Betterware de Mexico (BWMX) AI Stock Analysis

• Market Cap: $529.89M
• Dividend Yield: 8.8%
• Average Volume (3M): 41.29K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.98
• Revenue Growth: -7.03%
• EPS Growth: 1.04%
• Country: US
• Employees: 2,524
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.46
• Shares Outstanding: 37,316,547
• 10 Day Avg. Volume: 63,187
• 30 Day Avg. Volume: 41,293
• 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: 1.45
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.08
• Enterprise Value/Ebitda: 0.39
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $16.50 ▲(27.71% Upside)

Betterware de Mexico's overall stock score is driven by strong earnings call results and attractive valuation metrics. While the company faces financial performance challenges, particularly with high leverage and declining margins, its technical indicators show bullish momentum. The high dividend yield and low P/E ratio further enhance its attractiveness, although caution is advised due to potential overbought conditions.

Betterware de Mexico Business Overview & Revenue Model

Company Description

Betterware de Mexico (BWMX) is a leading company in the home organization and solutions industry. It specializes in the design, development, and distribution of innovative products for home organization, kitchenware, cleaning, and personal care. Based in Mexico, Betterware de Mexico has built a strong presence across the nation with a wide range of products aimed at enhancing everyday living through practical and affordable solutions.

How the Company Makes Money

Betterware 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 Financial Statement Overview

Summary

Betterware de Mexico shows strong gross profit margins and cash generation capabilities. However, challenges include declining net margins, increased leverage, and volatile revenue growth, which could impact future profitability.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.17B	14.10B	13.01B	11.50B	10.04B	7.26B
Gross Profit	9.62B	9.58B	9.31B	7.84B	5.64B	3.97B
EBITDA	1.98B	2.21B	2.63B	2.22B	2.72B	2.17B
Net Income	588.39M	711.73M	1.05B	872.56M	1.75B	298.44M
Balance Sheet
Total Assets	10.38B	10.45B	11.09B	11.38B	5.39B	4.41B
Cash, Cash Equivalents and Short-Term Investments	391.78M	296.56M	549.73M	686.15M	1.18B	649.82M
Total Debt	5.46B	5.17B	5.50B	6.44B	1.53B	654.25M
Total Liabilities	9.21B	9.29B	9.62B	10.31B	4.06B	3.49B
Stockholders Equity	1.18B	1.16B	1.47B	1.07B	1.31B	921.89M
Cash Flow
Free Cash Flow	908.98M	1.60B	2.24B	1.10B	1.10B	1.12B
Operating Cash Flow	1.05B	1.82B	2.37B	1.27B	1.52B	1.83B
Investing Cash Flow	63.27M	-31.91M	-65.33M	-4.81B	-376.03M	-656.14M
Financing Cash Flow	-976.54M	-2.05B	-2.57B	3.06B	-620.40M	-740.58M

Betterware de Mexico Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 12.92 is below the 20-day moving average (MA) of 13.15, below the 50-day MA of 13.28, and above the 200-day MA of 10.87, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 60.75 is Neutral, neither overbought nor oversold. The STOCH value of 75.87 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
SBH	―	$1.43B	7.81	28.94%	―	-0.38%	35.78%
BWMX	―	$529.89M	10.63	79.76%	8.80%	-7.03%	1.04%
BBY	―	$17.48B	23.15	26.72%	4.56%	-2.21%	-37.30%
BBWI	―	$5.14B	7.76	―	3.34%	-0.18%	-18.95%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BGFV	―	―	―	―	―	-8.04%	-263.28%
BBBY	―	$563.85M	―	-72.72%	―	-27.23%	62.19%

Betterware de Mexico Corporate Events

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.

Betterware de Mexico Announces Shareholders’ Meeting for October 2025

Betterware de Mexico has announced the first call for a General Ordinary Shareholders’ Meeting scheduled for October 21, 2025. The meeting aims to discuss and potentially approve dividend payments and appoint special delegates to formalize resolutions. This meeting is significant for shareholders as it addresses key financial decisions and governance matters impacting the company’s operations and strategic direction.

Betterware de México Announces $200 Million Peso Dividend

On August 1, 2025, Betterware de México announced the approval of a dividend payment of 200 million Mexican Pesos during a shareholders meeting held on July 31, 2025. This dividend, amounting to approximately US $0.2851 per share before tax, is scheduled for distribution on August 28, 2025, to shareholders recorded by August 11, 2025. This move reflects Betterware’s continued financial strength and commitment to providing value to its shareholders.

Betterware de México Approves Dividend Payment at Shareholders’ Meeting

Betterware de México, a company known for its home organization and solutions products, held a General Ordinary Shareholders’ Meeting on July 31, 2025, in Zapopan, Jalisco. During the meeting, the shareholders approved a dividend payment of 200 million Pesos to be distributed by August 28, 2025, reflecting the company’s commitment to returning value to its shareholders. Additionally, special delegates were appointed to formalize the resolutions adopted, indicating a structured approach to corporate governance.