BETTERWARE DE MEXICO SAPI DE (BWMX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BWMX - MX00BW020002 - Common Stock
18.09 USD
-0.4 (-2.16%)
18.09 USD
0 (0%)
BWMX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. BWMX scores excellent on profitability, but there are some minor concerns on its financial health. BWMX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- In the past year BWMX was profitable.
- BWMX had a positive operating cash flow in the past year.
- 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
- The Return On Assets of BWMX (9.74%) is better than 83.61% of its industry peers.
- BWMX has a better Return On Equity (87.45%) than 98.36% of its industry peers.
- 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.
- 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
- With an excellent Profit Margin value of 7.16%, BWMX belongs to the best of the industry, outperforming 82.79% 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 15.07%. This is amongst the best in the industry. BWMX outperforms 90.98% of its industry peers.
- BWMX's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 67.27%, BWMX belongs to the top of the industry, outperforming 93.44% of the companies in the same industry.
- 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.
- BWMX has about the same amout of shares outstanding than it did 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 2.96 indicates that BWMX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- BWMX has a better Altman-Z score (2.96) than 68.85% 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 72.13% 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.
- With a Debt to Equity ratio value of 3.78, BWMX is not doing good in the industry: 77.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.78 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 2.96 |
ROIC/WACC2.56
WACC9.02%
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 Current ratio of 1.09. This is in the lower half of the industry: BWMX underperforms 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 has a Quick ratio (0.50) which is in line with 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.
- BWMX shows a small growth in Revenue. In the last year, the Revenue has grown by 3.60%.
- 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
- The Earnings Per Share is expected to grow by 18.24% 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 3.60% yearly.
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.
- 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 9.42.
- BWMX's Price/Earnings ratio is rather cheap when compared to the industry. BWMX is cheaper than 86.89% of the companies in the same industry.
- When comparing the Price/Earnings ratio of BWMX to the average of the S&P500 Index (28.60), we can say BWMX is valued rather cheaply.
- The Price/Forward Earnings ratio is 6.41, which indicates a rather cheap valuation of BWMX.
- BWMX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BWMX is cheaper than 98.36% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. BWMX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.42 | ||
| Fwd PE | 6.41 |
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 76.23% of the companies listed in the same industry.
- 90.16% 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 | 7.35 | ||
| EV/EBITDA | 6.59 |
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.
- The excellent profitability rating of BWMX may justify a higher PE ratio.
- BWMX's earnings are expected to grow with 18.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)2.32
EPS Next 2Y22.04%
EPS Next 3Y18.24%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.42%, BWMX is a good candidate for dividend investing.
- BWMX's Dividend Yield is rather good when compared to the industry average which is at 2.15. BWMX pays more dividend than 93.44% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 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 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 9.42 and the Price/Book (PB) ratio is 9.95.
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%.