BBB Foods, Inc. Class A (TBBB) AI Stock Analysis

• Market Cap: $3.02B
• Dividend Yield: N/A
• Average Volume (3M): 526.40K
• Price to Earnings (P/E): 105.9
• Beta (1Y): 1.20
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 25,300
• Sector: General
• Sector Strength: N/A
• Industry: Discount Stores
• EPS (TTM): -0.14
• Shares Outstanding: 62,048,107
• 10 Day Avg. Volume: 490,116
• 30 Day Avg. Volume: 526,405
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.33
• Enterprise Value/Ebitda: 1.06
• 1Y Price Target: $31.00
• Price Target Upside: 19.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 62 Neutral
• Price Target: $27.00 ▲(4.37% Upside)

The overall stock score of 62 reflects strong earnings call performance and robust financial growth, tempered by high leverage and valuation concerns. The company's strategic expansions and market position are positive, but profitability and debt management remain key challenges.

Positive Factors

Revenue Growth

The substantial revenue growth reflects strong market demand and effective expansion strategies, positioning the company for sustained long-term growth.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, supporting future investments and debt reduction, crucial for long-term stability.

Market Position

A leading market position in a growing region strengthens competitive advantages and provides opportunities for continued expansion and profitability.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting the company's ability to invest in growth opportunities and affecting long-term financial health.

Profitability Margins

Low profitability margins indicate challenges in converting revenue to profit, which may hinder the company's ability to sustain growth and reinvest in the business.

EBITDA Margin Decline

Declining EBITDA margins suggest rising operational costs, which could pressure future profitability and require strategic cost management to maintain financial health.

BBB Foods, Inc. Class A Business Overview & Revenue Model

Company Description

BBB 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 Money

The 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 Financial Statement Overview

Summary

BBB Foods, Inc. Class A shows strong revenue growth and cash flow generation, indicating potential for future expansion. However, challenges with profitability margins and high leverage could impact financial stability. Improving net profit margins and managing debt levels are crucial for sustaining growth.

Income Statement

BBB Foods, Inc. Class A shows a strong revenue growth rate of 8.4% TTM, indicating robust sales expansion. However, the net profit margin is low at 0.77% TTM, reflecting challenges in translating revenue into profit. The gross profit margin is stable at 16.25% TTM, suggesting consistent cost management. EBIT and EBITDA margins are moderate, indicating operational efficiency but room for improvement in profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 2.34 TTM, indicating significant leverage, which could pose financial risk. Return on equity is moderate at 12.21% TTM, showing decent returns for shareholders. The equity ratio is low, suggesting a reliance on debt financing over equity.

Cash Flow

Operating cash flow is strong, with a coverage ratio of 0.35 TTM, indicating good cash generation relative to net income. Free cash flow growth is impressive at 165.4% TTM, showing improved cash availability for investments or debt reduction. The free cash flow to net income ratio is healthy, reflecting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	67.08B	57.44B	44.08B	32.58B	23.09B
Gross Profit	10.83B	9.38B	7.04B	4.92B	3.44B
EBITDA	3.35B	3.49B	2.43B	820.41M	608.85M
Net Income	-139.03M	334.42M	-306.15M	-565.11M	-816.67M
Balance Sheet
Total Assets	25.12B	22.78B	14.96B	11.79B	8.05B
Cash, Cash Equivalents and Short-Term Investments	3.97B	4.47B	1.22B	984.63M	1.00B
Total Debt	10.61B	9.20B	11.91B	10.55B	8.13B
Total Liabilities	20.99B	18.74B	19.60B	16.51B	12.50B
Stockholders Equity	4.13B	4.03B	-4.63B	-4.71B	-4.45B
Cash Flow
Free Cash Flow	1.55B	1.31B	1.34B	990.65M	832.27M
Operating Cash Flow	4.42B	3.75B	3.14B	2.12B	1.37B
Investing Cash Flow	-2.53B	-4.91B	-1.78B	-1.11B	-524.08M
Financing Cash Flow	-1.87B	1.29B	-1.10B	-1.03B	-450.24M

BBB Foods, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 25.87 is below the 20-day moving average (MA) of 26.08, below the 50-day MA of 25.87, and below the 200-day MA of 27.55, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.35 is Neutral, neither overbought nor oversold. The STOCH value of 62.22 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSMT	78 Outperform	3.59B	24.61	11.98%	1.07%	7.47%	15.20%
BTSG	76 Outperform	4.85B	92.19	3.76%	―	20.60%	0.00%
DG	70 Outperform	23.36B	19.63	14.87%	2.21%	4.98%	-15.98%
BJ	66 Neutral	13.08B	22.46	27.58%	―	2.48%	9.41%
TBBB	62 Neutral	$3.02B	105.94	-3.15%	―	―	―
DLTR	53 Neutral	19.94B	-7.23	-82.21%	―	-29.67%	-178.03%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

BBB Foods, Inc. Class A Corporate Events

BBB Foods Inc. Reports Strong Q2 2025 Results with Significant Revenue Growth

On August 11th, 2025, BBB Foods Inc. announced its financial results for the second quarter of 2025, ending June 30th. The company reported a significant revenue increase of 38.3% year-over-year, reaching Ps. 18,770 million, driven by strong same-store sales growth and the opening of 142 new stores, bringing the total to 3,031. EBITDA rose by 32.1% excluding non-cash share-based payment expenses, reflecting disciplined execution and operational control. The company also focused on expanding its logistics infrastructure and strengthening its leadership team, which is expected to support its long-term growth strategy.