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%)
We assign a fundamental rating of 7 out of 10 to BWMX. BWMX was compared to 122 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
- In the past year BWMX was profitable.
- BWMX had a positive operating cash flow in the past year.
- BWMX had positive earnings in each of the past 5 years.
- BWMX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BWMX has a better Return On Assets (9.74%) than 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.
- The Average Return On Invested Capital over the past 3 years for BWMX is significantly above the industry average of 12.24%.
- 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 Profit Margin of 7.16%. This is amongst the best in the industry. BWMX outperforms 82.64% of its industry peers.
- In the last couple of years the Profit Margin of BWMX has declined.
- BWMX has a Operating Margin of 15.07%. This is amongst the best in the industry. BWMX outperforms 90.91% of its industry peers.
- In the last couple of years the Operating Margin of BWMX has declined.
- Looking at the Gross Margin, with a value of 67.27%, BWMX belongs to the top of the industry, outperforming 93.39% of the companies in the same industry.
- 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
- BWMX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
- An Altman-Z score of 3.00 indicates that BWMX is not in any danger for bankruptcy at the moment.
- BWMX has a Altman-Z score of 3.00. This is in the better half of the industry: BWMX outperforms 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.
- Looking at the Debt to FCF ratio, with a value of 3.28, BWMX is in the better half of the industry, outperforming 72.73% 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 76.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.78 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 3 |
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.
- BWMX has a Current ratio of 1.09. This is in the lower half of the industry: BWMX underperforms 67.77% of its industry peers.
- A Quick Ratio of 0.50 indicates that BWMX may have some problems paying its short term obligations.
- BWMX has a Quick ratio of 0.50. This is comparable to the rest of the industry: BWMX outperforms 48.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
- BWMX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.94%.
- 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.
- Measured over the past years, BWMX shows a very strong growth in Revenue. The Revenue has been growing by 35.52% on average per year.
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.
- Based on estimates for the next years, BWMX will show a small growth in Revenue. The Revenue will grow by 3.60% on average per year.
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
- BWMX is valuated reasonably with a Price/Earnings ratio of 10.06.
- Based on the Price/Earnings ratio, BWMX is valued cheaper than 85.95% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, BWMX is valued rather cheaply.
- With a Price/Forward Earnings ratio of 6.85, the valuation of BWMX can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BWMX indicates a rather cheap valuation: BWMX is cheaper than 98.35% of the companies listed 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 | 10.06 | ||
| Fwd PE | 6.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BWMX is valued a bit cheaper than the industry average as 76.86% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, BWMX is valued cheaper than 89.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.85 | ||
| EV/EBITDA | 6.8 |
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.
- A more expensive valuation may be justified as BWMX's earnings are expected to grow with 18.24% in the coming years.
PEG (NY)0.37
PEG (5Y)2.48
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.
- BWMX's Dividend Yield is rather good when compared to the industry average which is at 2.15. BWMX pays more dividend than 94.21% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, BWMX pays a better dividend.
| 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.
- The dividend of BWMX decreased 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 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 10.06 and the Price/Book (PB) ratio is 10.63.
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%.