Betterware de México, S.A.P.I. de C.V. Fundamental Analysis
Betterware de México, S.A.P.I. de C.V. Fundamental Analysis
Betterware de México, S.A.P.I. de C.V. (BWMX) shows moderate financial fundamentals with a PE ratio of 9.92, profit margin of 8.35%, and ROE of 17.10%. The company generates $14.2B in annual revenue with weak year-over-year growth of -5.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BWMX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBWMX demonstrates superior asset utilization.
Valuation Score
ExcellentBWMX trades at attractive valuation levels.
Growth Score
ModerateBWMX shows steady but slowing expansion.
Financial Health Score
WeakBWMX carries high financial risk with limited liquidity.
Profitability Score
ModerateBWMX maintains healthy but balanced margins.
Key Financial Metrics
Is BWMX Expensive or Cheap?
P/E Ratio
BWMX trades at 9.92 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BWMX's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Betterware de México, S.A.P.I. de C.V. at 8.03 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.74 times EBITDA. This is generally considered low.
How Well Does BWMX Make Money?
Net Profit Margin
For every $100 in sales, Betterware de México, S.A.P.I. de C.V. keeps $8.35 as profit after all expenses.
Operating Margin
Core operations generate 16.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.10 in profit for every $100 of shareholder equity.
ROA
Betterware de México, S.A.P.I. de C.V. generates $12.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Betterware de México, S.A.P.I. de C.V. generates strong operating cash flow of $12.43B, reflecting robust business health.
Free Cash Flow
Betterware de México, S.A.P.I. de C.V. generates strong free cash flow of $11.97B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $321.33 in free cash annually.
FCF Yield
BWMX converts 1.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.005
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.45
vs 25 benchmark
How BWMX Stacks Against Its Sector Peers
| Metric | BWMX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.92 | 24.20 | Better (Cheaper) |
| ROE | 17.10% | 1170.00% | Weak |
| Net Margin | 8.35% | 2530.00% | Weak |
| Debt/Equity | 2.94 | 0.72 | Weak (High Leverage) |
| Current Ratio | 0.93 | 2.82 | Weak Liquidity |
| ROA | 12.28% | -8380.00% (disorted) | Strong |
BWMX outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Betterware de México, S.A.P.I. de C.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
68.82%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
199.28%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-12.53%
Industry Style: Cyclical, Growth, Discretionary
Declining