# Gruma (GRUMAB.MX)

Canonical: https://gigainvestors.com/s/GRUMAB.MX

Analysis as of: 2026-10-16T07:37:57.752Z. Financial observations: FY2018–FY2025.

Listing currency: MXN. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: MXN 241.06 per share; close as of 2026-10-15.

Estimated value: low MXN 218.26 per share, central MXN 236.72 per share, high MXN 259.12 per share. Buy at or below the central value MXN 236.72 per share. Valuation as of 2026-10-16T07:37:57.752Z; scenarios are not confidence intervals.

Expected annual return: 13.0% at the stated quote. About 13.0% a year at today's price (required return 13.3%). required return 13.3% a year (MX 10-year bond 9.3% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 8 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.07×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.13×

- FY2019: 0.12×

- FY2020: 0.12×

- FY2021: 0.12×

- FY2022: 0.11×

- FY2023: 0.12×

- FY2024: 0.14×

- FY2025: 0.14×

### moat: pass

- ROIC, median of available years: 15.3%

- ROIC, second-lowest year: 13.4%

- Typical minus recent gross margin: -1.3 pp

- Typical gross margin (annual median): 37.3%

- Recent gross margin (lower of latest and 3-year median): 38.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.8%

- ROIC including acquisitions, ten-year median: 11.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 15.1%

- FY2019: 13.3%

- FY2020: 15.5%

- FY2021: 14.1%

- FY2022: 13.4%

- FY2023: 15.7%

- FY2024: 18.8%

- FY2025: 16.7%

### economics: pass

- Owner earnings / net income, 5-yr: 0.97×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.1B

- Net income, five-year total: $2.1B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -65.9 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.67×

- FY2022: 1.00×

- FY2023: 1.03×

- FY2024: 1.01×

- FY2025: 1.04×

### management: pass

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 15.1% vs 16.7%

- Per-share earnings: 0.61 to 1.46 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -2.7%

- Market cap gain: $739M

- Cumulative retained earnings: $1.2B

- Diluted shares, 5-year annual growth: -2.7%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 19.0%

- Per-share value change: $0.85

- Per-share value, starting three-year median: $0.61

- Per-share value, ending three-year median: $1.46

- Buybacks concentrated in cheaper years (correlation): 0.12

- Average buyback yield: 2.6%

- Buyback history: 8 years

- Debt-funded buybacks: No

- ROIC, first three-year median: 15.1%

- ROIC, last three-year median: 16.7%

Chart: Earnings per share; fiscal year observations.

- FY2018: $0.59

- FY2019: $0.61

- FY2020: $0.67

- FY2021: $0.77

- FY2022: $0.85

- FY2023: $1.16

- FY2024: $1.46

- FY2025: $1.57

### accounting: pass

- Sloan accruals: -3.2%

- Receivables to sales index (DSRI): 1.35×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.30×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.10×

Chart: Sloan accruals; fiscal year observations.

- FY2018: -4.4%

- FY2019: -4.2%

- FY2020: -10.2%

- FY2021: -6.6%

- FY2022: 0.4%

- FY2023: -6.7%

- FY2024: -7.6%

- FY2025: -3.2%

## Holders

## Price story

Down 36% since Apr 2025 · sales +4.6%

Story as of 2026-10-16T10:00:09.612Z; price observation 2026-10-15.

Price needs cash profits to grow 1.2% a year for ten years

### Sales · FY2024–2025

sales +4.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2018: $3.8B 

- FY2019: $4.1B 

- FY2020: $4.6B 

- FY2021: $4.6B 

- FY2022: $5.6B 

- FY2023: $6.6B 

- FY2024: $6.5B 

- FY2025: $6.8B 

### Gross margin · FY2025

gross margin 39.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2018: 37.4% 

- FY2019: 37.1% 

- FY2020: 38.2% 

- FY2021: 36.0% 

- FY2022: 35.4% 

- FY2023: 35.5% 

- FY2024: 38.5% 

- FY2025: 39.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in packaged foods; annual sales are USD 6.8 billion.

- Source: https://eodhd.com/api/fundamentals/GPAGF.US.json#2025-12-31 (filed 2026-10-16T07:37:57.752Z); FY2025: revenue 6782117707; grossProfit 2651994629; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GRUMAB.MX: Gruma, S.A.B. de C.V., together with its subsidiaries, operates as a food company in Mexico, the United States, Europe, Asia, Oceania, and Central America. The company operates through Corn Flour and Packaged Tortilla Division (United States); Corn Flour Division (Mexico); Corn Flour and Packaged Tortilla Division (Europe); and Other segments. It engages in the manufacturing and distribution of corn flours. The company also offers grits snacks and cereals, polenta, and prepared flour; corn and wheat tortillas; tortilla chips, taco shells, and toasted tortillas; wraps, such as pita bread, naan, pizza doughs, and other flatbreads; and sauces and dips, including palmito, snacks, marinades, and pasta. In addition, it provides rice and oats; hearts of palm, and packaged tortillas and snacks; and balanced feed for livestock. Further, the company is involved in research and development of nixtamalized corn flour and tortilla manufacturing equipment; production of machinery for nixtamalized corn flour and tortilla; and construction of nixtamalized corn flour manufacturing facilities. It sells its products under the Maseca, Mission, Guerrero, Tosty, TortiRicas, Rumba, La Cima, Masa Rica, Del Fogón, Arroz Luisiana, Delicados, and Rodotec, as well as Tortimasa, Juana, Mimasa, Bravos, Papiola, Tronaditas, Missiondeli, and Mexifoods brands. The company distributes its products through independent distributors and wholesalers, supermarket chains, retailers, restaurants, cafeterias, hotels, and fast-food chains. Gruma, S.A.B. de C.V. was founded in 1949 and is headquartered in San Pedro Garza García, Mexico.

### Why customers stay

Margins ranged from 35.5% to 39.1% during 2023–25; it earns 15.3% on its capital.

- Source: https://eodhd.com/api/fundamentals/GPAGF.US.json#2023-12-31 (filed 2026-10-16T07:37:57.752Z); FY2023: grossProfit / revenue = 35.5%.

- Source: https://eodhd.com/api/fundamentals/GPAGF.US.json#2024-12-31 (filed 2026-10-16T07:37:57.752Z); FY2024: grossProfit / revenue = 38.5%.

- Source: https://eodhd.com/api/fundamentals/GPAGF.US.json#2025-12-31 (filed 2026-10-16T07:37:57.752Z); FY2025: grossProfit / revenue = 39.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:57.752Z); 8-year return on capital observations [[2018,0.15126835321649248],[2019,0.13349616492429348],[2020,0.15496828176502708],[2021,0.14122097688667623],[2022,0.133802973474759],[2023,0.15729165272752338],[2024,0.187747661119598],[2025,0.16720398920145157]]; median 0.15311831749075977. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 35% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:57.752Z); Gross margin observations: [[2021,0.35968304460631767],[2022,0.3536959175902746],[2023,0.35485528942874567]]; range within 2 percentage points.

### Where the cash goes

Reinvests 5.9% of cash earnings; paid dividends in 8 of 8 years.

- Source: https://eodhd.com/api/fundamentals/GPAGF.US.json#2018-12-31 (filed 2026-10-16T07:37:57.752Z); FY2018: growth capex 0; upkeep 217386324.55; owner earnings 153145777.45. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/GPAGF.US.json#2019-12-31 (filed 2026-10-16T07:37:57.752Z); FY2019: growth capex 0; upkeep 95542223.89; owner earnings 327669564.11. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/GPAGF.US.json#2020-12-31 (filed 2026-10-16T07:37:57.752Z); FY2020: growth capex 1516694.6200000048; upkeep 185654029; owner earnings 269807246. Growth capex / owner earnings = 0.005621400620204265.

- Source: https://eodhd.com/api/fundamentals/GPAGF.US.json#2021-12-31 (filed 2026-10-16T07:37:57.752Z); FY2021: growth capex 10954095.307136297; upkeep 279782931.9528637; owner earnings 201722068.0471363. Growth capex / owner earnings = 0.05430291000475297.

- Source: https://eodhd.com/api/fundamentals/GPAGF.US.json#2022-12-31 (filed 2026-10-16T07:37:57.752Z); FY2022: growth capex 101611000; upkeep 196558000; cash acquisitions 0; owner earnings 319222000. Growth capex plus acquisitions / owner earnings = 0.3183082619618949.

- Source: https://eodhd.com/api/fundamentals/GPAGF.US.json#2023-12-31 (filed 2026-10-16T07:37:57.752Z); FY2023: growth capex 0; upkeep 211094000; cash acquisitions 0; owner earnings 442387000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/GPAGF.US.json#2024-12-31 (filed 2026-10-16T07:37:57.752Z); FY2024: growth capex 0; upkeep 233664000; cash acquisitions 0; owner earnings 539085000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/GPAGF.US.json#2025-12-31 (filed 2026-10-16T07:37:57.752Z); FY2025: growth capex 0; upkeep 239345783; cash acquisitions 33766000; owner earnings 574679849. Growth capex plus acquisitions / owner earnings = 0.05875619278935253.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:57.752Z); Dividend observations: [[2018,93591922.38],[2019,98844503.21],[2020,104628340.51],[2021,106096000],[2022,97500000],[2023,111730000],[2024,105046000],[2025,105490238]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/GPAGF.US.json#2025-12-31 (filed 2026-10-16T07:37:57.752Z); FY2025: cash repurchases 297367958 USD.

### Are managers owners

Insiders own 57.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GRUMAB.MX SharesStats.PercentInsiders = 57.349000000000004 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 1.2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:57.752Z); Ten-year compound average after fade. Initial solved rate 0.0038606760803486795. Price 241.06; FX 18.44337882700111; discount 0.13252; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (MXN per share)

- 2016-10: MXN 262.25 per share

- 2016-11: MXN 246.01 per share

- 2016-12: MXN 263.10 per share

- 2017-01: MXN 280.57 per share

- 2017-02: MXN 264.92 per share

- 2017-03: MXN 263.51 per share

- 2017-04: MXN 251.38 per share

- 2017-05: MXN 243.25 per share

- 2017-06: MXN 236.68 per share

- 2017-07: MXN 245.89 per share

- 2017-08: MXN 262.22 per share

- 2017-09: MXN 266.23 per share

- 2017-10: MXN 251.13 per share

- 2017-11: MXN 231.04 per share

- 2017-12: MXN 249.30 per share

- 2018-01: MXN 222.30 per share

- 2018-02: MXN 218.20 per share

- 2018-03: MXN 208.57 per share

- 2018-04: MXN 228.43 per share

- 2018-05: MXN 209.15 per share

- 2018-06: MXN 242.90 per share

- 2018-07: MXN 241.24 per share

- 2018-08: MXN 242.05 per share

- 2018-09: MXN 239.24 per share

- 2018-10: MXN 212.00 per share

- 2018-11: MXN 222.90 per share

- 2018-12: MXN 222.70 per share

- 2019-01: MXN 232.97 per share

- 2019-02: MXN 208.84 per share

- 2019-03: MXN 198.20 per share

- 2019-04: MXN 189.49 per share

- 2019-05: MXN 186.91 per share

- 2019-06: MXN 180.14 per share

- 2019-07: MXN 175.63 per share

- 2019-08: MXN 186.66 per share

- 2019-09: MXN 201.94 per share

- 2019-10: MXN 201.85 per share

- 2019-11: MXN 197.00 per share

- 2019-12: MXN 194.13 per share

- 2020-01: MXN 200.80 per share

- 2020-02: MXN 189.06 per share

- 2020-03: MXN 181.67 per share

- 2020-04: MXN 228.79 per share

- 2020-05: MXN 220.08 per share

- 2020-06: MXN 248.05 per share

- 2020-07: MXN 261.15 per share

- 2020-08: MXN 258.81 per share

- 2020-09: MXN 245.05 per share

- 2020-10: MXN 225.61 per share

- 2020-11: MXN 222.37 per share

- 2020-12: MXN 236.93 per share

- 2021-01: MXN 225.06 per share

- 2021-02: MXN 228.02 per share

- 2021-03: MXN 241.39 per share

- 2021-04: MXN 220.29 per share

- 2021-05: MXN 217.04 per share

- 2021-06: MXN 222.81 per share

- 2021-07: MXN 215.38 per share

- 2021-08: MXN 229.37 per share

- 2021-09: MXN 236.30 per share

- 2021-10: MXN 241.75 per share

- 2021-11: MXN 259.91 per share

- 2021-12: MXN 262.52 per share

- 2022-01: MXN 269.80 per share

- 2022-02: MXN 277.77 per share

- 2022-03: MXN 250.15 per share

- 2022-04: MXN 242.39 per share

- 2022-05: MXN 233.86 per share

- 2022-06: MXN 222.55 per share

- 2022-07: MXN 253.49 per share

- 2022-08: MXN 219.53 per share

- 2022-09: MXN 192.90 per share

- 2022-10: MXN 229.83 per share

- 2022-11: MXN 240.83 per share

- 2022-12: MXN 260.74 per share

- 2023-01: MXN 273.89 per share

- 2023-02: MXN 268.21 per share

- 2023-03: MXN 265.84 per share

- 2023-04: MXN 281.43 per share

- 2023-05: MXN 271.88 per share

- 2023-06: MXN 274.78 per share

- 2023-07: MXN 300.38 per share

- 2023-08: MXN 284.63 per share

- 2023-09: MXN 298.48 per share

- 2023-10: MXN 313.73 per share

- 2023-11: MXN 321.88 per share

- 2023-12: MXN 311.14 per share

- 2024-01: MXN 322.20 per share

- 2024-02: MXN 303.53 per share

- 2024-03: MXN 310.68 per share

- 2024-04: MXN 336.46 per share

- 2024-05: MXN 329.30 per share

- 2024-06: MXN 333.79 per share

- 2024-07: MXN 348.32 per share

- 2024-08: MXN 361.43 per share

- 2024-09: MXN 365.63 per share

- 2024-10: MXN 345.64 per share

- 2024-11: MXN 344.96 per share

- 2024-12: MXN 325.90 per share

- 2025-01: MXN 359.13 per share

- 2025-02: MXN 354.91 per share

- 2025-03: MXN 369.52 per share

- 2025-04: MXN 374.76 per share

- 2025-05: MXN 365.51 per share

- 2025-06: MXN 323.77 per share

- 2025-07: MXN 326.04 per share

- 2025-08: MXN 320.87 per share

- 2025-09: MXN 339.98 per share

- 2025-10: MXN 315.29 per share

- 2025-11: MXN 323.57 per share

- 2025-12: MXN 310.24 per share

- 2026-01: MXN 314.69 per share

- 2026-02: MXN 308.74 per share

- 2026-03: MXN 328.65 per share

- 2026-04: MXN 303.16 per share

- 2026-05: MXN 290.76 per share

- 2026-06: MXN 280.94 per share

- 2026-07: MXN 258.23 per share

- 2026-08: MXN 247.21 per share

- 2026-09: MXN 234.80 per share

- 2026-10: MXN 241.32 per share

## Annual estimated value (MXN per share)

- FY2022: low MXN 132.54 per share, central MXN 144.13 per share, high MXN 158.21 per share

- FY2023: low MXN 162.96 per share, central MXN 177.18 per share, high MXN 194.43 per share

- FY2024: low MXN 163.50 per share, central MXN 177.74 per share, high MXN 195.01 per share

- FY2025: low MXN 202.37 per share, central MXN 219.95 per share, high MXN 241.29 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations