company background image
BWMX

Betterware de MéxicoP.I. de NasdaqCM:BWMX Stock Report

Last Price

US$10.86

Market Cap

US$402.2m

7D

3.8%

1Y

-71.5%

Updated

12 Aug, 2022

Data

Company Financials +
BWMX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance3/6
Financial Health2/6
Dividends2/6

BWMX Stock Overview

Betterware de México, S.A.P.I. de C.V. operates as a direct-to-consumer company in Mexico.

Betterware de MéxicoP.I. de Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Betterware de MéxicoP.I. de
Historical stock prices
Current Share PriceUS$10.86
52 Week HighUS$42.50
52 Week LowUS$8.39
Beta0.80
1 Month Change14.08%
3 Month Change-21.02%
1 Year Change-71.53%
3 Year Change7.85%
5 Year Changen/a
Change since IPO10.82%

Recent News & Updates

Jul 28

Betterware de Mexico SAB de CV reports Q2 results

Betterware de Mexico SAB de CV press release (NASDAQ:BWMX): Q2 EBITDA Ps595.3M Revenue of $3.24B (+25.1% Y/Y).

Shareholder Returns

BWMXUS Online RetailUS Market
7D3.8%1.6%3.2%
1Y-71.5%-26.8%-10.1%

Return vs Industry: BWMX underperformed the US Online Retail industry which returned -28.4% over the past year.

Return vs Market: BWMX underperformed the US Market which returned -11.7% over the past year.

Price Volatility

Is BWMX's price volatile compared to industry and market?
BWMX volatility
BWMX Average Weekly Movement10.8%
Online Retail Industry Average Movement12.5%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: BWMX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: BWMX's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19952,556Andres Chevallierhttps://www.betterware.com.mx

Betterware de México, S.A.P.I. de C.V. operates as a direct-to-consumer company in Mexico. It focuses on the home organization segment with a product portfolio, including home solutions, kitchen and food preservation, technology and mobility, bedroom, bathroom, laundry and cleaning, and other categories. The company sells its products through twelve catalogues.

Betterware de MéxicoP.I. de Fundamentals Summary

How do Betterware de MéxicoP.I. de's earnings and revenue compare to its market cap?
BWMX fundamental statistics
Market CapMex$8.00b
Earnings (TTM)Mex$1.22b
Revenue (TTM)Mex$9.66b

6.5x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BWMX income statement (TTM)
RevenueMex$9.66b
Cost of RevenueMex$3.73b
Gross ProfitMex$5.93b
Other ExpensesMex$4.70b
EarningsMex$1.22b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)33.06
Gross Margin61.39%
Net Profit Margin12.68%
Debt/Equity Ratio601.3%

How did BWMX perform over the long term?

See historical performance and comparison

Dividends

17.0%

Current Dividend Yield

179%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is BWMX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BWMX?

Other financial metrics that can be useful for relative valuation.

BWMX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA6.4x
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

How does BWMX's PE Ratio compare to its peers?

BWMX PE Ratio vs Peers
The above table shows the PE ratio for BWMX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.4x
CANG Cango
19.4x-77.8%US$371.8m
RMBL RumbleON
19.9x31.7%US$424.6m
FLWS 1-800-FLOWERS.COM
10.3x18.0%US$671.4m
DLTH Duluth Holdings
11.9x16.9%US$330.6m
BWMX Betterware de MéxicoP.I. de
6.5x16.8%US$402.2m

Price-To-Earnings vs Peers: BWMX is good value based on its Price-To-Earnings Ratio (6.5x) compared to the peer average (15.4x).


Price to Earnings Ratio vs Industry

How does BWMX's PE Ratio compare vs other companies in the US Online Retail Industry?

Price-To-Earnings vs Industry: BWMX is good value based on its Price-To-Earnings Ratio (6.5x) compared to the US Online Retail industry average (19.5x)


Price to Earnings Ratio vs Fair Ratio

What is BWMX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BWMX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.5x
Fair PE Ratio12.9x

Price-To-Earnings vs Fair Ratio: BWMX is good value based on its Price-To-Earnings Ratio (6.5x) compared to the estimated Fair Price-To-Earnings Ratio (12.9x).


Share Price vs Fair Value

What is the Fair Price of BWMX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BWMX ($10.86) is trading above our estimate of fair value ($6.51)

Significantly Below Fair Value: BWMX is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is Betterware de MéxicoP.I. de forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWMX's forecast earnings growth (16.8% per year) is above the savings rate (1.9%).

Earnings vs Market: BWMX's earnings (16.8% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: BWMX's earnings are forecast to grow, but not significantly.

Revenue vs Market: BWMX's revenue (14.1% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: BWMX's revenue (14.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BWMX's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Betterware de MéxicoP.I. de performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


44.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BWMX has a high level of non-cash earnings.

Growing Profit Margin: BWMX's current net profit margins (12.7%) are higher than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: BWMX's earnings have grown significantly by 44.6% per year over the past 5 years.

Accelerating Growth: BWMX's earnings growth over the past year (19.6%) is below its 5-year average (44.6% per year).

Earnings vs Industry: BWMX earnings growth over the past year (19.6%) exceeded the Online Retail industry -36.3%.


Return on Equity

High ROE: Whilst BWMX's Return on Equity (110.33%) is outstanding, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Betterware de MéxicoP.I. de's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BWMX's short term assets (MX$5.1B) exceed its short term liabilities (MX$3.8B).

Long Term Liabilities: BWMX's short term assets (MX$5.1B) do not cover its long term liabilities (MX$6.4B).


Debt to Equity History and Analysis

Debt Level: BWMX's net debt to equity ratio (549.2%) is considered high.

Reducing Debt: Insufficient data to determine if BWMX's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: BWMX's debt is not well covered by operating cash flow (6.8%).

Interest Coverage: BWMX's interest payments on its debt are well covered by EBIT (11.8x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is Betterware de MéxicoP.I. de current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


16.97%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BWMX's dividend (16.97%) is higher than the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: BWMX's dividend (16.97%) is in the top 25% of dividend payers in the US market (4%)


Stability and Growth of Payments

Stable Dividend: BWMX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BWMX's dividend payments have increased, but the company has only paid a dividend for 2 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (179%), BWMX's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (628.2%), BWMX's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average management tenure


CEO

Andres Chevallier (38 yo)

4.58yrs

Tenure

Mex$9,500,000

Compensation

Mr. Andres Campos Chevallier serves as Chief Executive Officer at Betterware de Mexico, S.A.B. de C.V. (formerly known as Betterware de México, S.A.P.I. de C.V.) (formerly known as Betterware de México, S....


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Andres's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Andres's compensation with company performance.


Leadership Team

Experienced Management: BWMX's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: BWMX's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.1%.


Top Shareholders

Company Information

Betterware de México, S.A.P.I. de C.V.'s employee growth, exchange listings and data sources


Key Information

  • Name: Betterware de México, S.A.P.I. de C.V.
  • Ticker: BWMX
  • Exchange: NasdaqCM
  • Founded: 1995
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Implied Market Cap: US$402.180m
  • Shares outstanding: 37.03m
  • Website: https://www.betterware.com.mx

Number of Employees


Location

  • Betterware de México, S.A.P.I. de C.V.
  • Luis Enrique Williams 549
  • Colonia Belenes Norte
  • Zapopan
  • Jalisco
  • 45145
  • Mexico

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.