BBB Foods Inc. Fundamental Analysis
BBB Foods Inc. (TBBB) shows moderate financial fundamentals with a PE ratio of -23.43, profit margin of -3.93%, and ROE of -1.03%. The company generates $82.3B in annual revenue with strong year-over-year growth of 27.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -67.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TBBB's fundamental strength across five key dimensions:
Efficiency Score
WeakTBBB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTBBB trades at attractive valuation levels.
Growth Score
ModerateTBBB shows steady but slowing expansion.
Financial Health Score
WeakTBBB carries high financial risk with limited liquidity.
Profitability Score
WeakTBBB struggles to sustain strong margins.
Key Financial Metrics
Is TBBB Expensive or Cheap?
P/E Ratio
TBBB trades at -23.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TBBB's PEG of -0.08 indicates potential undervaluation.
Price to Book
The market values BBB Foods Inc. at 322.95 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 68.29 times EBITDA. This signals the market has high growth expectations.
How Well Does TBBB Make Money?
Net Profit Margin
For every $100 in sales, BBB Foods Inc. keeps $-3.93 as profit after all expenses.
Operating Margin
Core operations generate -0.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.03 in profit for every $100 of shareholder equity.
ROA
BBB Foods Inc. generates $-1.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BBB Foods Inc. generates limited operating cash flow of $5.42B, signaling weaker underlying cash strength.
Free Cash Flow
BBB Foods Inc. generates weak or negative free cash flow of $1.71B, restricting financial flexibility.
FCF Per Share
Each share generates $14.76 in free cash annually.
FCF Yield
TBBB converts 2.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-23.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
322.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.03
vs 25 benchmark
ROA
Return on assets percentage
-1.83
vs 25 benchmark
ROCE
Return on capital employed
-0.88
vs 25 benchmark
How TBBB Stacks Against Its Sector Peers
| Metric | TBBB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -23.43 | 21.35 | Better (Cheaper) |
| ROE | -102.61% | 1136.00% | Weak |
| Net Margin | -3.93% | -2894.00% (disorted) | Weak |
| Debt/Equity | 3.40 | 0.81 | Weak (High Leverage) |
| Current Ratio | 0.60 | 2.38 | Weak Liquidity |
| ROA | -183.24% | -539417.00% (disorted) | Weak |
TBBB outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BBB Foods Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
220.96%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-173.48%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
201.46%
Industry Style: Defensive, Dividend, Low Volatility
High Growth