HXM Desarrolladora Homex

Exchange

NYSE

Sector

Basic Industries

Industry

Homebuilding

Market Cap.

226.5M

Very Poor Cash Return on Invested Capital over the past 5 years

HXM has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

HXM has lost $3.43 of cash for every $100 invested.

Figures in MXN. Fiscal year ends in December

	2007	2008	2009	2010	2011
Free Cash Flow	-20.56M	-3.80B	448.78M	-1.38B	1.33B
divided by
Invested Capital	15.01B	20.60B	25.06B	24.93B	25.80B
Cash ROIC	-0.14%	-18.42%	1.79%	-5.54%	5.14%

Shrinking Return on Equity over the past 5 years

HXM has been shrinking returns with capital that shareholders have invested. This is a negative sign and demonstrates that both the business and management performance are weakening over time.

HXM has generated $14.77 of Earnings for every $100 of Shareholders' Equity.

Figures in MXN. Fiscal year ends in December

	2007	2008	2009	2010	2011
Net Income	2.23B	1.62B	1.84B	1.51B	1.30B
divided by
Stockholders' Equity	9.63B	11.27B	12.99B	12.13B	13.49B
Return on Equity	23.18%	14.36%	14.18%	12.46%	9.67%

Poor Business Performance over the past 10 years

HXM's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

HXM has been losing money for the majority of the past 10 years.

Figures in MXN. Fiscal year ends in December

	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011
Free Cash Flow	-	-289.37M	-1.31B	-290.11M	967.28M	-20.56M	-3.80B	448.78M	-1.38B	1.33B