BBB FOODS INC-CLASS A (TBBB)
VGG0896C1032 - Common Stock
We assign a fundamental rating of 2 out of 10 to TBBB. TBBB was compared to 41 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and financial health of TBBB have multiple concerns. While showing a medium growth rate, TBBB is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TBBB has reported negative net income.
In the past year TBBB had a positive cash flow from operations.
1.2 Ratios
The Return On Assets of TBBB (-4.06%) is worse than 75.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.26%, TBBB is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.06% | ||
| ROE | N/A | ||
| ROIC | 7.26% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 1.60%, TBBB is doing worse than 63.41% of the companies in the same industry.
TBBB has a worse Gross Margin (15.12%) than 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.6% | ||
| PM (TTM) | N/A | ||
| GM | 15.12% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TBBB is destroying value.
The number of shares outstanding for TBBB remains at a similar level compared to 1 year ago.
Compared to 1 year ago, TBBB has an improved debt to assets ratio.
2.2 Solvency
TBBB has an Altman-Z score of 4.06. This indicates that TBBB is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 4.06, TBBB perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
TBBB has a debt to FCF ratio of 7.51. This is a slightly negative value and a sign of low solvency as TBBB would need 7.51 years to pay back of all of its debts.
TBBB's Debt to FCF ratio of 7.51 is in line compared to the rest of the industry. TBBB outperforms 43.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.51 | ||
| Altman-Z | 4.06 |
ROIC/WACC0.55
WACC13.17%
2.3 Liquidity
TBBB has a Current Ratio of 0.49. This is a bad value and indicates that TBBB is not financially healthy enough and could expect problems in meeting its short term obligations.
TBBB has a worse Current ratio (0.49) than 90.24% of its industry peers.
A Quick Ratio of 0.22 indicates that TBBB may have some problems paying its short term obligations.
TBBB's Quick ratio of 0.22 is on the low side compared to the rest of the industry. TBBB is outperformed by 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
TBBB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.77%, which is quite impressive.
Looking at the last year, TBBB shows a very strong growth in Revenue. The Revenue has grown by 41.09%.
EPS 1Y (TTM)30.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)41.09%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%N/A
3.2 Future
The Earnings Per Share is expected to grow by 133.52% on average over the next years. This is a very strong growth
TBBB is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 139.81% yearly.
EPS Next Y4.24%
EPS Next 2Y253.15%
EPS Next 3Y223.79%
EPS Next 5Y133.52%
Revenue Next Year3023.6%
Revenue Next 2Y510.49%
Revenue Next 3Y262.28%
Revenue Next 5Y139.81%
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
TBBB reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
TBBB is valuated quite expensively with a Price/Forward Earnings ratio of 267.94.
Based on the Price/Forward Earnings ratio, TBBB is valued a bit more expensive than 65.85% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TBBB to the average of the S&P500 Index (24.00), we can say TBBB is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 267.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TBBB indicates a slightly more expensive valuation: TBBB is more expensive than 75.61% of the companies listed in the same industry.
TBBB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.79 | ||
| EV/EBITDA | 58.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TBBB does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as TBBB's earnings are expected to grow with 223.79% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y253.15%
EPS Next 3Y223.79%
5. Dividend
5.1 Amount
TBBB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BBB FOODS INC-CLASS A
NYSE:TBBB (11/22/2024, 8:07:32 PM)
After market: 34.07 0 (0%)34.07
+0.67 (+2.01%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 267.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.06% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.6% | ||
| PM (TTM) | N/A | ||
| GM | 15.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)30.77%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y4.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)41.09%
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y