Risk factor
Negligible price volatility
Profitability factor
Strong margins and returns
About
Gruma, S.A.B. de C.V., along with its affiliates, operates as a global food enterprise specializing in the manufacturing and sale of corn flour, tortillas, and a wide array of associated food products. Its diverse offerings include various corn-based items like corn flour, grits for snacks, cereal, and brewing, alongside polenta. The company also produces prepared corn and wheat flours for a range of baked goods such as pancakes, cakes, crêpes, brownies, churros, and pizza doughs. Beyond flours, Gruma manufactures corn and wheat tortillas, snack items like tortilla chips, taco shells, and tostadas, and an assortment of flatbreads including wraps, pita, naan, and crackers. Their food portfolio further encompasses sauces, dips, palmito, pasta, marinades, rice, and oats, sold under well-known brand names such as Maseca, Mission, and Guerrero. Additionally, Gruma engages in industrial solutions, designing, producing, and selling machinery for corn and wheat tortilla and tortilla chip production under the TORTEC and RODOTEC brands. They also create corn milling equipment and offer engineering, design, and construction services. The company caters to a broad customer base, including retail outlets like supermarkets, food service providers such as restaurants and institutions, and industrial clients like tortilla and corn chip manufacturers. Distribution is primarily managed via independent distributors and wholesalers. Gruma boasts a substantial international presence, with operations spanning Mexico, the United States, Central America, Europe, Asia, and Oceania. Established in 1949, its corporate headquarters are located in San Pedro Garza García, Mexico.
Company Valuation
Considering past and projected metrics, the stock is slightly 'cheaper' than its peers. Specifically, the stock is fairly valued on P/E, undervalued on EV/EBITDA, overpri
Target Price
The average target price of GRUMAB.MX is 389 and suggests 31% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to in