Betterware de Mexico (BWMX) AI Stock Analysis

Compare

134 Followers

BWMX Dividends

Top Page

Betterware de Mexico

(NYSE:BWMX)

64Neutral

Betterware de Mexico faces significant operational and financial challenges, reflected in its mixed financial performance and bearish technical indicators. Despite these hurdles, the company's attractive valuation and strategic initiatives provide some optimism for long-term growth. However, short-term risks and macroeconomic uncertainties weigh on the overall stock score.

Betterware de Mexico (BWMX) vs. S&P 500 (SPY)

Market Cap

$344.06M

Dividend Yield15.48%

Average Volume (3M)29.00K

Price to Earnings (P/E)11.5

Beta (1Y)1.12

Revenue Growth-5.05%

EPS Growth-55.02%

CountryUS

Employees2,513

SectorConsumer Cyclical

Sector Strength62

IndustrySpecialty Retail

Share Statistics

EPS (TTM)0.80

Shares Outstanding37,316,547

10 Day Avg. Volume38,428

30 Day Avg. Volume29,002

Financial Highlights & Ratios

PEG Ratio0.88

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

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 Mexico (BWMX) is a leading home organization and solutions company based in Mexico. The company specializes in providing a wide range of innovative and practical home products designed to improve the quality and efficiency of daily life. Its core offerings include home organization, kitchenware, cleaning, and personal care products, primarily distributed through a robust direct-to-consumer model leveraging a network of independent distributors across the country.

How the Company Makes MoneyBetterware de Mexico makes money through its direct sales model, which involves a large network of independent distributors and associates who sell its products directly to consumers. The company primarily generates revenue from the sale of its products, which are focused on home organization and improvement solutions. Key revenue streams include sales from kitchenware, cleaning supplies, and personal care products. The company benefits from its extensive distribution network and a strong brand presence in Mexico. Significant factors contributing to its earnings include its product innovation, market penetration strategies, and the ability to leverage its direct selling approach to reach a broad customer base efficiently.

Betterware de Mexico Financial Statement Overview

Summary

Betterware de Mexico exhibits strong revenue growth and robust cash flow generation, supporting operational objectives. However, challenges in managing leverage and profitability margins exist, necessitating careful management to sustain growth and financial stability.

Income Statement

Positive

Betterware de Mexico has shown consistent revenue growth with an impressive increase from 2023 to 2024. However, the net profit margin has decreased, indicating rising costs or inefficiencies. The gross profit margin remains strong, reflecting effective cost management on the cost of goods sold. EBIT and EBITDA margins have also decreased, showing potential pressure on operational efficiency.

Balance Sheet

Positive

The company has a high debt-to-equity ratio, indicating significant leverage which could pose financial risks if not managed well. However, the equity ratio is relatively low, suggesting limited equity financing. Return on equity has decreased, reflecting a reduced profitability on shareholders' investments. The balance sheet indicates an increase in liabilities, which could be concerning if growth does not offset leverage.

Cash Flow

Very Positive

Cash flow remains robust, with a significant free cash flow, though it has declined from the previous year. The operating cash flow to net income ratio indicates strong cash generation relative to net income, a positive sign for liquidity. However, the free cash flow growth rate has declined, which may limit future expansion or debt reduction opportunities.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
14.10B	13.01B	11.50B	10.04B	7.26B
	Gross Profit
9.58B	9.31B	7.84B	5.64B	3.97B
	EBIT
1.69B	2.35B	1.85B	2.72B	2.12B
	EBITDA
2.21B	2.63B	2.22B	2.72B	2.17B
	Net Income Common Stockholders
711.73M	1.05B	872.56M	1.75B	298.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
296.56M	549.73M	686.15M	1.18B	649.82M
	Total Assets
10.45B	11.09B	11.38B	5.39B	4.41B
	Total Debt
5.17B	5.50B	6.44B	1.53B	654.25M
	Net Debt
4.87B	4.95B	5.75B	353.07M	4.43M
	Total Liabilities
9.29B	9.62B	10.31B	4.06B	3.49B
	Stockholders Equity
1.16B	1.47B	1.07B	1.31B	921.89M
Cash Flow		Free Cash Flow
1.60B	2.24B	1.10B	1.10B	1.12B
	Operating Cash Flow
1.82B	2.37B	1.27B	1.52B	1.83B
	Investing Cash Flow
-31.91M	-65.33M	-4.81B	-376.03M	-656.14M
	Financing Cash Flow
-2.05B	-2.57B	3.06B	-620.40M	-740.58M

Betterware de Mexico Technical Analysis

Technical Analysis Sentiment

Negative

Last Price10.29

Price Trends

50DMA

10.99

Negative

100DMA

10.96

Negative

200DMA

11.81

Negative

Market Momentum

MACD

-0.36

Positive

RSI

32.13

Neutral

STOCH

22.10

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 10.42, below the 50-day MA of 10.99, and below the 200-day MA of 11.81, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 32.13 is Neutral, neither overbought nor oversold. The STOCH value of 22.10 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWMX	64 Neutral	$344.06M	11.48	42.07%	15.48%	-5.05%	-55.02%
HZO	63 Neutral	$488.31M	9.26	5.91%	―	-0.24%	-10.33%
Sector *	61 Neutral	$6.66B	11.71	2.96%	4.01%	2.64%	-20.91%
ODP	53 Neutral	$421.93M	29.41	9.43%	―	-10.71%	-86.13%
BNED	50 Neutral	$352.80M	―	-36.88%	―	1.38%	63.65%
YSG	50 Neutral	$371.63M	―	-19.66%	―	-2.11%	-6.49%
FLWS	46 Neutral	$356.17M	―	-1.52%	―	-7.84%	88.34%

* Consumer Cyclical Sector Average

Performance Comparison

BWMX

Betterware de Mexico

9.22

-7.50

-44.86%

FLWS

1-800 Flowers

5.60

-3.18

-36.22%

HZO

Marinemax

22.74

-3.04

-11.79%

ODP

14.15

-38.11

-72.92%

BNED

Barnes & Noble Education

10.36

10.13

4404.35%

YSG

Yatsen Holding

4.05

-0.31

-7.11%

Betterware de Mexico Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% 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.

Q1-2025 Updates

Positive Updates

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.

Negative Updates

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.