BETTERWARE DE MEXICO SAPI DE (BWMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BWMX - MX00BW020002 - Common Stock
18.22 USD
-0.8 (-4.21%)
Overall BWMX gets a fundamental rating of 6 out of 10. We evaluated BWMX against 122 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 valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year BWMX was profitable.
- BWMX had a positive operating cash flow in the past year.
- Each year in the past 5 years BWMX has been profitable.
- In the past 5 years BWMX always reported a positive cash flow from operatings.
1.2 Ratios
- BWMX's Return On Assets of 9.74% is amongst the best of the industry. BWMX outperforms 83.61% of its industry peers.
- With an excellent Return On Equity value of 87.45%, BWMX belongs to the best of the industry, outperforming 98.36% of the companies in the same industry.
- BWMX has a Return On Invested Capital of 23.09%. This is amongst the best in the industry. BWMX outperforms 90.16% of its industry peers.
- BWMX had an Average Return On Invested Capital over the past 3 years of 20.69%. This is significantly above the industry average of 12.24%.
- The 3 year average ROIC (20.69%) for BWMX is below the current ROIC(23.09%), indicating increased profibility in the last year.
| 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
- The Profit Margin of BWMX (7.16%) is better than 82.79% 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 90.98% 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 93.44% of its industry peers.
- BWMX's Gross Margin has improved in the last couple of years.
| 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.
- Compared to 5 years ago, BWMX has more shares outstanding
- The debt/assets ratio for BWMX has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.96 indicates that BWMX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- BWMX has a Altman-Z score of 2.96. This is in the better half of the industry: BWMX outperforms 68.03% 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.
- With a decent Debt to FCF ratio value of 3.28, BWMX is doing good in the industry, outperforming 72.13% of the companies in the same industry.
- BWMX has a Debt/Equity ratio of 3.78. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of BWMX (3.78) is worse than 77.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.78 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 2.96 |
ROIC/WACC2.56
WACC9.03%
2.3 Liquidity
- BWMX has a Current Ratio of 1.09. This is a normal value and indicates that BWMX is financially healthy and should not expect problems in meeting its short term obligations.
- BWMX has a worse Current ratio (1.09) than 68.03% of its industry peers.
- 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.
- BWMX's Quick ratio of 0.50 is in line compared to the rest of the industry. BWMX outperforms 48.36% of its industry peers.
| 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.
- BWMX shows a small growth in Revenue. In the last year, the Revenue has grown by 3.60%.
- 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
- Based on estimates for the next years, BWMX will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.24% on average per year.
- The Revenue is expected to grow by 3.60% on average over the next years.
EPS Next Y26.86%
EPS Next 2Y22.04%
EPS Next 3Y18.24%
EPS Next 5YN/A
Revenue Next Year2.13%
Revenue Next 2Y3.38%
Revenue Next 3Y2.39%
Revenue Next 5Y3.6%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- With a Price/Earnings ratio of 9.64, the valuation of BWMX can be described as very reasonable.
- Based on the Price/Earnings ratio, BWMX is valued cheaply inside the industry as 86.89% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, BWMX is valued rather cheaply.
- BWMX is valuated cheaply with a Price/Forward Earnings ratio of 6.55.
- Based on the Price/Forward Earnings ratio, BWMX is valued cheaper than 98.36% of the companies in the same industry.
- BWMX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.64 | ||
| Fwd PE | 6.55 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BWMX indicates a somewhat cheap valuation: BWMX is cheaper than 77.87% of the companies listed in the same industry.
- 89.34% of the companies in the same industry are more expensive than BWMX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.5 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
- BWMX's 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.
- A more expensive valuation may be justified as BWMX's earnings are expected to grow with 18.24% in the coming years.
PEG (NY)0.36
PEG (5Y)2.38
EPS Next 2Y22.04%
EPS Next 3Y18.24%
5. Dividend
5.1 Amount
- BWMX has a Yearly Dividend Yield of 5.42%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.15, BWMX pays a better dividend. On top of this BWMX pays more dividend than 94.26% 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
- BWMX pays out 88.22% of its income as dividend. This is not a sustainable payout ratio.
DP88.22%
EPS Next 2Y22.04%
EPS Next 3Y18.24%
BETTERWARE DE MEXICO SAPI DE / BWMX FAQ
What is the fundamental rating for BWMX stock?
ChartMill assigns a fundamental rating of 7 / 10 to BWMX.
What is the valuation status of BETTERWARE DE MEXICO SAPI DE (BWMX) stock?
ChartMill assigns a valuation rating of 9 / 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 9.64 and the Price/Book (PB) ratio is 10.16.
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%.