Betterware de Mexico (BWMX) AI Stock Analysis

• Market Cap: $531.01M
• Dividend Yield: 8.23%
• Average Volume (3M): 44.61K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.52
• 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: 32,790
• 30 Day Avg. Volume: 44,608
• 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: 1.44
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.08
• Enterprise Value/Ebitda: 0.30
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.88
• Revenue Forecast (FY): $779.16M

• Rating: 73 Outperform
• Price Target: $15.50 ▲(8.92% Upside)

Betterware de Mexico's strong revenue growth and positive technical indicators are significant strengths. The stock's attractive valuation adds to its appeal. However, challenges in profitability, high leverage, and market-specific issues temper the overall outlook.

Positive Factors

EBITDA and Margin Growth

Strong EBITDA and margin growth indicate robust operational efficiency and profitability, enhancing long-term financial health.

Successful International Expansion

International expansion success shows potential for revenue diversification and reduced dependency on domestic markets.

Debt Reduction

Reducing debt levels improves financial stability and flexibility, allowing for strategic investments and growth opportunities.

Negative Factors

Betterware Sales Decline

Declining sales in the core market signal potential challenges in maintaining market share and revenue growth domestically.

Jafra U.S. Profitability Issues

Profitability issues in Jafra U.S. highlight operational challenges and could strain resources if not addressed.

Softer Consumer Environment

A soft consumer environment may lead to sustained pressure on sales, affecting revenue and profitability in key markets.

Betterware de Mexico Business Overview & Revenue Model

Company Description

Betterware de Mexico (BWMX) is a leading direct-selling company in Mexico, specializing in a wide range of household and personal care products. Founded in 1999, the company operates primarily in the home solutions and wellness sectors, offering innovative and practical products designed to improve everyday life. BWMX's product portfolio includes kitchenware, storage solutions, cleaning tools, and personal hygiene items, which are marketed through a network of independent distributors, allowing for personalized customer service and community engagement.

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

Betterware de Mexico shows strong revenue growth, but faces challenges in profitability and high leverage. Positive cash generation is a strength, but cost management and debt reduction are areas for improvement.

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: 14.23
• 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 14.23 is above the 20-day moving average (MA) of 14.08, above the 50-day MA of 13.35, and above the 200-day MA of 11.02, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 57.07 is Neutral, neither overbought nor oversold. The STOCH value of 72.31 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	73 Outperform	$531.01M	10.14	79.76%	8.23%	-7.03%	1.04%
SBH	73 Outperform	$1.60B	8.69	27.54%	―	-0.42%	31.64%
BBY	69 Neutral	$17.01B	26.74	22.49%	4.76%	-0.95%	-48.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BBWI	57 Neutral	$3.56B	5.34	―	4.61%	-1.04%	-20.88%
BGFV	46 Neutral	―	―	―	―	-8.04%	-263.28%
BBBY	40 Underperform	$402.08M	―	-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.