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Betterware De Mexico, S.A. De C.V (BWMX)
:BWMX
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Betterware de Mexico
(NYSE:BWMX)
71Outperform
Betterware de Mexico (BWMX) vs. S&P 500 (SPY)
Market Cap
$391.45M
Dividend Yield13.87%
Average Volume (3M)24.89K
Price to Earnings (P/E)10.1
Beta (1Y)1.26
Revenue Growth10.45%
EPS Growth9.32%
CountryUS
Employees2,513
SectorConsumer Cyclical
Sector Strength56
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.07
Shares Outstanding37,316,547
10 Day Avg. Volume32,085
30 Day Avg. Volume24,886
Financial Highlights & Ratios
PEG Ratio0.88
Price to Book (P/B)N/A
Price to Sales (P/S)0.66
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Betterware de Mexico Business Overview & Revenue Model
Company DescriptionBetterware de México, S.A.P.I. de C.V. operates as a direct-to-consumer company in Mexico. It focuses on the home organization segment with a product portfolio, including home solutions, kitchen and food preservation, technology and mobility, bedroom, bathroom, laundry and cleaning, and other categories. The company sells its products through twelve catalogues. Betterware de México, S.A.P.I. de C.V. was incorporated in 1995 and is based in Zapopan, Mexico. Betterware de México, S.A.P.I. de C.V. is a subsidiary of Campalier, S.A. de C.V.
How the Company Makes MoneyBetterware de Mexico makes money through a direct sales model, leveraging an extensive network of independent distributors and associates to sell its products directly to consumers. The company generates revenue primarily from the sale of its diverse range of household products, which include storage solutions, cleaning products, and kitchenware. This direct selling approach allows Betterware to maintain relatively low overhead costs and pass savings onto its customers while incentivizing its network with commissions and bonuses. Additionally, Betterware's business model is augmented by its ability to rapidly adapt to consumer trends and demands, ensuring a steady stream of new and innovative products. The company's earnings are further supported by its efficient supply chain and logistics operations, enabling effective distribution across its target markets.
Betterware de Mexico Financial Statement Overview
Summary
Betterware de Mexico has demonstrated strong revenue growth and robust profit margins. However, challenges exist with high financial leverage and declining free cash flow growth, which could impact long-term financial stability.Income Statement
The company has demonstrated a solid gross profit margin and consistent revenue growth over the years. The TTM (Trailing-Twelve-Months) gross profit margin stands at a robust 71.77%, and the revenue has grown by 5.5% compared to the previous annual period. However, there has been a decline in EBIT and EBITDA margins over time, indicating potential cost management issues.75
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, with total debt significantly surpassing stockholders' equity, indicating higher financial leverage and potential risk. The equity ratio is relatively low at 10.9%, suggesting limited buffer against liabilities. However, the return on equity is strong at 74.77%, reflecting efficient use of equity to generate profits.60
Neutral
Cash Flow
The company shows a positive operating cash flow to net income ratio of 2.28, indicating healthy cash generation relative to its earnings. However, the free cash flow growth rate has decreased by 21.09% in the TTM period, raising concerns about sustaining capital expenditures and financing activities.70
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 13.72B | 13.01B | 11.50B | 10.04B | 7.26B | 3.08B | Gross Profit |
| 9.85B | 9.31B | 7.84B | 5.64B | 3.97B | 1.80B | EBIT |
| 2.00B | 2.35B | 1.85B | 2.72B | 2.12B | 812.25M | EBITDA |
| 2.52B | 2.63B | 2.22B | 2.72B | 2.17B | 857.67M | Net Income Common Stockholders |
| 885.40M | 1.05B | 872.56M | 1.75B | 298.44M | 472.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 230.85M | 549.73M | 686.15M | 1.18B | 649.82M | 213.70M | Total Assets |
| 0.00 | 11.09B | 11.38B | 5.39B | 4.41B | 1.79B | Total Debt |
| 0.00 | 5.50B | 6.44B | 1.53B | 654.25M | 702.30M | Net Debt |
| 230.85M | 4.95B | 5.75B | 353.07M | 4.43M | 488.60M | Total Liabilities |
| 0.00 | 9.62B | 10.31B | 4.06B | 3.49B | 1.52B | Stockholders Equity |
| 178.78M | 1.47B | 1.07B | 1.31B | 921.89M | 274.48M |
| Cash Flow | Free Cash Flow | ||||
| 1.76B | 2.24B | 1.10B | 1.10B | 1.12B | 422.82M | Operating Cash Flow |
| 2.02B | 2.37B | 1.27B | 1.52B | 1.83B | 605.45M | Investing Cash Flow |
| -103.85M | -65.33M | -4.81B | -376.03M | -656.14M | -175.60M | Financing Cash Flow |
| -2.09B | -2.57B | 3.06B | -620.40M | -740.58M | -393.54M |
Betterware de Mexico Technical Analysis
Negative
10.29
Price Trends
11.14
Negative
11.08
Negative
11.91
Negative
Market Momentum
-0.23
Positive
44.71
Neutral
39.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWMX, the sentiment is Negative. The current price of 10.29 is below the 20-day moving average (MA) of 10.82, below the 50-day MA of 11.14, and below the 200-day MA of 11.91, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 39.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BWMX.
Betterware de Mexico Risk Analysis
Betterware de Mexico disclosed 45 risk factors in its most recent earnings report. Betterware de Mexico reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Betterware de Mexico Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $391.45M | 10.08 | 55.70% | 13.87% | 10.45% | 9.32% | |
66 Neutral | $442.57M | 8.11 | 5.91% | ― | -0.24% | -10.33% | |
60 Neutral | $6.78B | 11.63 | 3.24% | 4.20% | 2.36% | -21.91% | |
53 Neutral | $388.14M | ― | -19.66% | ― | -2.11% | -6.49% | |
52 Neutral | $369.15M | 25.84 | 9.43% | ― | -10.71% | -86.13% | |
50 Neutral | $357.57M | ― | -36.88% | ― | 1.38% | 63.65% | |
46 Neutral | $344.72M | ― | -1.52% | ― | -7.84% | 88.34% |
* Consumer Cyclical Sector Average
Performance Comparison
BWMX
Betterware de Mexico
10.49
-7.20
-40.70%
FLWS
1-800 Flowers
5.42
-3.73
-40.77%
HZO
Marinemax
22.67
-2.93
-11.45%
ODP
ODP
13.06
-38.37
-74.61%
BNED
Barnes & Noble Education
10.50
10.29
4900.00%
YSG
Yatsen Holding
4.23
-0.24
-5.37%
Betterware de Mexico Earnings Call Summary
Earnings Call Date: Apr 24, 2025 | % Change Since: -1.91% | Next Earnings Date: Jul 24, 2025
Earnings Call Sentiment Negative
The earnings call reflects significant challenges faced by Betterware de México, including revenue decline, margin compression, and macroeconomic challenges. However, the company is implementing strategic initiatives like pricing adjustments and innovation to counteract these issues. Despite short-term hurdles, they maintain a positive outlook on their long-term growth potential.Highlights
Strategic Pricing and Promotional Activities
Betterware Mexico is focusing on strategic pricing decisions and increased promotional activity to balance product affordability and margin protection, keeping the sales force engaged.
Innovation and Product Pipeline
Continued focus on improving innovation processes and product pipeline across both Betterware and Jafra to surprise and delight customers, with efforts to make products more accessible.
Strong Internal Fundamentals
Despite external challenges, the company believes in its strong internal fundamentals and significant market share growth potential in both Mexico and the US for Jafra.
Lowlights
Revenue Decline
Consolidated net revenues decreased by 2.9% year over year due to challenging macroeconomic conditions, with Betterware Mexico revenue dropping 9.8%.
Gross Margin and EBITDA Decline
Consolidated gross margin declined by 303 basis points, and EBITDA decreased by 29.1% due to weaker sales volumes and compressed gross margin, particularly in Mexico.
FX and Macroeconomic Challenges
The Mexican peso depreciated around 20% year over year, affecting gross margins. Economic uncertainty, especially from the US, is impacting consumer confidence in Mexico.
Negative Free Cash Flow
The company experienced negative free cash flow for the quarter, attributed to higher inventory levels and increased tax payments, although a return to normal cash flow is expected.
EPS Decline
Consolidated EPS decreased by 48.7% due to lower sales, reduced profitability, and higher tax payments.
Halt on Betterware US Expansion
Expansion of Betterware in the US has been halted due to high tariffs on Chinese products and overall uncertainty, though Jafra US operations will continue.
Company Guidance
During the first quarter of 2025, Betterware de México, S.A.P.I. de C.V. faced several challenges, leading to a 2.9% year-over-year decline in consolidated net revenues, primarily due to a challenging macroeconomic environment and a 20% depreciation of the Mexican peso. This depreciation led to a 303 basis point contraction in the consolidated gross margin and a 29.1% decrease in consolidated EBITDA. Betterware Mexico's revenue fell by 9.8%, while Jafra's growth decreased from double to single digits due to margin compression and promotional expenditures. The company maintained an EBITDA margin of 15.3% despite these challenges. The net debt to EBITDA ratio was 2.08, slightly higher than the 1.83 reported in Q1 2024. Despite a negative free cash flow for the quarter, the company expects to return to normal cash flow levels as inventory levels decrease. Betterware de México is maintaining its full-year guidance for 2025, projecting net revenue and EBITDA growth of 6 to 9%, supported by strategic pricing, promotional activities, Salesforce engagement, and innovation efforts.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.