BETTERWARE DE MEXICO SAPI DE (BWMX) Stock Fundamental Analysis
NYSE:BWMX - MX00BW020002 - Common Stock
13.32 USD
-0.11 (-0.82%)
13.05 USD
-0.27 (-2.03%)
Overall BWMX gets a fundamental rating of 6 out of 10. We evaluated BWMX against 123 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.
In the past year BWMX had a positive cash flow from operations.
BWMX had positive earnings in each of the past 5 years.
BWMX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BWMX (5.63%) is better than 71.54% of its industry peers.
Looking at the Return On Equity, with a value of 50.53%, BWMX belongs to the top of the industry, outperforming 95.94% of the companies in the same industry.
The Return On Invested Capital of BWMX (21.66%) is better than 89.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BWMX is significantly above the industry average of 11.94%.
The last Return On Invested Capital (21.66%) for BWMX is above the 3 year average (20.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 50.53% | ||
| ROIC | 21.66% |
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
The Profit Margin of BWMX (4.15%) is better than 73.98% of its industry peers.
In the last couple of years the Profit Margin of BWMX has declined.
With an excellent Operating Margin value of 14.18%, BWMX belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
In the last couple of years the Operating Margin of BWMX has declined.
BWMX has a Gross Margin of 67.90%. This is amongst the best in the industry. BWMX outperforms 95.12% of its industry peers.
BWMX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.18% | ||
| PM (TTM) | 4.15% | ||
| GM | 67.9% |
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
BWMX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for BWMX remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BWMX has more shares outstanding
Compared to 1 year ago, BWMX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.76 indicates that BWMX is not a great score, but indicates only limited risk for bankruptcy at the moment.
BWMX's Altman-Z score of 2.76 is fine compared to the rest of the industry. BWMX outperforms 60.16% of its industry peers.
BWMX has a debt to FCF ratio of 3.91. This is a good value and a sign of high solvency as BWMX would need 3.91 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.91, BWMX is in the better half of the industry, outperforming 69.92% of the companies in the same industry.
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: 78.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.78 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 2.76 |
ROIC/WACC2.5
WACC8.68%
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.
Looking at the Current ratio, with a value of 1.09, BWMX is doing worse than 68.29% of the companies in the same industry.
A Quick Ratio of 0.50 indicates that BWMX may have some problems paying its short term obligations.
BWMX has a Quick ratio of 0.50. This is comparable to the rest of the industry: BWMX outperforms 53.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
BWMX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.62%.
Measured over the past 5 years, BWMX shows a small growth in Earnings Per Share. The EPS has been growing by 4.06% on average per year.
BWMX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.84%.
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)-8.62%
EPS 3Y-13.1%
EPS 5Y4.06%
EPS Q2Q%8.81%
Revenue 1Y (TTM)4.84%
Revenue growth 3Y11.99%
Revenue growth 5Y35.52%
Sales Q2Q%5.11%
3.2 Future
Based on estimates for the next years, BWMX will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.03% on average per year.
Based on estimates for the next years, BWMX will show a small growth in Revenue. The Revenue will grow by 5.87% on average per year.
EPS Next Y4.4%
EPS Next 2Y12.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.65%
Revenue Next 2Y5.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 8.48, the valuation of BWMX can be described as reasonable.
BWMX's Price/Earnings ratio is rather cheap when compared to the industry. BWMX is cheaper than 93.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of BWMX to the average of the S&P500 Index (27.17), we can say BWMX is valued rather cheaply.
BWMX is valuated cheaply with a Price/Forward Earnings ratio of 6.12.
Based on the Price/Forward Earnings ratio, BWMX is valued cheaper than 95.94% of the companies in the same industry.
BWMX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 6.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BWMX indicates a rather cheap valuation: BWMX is cheaper than 84.55% of the companies listed in the same industry.
BWMX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BWMX is cheaper than 92.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.04 | ||
| EV/EBITDA | 5.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of BWMX may justify a higher PE ratio.
BWMX's earnings are expected to grow with 12.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.93
PEG (5Y)2.09
EPS Next 2Y12.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.29%, BWMX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.67, BWMX pays a better dividend. On top of this BWMX pays more dividend than 97.56% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, BWMX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.29% |
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
161.14% of the earnings are spent on dividend by BWMX. This is not a sustainable payout ratio.
DP161.14%
EPS Next 2Y12.03%
EPS Next 3YN/A
13.32
-0.11 (-0.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.68%
Inst Owner Change26.32%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap497.10M
Analysts82.86
Price Target19.13 (43.62%)
Short Float %0.72%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.29% |
Yearly Dividend1.43
Dividend Growth(5Y)N/A
DP161.14%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-12.95%
Min EPS beat(2)-55.48%
Max EPS beat(2)29.59%
EPS beat(4)2
Avg EPS beat(4)-11.69%
Min EPS beat(4)-55.48%
Max EPS beat(4)29.59%
EPS beat(8)3
Avg EPS beat(8)2.52%
EPS beat(12)6
Avg EPS beat(12)-0.69%
EPS beat(16)6
Avg EPS beat(16)-7.9%
Revenue beat(2)0
Avg Revenue beat(2)-5.27%
Min Revenue beat(2)-9.23%
Max Revenue beat(2)-1.31%
Revenue beat(4)1
Avg Revenue beat(4)-2.48%
Min Revenue beat(4)-9.23%
Max Revenue beat(4)2.34%
Revenue beat(8)3
Avg Revenue beat(8)-1.37%
Revenue beat(12)5
Avg Revenue beat(12)-0.88%
Revenue beat(16)6
Avg Revenue beat(16)-3.8%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.38%
EPS NY rev (1m)4.9%
EPS NY rev (3m)4.9%
Revenue NQ rev (1m)1.33%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)1.57%
Revenue NY rev (3m)1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 6.12 | ||
| P/S | 0.66 | ||
| P/FCF | 7.04 | ||
| P/OCF | 6.29 | ||
| P/B | 8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.93 |
EPS(TTM)1.57
EY11.79%
EPS(NY)2.18
Fwd EY16.35%
FCF(TTM)1.89
FCFY14.2%
OCF(TTM)2.12
OCFY15.91%
SpS20.27
BVpS1.67
TBVpS-2.87
PEG (NY)1.93
PEG (5Y)2.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 50.53% | ||
| ROCE | 32.46% | ||
| ROIC | 21.66% | ||
| ROICexc | 22.75% | ||
| ROICexgc | 49.23% | ||
| OM | 14.18% | ||
| PM (TTM) | 4.15% | ||
| GM | 67.9% | ||
| FCFM | 9.33% |
ROA(3y)7.96%
ROA(5y)13.11%
ROE(3y)70.57%
ROE(5y)77.61%
ROIC(3y)20.69%
ROIC(5y)43.04%
ROICexc(3y)22.29%
ROICexc(5y)65.74%
ROICexgc(3y)44.42%
ROICexgc(5y)187.07%
ROCE(3y)31.01%
ROCE(5y)64.51%
ROICexcg growth 3Y-33.38%
ROICexcg growth 5Y-47.91%
ROICexc growth 3Y-37.76%
ROICexc growth 5Y-20.23%
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%
F-Score6
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.78 | ||
| Debt/FCF | 3.91 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 40.02% | ||
| Cap/Sales | 1.12% | ||
| Interest Coverage | 3.49 | ||
| Cash Conversion | 61.56% | ||
| Profit Quality | 224.73% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 2.76 |
F-Score6
WACC8.68%
ROIC/WACC2.5
Cap/Depr(3y)50.89%
Cap/Depr(5y)411.15%
Cap/Sales(3y)1.37%
Cap/Sales(5y)3.32%
Profit Quality(3y)193.85%
Profit Quality(5y)199.3%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.62%
EPS 3Y-13.1%
EPS 5Y4.06%
EPS Q2Q%8.81%
EPS Next Y4.4%
EPS Next 2Y12.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.84%
Revenue growth 3Y11.99%
Revenue growth 5Y35.52%
Sales Q2Q%5.11%
Revenue Next Year5.65%
Revenue Next 2Y5.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-15.24%
EBIT growth 3Y-5.96%
EBIT growth 5Y22.23%
EBIT Next Year10.09%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-50.84%
FCF growth 3Y14.61%
FCF growth 5Y30.52%
OCF growth 1Y-46.75%
OCF growth 3Y7.56%
OCF growth 5Y24.67%