BETTERWARE DE MEXICO SAPI DE (BWMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BWMX - MX00BW020002 - Common Stock
19.02 USD
-0.42 (-2.16%)
Overall BWMX gets a fundamental rating of 6 out of 10. We evaluated BWMX against 121 industry peers in the Specialty Retail industry. BWMX has an excellent profitability rating, but there are some minor concerns on its financial health. BWMX scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make BWMX suitable for value investing!
1. Profitability
1.1 Basic Checks
- BWMX had positive earnings in the past year.
- In the past year BWMX had a positive cash flow from operations.
- BWMX had positive earnings in each of the past 5 years.
- In the past 5 years BWMX always reported a positive cash flow from operatings.
1.2 Ratios
- BWMX has a Return On Assets of 9.74%. This is amongst the best in the industry. BWMX outperforms 83.47% of its industry peers.
- BWMX's Return On Equity of 87.45% is amongst the best of the industry. BWMX outperforms 98.35% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 23.09%, BWMX belongs to the top of the industry, outperforming 90.08% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BWMX is significantly above the industry average of 12.37%.
- The last Return On Invested Capital (23.09%) for BWMX is above the 3 year average (20.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.74% | ||
| ROE | 87.45% | ||
| ROIC | 23.09% |
ROA(3y)7.96%
ROA(5y)13.11%
ROE(3y)70.57%
ROE(5y)77.61%
ROIC(3y)20.69%
ROIC(5y)43.04%
1.3 Margins
- BWMX has a better Profit Margin (7.16%) than 82.64% of its industry peers.
- BWMX's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 15.07%, BWMX belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- In the last couple of years the Operating Margin of BWMX has declined.
- BWMX has a better Gross Margin (67.27%) than 93.39% of its industry peers.
- In the last couple of years the Gross Margin of BWMX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.07% | ||
| PM (TTM) | 7.16% | ||
| GM | 67.27% |
OM growth 3Y-16.03%
OM growth 5Y-9.81%
PM growth 3Y-34.52%
PM growth 5Y-19.9%
GM growth 3Y6.54%
GM growth 5Y3.05%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BWMX is creating value.
- The number of shares outstanding for BWMX remains at a similar level compared to 1 year ago.
- The number of shares outstanding for BWMX has been increased compared to 5 years ago.
- The debt/assets ratio for BWMX has been reduced compared to a year ago.
2.2 Solvency
- BWMX has an Altman-Z score of 3.02. This indicates that BWMX is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of BWMX (3.02) is better than 69.42% of its industry peers.
- The Debt to FCF ratio of BWMX is 3.28, which is a good value as it means it would take BWMX, 3.28 years of fcf income to pay off all of its debts.
- BWMX has a Debt to FCF ratio of 3.28. This is in the better half of the industry: BWMX outperforms 72.73% of its industry peers.
- A Debt/Equity ratio of 3.78 is on the high side and indicates that BWMX has dependencies on debt financing.
- BWMX has a worse Debt to Equity ratio (3.78) than 76.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.78 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 3.02 |
ROIC/WACC2.54
WACC9.09%
2.3 Liquidity
- A Current Ratio of 1.09 indicates that BWMX should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.09, BWMX is not doing good in the industry: 67.77% of the companies in the same industry are doing better.
- BWMX has a Quick Ratio of 1.09. 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 | 1.09 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.94% over the past year.
- BWMX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.06% yearly.
- The Revenue has been growing slightly by 3.60% in the past year.
- The Revenue has been growing by 35.52% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)3.94%
EPS 3Y-13.1%
EPS 5Y4.06%
EPS Q2Q%73.97%
Revenue 1Y (TTM)3.6%
Revenue growth 3Y11.99%
Revenue growth 5Y35.52%
Sales Q2Q%1.41%
3.2 Future
- The Earnings Per Share is expected to grow by 4.61% on average over the next years.
- The Revenue is expected to grow by 3.60% on average over the next years.
EPS Next Y-0.81%
EPS Next 2Y11.83%
EPS Next 3Y4.61%
EPS Next 5YN/A
Revenue Next Year2.13%
Revenue Next 2Y3.38%
Revenue Next 3Y2.39%
Revenue Next 5Y3.6%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.12, the valuation of BWMX can be described as reasonable.
- Based on the Price/Earnings ratio, BWMX is valued cheaper than 85.12% of the companies in the same industry.
- BWMX is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 8.18 indicates a reasonable valuation of BWMX.
- BWMX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BWMX is cheaper than 95.04% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of BWMX to the average of the S&P500 Index (24.26), we can say BWMX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 8.18 |
4.2 Price Multiples
- 77.69% of the companies in the same industry are more expensive than BWMX, based on the Enterprise Value to EBITDA ratio.
- BWMX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BWMX is cheaper than 88.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.87 | ||
| EV/EBITDA | 6.92 |
4.3 Compensation for Growth
- BWMX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.49
EPS Next 2Y11.83%
EPS Next 3Y4.61%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.42%, BWMX is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.08, BWMX pays a better dividend. On top of this BWMX pays more dividend than 95.04% of the companies listed in the same industry.
- BWMX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
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
- 88.22% of the earnings are spent on dividend by BWMX. This is not a sustainable payout ratio.
DP88.22%
EPS Next 2Y11.83%
EPS Next 3Y4.61%
BETTERWARE DE MEXICO SAPI DE / BWMX FAQ
What is the fundamental rating for BWMX stock?
ChartMill assigns a fundamental rating of 6 / 10 to BWMX.
What is the valuation status of BETTERWARE DE MEXICO SAPI DE (BWMX) stock?
ChartMill assigns a valuation rating of 7 / 10 to BETTERWARE DE MEXICO SAPI DE (BWMX). This can be considered as Undervalued.
How profitable is BETTERWARE DE MEXICO SAPI DE (BWMX) stock?
BETTERWARE DE MEXICO SAPI DE (BWMX) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for BWMX stock?
The Price/Earnings (PE) ratio for BETTERWARE DE MEXICO SAPI DE (BWMX) is 10.12 and the Price/Book (PB) ratio is 10.66.
How sustainable is the dividend of BETTERWARE DE MEXICO SAPI DE (BWMX) stock?
The dividend rating of BETTERWARE DE MEXICO SAPI DE (BWMX) is 5 / 10 and the dividend payout ratio is 88.22%.