Gruma SAB de CV
BMV:GRUMAB

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Gruma SAB de CV Logo
Gruma SAB de CV
BMV:GRUMAB
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Price: 299.33 MXN 1.86%
Market Cap: Mex$102.4B

P/OCF

7.8
Current
10%
Cheaper
vs 3-y average of 8.6

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
7.8
=
Market Cap
Mex$108.7B
/
Operating Cash Flow
$779.3m

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
7.8
=
Market Cap
Mex$108.7B
/
Operating Cash Flow
$779.3m

Valuation Scenarios

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

If P/OCF returns to its 3-Year Average (8.6), the stock would be worth Mex$331.23 (11% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-13%
Maximum Upside
+11%
Average Upside
2%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 7.8 Mex$299.33
0%
3-Year Average 8.6 Mex$331.23
+11%
5-Year Average 8.1 Mex$309.6
+3%
Industry Average 6.8 Mex$260.5
-13%
Country Average 8.3 Mex$318.01
+6%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
Market Cap P/OCF P/E
MX
Gruma SAB de CV
BMV:GRUMAB
102.5B MXN 7.8 11.7
JP
Goyo Foods Industry Co Ltd
TSE:2230
53.2T JPY 324 863.9 540 752.8
CH
Nestle SA
SIX:NESN
205.8B CHF 13.2 23.2
US
Mondelez International Inc
NASDAQ:MDLZ
74B USD 16.4 30.2
FR
Danone SA
PAR:BN
43.6B EUR 11.4 23.8
ZA
Tiger Brands Ltd
JSE:TBS
48.7B ZAR 21.4 12.8
US
Hershey Co
NYSE:HSY
39B USD 17.2 44.2
CN
Muyuan Foods Co Ltd
SZSE:002714
237.6B CNY 11 24.3
CN
Foshan Haitian Flavouring and Food Co Ltd
SSE:603288
231.2B CNY 29.8 32.8
ZA
Avi Ltd
JSE:AVI
32.7B ZAR 10.7 12.7
CH
Chocoladefabriken Lindt & Spruengli AG
SIX:LISN
23.8B CHF 45.3 32.4

Market Distribution

In line with most companies in Mexico
Percentile
45th
Based on 253 companies
45th percentile
7.8
Low
0.2 — 5.7
Typical Range
5.7 — 10.8
High
10.8 —
Distribution Statistics
Mexico
Min 0.2
30th Percentile 5.7
Median 8.3
70th Percentile 10.8
Max 222.2

Gruma SAB de CV
Glance View

Market Cap
102.4B MXN
Industry
Food Products

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

GRUMAB Intrinsic Value
416.28 MXN
Undervaluation 28%
Intrinsic Value
Price Mex$299.33
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