Betterware de Mexico (BWMX) AI Stock Analysis

• Market Cap: $670.21M
• Dividend Yield: 8.47%
• Average Volume (3M): 95.97K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.43
• Revenue Growth: -7.03%
• EPS Growth: 1.04%
• Country: US
• Employees: 2,524
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.48
• Shares Outstanding: 37,316,547
• 10 Day Avg. Volume: 171,637
• 30 Day Avg. Volume: 95,971
• PEG Ratio: -0.38
• Price to Book (P/B): 7.48
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 5.44
• Enterprise Value/Market Cap: 24.74
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 1.82
• Enterprise Value/Ebitda: 6.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $20.50 ▲(26.62% Upside)

The score is driven primarily by solid financial performance and favorable valuation (low P/E and high dividend yield). Earnings-call updates add support via margin/EBITDA expansion and leverage reduction, while the technical setup is less supportive due to overbought momentum signals that raise near-term pullback risk.

Positive Factors

Strong free cash flow conversion

Consistently high free cash flow conversion (77% of EBITDA) provides durable internal funding for growth, debt paydown and dividends. Reliable FCF enhances financial flexibility, supports strategic investments or M&A, and reduces reliance on external financing over the medium term.

EBITDA growth and margin expansion

Sustained EBITDA growth and a 362bp margin improvement reflect scalable cost structure and operating leverage in direct-selling and brand portfolio management. Higher structural margins increase cash generation resilience and create room to reinvest in product innovation and digital selling capabilities.

Acquisition expands brands and footprint

Acquiring Tupperware LatAm and a perpetual regional license materially broadens Betterware's brand portfolio, manufacturing and distribution scale. This structural move can boost market share, cross-sell, and manufacturing synergies, improving long-term revenue diversification and competitive positioning in LatAm.

Negative Factors

High leverage on balance sheet

A materially leveraged balance sheet increases financial vulnerability to cyclical demand shocks and raises interest expense sensitivity. High long-term leverage limits strategic flexibility, constrains capital allocation choices, and heightens refinancing and covenant risk over the next several quarters.

Declining gross and net margins

Eroding gross and net margins suggest structural cost or pricing pressures that can reduce long-term profitability. Without sustainable cost control or pricing power improvements, margin compression will impair cash generation and returns, making it harder to fund growth and deleveraging initiatives.

Tupperware deal largely debt-financed

Financing most of the Tupperware LatAm acquisition with new debt will meaningfully raise leverage and near-term interest burdens. Integration execution risk and potential working capital needs could further strain liquidity, offsetting some strategic benefits and slowing balance sheet repair.

Betterware de Mexico Business Overview & Revenue Model

Company Description

Betterware 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 Money

Betterware de Mexico generates revenue primarily through its direct-selling model, where independent distributors purchase products at wholesale prices and sell them at retail prices to consumers. This model allows BWMX to maintain low overhead costs while leveraging a large sales force to reach customers directly. Key revenue streams include product sales and commissions from distributors based on their sales performance. Additionally, BWMX benefits from repeat purchases and customer loyalty, as many of its products are designed for everyday use. The company also engages in promotional campaigns and partnerships that enhance its brand visibility and drive sales, contributing to its overall earnings.

Betterware de Mexico Financial Statement Overview

Summary

Strong revenue and free-cash-flow growth support the score, but declining gross and net margins and a leveraged balance sheet (high debt-to-equity, low equity ratio) temper overall financial quality.

Income Statement

Betterware de Mexico has shown impressive revenue growth, particularly in the TTM period, with a staggering increase of over 6900%. However, the gross profit margin has decreased significantly from previous years, indicating potential cost management issues. The net profit margin has also declined, suggesting reduced profitability. Despite these challenges, the company maintains a positive EBIT and EBITDA margin, reflecting operational efficiency.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses a risk in terms of financial stability. However, the return on equity is strong, suggesting that the company is effectively using its equity base to generate profits. The equity ratio is relatively low, highlighting a reliance on debt financing.

Cash Flow

Cash flow analysis shows a healthy growth in free cash flow, particularly in the TTM period, which is a positive indicator of the company's ability to generate cash. The operating cash flow to net income ratio is lower than previous years, suggesting potential challenges in converting income into cash. However, the free cash flow to net income ratio remains strong, indicating efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.22B	14.10B	13.01B	11.51B	10.07B	7.24B
Gross Profit	9.13B	9.58B	9.31B	7.52B	5.57B	3.96B
EBITDA	2.59B	2.21B	2.63B	2.22B	2.72B	948.05M
Net Income	1.03B	711.73M	1.05B	872.56M	1.75B	298.44M
Balance Sheet
Total Assets	10.10B	10.45B	11.09B	11.33B	5.19B	4.36B
Cash, Cash Equivalents and Short-Term Investments	333.52M	296.56M	549.73M	815.64M	1.18B	649.82M
Total Debt	5.22B	5.17B	5.50B	6.44B	1.53B	654.25M
Total Liabilities	8.81B	9.29B	9.62B	10.24B	3.99B	3.48B
Stockholders Equity	1.30B	1.16B	1.47B	1.10B	1.19B	881.98M
Cash Flow
Free Cash Flow	1.52B	1.60B	2.24B	1.10B	1.06B	1.20B
Operating Cash Flow	1.64B	1.82B	2.37B	1.27B	1.47B	1.82B
Investing Cash Flow	-20.27M	-31.91M	-65.33M	-4.81B	-320.38M	-631.40M
Financing Cash Flow	-1.56B	-2.05B	-2.57B	3.06B	-619.84M	-754.73M

Betterware de Mexico Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWMX, the sentiment is Positive. The current price of 16.19 is below the 20-day moving average (MA) of 17.25, above the 50-day MA of 15.37, and above the 200-day MA of 12.12, indicating a bullish trend. The MACD of 0.98 indicates Positive momentum. The RSI at 62.30 is Neutral, neither overbought nor oversold. The STOCH value of 53.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BWMX.

Betterware de Mexico Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWMX	71 Outperform	$670.21M	12.80	79.76%	8.47%	-7.03%	1.04%
SBH	71 Outperform	$1.50B	8.05	27.54%	―	-0.42%	31.64%
BBY	62 Neutral	$13.64B	21.49	22.49%	5.46%	-0.95%	-48.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BBWI	53 Neutral	$4.46B	6.70	―	4.16%	-1.04%	-20.88%
BBBY	45 Neutral	$406.90M	-2.10	-72.72%	―	-27.23%	62.19%

Betterware de Mexico Corporate Events

Betterware de México to Acquire Tupperware’s Latin American Operations in US$250 Million Deal

On January 19, 2026, Betterware de México’s parent BeFra signed a definitive agreement to acquire Tupperware’s operating assets in Latin America, mainly in Mexico and Brazil, for US$250 million and obtain a perpetual, royalty-free, exclusive license to the Tupperware brand across the region, with closing expected in the first half of 2026 subject to regulatory and shareholder approvals. The deal, financed largely with debt and partly with BeFra shares, is positioned as highly accretive, implying attractive valuation multiples and an expected 40% uplift in earnings per share, while modestly increasing leverage without altering the company’s dividend policy; strategically, it adds a third iconic direct-selling brand to BeFra’s platform, deepens its manufacturing and distribution footprint, and is intended to revive Tupperware LatAm’s sales and profitability through integration synergies, innovation and the management team’s prior experience with the Tupperware business.

The most recent analyst rating on (BWMX) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Betterware de Mexico stock, see the BWMX Stock Forecast page.

Betterware de México Reports Q3 2025 Financial Growth Amidst Market Challenges

In its third quarter of 2025, Betterware de México reported a 1.4% year-over-year increase in revenue despite challenging consumption trends in Mexico. The company achieved significant growth in profitability metrics, with EBITDA rising by 22% and EPS by 71%. While Betterware Mexico’s revenue fell by 5.3%, Jafra’s sales increased by 7.9%. Internationally, Betterware Ecuador and Jafra US showed promising growth, with plans to launch Betterware Colombia in early 2026. The company remains committed to its ‘Great Brands, One Essence’ strategy, focusing on profitability and financial discipline amidst macroeconomic challenges.

The most recent analyst rating on (BWMX) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Betterware de Mexico stock, see the BWMX Stock Forecast page.