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BBB Foods, Inc. Class A (TBBB)
NYSE:TBBB
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BBB Foods, Inc. Class A
(NYSE:TBBB)
Rating:62Neutral
Price Target:
$27.00
▲(8.74% Upside)
Positive Factors
Revenue Growth
Projections indicate revenues will grow by an average of +27% annually in 2025-27E, resulting in net income growth of +77% over the same period.
Store Expansion
TBBB is quickly scaling its store base, with a sales area CAGR of +25% in 2022-24, reaching 2,889 locations as of 1Q25.
Negative Factors
Share-Based Compensation
Analysis of TBBB’s share-based compensation programs suggests approximately 40% potential dilution risk, which can create an overhang to near-term EPS growth.
Valuation Concerns
Current valuation of 91x adjusted P/E in 2026E implies a PEG of 5.1X, suggesting the stock may be overvalued.
BBB Foods, Inc. Class A (TBBB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.99B
Dividend YieldN/A
Average Volume (3M)660.90K
Price to Earnings (P/E)105.9
Beta (1Y)1.21
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees25,300
SectorGeneral
Sector StrengthN/A
IndustryDiscount Stores
Share Statistics
EPS (TTM)-0.13
Shares Outstanding62,048,107
10 Day Avg. Volume615,610
30 Day Avg. Volume660,904
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit0.35
Enterprise Value/Ebitda1.10
Forecast
1Y Price Target
$33.00Price Target Upside32.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
BBB Foods, Inc. Class A Business Overview & Revenue Model
Company DescriptionBBB Foods Inc., through its subsidiaries, operates grocery retail stores in Mexico. It offers food products, drinks, hygiene and beauty products, home clean products, coffee, tea and substitutes, jellies and desserts, and baby and pet products. The company also provides branded, private label, and spot products. In addition, it offers its products through online. The company serves low-to-middle income households. The company was incorporated in 2004 and is headquartered in Mexico City, Mexico.
How the Company Makes MoneyThe company generates revenue through multiple streams, primarily by selling its diverse product lines to grocery chains, restaurants, and food distributors. Key revenue streams include direct product sales, distribution agreements, and private label partnerships. Additionally, BBB Foods, Inc. benefits from economies of scale in production and distribution, allowing for competitive pricing. Strategic partnerships with major retailers enhance its market reach and drive sales volume, while ongoing investment in marketing and product development helps to attract new customers and retain existing ones.
BBB Foods, Inc. Class A Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Dec 01, 2025
Earnings Call Sentiment Positive
Tiendas 3B demonstrated strong growth and financial performance with significant store expansions and notable revenue increases. However, increased expenses and a decline in EBITDA margin were challenges. Despite these, the overall sentiment remains positive due to the company's strategic growth and market position.Q2-2025 Updates
Positive Updates
Exceptional Growth and Store Expansion
Tiendas 3B opened 142 net new stores in Q2, totaling 3,031 stores, with plans to invest in 4 new regions in the second half of the year. Same Store sales grew by 17.7%, and total revenues increased by 38.3% to reach MXN 18.8 billion.
Strong Financial Performance
EBITDA increased by 22.5% to MXN 844 million. If excluding non-cash share-based payment expenses, EBITDA would have increased by 32%. Operating cash flow increased by 56% from 2024, reaching MXN 1.9 billion.
Increased Cash Position
The company ended with a net local cash position of approximately MXN 1.1 billion, with an additional $150 million from IPO funds.
Positive Market Position
The company continues to be one of the fastest-growing retailers in Mexico, with a significant lead in Same Store sales growth compared to ANTAD, showing a larger gap of 15 percentage points.
Negative Updates
Increased Expenses
Sales expenses as a percentage of revenue slightly increased from 10.4% to 10.5%, driven by higher store personnel and D&A expenses due to accelerated store openings. Admin expenses also increased by 31 basis points.
EBITDA Margin Decline
EBITDA margin declined by 58 basis points, mainly due to higher logistics costs associated with opening new regions and non-cash share-based payment expenses.
Company Guidance
In the second quarter of 2025, Tiendas 3B reported robust financial performance driven by strategic store expansions and an enhanced value proposition. The company opened 142 net new stores, bringing the total to 3,031, and invested in four new regions set to open in the latter half of the year. Same Store sales surged by 17.7%, compared to 10.7% in the same period last year, while total revenues grew by 38.3% to MXN 18.8 billion. EBITDA climbed by 22.5% to MXN 844 million, and cash flow from operations increased by 56% to MXN 1.9 billion. Despite a slight rise in sales and admin expenses as a percentage of revenue—up by 0.1 and 0.31 percentage points respectively—the company maintained a strong growth trajectory, funding its expansion internally. Tiendas 3B's focus on accelerating store openings and expanding its market presence continues to drive shareholder value and outperform competitors.BBB Foods, Inc. Class A Financial Statement Overview
Summary
BBB Foods, Inc. Class A shows strong revenue growth and improving profitability, with a significant recovery in equity position. However, high leverage remains a concern, and there is room for improvement in net profit margin and cash utilization.Income Statement
BBB Foods, Inc. Class A has shown impressive revenue growth, with a significant increase from $32.58 billion in 2022 to $57.44 billion in 2024, indicating a strong upward trajectory. The gross profit margin improved to 16.32% in 2024, reflecting enhanced efficiency. However, net profit margin remains a concern, with a modest 0.58% in 2024, despite recovering from previous losses. The EBIT and EBITDA margins have improved, but still indicate room for further profitability enhancement.75
Positive
Balance Sheet
The balance sheet shows a positive shift with stockholders' equity turning positive in 2024, reaching $4.03 billion, which is a significant improvement from negative equity in prior years. However, the debt-to-equity ratio is high at 2.28, suggesting substantial leverage. The equity ratio improved to 17.71%, indicating better asset financing through equity, but the company still faces potential risks due to high debt levels.60
Neutral
Cash Flow
Cash flow analysis reveals a stable operating cash flow, increasing to $3.75 billion in 2024. Free cash flow remains positive, with a slight decline from the previous year, but still strong at $1.31 billion. The operating cash flow to net income ratio is robust, indicating effective cash generation relative to net income. However, the free cash flow to net income ratio shows potential for improvement, suggesting the need for better cash utilization.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 61.89B | 57.44B | 44.08B | 32.58B | 23.09B |
| Gross Profit | 10.06B | 9.38B | 7.04B | 4.92B | 3.44B |
| EBITDA | 3.22B | 3.49B | 2.43B | 820.41M | 608.85M |
| Net Income | 478.31M | 334.42M | -306.15M | -565.11M | -816.67M |
Balance Sheet | |||||
| Total Assets | 23.97B | 22.78B | 14.96B | 11.79B | 8.05B |
| Cash, Cash Equivalents and Short-Term Investments | 4.63B | 4.47B | 1.22B | 984.63M | 1.00B |
| Total Debt | 9.73B | 9.20B | 11.91B | 10.55B | 8.13B |
| Total Liabilities | 19.81B | 18.74B | 19.60B | 16.51B | 12.50B |
| Stockholders Equity | 4.16B | 4.03B | -4.63B | -4.71B | -4.45B |
Cash Flow | |||||
| Free Cash Flow | 1.52B | 1.31B | 1.34B | 990.65M | 832.27M |
| Operating Cash Flow | 4.12B | 3.75B | 3.14B | 2.12B | 1.37B |
| Investing Cash Flow | -5.05B | -4.91B | -1.78B | -1.11B | -524.08M |
| Financing Cash Flow | -1.97B | 1.29B | -1.10B | -1.03B | -450.24M |
BBB Foods, Inc. Class A Technical Analysis
Negative
24.83
Price Trends
26.06
Negative
27.25
Negative
28.05
Negative
Market Momentum
-0.13
Positive
42.15
Neutral
12.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBBB, the sentiment is Negative. The current price of 24.83 is below the 20-day moving average (MA) of 25.74, below the 50-day MA of 26.06, and below the 200-day MA of 28.05, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 42.15 is Neutral, neither overbought nor oversold. The STOCH value of 12.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBBB.
BBB Foods, Inc. Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.34B | 22.90 | 12.34% | 1.16% | 7.47% | 15.20% | |
78 Outperform | $8.01B | 40.14 | 12.32% | ― | 8.70% | 2.54% | |
74 Outperform | $24.72B | 21.44 | 15.69% | 2.14% | 4.77% | -23.73% | |
66 Neutral | $12.70B | 22.06 | 30.84% | ― | 2.48% | 9.41% | |
62 Neutral | $2.99B | 105.94 | -3.15% | ― | ― | ― | |
60 Neutral | $23.37B | ― | 19.25% | ― | -20.46% | -202.26% | |
56 Neutral | $6.56B | -0.98 | 0.45% | 6.27% | 14.92% | 10.98% |
* General Sector Average
Performance Comparison
TBBB
BBB Foods, Inc. Class A
26.20
-5.73
-17.95%
DG
Dollar General
110.50
28.66
35.02%
DLTR
Dollar Tree
112.86
28.07
33.11%
PSMT
Pricesmart
108.75
20.86
23.73%
OLLI
Ollie's Bargain Outlet Holding
130.52
43.62
50.20%
BJ
Bj's Wholesale Club Holdings
96.15
16.87
21.28%
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.