Seeking Alpha: Has First Cash Financial Seen The Turn?

The core pawn business at First Cash Financial (FCFS) has definitely slowed, with weak conditions in both Mexico and the U.S. That the company has managed this better than most of its rivals is not all that much comfort, particularly as weaker scrap and retail margins coupled with higher store expenses has actually led to shrinking operating income.

The good news is that conditions may be already starting to improve in Mexico. Discount retailers are seeing improving traffic and are starting to pull back on more aggressive discounting, while consumer confidence and job growth are back on the way up. This may not be a sharp rebound year for First Cash, and investors are likely getting restless in regards to seeing/hearing more about expansion into new markets, but the valuation is attractive enough to make it all worth the wait.

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Has First Cash Financial Seen The Turn?

Seeking Alpha: FEMSA May Just Be Getting Started

Mexico's FEMSA (FMX) has already accomplished quite a lot. Not only is Coca-Cola FEMSA (KOF) the second-largest Coca-Cola bottler in the world and the sole supplier of brands like Coke and Fanta to the world's second-largest soft drinks market (Mexico), but FEMSA also operates OXXO, one of the most profitable and well-run retail operations in Mexico. The stock certainly has reflected this success, with shares up nearly 50% over the past year and nearly 200% over the past five years, but shareholders may have even greater things to look forward to in the coming years.

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FEMSA May Just Be Getting Started