BETTERWARE DE MEXICO SAPI DE (BWMX) Stock Fundamental Analysis
USA - NYSE:BWMX - MX00BW020002 - Common Stock
13.05 USD
+0.13 (+1.01%)
13.17 USD
+0.12 (+0.92%)
We assign a fundamental rating of 6 out of 10 to BWMX. BWMX was compared to 119 industry peers in the Specialty Retail industry. While BWMX has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on BWMX.
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.
Each year in the past 5 years BWMX has been profitable.
BWMX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.63%, BWMX is doing good in the industry, outperforming 73.95% of the companies in the same industry.
BWMX's Return On Equity of 50.53% is amongst the best of the industry. BWMX outperforms 95.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.66%, BWMX belongs to the top of the industry, outperforming 89.08% 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 12.29%.
The 3 year average ROIC (20.69%) for BWMX is below the current ROIC(21.66%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 4.15%, BWMX is in the better half of the industry, outperforming 73.11% of the companies in the same industry.
BWMX's Profit Margin has declined in the last couple of years.
BWMX has a Operating Margin of 14.18%. This is amongst the best in the industry. BWMX outperforms 90.76% 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 94.96% of its industry peers.
BWMX's Gross Margin has improved in the last couple of years.
| 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
BWMX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, BWMX has about the same amount of 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
An Altman-Z score of 2.72 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 2.72. This is in the better half of the industry: BWMX outperforms 63.03% of its industry peers.
The Debt to FCF ratio of BWMX is 3.91, which is a good value as it means it would take BWMX, 3.91 years of fcf income to pay off all of its debts.
BWMX's Debt to FCF ratio of 3.91 is fine compared to the rest of the industry. BWMX outperforms 68.07% of its industry peers.
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 78.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.78 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 2.72 |
ROIC/WACC2.52
WACC8.6%
2.3 Liquidity
A Current Ratio of 1.09 indicates that BWMX should not have too much problems paying its short term obligations.
BWMX's Current ratio of 1.09 is on the low side compared to the rest of the industry. BWMX is outperformed by 68.91% of its industry peers.
A Quick Ratio of 0.50 indicates that BWMX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.50, BWMX is in line with its industry, outperforming 49.58% of the companies in the same industry.
| 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%.
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 4.84%.
BWMX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.52% yearly.
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.
Based on estimates for the next years, BWMX will show a small growth in Revenue. The Revenue will grow by 5.87% on average per year.
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
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.
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 reasonably with a Price/Earnings ratio of 8.16.
BWMX's Price/Earnings ratio is rather cheap when compared to the industry. BWMX is cheaper than 92.44% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.57, BWMX is valued rather cheaply.
The Price/Forward Earnings ratio is 5.89, which indicates a rather cheap valuation of BWMX.
Based on the Price/Forward Earnings ratio, BWMX is valued cheaper than 96.64% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.09. BWMX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.16 | ||
| Fwd PE | 5.89 |
4.2 Price Multiples
BWMX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BWMX is cheaper than 81.51% of the companies in the same industry.
95.80% 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 | 6.78 | ||
| EV/EBITDA | 5.71 |
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.
BWMX has an outstanding profitability rating, which may justify a higher PE ratio.
BWMX's earnings are expected to grow with 12.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.85
PEG (5Y)2.01
EPS Next 2Y12.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BWMX has a Yearly Dividend Yield of 9.25%, which is a nice return.
Compared to an average industry Dividend Yield of 5.51, BWMX pays a better dividend. On top of this BWMX pays more dividend than 97.48% 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.25% |
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 161.14% of its income as dividend. This is not a sustainable payout ratio.
DP161.14%
EPS Next 2Y12.03%
EPS Next 3YN/A
13.05
+0.13 (+1.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.45%
Inst Owner Change-22.61%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap487.03M
Revenue(TTM)14.17B
Net Income(TTM)588.39M
Analysts82.86
Price Target19.13 (46.59%)
Short Float %0.38%
Short Ratio1.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.25% |
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)0%
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 | 8.16 | ||
| Fwd PE | 5.89 | ||
| P/S | 0.63 | ||
| P/FCF | 6.78 | ||
| P/OCF | 6.05 | ||
| P/B | 7.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.71 |
EPS(TTM)1.6
EY12.26%
EPS(NY)2.22
Fwd EY16.98%
FCF(TTM)1.93
FCFY14.75%
OCF(TTM)2.16
OCFY16.52%
SpS20.63
BVpS1.7
TBVpS-2.92
PEG (NY)1.85
PEG (5Y)2.01
Graham Number7.81
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%
ROICexgc growth 3Y-33.38%
ROICexgc 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 | 2.72 |
F-Score6
WACC8.6%
ROIC/WACC2.52
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%