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

• Market Cap: $3.26B
• Dividend Yield: N/A
• Average Volume (3M): 595.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 25,300
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): <0.01
• Shares Outstanding: 62,048,107
• 10 Day Avg. Volume: 571,425
• 30 Day Avg. Volume: 595,250
• PEG Ratio: -1.08
• Price to Book (P/B): 16.42
• Price to Sales (P/S): 1.15
• P/FCF Ratio: 50.55
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $39.00
• Price Target Upside: 36.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: $34.00 ▲(18.88% Upside)

The overall stock score of 69.9 reflects strong financial performance and positive technical indicators, supported by a positive earnings call. However, the valuation is a concern due to the negative P/E ratio and lack of dividend yield. The company's growth strategy and cash flow generation are significant strengths, but profitability and leverage remain areas to watch.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust sales expansion and market demand, supporting long-term business sustainability and competitive positioning.

Store Expansion

Expanding store count enhances market presence and distribution capabilities, driving future revenue growth and strengthening competitive advantage.

Cash Flow Generation

Strong operational cash flow supports investment in growth initiatives and debt reduction, enhancing financial flexibility and long-term stability.

Negative Factors

High Leverage

High leverage can strain financial resources and limit strategic options, posing risks to financial health and long-term sustainability.

Profitability Challenges

Low profitability margins indicate challenges in converting revenue into profit, which may affect long-term financial performance and shareholder returns.

Increased Sales Expenses

Rising sales expenses can pressure margins and reduce profitability, necessitating cost control measures to maintain financial health.

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

Company Description

BBB Foods, Inc. Class A (TBBB) is a leading player in the food production and distribution sector, specializing in high-quality processed food products. The company operates across various segments, including frozen foods, snacks, and ready-to-eat meals. With a commitment to innovation and sustainability, BBB Foods focuses on delivering nutritious and convenient food solutions to consumers, while also emphasizing responsible sourcing and environmental stewardship in its operations.

How the Company Makes Money

BBB Foods generates revenue through multiple streams, primarily by selling its wide range of processed food products to retailers, wholesalers, and food service providers. The company capitalizes on its strong brand recognition and product quality to secure shelf space in supermarkets and grocery chains, driving consumer sales. Additionally, BBB Foods has established strategic partnerships with distributors and logistics companies to enhance its supply chain efficiency and expand market reach. Seasonal promotions, product launches, and collaborations with culinary experts also contribute to revenue growth, as they attract new customers and increase consumer engagement.

BBB Foods, Inc. Class A Financial Statement Overview

Summary

BBB Foods, Inc. Class A shows strong revenue growth and cash flow generation, which are positive indicators 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	1.31B	924.21M
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: Positive
• Last Price: 28.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBBB, the sentiment is Positive. The current price of 28.6 is above the 20-day moving average (MA) of 28.45, above the 50-day MA of 27.12, and above the 200-day MA of 27.01, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 64.84 is Neutral, neither overbought nor oversold. The STOCH value of 90.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$3.58B	24.08	12.22%	1.07%	7.25%	5.42%
DG	73 Outperform	$21.93B	19.11	15.60%	2.35%	4.98%	-15.98%
BJ	71 Outperform	$12.03B	20.97	30.84%	―	2.48%	9.41%
TBBB	70 Neutral	$3.26B	―	-3.15%	―	―	―
BTSG	67 Neutral	$5.78B	53.47	4.25%	―	17.23%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DLTR	59 Neutral	$20.39B	―	20.07%	―	-29.67%	-178.03%

BBB Foods, Inc. Class A Corporate Events

BBB Foods Inc. Reports Strong Q3 2025 Revenue Growth Amid Expansion

BBB Foods Inc. reported its third-quarter 2025 financial results, highlighting a 36.7% increase in total revenue year-over-year, reaching Ps. 20,279 million. The company opened 131 new stores during the quarter, bringing the total to 3,162 stores, and expanded its distribution network with two new centers. Despite a reported EBITDA loss of Ps. 404 million due to non-cash share-based payment expenses, the adjusted EBITDA excluding these expenses rose by 43.6% to Ps. 1,170 million. The company’s growth strategy and operational efficiencies continue to drive strong performance, with plans to further expand its store count in Mexico.