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Betterware de Mexico
(NYSE:BWMX)
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Rating:63Neutral
Price Target:
$18.00
▲(11.18% Upside)
Action:Reiterated
Date:07/25/26
The score is supported by attractive valuation (low P/E and high dividend yield) and solid underlying profitability/cash generation, but is held back by high balance-sheet leverage and weak technical momentum (negative MACD, price below key moving averages). Earnings call commentary is constructive on growth acceleration and margin normalization, partially offset by leverage and integration-related near-term risks.
Positive Factors
Strong cash generation and FCF conversion
Consistent, high EBITDA-to-FCF conversion provides durable internal funding for dividends, reinvestment and deleveraging. Over multiple quarters this high conversion rate supports capital allocation flexibility, lowers reliance on external funding, and increases resilience to retail cycles.
Negative Factors
Elevated balance-sheet leverage
Substantially higher leverage reduces financial flexibility and raises refinancing and downside risk. While management cites pro forma metrics, reported post-close debt loads compress capacity to invest and increase sensitivity to cash-flow volatility, making strategic moves and cyclicality more consequential.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and FCF conversion
Consistent, high EBITDA-to-FCF conversion provides durable internal funding for dividends, reinvestment and deleveraging. Over multiple quarters this high conversion rate supports capital allocation flexibility, lowers reliance on external funding, and increases resilience to retail cycles.
Read all positive factors
Betterware de Mexico (BWMX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$622.72M
Dividend Yield7.87%
Average Volume (3M)53.56K
Price to Earnings (P/E)8.3
Beta (1Y)0.35
Revenue Growth15.53%
EPS Growth136.38%
CountryUS
Employees4,823
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)33.19
Shares Outstanding37,243,920
10 Day Avg. Volume68,725
30 Day Avg. Volume53,559
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)7.08
Price to Sales (P/S)0.67
P/FCF Ratio5.82
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)43.53
Revenue Forecast (FY)$17.32B
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 selling company in the United Staes and Mexico. It operates through two segments, Home Organization Products; and Beauty and Personal Care Products. The Home Organization Prod...
How the Company Makes Money
Betterware de México makes money primarily by selling branded household products to end consumers through a direct-selling distribution model. The core revenue stream is product sales (net sales) generated when independent distributors (and/or the...
Betterware de Mexico Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: solid organic revenue growth, immediate accretion and commercial momentum from the Tupperware acquisition, strong cash conversion, dividend increase, and improved return metrics. Near-term headwinds are largely transactional or tactical — nonrecurring acquisition expenses, modest inventory builds for supply resilience, a temporary margin investment in Jafra Mexico, and a reported (but pro forma-manageable) leverage increase. Management provided guidance that margins should normalize by Q3–Q4 and emphasized pro forma leverage, integration benefits and multiple growth levers across brands and regions.Positive Updates
Strong Organic Revenue Growth
Organic revenue increased 4.1% year-over-year and 5.7% quarter-over-quarter; organic growth accelerated from 0.3% in the prior quarter to 4.1% in Q2, signaling renewed momentum across Betterware and Jafra.
Negative Updates
Temporary Margin Pressure in Jafra Mexico
Organic EBITDA and net income decreased in Q2 primarily due to a deliberate gross-margin investment in Jafra Mexico (promotional activity) that reduced gross margin by roughly 1 percentage point versus historical levels (~73.5%–74.5% typical); management expects margins to normalize between Q3 and Q4.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Organic Revenue Growth
Organic revenue increased 4.1% year-over-year and 5.7% quarter-over-quarter; organic growth accelerated from 0.3% in the prior quarter to 4.1% in Q2, signaling renewed momentum across Betterware and Jafra.
Read all positive updates
Company Guidance
Management guided that gross margin should normalize between Q3 and Q4 while organic momentum continues (organic revenue +4.1% YoY and +5.7% QoQ vs prior quarter growth of 0.3%), and total revenue including Tupperware rose 16.8% with Tupperware already contributing 10.8% of the quarter and expected to approach ~1/3 of revenue going forward. On profitability, H1 organic EBITDA margin expanded to 17.5% (vs 17.2% LY), organic EBITDA margin would have been ~19.3% excluding one‑offs, organic net income grew 19.1% in H1, and including Tupperware quarterly EBITDA and net income rose 15% and 20.6% respectively; pro forma TTM EPS is >36% higher than organic TTM EPS. On the balance sheet and cash flow, management highlighted pro forma net debt/TTM EBITDA of 1.6x (reported 2.6x post‑transaction), pre‑acquisition deleveraging of >MXN 500m to MXN 4.0bn total debt, acquisition financing of $35m equity and $213m long‑term debt, EBITDA conversion to free cash flow >70% in the quarter and ~90% LTM, an increased quarterly dividend of MXN 250m, an expected one‑time cash benefit from extending supplier terms to ~120 days, modest inventory build for supply‑chain resilience, and manufacturing utilization of ~60% in Mexico and ~40% in Brazil.Betterware de Mexico Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
38
Negative
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.85B | 14.24B | 14.10B | 13.01B | 11.51B | 10.07B |
| Gross Profit | 9.82B | 9.48B | 9.58B | 9.31B | 7.52B | 5.57B |
| EBITDA | 2.84B | 2.65B | 2.21B | 2.63B | 2.22B | 2.72B |
| Net Income | 1.26B | 1.06B | 711.73M | 1.05B | 872.56M | 1.75B |
Balance Sheet | ||||||
| Total Assets | 14.88B | 9.62B | 10.45B | 11.09B | 11.33B | 5.19B |
| Cash, Cash Equivalents and Short-Term Investments | 521.07M | 328.34M | 296.56M | 549.73M | 815.64M | 1.18B |
| Total Debt | 7.77B | 4.46B | 5.17B | 5.50B | 6.44B | 1.53B |
| Total Liabilities | 12.60B | 8.27B | 9.29B | 9.62B | 10.24B | 3.99B |
| Stockholders Equity | 2.28B | 1.35B | 1.16B | 1.47B | 1.10B | 1.19B |
Cash Flow | ||||||
| Free Cash Flow | 8.82B | 1.64B | 1.60B | 2.24B | 1.10B | 1.06B |
| Operating Cash Flow | 12.49B | 1.75B | 1.82B | 2.37B | 1.27B | 1.47B |
| Investing Cash Flow | -3.66B | -101.12M | -31.91M | -65.33M | -4.81B | -320.38M |
| Financing Cash Flow | -9.73B | -1.63B | -2.05B | -2.57B | 3.06B | -619.84M |
Betterware de Mexico Technical Analysis
Negative
16.19
Price Trends
17.40
Negative
17.01
Negative
16.01
Positive
Market Momentum
-0.25
Positive
36.85
Neutral
25.10
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 16.19 is below the 20-day moving average (MA) of 17.08, below the 50-day MA of 17.40, and above the 200-day MA of 16.01, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 36.85 is Neutral, neither overbought nor oversold. The STOCH value of 25.10 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 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.58B | 8.42 | 23.11% | ― | 1.08% | 3.88% | |
69 Neutral | $17.28B | 15.24 | 40.05% | 4.47% | 0.99% | 31.91% | |
63 Neutral | $622.72M | 8.33 | 17.36% | 8.47% | 15.53% | 136.38% | |
63 Neutral | $4.10B | 5.57 | -52.38% | 4.02% | -1.40% | -4.34% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | $442.33M | -3.88 | -38.85% | ― | 0.97% | 71.81% |
* Consumer Cyclical Sector Average
BWMX
Betterware de Mexico
16.13
4.50
38.72%
BBY
Best Buy Co
82.43
17.46
26.88%
BBWI
Bath & Body Works
19.32
-7.57
-28.15%
BBBY
Bed Bath & Beyond
4.44
-4.07
-47.83%
SBH
Sally Beauty
16.75
4.90
41.35%
Betterware de Mexico Corporate Events
Betterware de México’s BeFra Group Boosts Q2 2026 Results with Tupperware Latin America Integration
Jul 23, 2026
Betterware de México’s BeFra Group reported its second-quarter 2026 results on July 23, 2026, highlighting a 16.8% year-on-year rise in consolidated net revenue to Ps. 4.16 billion and a 15% increase in EBITDA to Ps. 780 million, with n...
Betterware de México Calls July 20 Shareholders’ Meeting to Vote on Dividends and Board Changes
Jul 2, 2026
Betterware de México has called an Ordinary General Shareholders’ Meeting for July 20, 2026, at its corporate offices in Guadalajara, Jalisco, Mexico. The agenda includes discussion and possible approval of a dividend payment, changes t...
Betterware de México Closes US$250 Million Acquisition of Tupperware’s Latin American Operations
Jun 3, 2026
On June 2, 2026, Betterware de México’s parent company BeFra completed its acquisition of Tupperware’s operating assets in Latin America, mainly in Mexico and Brazil, securing a perpetual, royalty-free, exclusive license to the Tu...
Betterware de México’s BeFra Wins Antitrust Clearance for Tupperware Latin America Deal
May 29, 2026
On May 29, 2026, Betterware de México’s BeFra group said it had secured authorization from Mexico’s antitrust authority for its previously announced acquisition of Tupperware’s Latin American operations. The deal, first unve...
Betterware de México Finalizes 2025 Results With Minor Audit-Driven Adjustments
May 5, 2026
On May 5, 2026, Betterware de México said that preliminary figures released on February 26, 2026 for its fourth quarter and full year 2025 results were updated following completion of the 2025 audit. The revisions involved audit adjustments, ...
Betterware de México Shareholders Approve 2025 Results and Governance Resolutions at April 30 AGM
May 1, 2026
On April 30, 2026, Betterware de México held its Annual General Shareholders’ Meeting in Guadalajara, with holders of 52.62% of subscribed and paid capital represented, satisfying quorum requirements under Mexican corporate law. Shareho...
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.