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:66Neutral
Price Target:
$18.00
▲(11.18% Upside)
Action:Reiterated
Date:04/28/26
The score is driven primarily by strong cash generation and solid profitability, supported by an attractive valuation (low P/E and high dividend yield). The main offsets are elevated historical leverage and a sharp TTM revenue decline, while technical signals are mixed with near-term weakness despite a still-intact longer-term trend.
Positive Factors
Strong free cash flow conversion
Consistent FCF that tracks reported earnings indicates high earnings quality and reliable internal funding. Durable cash conversion supports dividends, debt paydown, and organic/bolt-on expansion financing without depending on dilutive equity or expensive external credit over the medium term.
Negative Factors
Sharp trailing revenue contraction
A large TTM top-line decline undermines operating leverage and raises execution risk. Persistent revenue erosion strains growth prospects, makes margin maintenance harder over time, and increases sensitivity of earnings and returns to any future market or recruitment setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow conversion
Consistent FCF that tracks reported earnings indicates high earnings quality and reliable internal funding. Durable cash conversion supports dividends, debt paydown, and organic/bolt-on expansion financing without depending on dilutive equity or expensive external credit over the medium term.
Read all positive factors
Betterware de Mexico (BWMX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$597.39M
Dividend Yield8.47%
Average Volume (3M)97.90K
Price to Earnings (P/E)0.6
Beta (1Y)0.38
Revenue Growth5.55%
EPS Growth111.18%
CountryUS
Employees2,524
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)25.10
Shares Outstanding37,243,920
10 Day Avg. Volume93,647
30 Day Avg. Volume97,902
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)7.09
Price to Sales (P/S)0.67
P/FCF Ratio5.83
Enterprise Value/Market Cap24.20
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit0.30
Enterprise Value/Ebitda1.10
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)41.4
Revenue Forecast (FY)$16.36B
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 México makes money primarily by selling home-use products to end consumers through its direct sales model. Revenue is generated from the sale of merchandise (e.g., organization and storage items, cleaning and home-care tools, kitchen...
Betterware de Mexico Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful progress on profitability, cash generation, leverage reduction, and regional expansion, with several operational and digital initiatives underway and a strategically attractive pending Tupperware acquisition expected to be highly accretive. The principal near-term negatives were modest group revenue growth driven by a temporary slowdown at Jafra Mexico, transaction- and legal-related extraordinary expenses, and a projected, temporary increase in leverage post-acquisition. Overall, the positive improvements in margins, cash flow, debt reduction, and clear strategic levers outweigh the near-term headwinds.Positive Updates
EBITDA and Margin Expansion
EBITDA grew 14% year-over-year and EBITDA margin expanded from 15.3% to 17.4% (+211 bps). Management noted that, excluding extraordinary Tupperware transaction expenses, margin would have been ~18.4%. Net income nearly doubled year-over-year, reflecting normalized profitability and lower interest expense.
Negative Updates
Modest Overall Revenue Performance
Group revenue growth was only 0.3% YoY, described as 'slight' and attributed mainly to a temporary slowdown at Jafra Mexico; first-quarter growth was below the company's full-year guidance pacing.
Read all updates
Q1-2026 Updates
Positive
Negative
EBITDA and Margin Expansion
EBITDA grew 14% year-over-year and EBITDA margin expanded from 15.3% to 17.4% (+211 bps). Management noted that, excluding extraordinary Tupperware transaction expenses, margin would have been ~18.4%. Net income nearly doubled year-over-year, reflecting normalized profitability and lower interest expense.
Read all positive updates
Company Guidance
Management maintained full‑year revenue guidance of 4–8% and said they expect sequential improvement starting in Q2 with a stronger back half, after Q1 results showing revenue +0.3% y/y and EBITDA +14% y/y that expanded margin from 15.3% to 17.4% (211 bps; ~18.4% excluding Tupperware‑related extraordinary expenses). They called out BetterWork reported growth of 2.6% (≈3.3% on a same‑week basis) with EBITDA margin 20.5% (+190 bps, EBITDA +12.9% y/y); Jafra US revenue +8.6% in USD with associates +3.4% and a pro forma EBITDA margin ~2.6% excluding legal costs; and Jafra Mexico EBITDA margin 17% (+165 bps). Cash and capital metrics include free cash flow converting 58% of EBITDA, net debt/EBITDA of 1.5x (expected ~1.9x post‑Tupperware), ROTA 22.7%, ROIC 27%, trailing EPS MXN 31.9, and a proposed MXN 200 million dividend (25th consecutive quarterly payout) consistent with a 33% TTM dividend/EBITDA ratio; management also expects antitrust approval for the Tupperware deal in Q2, which they say would be immediately EPS‑accretive (estimated +40% to EPS) and provide an initial ~$100M revenue foothold in Brazil.Betterware de Mexico Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
41
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 73.52B | 14.26B | 14.10B | 13.01B | 11.51B | 10.07B |
| Gross Profit | 48.78B | 9.51B | 9.58B | 9.31B | 7.52B | 5.57B |
| EBITDA | 13.14B | 2.67B | 2.21B | 2.63B | 2.22B | 2.72B |
| Net Income | 5.92B | 1.04B | 711.73M | 1.05B | 872.56M | 1.75B |
Balance Sheet | ||||||
| Total Assets | 9.69B | 9.62B | 10.45B | 11.09B | 11.33B | 5.19B |
| Cash, Cash Equivalents and Short-Term Investments | 308.98M | 312.42M | 296.56M | 549.73M | 815.64M | 1.18B |
| Total Debt | 4.33B | 4.42B | 5.17B | 5.50B | 6.44B | 1.53B |
| Total Liabilities | 8.22B | 8.27B | 9.29B | 9.62B | 10.24B | 3.99B |
| Stockholders Equity | 1.47B | 1.35B | 1.16B | 1.47B | 1.10B | 1.19B |
Cash Flow | ||||||
| Free Cash Flow | 1.38B | 1.64B | 1.60B | 2.24B | 1.10B | 1.06B |
| Operating Cash Flow | 1.46B | 1.75B | 1.82B | 2.37B | 1.27B | 1.47B |
| Investing Cash Flow | -45.88M | -101.12M | -31.91M | -65.33M | -4.81B | -320.38M |
| Financing Cash Flow | -1.40B | -1.63B | -2.05B | -2.57B | 3.06B | -619.84M |
Betterware de Mexico Technical Analysis
Negative
16.19
Price Trends
16.97
Negative
16.83
Negative
14.87
Positive
Market Momentum
-0.27
Positive
41.28
Neutral
23.17
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 16.68, below the 50-day MA of 16.97, and above the 200-day MA of 14.87, indicating a neutral trend. The MACD of -0.27 indicates Positive momentum. The RSI at 41.28 is Neutral, neither overbought nor oversold. The STOCH value of 23.17 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $597.39M | 0.56 | 589.33% | 8.47% | 5.55% | 111.18% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.13B | 7.84 | 22.86% | ― | 0.77% | 2.73% | |
58 Neutral | $12.20B | 6.35 | 38.54% | 5.46% | 0.39% | 17.90% | |
56 Neutral | $3.44B | 2.86 | -44.22% | 4.16% | -0.23% | -13.10% | |
52 Neutral | $337.90M | ― | -32.45% | ― | -14.77% | 79.60% |
* Consumer Cyclical Sector Average
BWMX
Betterware de Mexico
16.09
7.43
85.69%
BBY
Best Buy Co
59.29
-8.06
-11.97%
BBWI
Bath & Body Works
16.11
-16.19
-50.12%
BBBY
Bed Bath & Beyond
4.58
-2.06
-31.02%
SBH
Sally Beauty
12.09
2.80
30.14%
Betterware de Mexico Corporate Events
Betterware de México’s BeFra Posts Profit Surge and Strengthens Balance Sheet in Q1 2026
Apr 23, 2026
On April 23, 2026, Betterware de México’s BeFra Group reported first-quarter 2026 results showing modest 0.3% year-over-year revenue growth to Ps. 3.51 billion but a sharp profitability rebound, with EBITDA up 13.9%, EBITDA margin expan...
Betterware de México Calls April 30, 2026 Ordinary Shareholders’ Meeting
Apr 15, 2026
Betterware de México has called an Ordinary General Shareholders’ Meeting for April 30, 2026, at its Guadalajara headquarters, in line with Mexican corporate and securities laws. Shareholders must secure admission passes in advance by p...
Betterware de México Names Veteran Executive Raúl del Villar as CFO to Steer Next Growth Phase
Apr 7, 2026
On April 6, 2026, Betterware de México, which markets itself as BeFra, appointed veteran finance executive Raúl del Villar as Chief Financial Officer, marking a significant change in its senior leadership team. Del Villar brings more tha...
Betterware de México Shareholders Approve Tupperware-Linked Acquisition and Capital Increase
Mar 18, 2026
On March 17, 2026, Betterware de México held its Annual General Meeting in Zapopan, Jalisco, where shareholders representing 52.62% of capital approved key corporate actions. The meeting confirmed that Board Chairman Luis Germán Campos O...
Betterware de México Calls March 17, 2026 Shareholders’ Meeting to Approve Deal and Capital Increase
Mar 3, 2026
Betterware de México has called an Ordinary General Shareholders’ Meeting for March 17, 2026, in Zapopan, Jalisco, with a formal notice issued on February 27, 2026. Shareholders must obtain admission passes by depositing their share cer...
Betterware de México Approves MXN 200 Million Dividend at February 2026 Shareholder Meeting
Feb 27, 2026
Betterware de México, known as BeFra, said its shareholders approved a dividend at a general ordinary meeting held on February 20, 2026, underscoring the cash-generative nature of its direct-to-consumer household and beauty products business ...
Betterware de México Posts Solid 2025 Cash Generation and Leverage Improvement Amid Modest Growth
Feb 27, 2026
Betterware de México reported its fourth-quarter and full-year 2025 results on February 26, 2026, showing modest top-line growth but stronger profitability and cash generation despite a challenging macroeconomic backdrop. Consolidated net rev...
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.