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Betterware De Mexico, S.A. De C.V (BWMX)
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Betterware de Mexico (BWMX) AI Stock Analysis

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BWMX

Betterware de Mexico

(NYSE:BWMX)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
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 (BWMX) vs. SPDR S&P 500 ETF (SPY)

Betterware de Mexico Business Overview & Revenue Model

Company DescriptionBetterware 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 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:Oct 23, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance through EBITDA and free cash flow growth, successful international expansion, and debt reduction. However, challenges remain with Betterware's sales decline in Mexico and profitability issues in Jafra U.S. due to legal expenses.
Q3-2025 Updates
Positive Updates
EBITDA and Margin Growth
EBITDA grew 22% year-over-year with the margin expanding 362 basis points to 21.4% EBITDA, demonstrating strong profitability.
Successful International Expansion
Betterware Ecuador exceeded expectations with revenue growing around 20% month-over-month and Betterware Guatemala sales grew 32% year-over-year.
Debt Reduction
Total debt reduced from MXN 6,700 million to MXN 5,200 million with net debt-to-EBITDA ratio falling from 3.1x to 1.8x.
Strong Free Cash Flow
Free cash flow conversion remained strong at 77% of EBITDA, with a 32.6% year-over-year increase.
Jafra Mexico Growth
Jafra Mexico saw an 8% increase in revenue and a 31% growth in EBITDA, reaching a margin of 24%.
Negative Updates
Betterware Sales Decline
Betterware experienced a 5.3% decline in sales year-over-year due to softer demand in Mexico.
Jafra U.S. Profitability Issues
Jafra U.S. incurred losses due to extraordinary legal expenses, although it demonstrated improvement in revenue with a 30% year-over-year growth in September.
Softer Consumer Environment
The consumer environment in Mexico and the U.S. remained soft, impacting discretionary spending and overall demand.
Company Guidance
During BeFra's Third Quarter 2025 Earnings Conference Call, the company provided updates on key financial metrics and strategic initiatives. Despite a softer consumer environment in Mexico and the U.S., BeFra reported revenue growth of 1.4% year-over-year and a significant 22% increase in EBITDA, with margins expanding by 362 basis points to reach 21.4% EBITDA. The company maintained a strong free cash flow conversion at 77% of EBITDA and reduced its net leverage ratio from 1.97x to 1.8x. BeFra emphasized its strategic focus on five pillars, including strengthening its leadership in the Mexican market where Betterware and Jafra hold around 4% market share, regional expansion in the U.S. and Latin America, and enhancing digital person-to-person selling. The company also highlighted the success of new product innovations, such as Betterware's limited edition collaboration with Mattel and Jafra's expanded BioLab dermo-cosmetic line. Looking ahead, BeFra plans to continue reducing inventories and leverage its financial strength for potential acquisitions and regional growth, particularly with the launch of Betterware in Colombia in early 2026.

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
70
Positive
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
55
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.17B14.10B13.01B11.50B10.04B7.26B
Gross Profit9.62B9.58B9.31B7.84B5.64B3.97B
EBITDA1.98B2.21B2.63B2.22B2.72B2.17B
Net Income588.39M711.73M1.05B872.56M1.75B298.44M
Balance Sheet
Total Assets10.38B10.45B11.09B11.38B5.39B4.41B
Cash, Cash Equivalents and Short-Term Investments391.78M296.56M549.73M686.15M1.18B649.82M
Total Debt5.46B5.17B5.50B6.44B1.53B654.25M
Total Liabilities9.21B9.29B9.62B10.31B4.06B3.49B
Stockholders Equity1.18B1.16B1.47B1.07B1.31B921.89M
Cash Flow
Free Cash Flow908.98M1.60B2.24B1.10B1.10B1.12B
Operating Cash Flow1.05B1.82B2.37B1.27B1.52B1.83B
Investing Cash Flow63.27M-31.91M-65.33M-4.81B-376.03M-656.14M
Financing Cash Flow-976.54M-2.05B-2.57B3.06B-620.40M-740.58M

Betterware de Mexico Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.92
Price Trends
50DMA
13.28
Positive
100DMA
11.77
Positive
200DMA
10.87
Positive
Market Momentum
MACD
0.28
Negative
RSI
60.75
Neutral
STOCH
75.87
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 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
$1.43B7.8128.94%-0.38%35.78%
$529.89M10.6379.76%8.80%-7.03%1.04%
$17.48B23.1526.72%4.56%-2.21%-37.30%
$5.14B7.763.34%-0.18%-18.95%
$18.38B12.79-2.54%3.03%1.52%-15.83%
-8.04%-263.28%
$563.85M-72.72%-27.23%62.19%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BWMX
Betterware de Mexico
14.07
2.62
22.88%
BBY
Best Buy Co
83.18
-2.85
-3.31%
BGFV
Big 5 Sporting Goods
1.44
-0.19
-11.66%
BBWI
Bath & Body Works
23.93
-3.73
-13.49%
BBBY
Bed Bath & Beyond
7.65
1.24
19.34%
SBH
Sally Beauty
14.49
1.49
11.46%

Betterware de Mexico Corporate Events

Betterware de México Reports Q3 2025 Financial Growth Amidst Market Challenges
Oct 23, 2025

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
Oct 15, 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
Aug 1, 2025

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
Aug 1, 2025

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.

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.Date of analysis: Oct 29, 2025