BETTERWARE DE MEXICO SAPI DE (BWMX) Stock Fundamental Analysis
NYSE:BWMX - New York Stock Exchange, Inc. - MX00BW020002 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to BWMX. BWMX was compared to 119 industry peers in the Specialty Retail industry. While BWMX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BWMX is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
BWMX had positive earnings in the past year.
BWMX had a positive operating cash flow in the past year.
BWMX had positive earnings in each of the past 5 years.
Each year in the past 5 years BWMX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BWMX (8.15%) is better than 79.31% of its industry peers.
Looking at the Return On Equity, with a value of 74.77%, BWMX belongs to the top of the industry, outperforming 97.41% of the companies in the same industry.
With an excellent Return On Invested Capital value of 25.66%, BWMX belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BWMX is significantly above the industry average of 12.39%.
The last Return On Invested Capital (25.66%) for BWMX is well below the 3 year average (36.19%), which needs to be investigated, but indicates that BWMX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.15% | ||
| ROE | 74.77% | ||
| ROIC | 25.66% |
ROA(3y)17.06%
ROA(5y)17.04%
ROE(3y)96.84%
ROE(5y)99.89%
ROIC(3y)36.19%
ROIC(5y)53.28%
1.3 Margins
The Profit Margin of BWMX (6.45%) is better than 81.90% of its industry peers.
In the last couple of years the Profit Margin of BWMX has declined.
BWMX's Operating Margin of 17.74% is amongst the best of the industry. BWMX outperforms 94.83% of its industry peers.
BWMX's Operating Margin has declined in the last couple of years.
The Gross Margin of BWMX (71.78%) is better than 96.55% of its industry peers.
In the last couple of years the Gross Margin of BWMX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.74% | ||
| PM (TTM) | 6.45% | ||
| GM | 71.78% |
OM growth 3Y-15.61%
OM growth 5Y-5.42%
PM growth 3Y20.11%
PM growth 5Y-8.97%
GM growth 3Y9.38%
GM growth 5Y4.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BWMX is creating value.
Compared to 1 year ago, BWMX has more shares outstanding
The number of shares outstanding for BWMX has been increased compared to 5 years ago.
BWMX has a better debt/assets ratio than last year.
2.2 Solvency
BWMX has an Altman-Z score of 2.71. This is not the best score and indicates that BWMX is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.71, BWMX is in line with its industry, outperforming 58.62% of the companies in the same industry.
BWMX has a debt to FCF ratio of 2.99. This is a good value and a sign of high solvency as BWMX would need 2.99 years to pay back of all of its debts.
BWMX has a Debt to FCF ratio of 2.99. This is in the better half of the industry: BWMX outperforms 73.28% of its industry peers.
BWMX has a Debt/Equity ratio of 3.84. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.84, BWMX is not doing good in the industry: 78.45% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.84 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 2.71 |
ROIC/WACC1.82
WACC14.1%
2.3 Liquidity
A Current Ratio of 1.07 indicates that BWMX should not have too much problems paying its short term obligations.
BWMX's Current ratio of 1.07 is on the low side compared to the rest of the industry. BWMX is outperformed by 74.14% of its industry peers.
BWMX has a Quick Ratio of 1.07. This is a bad value and indicates that BWMX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BWMX (0.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
BWMX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.89%, which is quite impressive.
The Earnings Per Share has been growing by 27.64% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 6.84% in the past year.
BWMX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 41.21% yearly.
EPS 1Y (TTM)37.89%
EPS 3Y41.44%
EPS 5Y27.64%
EPS Q2Q%-8.33%
Revenue 1Y (TTM)6.84%
Revenue growth 3Y21.46%
Revenue growth 5Y41.21%
Sales Q2Q%6.62%
3.2 Future
BWMX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.78% yearly.
The Revenue is expected to grow by 8.27% on average over the next years. This is quite good.
EPS Next Y21.92%
EPS Next 2Y16.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.98%
Revenue Next 2Y8.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BWMX is valuated cheaply with a Price/Earnings ratio of 7.42.
BWMX's Price/Earnings ratio is rather cheap when compared to the industry. BWMX is cheaper than 95.69% of the companies in the same industry.
BWMX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.28.
With a Price/Forward Earnings ratio of 6.08, the valuation of BWMX can be described as very cheap.
Based on the Price/Forward Earnings ratio, BWMX is valued cheaper than 93.97% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 91.29. BWMX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.42 | ||
| Fwd PE | 6.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BWMX indicates a rather cheap valuation: BWMX is cheaper than 92.24% of the companies listed in the same industry.
BWMX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BWMX is cheaper than 97.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.96 | ||
| EV/EBITDA | 4.95 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BWMX has an outstanding profitability rating, which may justify a higher PE ratio.
BWMX's earnings are expected to grow with 16.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)0.27
EPS Next 2Y16.78%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.00%, BWMX is a good candidate for dividend investing.
BWMX's Dividend Yield is rather good when compared to the industry average which is at 3.19. BWMX pays more dividend than 99.14% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, BWMX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12% |
5.2 History
BWMX has been paying a dividend for over 5 years, so it has already some track record.
BWMX has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BWMX pays out 107.09% of its income as dividend. This is not a sustainable payout ratio.
DP107.09%
EPS Next 2Y16.78%
EPS Next 3YN/A
BETTERWARE DE MEXICO SAPI DE
NYSE:BWMX (1/29/2025, 8:08:08 PM)
11.35
-0.33 (-2.83%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners13.01%
Inst Owner Change0.25%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap423.58M
Analysts82.86
Price Target20.66 (82.03%)
Short Float %0.57%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12% |
Yearly Dividend17.46
Dividend Growth(5Y)N/A
DP107.09%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-18.02%
Min EPS beat(2)-23.9%
Max EPS beat(2)-12.15%
EPS beat(4)1
Avg EPS beat(4)16.37%
Min EPS beat(4)-23.9%
Max EPS beat(4)121.25%
EPS beat(8)4
Avg EPS beat(8)13.88%
EPS beat(12)4
Avg EPS beat(12)-7.55%
EPS beat(16)6
Avg EPS beat(16)-10.02%
Revenue beat(2)0
Avg Revenue beat(2)-2.07%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-1.73%
Revenue beat(4)2
Avg Revenue beat(4)1.51%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)8.78%
Revenue beat(8)4
Avg Revenue beat(8)-0.21%
Revenue beat(12)5
Avg Revenue beat(12)-2.98%
Revenue beat(16)6
Avg Revenue beat(16)-2.19%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.42 | ||
| Fwd PE | 6.08 | ||
| P/S | 0.64 | ||
| P/FCF | 4.96 | ||
| P/OCF | 4.34 | ||
| P/B | 7.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.95 |
EPS(TTM)1.53
EY13.48%
EPS(NY)1.87
Fwd EY16.44%
FCF(TTM)2.29
FCFY20.15%
OCF(TTM)2.61
OCFY23.02%
SpS17.79
BVpS1.54
TBVpS-2.6
PEG (NY)0.34
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.15% | ||
| ROE | 74.77% | ||
| ROCE | 37.77% | ||
| ROIC | 25.66% | ||
| ROICexc | 26.99% | ||
| ROICexgc | 56.31% | ||
| OM | 17.74% | ||
| PM (TTM) | 6.45% | ||
| GM | 71.78% | ||
| FCFM | 12.85% |
ROA(3y)17.06%
ROA(5y)17.04%
ROE(3y)96.84%
ROE(5y)99.89%
ROIC(3y)36.19%
ROIC(5y)53.28%
ROICexc(3y)52.95%
ROICexc(5y)81.02%
ROICexgc(3y)95.29%
ROICexgc(5y)476.73%
ROCE(3y)53.28%
ROCE(5y)78.44%
ROICexcg growth 3Y-58.49%
ROICexcg growth 5YN/A
ROICexc growth 3Y-47.59%
ROICexc growth 5Y-19.11%
OM growth 3Y-15.61%
OM growth 5Y-5.42%
PM growth 3Y20.11%
PM growth 5Y-8.97%
GM growth 3Y9.38%
GM growth 5Y4.07%
F-Score5
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.84 | ||
| Debt/FCF | 2.99 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 64.83% | ||
| Cap/Sales | 1.84% | ||
| Interest Coverage | 3.92 | ||
| Cash Conversion | 71.41% | ||
| Profit Quality | 199.2% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 2.71 |
F-Score5
WACC14.1%
ROIC/WACC1.82
Cap/Depr(3y)195.1%
Cap/Depr(5y)494.86%
Cap/Sales(3y)2.18%
Cap/Sales(5y)4.19%
Profit Quality(3y)137.78%
Profit Quality(5y)171.86%
High Growth Momentum
Growth
EPS 1Y (TTM)37.89%
EPS 3Y41.44%
EPS 5Y27.64%
EPS Q2Q%-8.33%
EPS Next Y21.92%
EPS Next 2Y16.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.84%
Revenue growth 3Y21.46%
Revenue growth 5Y41.21%
Sales Q2Q%6.62%
Revenue Next Year9.98%
Revenue Next 2Y8.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y9.78%
EBIT growth 3Y2.5%
EBIT growth 5Y33.56%
EBIT Next Year35.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y292.38%
FCF growth 3Y22.89%
FCF growth 5Y47.81%
OCF growth 1Y218.54%
OCF growth 3Y9.11%
OCF growth 5Y47.57%