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: 22.71%
• EPS Growth: -3187.84%
• 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: 60 Neutral
• Price Target: $33.00 ▲(15.38% Upside)

The overall stock score of 60 reflects strong technical momentum and positive earnings call sentiment, offset by financial performance challenges and valuation concerns. The company's growth prospects are promising, but profitability and leverage issues need addressing.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market penetration, supporting long-term business expansion.

Store Expansion

Aggressive store expansion enhances market presence and distribution capabilities, crucial for sustaining growth momentum.

Cash Flow Generation

Strong cash flow generation provides financial flexibility to invest in growth initiatives and manage debt obligations effectively.

Negative Factors

Profitability Challenges

Persistent profitability issues suggest challenges in cost management, which could hinder long-term financial health and competitiveness.

High Leverage

High leverage increases financial risk and limits the company's ability to invest in growth opportunities without incurring additional debt.

Negative Return on Equity

Negative return on equity reflects inefficient use of shareholder funds, potentially impacting investor confidence and capital raising ability.

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 but faces significant challenges in profitability and financial stability. High leverage and negative return on equity are key concerns, while cash flow generation remains relatively stable.

Income Statement

BBB Foods, Inc. Class A has shown a positive revenue growth rate of 7.76% in the TTM, indicating a strong upward trajectory in sales. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -2.50% and a low EBIT margin of 0.09%. The gross profit margin is relatively stable at 16.22%, but the overall profitability metrics suggest challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.75, indicating significant leverage and potential financial risk. The return on equity is negative at -3.42%, reflecting the company's inability to generate positive returns for shareholders. The equity ratio is low, suggesting limited financial stability and a reliance on debt financing.

Cash Flow

The cash flow statement shows a decline in free cash flow growth by -12.83% in the TTM, which is concerning. However, the operating cash flow to net income ratio is healthy at 0.34, indicating that the company is generating sufficient cash from operations relative to its net income. The free cash flow to net income ratio of 0.30 suggests that the company is still able to convert a portion of its earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	72.28B	57.44B	44.08B	31.75B	23.35B
Gross Profit	11.72B	9.38B	7.04B	4.15B	3.03B
EBITDA	1.96B	3.49B	2.43B	1.55B	819.01M
Net Income	-1.80B	334.42M	-306.15M	-550.67M	-825.94M
Balance Sheet
Total Assets	27.10B	22.78B	14.96B	11.79B	8.05B
Cash, Cash Equivalents and Short-Term Investments	3.89B	4.47B	1.22B	984.63M	1.00B
Total Debt	11.76B	9.20B	11.91B	10.55B	8.13B
Total Liabilities	22.83B	18.74B	19.60B	16.51B	12.50B
Stockholders Equity	4.28B	4.03B	-4.63B	-4.71B	-4.45B
Cash Flow
Free Cash Flow	1.35B	1.31B	1.34B	990.65M	832.27M
Operating Cash Flow	4.55B	3.75B	3.14B	2.12B	1.37B
Investing Cash Flow	-3.06B	-4.91B	-1.78B	-1.11B	-524.08M
Financing Cash Flow	-1.64B	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: Neutral

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 below the 20-day moving average (MA) of 31.53, below the 50-day MA of 28.87, and above the 200-day MA of 27.33, indicating a bullish trend. The MACD of 1.52 indicates Negative momentum. The RSI at 65.14 is Neutral, neither overbought nor oversold. The STOCH value of 78.81 is Neutral, 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	77 Outperform	$3.88B	26.09	12.22%	1.00%	7.25%	5.42%
DG	73 Outperform	$27.35B	21.46	16.45%	1.88%	4.86%	-4.51%
BJ	71 Outperform	$11.97B	20.82	29.24%	―	2.82%	3.77%
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	61 Neutral	$23.80B	―	20.07%	―	-39.27%	-182.36%
TBBB	60 Neutral	$3.26B	―	-3.15%	―	22.71%	-3187.84%

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.