower demand for cement exports.
On the other hand, we saw revenue decline in a few segments. Intermodal decreased 4%. This is mainly due to imports from Asian markets, but basic -- the most significant impact was the systems of the Mexican customs that dropped or went offline on one hand and on the other, more intensive revisions from the Mexican authorities as they did this throughout the year, then cargo becomes hot and it is urgent for it to get to destination. So it shifts into over the road. Also in intermodal, we had at the beginning of the year and throughout the year, a lot of impact from what you call for legal fuels. But as the government has strengthened all their activities against the illegal fuel. This has allowed us to compensate substantially and be very competitive versus over the road. In chemicals, we have a decrease of 9%. This is mainly was chlorine and soda ash.
And talking about operating metrics on Slide 21. In general, metrics showed consistent improvement in performance during the quarter as we saw an increase in average train speed of 11% and an 18% decrease in dwell time that resulted in a considerable improvement of 18% in car velocity.
Moving to Slide 22. As you can see in our expected CapEx for 2026, GMXT's Board approved an investment of roughly $470-plus million for maintenance, special projects and the acquisition of locomotives. This CapEx allows us to maintain strategic and steady improvement. About half of our CapEx will be used in rail infrastructure, equipment, bridges, locomotive and machinery overhauls. 22% of the CapEx will be used in yards and terminals, focusing specifically in siding enlargements and yard reconfiguration so that we can run longer trains and start to move from 120 railcar trains to 150 railcar trains as the rest of North America currently does. In the U.S., we're running 150 railcars, and we need to shorten our trains at the border basically on the intermodal and automotive trains. So that's where we will be adjusting. And lastly, an investment of $70 million is planned for the acquisition of locomotives for our trains Long-haul trains. This is to an improvement in our fleet for long-haul trains, not the yard service locomotives.
On Slide 23, you'll find our 2026 outlook that implies between a 2% to 4% volume growth with a 5% to 7% revenue growth. With this, I conclude the overview for the Transportation division.
I will now let Francisco Zinser comment on the Infra division.
Thank you very much, Fernando, and good afternoon, everyone. I will start by going through the financial highlights of the Infrastructure division shown in Slide #25. Our sales reached $646 million during 2025, a 17.5% decrease when compared to 2024. This was due to the impact of the temporary suspension of four of our jack-up oil rigs and negative exchange rate effects. This was partially offset by the full year operation of the Fenicias wind farm and the integration of the new [ K8+Puebla ] portfolio in the real estate business unit. Our EBITDA totaled $309 million, a decrease of 27% versus 2024, with an EBITDA margin standing at 47.8%. Lastly, net income totaled $44 million, 57% lower when compared to last year.
To close the Infrastructure division highlights, I would like to go through some of our most relevant events on Slide #26 and 27. The energy business delivered another year of solid growth, reporting cumulative revenues of $303.5 million and a record EBITDA of $163.5 million, representing increases of 16.4% and 8.6% year-over-year, respectively. The results were supported mainly by the continued ramp-up of the Fenicias wind farm, which added 324 gigawatt hours of incremental generation, which is 10% higher than what we originally anticipated and produced $32.4 million in EBITDA during the year. In parallel, our energy platform continues to actively pursue growth and investment opportunities. The real estate business sustained its growth momentum in 2025, generating revenues of $95.6 million and an EBITDA of $59.3 million, an increase of 19.3% and 14.6% year-over-year, respectively. Performance was driven by the incorporation of the K8+Puebla portfolio, which added nine power centers to the platform, along with higher rental rates while maintaining an occupancy rate of 94.5%. On a peso basis, revenue and EBITDA increased 25% and 20%, respectively.
Going to Slide #27, our Construction and Engineering businesses reported cumulative revenues of $116 million and an EBITDA of $16 million in 2025. Results declined year-over-year due to the project completions and FX impact. In Mexican pesos, revenue contraction was limited to 3%, reflecting stable underlying activity. Although EBITDA margins were temporarily affected by the project mix and backlog, the business now maintains a strong technical capability, a healthy backlog and a proven record of execution. Our toll roads business continued to provide stable and strong performance, reporting cumulative revenues of $73 million and EBITDA of $50 million, representing year-over-year increases of 3%, respectively. Average daily traffic increased 3% to 23,000 equivalent vehicles, supported by tariff adjustments and sustained demand across the network. In peso terms, revenue and EBITDA grew 8% and 9%, highlighting strong operating leverage and effective cost management.
With this, I conclude our review of the main highlights of the Infrastructure division. We are happy to answer your follow-up questions. Thank you.
[Operator Instructions] Our first question comes from the line of Gabriel Barra with Citi.
2. Question Answer
We have two questions here from my end. So, the first one, when I take a look on the company balance sheet and the cash position that the company has today, it seems quite comfortable, right? So the question here is that it is more towards the capital allocation strategy going forward. How should we think about the company's strategy for the mid to long term in terms of M&As or even return this amount of money to the shareholders towards buybacks or dividends. So I want to hear your thoughts about that.
The second one, one thing that caught our attention here is the level of the holding discount that we are seeing for the stock today. And I don't know how much you guys are discussing about that, but it's something that I want also to hear from your thoughts about maybe have a med run or something like that in order to decrease this level of discount when you compare with some of the parts that the company has today. So those are the two questions that I have today.
Thank you. I didn't -- we didn't quite get the second question, but I think the first one was -- regarding the cash that we have, I think we're one of the companies that has the most, if not the only company with such a strong pipeline of projects to develop. As we recently commented, we are developing and we are Tia Maria, and we have a very strong pipeline in all of our three divisions to continue to grow. So the main -- we keep on -- we have a strong track record of dividend with the payout ratio that we normally have around 50%, which you saw this quarter as well. And then the strong pipeline of growth that is coming from all of the projects and investments that we're going to do.
And the second question, can you repeat that for me is regarding the discount to sum of the parts or something about the balance sheet. Can you repeat that for me?
Yes, sure, sure. It's more regarding the hold discount that you see for GMXT today when you compare with some of the parts of the company, right? So I don't know how much you guys are studying about maybe trying to decrease this level of hold discount, maybe listing the company in U.S. or something like that. I want to hear your thoughts about that.
And if I may, one follow-up on the first question. I understand and completely agree that you guys have today in terms of organic growth. But in terms of inorganic growth, should we expect something for the medium term? Or it's more towards the organic growth at this point?
Yes. We have -- we have always had a discount, a holding discount and sum of the parts. We have tried to do a lot of different strategies over the past many years to like decrease that discount. But I think this is something that we have always had. Even if we pay a very good dividend, the stock performance was very good during this year for Grupo Mexico. We keep on growing our transportation, the Asarco and the Infrastructure division.
So I think if we are trying to communicate it better. We will continue to give dividends if the Board decides that way. And I think it will be the case even with the strong projects that we have. And we will continue to analyze the possibility of doing buybacks. But as we have discussed before, it has tax implications. So we are trying to look around that to see if there's something that could work for us and the tax authorities as well.
One moment for our next question, please. It comes from the line of Regina Carrillo Villasana.
Congrats on the set of results. Maybe as a follow-up, you, Marlene, just mentioned the strong project pipeline that you have for the year, Tia Maria and Asarco and Spain. Is there -- are there any other relevant commitments or projects that you are looking at that we should be keeping in mind when thinking about CapEx and cash -- use of cash for the year?
Thank you, Regina. Thank you for your question. No, I think the main projects, as we mentioned, are right now, Tia Maria, we have Asarco, Minera Los Rales, the CapEx for the Transportation division for improving our operations and also to keep on growing in the Infrastructure division, but nothing else in particular to mention.
One moment for our next question, please. It comes from the line of Emerson Vieira with Goldman Sachs.
All right. So I want to focus here guys on the U.S. investments, chiefly the Hayden and Amarillo assets. So first question, I'd like to understand where will come from the rest of the anode capacity because in terms of concentrate, you guys have like 600 kt and then you have like 45 kt for cathodes, right? So just trying to understand where will the remaining portion come from? And if you guys are going to use scrap to fill up the refining capacity. So that's the first question.
And second one, what is exactly the time line for both Hayden and Amarillo to reopen? I mean, if you could tell us a specific time line in terms of when the studies will be concluded and when you should start constructing if that's the case?
And lastly, if there's any plan to add downstream capacity? I mean, are you guys going to sell the refined copper or maybe produce any other final product with the outcome from the refinery?
Emerson, let me address the first question in terms of Amarillo and the anode capacity, basically, what we are envisioning, we have to finalize our studies, but it is -- as you indeed mentioned, we will smelt around 150,000 tonnes of anodes that will go to the refinery, and we are evaluating if it's possible to complement with scrap so that we can reach the capacity that was outlined in the report. It will be a phased approach, and we need to conclude our studies. We are expecting to conclude it probably by the first half of this year.
And what was your last -- in terms of refined copper, I mean, yes, we will evaluate if the market for rod is as strong as it has been as we also have a rod plant in Amarillo. But for now, we're considering smelting and refining and rod will eventually come or not.
All right. And just a follow-up here. What would be the CapEx to modernize and reopen those assets?
Right now, we have rough estimates of around $220 million. But again, we need to finalize our studies for both the refinery and smelter.
So $220 million, correct? I'm sorry, can you confirm the amount? It could a little bit for me here.
Yes, it's $230 million.
$230 million. Okay. In terms of timing?
Timing, I mean, we will finalize the studies by the first half of this year, and then we will take it to the Board, and we will evaluate.
And what's the average construction time?
12 months.
12 months, okay.
One moment for our next question. And it comes from the line of Alfonso Salazar with Scotiabank.
I have three questions. The first one is again regarding Asarco. And this is regarding the expansions at the Ray concentrator and the Silver Bell mine. Just wondering about the timing, same thing about when can we expect to know all the details.
One question regarding also reserves to support these expansions. It would be good to have the information and all the details, especially with -- in terms of reserves to support such expansions.
The second one is regarding the infrastructure unit. How is management thinking about this division evolving in the next five years? So in other words, we see $10 billion in cash. Marlene just mentioned that this is going to support the pipeline of projects, Tia Maria and all the -- so projects. But what about expansion in the infrastructure unit? How do you see it? Do you want to expand and have more energy? Are you thinking about more real estate? Just is there any target on how EBITDA will be generated in this division?
And the final one I have is for the transportation division. Given that we have Mexico imposed tariffs to Chinese imports, is there any impact expected for transported volumes for GMXT.
Thank you, Alfonso. Let me address first the Asarco question in terms of the expansion at Ray. And at Silver Bell, at Ray, we would be expecting to have more information by the next quarter that we could share with everyone. Currently, the reserves at Ray are around 65 years. And at Silver Bell, basically, what we have is we're almost done with all the exploration. We're compiling it and doing all the QA/QCs to have a new life of mine plan for the sulfides. And we would have that probably by the third, but more towards the fourth quarter of this year. I don't know if you have any follow-up questions. If not, I will pass it.
Our next question comes from the line of Matheus Moreira with Bradesco BBI.
Two questions here on my side. The first one on Asarco, which delivered a very strong quarter in Q4, right, with production reaching multiyear highs. I wanted to understand what drove this strong performance? And is this a new normalized level of production going forward? Also, if you could share what you expect in terms of costs for the division in 2026?
Then my second question on the Infra division. I mean, 2025 was, of course, a challenging year, right, with -- given especially the curtailment of the PEMEX rigs. I was wondering what are your expectations for the division in 2026 in terms of volumes? Should we maybe anticipate higher contributions from other segments such as real estate or toll roads that could maybe help offset the continued weakness in oil rigs? Those are my two questions.
Let me address the first question for Asarco. What happened in the fourth quarter was that we were stable. We were able to run our plants with no issues in maintenance. I think we're getting there. We're just not there with that stability, but that's something that we're striving for this year. Hopefully, we can maintain that rhythm. And the cash cost for Asarco should be around $0.15 lower from the previous year. And I don't know if you wanted AMC's cash cost as well.
And sorry, Matheus, regarding your infrastructure question, yes, as you said, 2025 was a challenging year. For 2026, we are expecting -- I mean, all of our business lines are generally healthy and growing. So real estate, highways, power. And as you know, the challenge was with our oil rigs division. We've been having conversations with PEMEX throughout the past few weeks. And our expectation is that we can put our platforms to work at some point this year. They obviously help PEMEX with their own objectives of increasing oil production, and we've been having a good collaboration and communication with them. So we are very hopeful, and we are expecting them to get back to work as soon as we can. That's our expectation for this year. Hopefully, we will make it happen working with PEMEX as a team.
One moment for our next question. That comes from the line of John Tumazos with John Tumazos Very Independent opinions.
When you travel the output of Ray and roughly double the output of Asarco mining, smelting, refining, how much might the cost per pound reduction be? My first instinct was 10%, but maybe it's much more.
John, I just couldn't hear the last part on.
How much will you reduce the cost per pound of the Ray mine and the entire Asarco system with the large production increases and modernization expansion?
Look, with the expansion at Ray, currently, we're in the 95 percentile, and we would expect to be in the 50th percentile. That along with autonomous implementation hauls that we have implemented during the second half of last year. In terms of smelting and refining, we're still doing the numbers, but we should be around between $0.25 and $0.30 per pound in smelting and refining, we're still analyzing the numbers. But we will send you a note when we have a detailed number. I'm happy to share it.
Do you think the returns will be more than twice your cost of capital?
I have to revisit that and get back to you.
I'm just trying to give you a cream puff, way easy question.
One moment for our next question, please. We have a follow-up from Emerson Vieira with Goldman Sachs.
Just a follow-up on Hayden and Amarillo. Just trying to understand here if you guys would eventually begin the reopening and construction in partnership with U.S. government, for instance, as we have seen in other minerals? And also what types of incentives could happen so the asset could become economically viable given that TC/RCs are -- have been just, I mean, revised to zero this year in some contracts. So just trying to understand here what are the incentives to put the asset back into operations and if there's any potential partnership with the government?
Emerson, again, I think we're still undergoing studies. All of the items that you put on the table, they are still being analyzed. And not until we have further details, we're still studying. So probably by the second half of this year, we will have something more to talk about.
[Operator Instructions] Our next question is from Marcio Farid with Goldman Sachs.
Just a quick follow-up. I think, obviously, it's good to see Grupo Mexico having a series of projects lined up on the core corporate operations, right, including Mexico, the U.S. and also Spain as well. Just wondering if all of those CapEx would be done on a GM basis or in Southern corporate and eventually be a part of developing some of those projects from a CapEx, from an operational expertise perspective as well. Just to understand how the use of cash and use of balance sheet can look like.
I think your line is a little bit -- we couldn't hear very clear your question, but it is related to the use of cash and the CapEx that we were going to spend.
I think the projects we already mentioned in the Mining division in Southern Copper, we have Tia Maria and all the pipeline that we mentioned during the call. We can go through any specific projects if you want. We have also Los Frailes in Spain and the CapEx in Asarco that was just mentioned before by Leo. But I don't know if that was your question.
Yes. No, just the CapEx that is now exclusive on Asarco, right, I mean in the U.S. and outside of Southern Copper. If eventually, there could be a partnership between Asarco and NMAC or Southern Copper to develop those projects together or the idea, those $6.5 billion in the U.S. plus the Spanish CapEx, are those going to be done solely by Grupo Mexico or by Asarco itself and not in partnership with Southern Copper?
I mean, not at all. Right now, how they are -- it Asarco is independent of Southern Copper, and that's how it's been studied. So there are no discussions in that sense.
And this will conclude our Q&A session for today. I will pass it back to Marlene for closing comments.
Thank you so much, everyone, for being here today. Hope to see you next quarter. And if you have any follow-up questions, we'll keep in touch. Natalia will be here. Thank you, and thank you, everyone. Have a good day. Bye.
Thank you, Marlene. This concludes our conference, and thank you all for participating. You may now disconnect.
Financial data from Grupo Mexico
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 | 381,885 381,885 |
28%
28%
100%
|
|
| - Direct Costs | 178,519 178,519 |
12%
12%
47%
|
|
| Gross Profit | 203,366 203,366 |
46%
46%
53%
|
|
| - Selling and Administrative Expenses | 7,322 7,322 |
16%
16%
2%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | 221,374 221,374 |
42%
42%
58%
|
|
| - Depreciation and Amortization | 25,774 25,774 |
9%
9%
7%
|
|
| EBIT (Operating Income) EBIT | 195,601 195,601 |
48%
48%
51%
|
|
| Net Profit | 118,346 118,346 |
70%
70%
31%
|
|
In millions MXN.
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Company Profile
Grupo México S.A.B. de C.V. engages in the provision of copper business. The firm’s activities include mining, exploration, exploitation and freight railroad service and infrastructure development. It operates through the following divisions: Mining, Transportation, Infrastructure and Corporate. The Mining division includes copper extraction, copper smelting and refining operations, copper production, with byproducts of molybdenum, silver and other materials, mainly in Peru and the USA. The Transportation division provides rail transportation operations carried out through its subsidiaries. The Infrastructure division carries out activities such as provision of oil drilling services, construction services and construction of power generation plants. The Corporate division represents the balances and corporate transactions that originate from activities carried out in the US, Peru and Mexico. The company was founded in 1942 and is headquartered in Mexico City, Mexico.
StocksGuide Premium
| Head office | Mexico |
| CEO | Mr. Velasco |
| Employees | 31,757 |
| Founded | 1942 |
| Website | www.gmexico.com |
