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Betterware de Mexico (BWMX)
NYSE:BWMX
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Betterware de Mexico
(NYSE:BWMX)
Rating:76Outperform
Price Target:
$15.00
▲(12.61% Upside)
Betterware de Mexico (BWMX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$497.06M
Dividend Yield9.14%
Average Volume (3M)81.10K
Price to Earnings (P/E)16.9
Beta (1Y)1.07
Revenue Growth-8.56%
EPS Growth-57.78%
CountryUS
Employees2,524
SectorConsumer Cyclical
Sector Strength81
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.47
Shares Outstanding37,316,547
10 Day Avg. Volume49,983
30 Day Avg. Volume81,098
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue0.04
Enterprise Value/Gross Profit0.06
Enterprise Value/Ebitda0.29
Forecast
1Y Price Target
$15.00Price Target Upside12.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 primarily through the direct selling and distribution of its products via a robust network of distributors and associates. The company employs a direct sales model, where independent distributors purchase products at a wholesale price and sell them at retail prices, earning a margin on each sale. This model allows Betterware to reach a broad customer base without the overhead costs associated with traditional retail operations. Additionally, the company benefits from the scalability of its network, as distributors not only sell products but also recruit new members, creating a multi-level marketing structure that drives sales growth. Partnerships with suppliers for product manufacturing and logistics also contribute to the company's ability to maintain competitive pricing and operational efficiency.
Betterware de Mexico Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment, with multiple indicators of recovery and growth, particularly in Latin America. While there were challenges, such as the decline in Jafra US revenue and gross margin pressures, the overall performance showed resilience and strategic progress, especially in recovering from the first quarter and expanding geographically.Q2-2025 Updates
Positive Updates
Consolidated Revenue Growth
BeFra's consolidated revenue grew 5.1% year-over-year and 1.8% quarter-on-quarter, driven by all business units.
Betterware Mexico Recovery
Betterware Mexico returned to sequential growth with revenue up 4% quarter-over-quarter, recovering from a 9.8% year-over-year decline in Q1.
Associate Base Expansion
BeFra expanded its associate base from 1.12 million at the end of Q1 2025 to 1.13 million by the end of Q2 2025, a 0.5% quarter-on-quarter growth.
Jafra Mexico Growth
Jafra Mexico delivered double-digit growth and returned to profitability with revenue up 10.9% year-on-year and EBITDA margin expanding to 21.2%.
Free Cash Flow Increase
Free cash flow rose to MXN 592 million in Q2, bringing year-to-date conversion to 44.2% of EBITDA and 87% conversion for the second quarter.
Geographic Expansion Success
Betterware Ecuador launched successfully, surpassing the second quarter goal by reaching 2,500 active associates.
Improved Debt Leverage
Net debt-to-EBITDA ratio improved to 1.97x from 2.08x in Q1 2025.
Negative Updates
Jafra US Revenue Decline
Jafra US revenue decreased 8.9% year-on-year in U.S. dollars, despite a 15.6% rebound quarter-over-quarter.
Gross Margin Pressure
Betterware Mexico's gross margin was 55.2%, down 127 basis points year-over-year, and Jafra Mexico's gross margin was 75.3%, down 167 basis points compared to the previous year.
Increased Debt Leverage Compared to Previous Year
Debt leverage remains higher than the level reported in Q2 2024 (1.8x) despite improvements.
Company Guidance
During BeFra's Second Quarter 2025 Earnings Conference Call, the company reported a 5.1% year-over-year and 1.8% quarter-on-quarter increase in consolidated revenue, supported by strategies such as aggressive pricing and product investments. Betterware Mexico saw a 4% quarter-over-quarter revenue boost, narrowing a previous 9.8% year-over-year decline to a 1.1% decrease. The associate base across BeFra grew by 0.5% quarter-on-quarter to 1.13 million, with Betterware Mexico's associates increasing 3.3%, reaching 670,000. Jafra Mexico's revenue grew 10.9% year-on-year, with an EBITDA margin of 21.2%, while Jafra US experienced a 15.6% quarter-over-quarter revenue rebound despite an 8.9% year-over-year decline. BeFra also reported a consolidated EBITDA increase of 3.5% year-over-year to MXN 679 million, a gross margin of 67.1%, and a free cash flow of MXN 592 million, reflecting a 44.2% year-to-date conversion of EBITDA. The company maintained its full-year guidance for 2025, highlighting stability in macroeconomic conditions as crucial for continued growth.Betterware de Mexico Financial Statement Overview
Summary
Betterware de Mexico demonstrates strong gross margins and cash generation capabilities, but faces challenges with volatile revenue growth, declining net margins, and increased leverage. Stabilizing revenue growth and managing debt levels are key to ensuring financial health.Income Statement
Betterware de Mexico has shown a strong gross profit margin over the TTM (Trailing-Twelve-Months) period, indicating efficient cost management. However, net profit margin and EBIT margin have declined compared to previous years, suggesting increased operational costs. Revenue growth has been volatile with a notable decline in the most recent year, which could pose challenges for future profitability.75
Positive
Balance Sheet
The company's debt-to-equity ratio is relatively high, indicating significant leverage and potential financial risk. While the equity ratio has decreased, suggesting a shift towards more debt financing, the return on equity has decreased, indicating lower profitability relative to shareholder investment. This balance between risk and profitability is a key concern.65
Positive
Cash Flow
Betterware de Mexico has maintained a positive operating cash flow to net income ratio, which is a positive sign of cash generation efficiency. However, free cash flow has decreased, and the free cash flow growth rate has been negative recently, which may limit reinvestment opportunities and affect long-term growth potential.70
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
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 |
| EBITDA | 2.21B | 2.63B | 2.22B | 2.72B | 2.17B |
| Net Income | 711.73M | 1.05B | 872.56M | 1.75B | 298.44M |
Balance Sheet | |||||
| Total Assets | 10.45B | 11.09B | 11.38B | 5.39B | 4.41B |
| Cash, Cash Equivalents and Short-Term Investments | 296.56M | 549.73M | 686.15M | 1.18B | 649.82M |
| Total Debt | 5.17B | 5.50B | 6.44B | 1.53B | 654.25M |
| 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
Positive
13.32
Price Trends
10.71
Positive
9.88
Positive
10.31
Positive
Market Momentum
0.72
Positive
65.97
Neutral
70.78
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 13.32 is above the 20-day moving average (MA) of 13.08, above the 50-day MA of 10.71, and above the 200-day MA of 10.31, indicating a bullish trend. The MACD of 0.72 indicates Positive momentum. The RSI at 65.97 is Neutral, neither overbought nor oversold. The STOCH value of 70.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 3 New Risks
1.
We are subject to anti-corruption, anti-bribery, anti-money laundering, and antitrust laws and regulations in Mexico. Q4, 2023
2.
If the Mexican government imposes exchange controls and/or other similar restrictions, the Mexican economy and our operations may be negatively affected. Q4, 2023
3.
Our business may be significantly affected by the Mexican economy's general condition, by the depreciation of the peso, inflation, and high-interest rates in Mexico. Q4, 2023
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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $497.06M | 16.94 | 39.74% | 9.14% | -8.56% | -57.78% | |
68 Neutral | $606.19M | 16.72 | 5.92% | ― | -9.64% | ― | |
61 Neutral | $17.75B | 12.51 | -5.49% | 3.06% | 1.43% | -14.10% | |
51 Neutral | $896.37M | ― | -16.81% | ― | 0.23% | 26.92% | |
50 Neutral | $296.61M | ― | -36.88% | ― | 1.38% | 63.65% | |
47 Neutral | $341.97M | ― | -42.08% | ― | -8.53% | -2070.29% | |
46 Neutral | $596.04M | 11.13 | -2.81% | ― | -5.78% | -158.53% |
* Consumer Cyclical Sector Average
Performance Comparison
BWMX
Betterware de Mexico
13.32
1.00
8.12%
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5.65
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Marinemax
27.55
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ODP
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20.15
-9.61
-32.29%
BNED
Barnes & Noble Education
8.71
-4.30
-33.05%
YSG
Yatsen Holding
9.72
6.61
212.54%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.