Betterware De Mexico, S.A. De C.V (BWMX)
NYSE:BWMX
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Betterware de Mexico
(NYSE:BWMX)
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Rating:71Outperform
Price Target:
$20.50
▲(26.62% Upside)
Action:ReiteratedDate:01/21/26
The score is driven primarily by solid financial performance and favorable valuation (low P/E and high dividend yield). Earnings-call updates add support via margin/EBITDA expansion and leverage reduction, while the technical setup is less supportive due to overbought momentum signals that raise near-term pullback risk.
Positive Factors
Strong free cash flow conversion
Consistently high free cash flow conversion (77% of EBITDA) provides durable internal funding for growth, debt paydown and dividends. Reliable FCF enhances financial flexibility, supports strategic investments or M&A, and reduces reliance on external financing over the medium term.
Negative Factors
High leverage on balance sheet
A materially leveraged balance sheet increases financial vulnerability to cyclical demand shocks and raises interest expense sensitivity. High long-term leverage limits strategic flexibility, constrains capital allocation choices, and heightens refinancing and covenant risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow conversion
Consistently high free cash flow conversion (77% of EBITDA) provides durable internal funding for growth, debt paydown and dividends. Reliable FCF enhances financial flexibility, supports strategic investments or M&A, and reduces reliance on external financing over the medium term.
Read all positive factors
Betterware de Mexico (BWMX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$639.98M
Dividend Yield8.47%
Average Volume (3M)109.31K
Price to Earnings (P/E)0.4
Beta (1Y)0.35
Revenue Growth-7.03%
EPS Growth1.04%
CountryUS
Employees2,524
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.38
Shares Outstanding37,316,547
10 Day Avg. Volume82,056
30 Day Avg. Volume109,308
Financial Highlights & Ratios
PEG Ratio-0.38
Price to Book (P/B)7.48
Price to Sales (P/S)0.62
P/FCF Ratio5.44
Enterprise Value/Market Cap25.38
Enterprise Value/Revenue1.14
Enterprise Value/Gross Profit1.78
Enterprise Value/Ebitda6.27
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)45.43
Revenue Forecast (FY)$15.67B
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 company in Mexico. It focuses on the home organization segment with a product portfolio, including home solutions, kitchen and food preservation, technology and mobility, bedr...
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 co...
Betterware de Mexico Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call highlights solid financial and operational execution: strong cash generation (free cash flow +106% in Q4, +24.6% FY), improved leverage (MXN 700m debt repaid; net debt/EBITDA 1.56x), resilient EBITDA margins (19% Q4, 18.7% FY), successful operational momentum in core brands (Jafra Mexico record Q4; Betterware Q4 strength), and an accretive strategic acquisition (Tupperware Latin America). Offsetting these positives are modest full-year revenue growth (1.2%), an abnormal Q1 contraction and FX-related margin impacts, lingering softness in consumption that hit discretionary categories, and some regional/legal costs (Jafra U.S.). Overall, achievements in cash, balance sheet strengthening, and strategic initiatives materially outweigh the transitory operational and macro headwinds.Positive Updates
Quarterly and Full-Year Revenue Growth
Revenue grew 1.2% year-over-year in Q4 and 1.2% for the full year 2025, showing recovery after a weak first quarter.
Negative Updates
Modest Top-Line Growth
Overall revenue growth was only 1.2% for 2025, reflecting a subdued recovery and slower-than-desired topline expansion after a difficult Q1.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly and Full-Year Revenue Growth
Revenue grew 1.2% year-over-year in Q4 and 1.2% for the full year 2025, showing recovery after a weak first quarter.
Read all positive updates
Company Guidance
Management guided 2026 revenue growth of 4–8% with an EBITDA margin floor of roughly 19% (or above). That outlook is supported by Q4/FY25 results (revenue +1.2% quarter and full year; Q4 EBITDA margin 19%, FY margin 18.7%) and strong cash conversion (FCF +106% YoY in Q4, FCF +24.6% for the year; >83% of EBITDA converted to FCF), aided by inventory optimization that released MXN 459m and cut inventories from ~MXN 2,500m to ~MXN 2,000m (only ~MXN 100–200m more to trim). Management also highlighted balance‑sheet improvement (MXN 700m debt repaid; leverage/net‑debt-to‑EBITDA down to ~1.56x from 1.75x and from 3.1x in 2022), continued dividend discipline (24 consecutive quarters; 32% TTM dividend/EBITDA), segment nuances (Betterware Q4 EBITDA ex‑FX ~22%; Jafra U.S. adjusted full‑year EBITDA ≈ $869k) and growth catalysts including regional expansion and the pending $250m Tupperware LATAM acquisition (3.1x EV/EBITDA; ~40% EPS accretion).Betterware de Mexico Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
60
Neutral
Cash Flow
70
Positive
| 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
Positive
16.19
Price Trends
17.56
Negative
15.82
Positive
13.52
Positive
Market Momentum
-0.15
Positive
47.68
Neutral
43.08
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 16.19 is below the 20-day moving average (MA) of 17.14, below the 50-day MA of 17.56, and above the 200-day MA of 13.52, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 47.68 is Neutral, neither overbought nor oversold. The STOCH value of 43.08 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $639.98M | 0.38 | 87.45% | 8.47% | -7.03% | 1.04% | |
64 Neutral | $1.34B | 7.65 | 23.43% | ― | -0.42% | 31.64% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $3.66B | 7.11 | -44.22% | 4.16% | -1.04% | -20.88% | |
51 Neutral | $12.63B | 12.85 | 38.54% | 5.46% | -0.95% | -48.28% | |
48 Neutral | $331.24M | -3.88 | -48.74% | ― | -27.23% | 62.19% |
* Consumer Cyclical Sector Average
BWMX
Betterware de Mexico
17.15
6.49
60.87%
BBY
Best Buy Co
60.40
-10.44
-14.73%
BBWI
Bath & Body Works
18.19
-12.49
-40.72%
BBBY
Bed Bath & Beyond
4.80
-0.56
-10.45%
SBH
Sally Beauty
13.84
4.99
56.38%
Betterware de Mexico Corporate Events
Betterware de México to Acquire Tupperware’s Latin American Operations in US$250 Million Deal
Jan 20, 2026
On January 19, 2026, Betterware de México’s parent BeFra signed a definitive agreement to acquire Tupperware’s operating assets in Latin America, mainly in Mexico and Brazil, for US$250 million and obtain a perpetual, royalty-free...
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...
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.