BETTERWARE DE MEXICO SAPI DE (BWMX) Stock Fundamental Analysis
USA - NYSE:BWMX - MX00BW020002 - Common Stock
13.49 USD
-0.03 (-0.22%)
13.51 USD
+0.02 (+0.15%)
Overall BWMX gets a fundamental rating of 6 out of 10. We evaluated BWMX against 121 industry peers in the Specialty Retail industry. While BWMX has a great profitability rating, 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.
In the past year BWMX had a positive cash flow from operations.
In the past 5 years BWMX has always been profitable.
In the past 5 years BWMX always reported a positive cash flow from operatings.
1.2 Ratios
BWMX has a Return On Assets of 5.63%. This is in the better half of the industry: BWMX outperforms 74.38% of its industry peers.
BWMX's Return On Equity of 50.53% is amongst the best of the industry. BWMX outperforms 96.69% of its industry peers.
BWMX's Return On Invested Capital of 21.66% is amongst the best of the industry. BWMX outperforms 89.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BWMX is significantly above the industry average of 12.16%.
The last Return On Invested Capital (21.66%) for BWMX is above the 3 year average (20.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 50.53% | ||
| ROIC | 21.66% |
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 (4.15%) than 73.55% of its industry peers.
In the last couple of years the Profit Margin of BWMX has declined.
BWMX's Operating Margin of 14.18% is amongst the best of the industry. BWMX outperforms 92.56% of its industry peers.
In the last couple of years the Operating Margin of BWMX has declined.
The Gross Margin of BWMX (67.90%) is better than 95.04% of its industry peers.
In the last couple of years the Gross Margin of BWMX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.18% | ||
| PM (TTM) | 4.15% | ||
| GM | 67.9% |
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.
Compared to 1 year ago, BWMX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.75 indicates that BWMX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.75, BWMX is in the better half of the industry, outperforming 60.33% of the companies in the same industry.
BWMX has a debt to FCF ratio of 3.91. This is a good value and a sign of high solvency as BWMX would need 3.91 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.91, BWMX is in the better half of the industry, outperforming 70.25% 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.
With a Debt to Equity ratio value of 3.78, BWMX is not doing good in the industry: 79.34% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.78 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 2.75 |
ROIC/WACC2.49
WACC8.7%
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 69.42% 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 has a Quick ratio of 0.50. This is comparable to the rest of the industry: BWMX outperforms 50.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
BWMX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.62%.
The Earnings Per Share has been growing slightly by 4.06% on average over the past years.
BWMX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.84%.
The Revenue has been growing by 35.52% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-8.62%
EPS 3Y-13.1%
EPS 5Y4.06%
EPS Q2Q%8.81%
Revenue 1Y (TTM)4.84%
Revenue growth 3Y11.99%
Revenue growth 5Y35.52%
Sales Q2Q%5.11%
3.2 Future
The Earnings Per Share is expected to grow by 12.03% on average over the next years. This is quite good.
BWMX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.87% yearly.
EPS Next Y4.4%
EPS Next 2Y12.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.65%
Revenue Next 2Y5.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 8.38, the valuation of BWMX can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BWMX indicates a rather cheap valuation: BWMX is cheaper than 91.74% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. BWMX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.05, the valuation of BWMX can be described as very cheap.
Based on the Price/Forward Earnings ratio, BWMX is valued cheaper than 95.87% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, BWMX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 6.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BWMX is valued cheaply inside the industry as 85.12% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BWMX indicates a rather cheap valuation: BWMX is cheaper than 93.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.96 | ||
| EV/EBITDA | 5.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BWMX does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of BWMX may justify a higher PE ratio.
A more expensive valuation may be justified as BWMX's earnings are expected to grow with 12.03% in the coming years.
PEG (NY)1.9
PEG (5Y)2.06
EPS Next 2Y12.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.95%, BWMX is a good candidate for dividend investing.
BWMX's Dividend Yield is rather good when compared to the industry average which is at 5.21. BWMX pays more dividend than 97.52% of the companies in the same industry.
BWMX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.95% |
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
161.14% of the earnings are spent on dividend by BWMX. This is not a sustainable payout ratio.
DP161.14%
EPS Next 2Y12.03%
EPS Next 3YN/A
13.49
-0.03 (-0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.68%
Inst Owner Change26.32%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap503.45M
Analysts82.86
Price Target19.13 (41.81%)
Short Float %0.49%
Short Ratio1.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.95% |
Yearly Dividend1.45
Dividend Growth(5Y)N/A
DP161.14%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-12.95%
Min EPS beat(2)-55.48%
Max EPS beat(2)29.59%
EPS beat(4)2
Avg EPS beat(4)-11.69%
Min EPS beat(4)-55.48%
Max EPS beat(4)29.59%
EPS beat(8)3
Avg EPS beat(8)2.52%
EPS beat(12)6
Avg EPS beat(12)-0.69%
EPS beat(16)6
Avg EPS beat(16)-7.9%
Revenue beat(2)0
Avg Revenue beat(2)-5.27%
Min Revenue beat(2)-9.23%
Max Revenue beat(2)-1.31%
Revenue beat(4)1
Avg Revenue beat(4)-2.48%
Min Revenue beat(4)-9.23%
Max Revenue beat(4)2.34%
Revenue beat(8)3
Avg Revenue beat(8)-1.37%
Revenue beat(12)5
Avg Revenue beat(12)-0.88%
Revenue beat(16)6
Avg Revenue beat(16)-3.8%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)4.9%
EPS NY rev (3m)4.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 6.05 | ||
| P/S | 0.65 | ||
| P/FCF | 6.96 | ||
| P/OCF | 6.22 | ||
| P/B | 7.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.85 |
EPS(TTM)1.61
EY11.93%
EPS(NY)2.23
Fwd EY16.53%
FCF(TTM)1.94
FCFY14.36%
OCF(TTM)2.17
OCFY16.08%
SpS20.76
BVpS1.71
TBVpS-2.94
PEG (NY)1.9
PEG (5Y)2.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 50.53% | ||
| ROCE | 32.46% | ||
| ROIC | 21.66% | ||
| ROICexc | 22.75% | ||
| ROICexgc | 49.23% | ||
| OM | 14.18% | ||
| PM (TTM) | 4.15% | ||
| GM | 67.9% | ||
| FCFM | 9.33% |
ROA(3y)7.96%
ROA(5y)13.11%
ROE(3y)70.57%
ROE(5y)77.61%
ROIC(3y)20.69%
ROIC(5y)43.04%
ROICexc(3y)22.29%
ROICexc(5y)65.74%
ROICexgc(3y)44.42%
ROICexgc(5y)187.07%
ROCE(3y)31.01%
ROCE(5y)64.51%
ROICexcg growth 3Y-33.38%
ROICexcg growth 5Y-47.91%
ROICexc growth 3Y-37.76%
ROICexc growth 5Y-20.23%
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%
F-Score6
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.78 | ||
| Debt/FCF | 3.91 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 40.02% | ||
| Cap/Sales | 1.12% | ||
| Interest Coverage | 3.49 | ||
| Cash Conversion | 61.56% | ||
| Profit Quality | 224.73% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 2.75 |
F-Score6
WACC8.7%
ROIC/WACC2.49
Cap/Depr(3y)50.89%
Cap/Depr(5y)411.15%
Cap/Sales(3y)1.37%
Cap/Sales(5y)3.32%
Profit Quality(3y)193.85%
Profit Quality(5y)199.3%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.62%
EPS 3Y-13.1%
EPS 5Y4.06%
EPS Q2Q%8.81%
EPS Next Y4.4%
EPS Next 2Y12.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.84%
Revenue growth 3Y11.99%
Revenue growth 5Y35.52%
Sales Q2Q%5.11%
Revenue Next Year5.65%
Revenue Next 2Y5.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-15.24%
EBIT growth 3Y-5.96%
EBIT growth 5Y22.23%
EBIT Next Year10.09%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-50.84%
FCF growth 3Y14.61%
FCF growth 5Y30.52%
OCF growth 1Y-46.75%
OCF growth 3Y7.56%
OCF growth 5Y24.67%