BETTERWARE DE MEXICO SAPI DE (BWMX) Stock Fundamental Analysis
NYSE:BWMX - New York Stock Exchange, Inc. - MX00BW020002 - Common Stock - Currency: USD
BWMX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 121 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.
Each year in the past 5 years BWMX has been profitable.
In the past 5 years BWMX always reported a positive cash flow from operatings.
1.2 Ratios
BWMX has a Return On Assets of 6.74%. This is in the better half of the industry: BWMX outperforms 76.03% of its industry peers.
The Return On Equity of BWMX (60.51%) is better than 97.52% of its industry peers.
With an excellent Return On Invested Capital value of 23.83%, BWMX belongs to the best of the industry, outperforming 90.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BWMX is significantly above the industry average of 13.08%.
The last Return On Invested Capital (23.83%) for BWMX is above the 3 year average (20.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.74% | ||
| ROE | 60.51% | ||
| ROIC | 23.83% |
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
BWMX has a Profit Margin of 5.00%. This is in the better half of the industry: BWMX outperforms 77.69% of its industry peers.
BWMX's Profit Margin has declined in the last couple of years.
The Operating Margin of BWMX (15.68%) is better than 93.39% of its industry peers.
In the last couple of years the Operating Margin of BWMX has declined.
With an excellent Gross Margin value of 71.02%, BWMX belongs to the best of the industry, outperforming 95.87% of the companies in the same industry.
In the last couple of years the Gross Margin of BWMX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.68% | ||
| PM (TTM) | 5% | ||
| GM | 71.02% |
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.
BWMX has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for BWMX has been increased compared to 5 years ago.
The debt/assets ratio for BWMX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.66 indicates that BWMX is not a great score, but indicates only limited risk for bankruptcy at the moment.
BWMX has a Altman-Z score (2.66) which is comparable to the rest of the industry.
The Debt to FCF ratio of BWMX is 3.23, which is a good value as it means it would take BWMX, 3.23 years of fcf income to pay off all of its debts.
BWMX's Debt to FCF ratio of 3.23 is fine compared to the rest of the industry. BWMX outperforms 69.42% of its industry peers.
BWMX has a Debt/Equity ratio of 3.78. This is a high value indicating a heavy dependency on external financing.
BWMX has a worse Debt to Equity ratio (3.78) than 76.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.78 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 2.66 |
ROIC/WACC1.83
WACC13.03%
2.3 Liquidity
A Current Ratio of 1.09 indicates that BWMX should not have too much problems paying its short term obligations.
BWMX has a Current ratio of 1.09. This is in the lower half of the industry: BWMX underperforms 71.07% of its industry peers.
BWMX has a Quick Ratio of 1.09. This is a bad value and indicates that BWMX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BWMX (0.50) is comparable to the rest of the industry.
| 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 -8.07%.
BWMX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.06% yearly.
BWMX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.39%.
BWMX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.52% yearly.
EPS 1Y (TTM)-8.07%
EPS 3Y-13.1%
EPS 5Y4.06%
EPS Q2Q%-50.42%
Revenue 1Y (TTM)8.39%
Revenue growth 3Y11.99%
Revenue growth 5Y35.52%
Sales Q2Q%-6.9%
3.2 Future
The Earnings Per Share is expected to grow by 12.13% on average over the next years. This is quite good.
BWMX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.00% yearly.
EPS Next Y8.39%
EPS Next 2Y12.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.88%
Revenue Next 2Y7.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.40 indicates a rather cheap valuation of BWMX.
BWMX's Price/Earnings ratio is rather cheap when compared to the industry. BWMX is cheaper than 90.08% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.85, BWMX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.47, the valuation of BWMX can be described as very cheap.
Based on the Price/Forward Earnings ratio, BWMX is valued cheaply inside the industry as 97.52% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.77, BWMX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.4 | ||
| Fwd PE | 4.47 |
4.2 Price Multiples
BWMX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BWMX is cheaper than 81.82% of the companies in the same industry.
BWMX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BWMX is cheaper than 94.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.25 | ||
| EV/EBITDA | 4.58 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of BWMX may justify a higher PE ratio.
BWMX's earnings are expected to grow with 12.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)1.58
EPS Next 2Y12.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BWMX has a Yearly Dividend Yield of 13.62%, which is a nice return.
BWMX's Dividend Yield is rather good when compared to the industry average which is at 5.41. BWMX pays more dividend than 98.35% of the companies in the same industry.
BWMX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.62% |
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
BWMX pays out 141.65% of its income as dividend. This is not a sustainable payout ratio.
DP141.65%
EPS Next 2Y12.13%
EPS Next 3YN/A
9.35
-0.31 (-3.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.67%
Inst Owner Change1.6%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap348.94M
Analysts82.86
Price Target20.66 (120.96%)
Short Float %0.66%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.62% |
Yearly Dividend1.37
Dividend Growth(5Y)N/A
DP141.65%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.44%
Min EPS beat(2)-23.9%
Max EPS beat(2)3.01%
EPS beat(4)1
Avg EPS beat(4)-13.19%
Min EPS beat(4)-23.9%
Max EPS beat(4)3.01%
EPS beat(8)4
Avg EPS beat(8)8.54%
EPS beat(12)5
Avg EPS beat(12)-2.39%
EPS beat(16)7
Avg EPS beat(16)-3.99%
Revenue beat(2)1
Avg Revenue beat(2)0.31%
Min Revenue beat(2)-1.73%
Max Revenue beat(2)2.34%
Revenue beat(4)2
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)2.34%
Revenue beat(8)5
Avg Revenue beat(8)0.15%
Revenue beat(12)6
Avg Revenue beat(12)-0.71%
Revenue beat(16)7
Avg Revenue beat(16)-1.86%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.4 | ||
| Fwd PE | 4.47 | ||
| P/S | 0.48 | ||
| P/FCF | 4.25 | ||
| P/OCF | 3.74 | ||
| P/B | 5.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.58 |
EPS(TTM)1.46
EY15.61%
EPS(NY)2.09
Fwd EY22.39%
FCF(TTM)2.2
FCFY23.51%
OCF(TTM)2.5
OCFY26.77%
SpS19.35
BVpS1.6
TBVpS-2.75
PEG (NY)0.76
PEG (5Y)1.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.74% | ||
| ROE | 60.51% | ||
| ROCE | 35.72% | ||
| ROIC | 23.83% | ||
| ROICexc | 25.03% | ||
| ROICexgc | 54.18% | ||
| OM | 15.68% | ||
| PM (TTM) | 5% | ||
| GM | 71.02% | ||
| FCFM | 11.36% |
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-Score7
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.78 | ||
| Debt/FCF | 3.23 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 56.69% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 3.66 | ||
| Cash Conversion | 70.06% | ||
| Profit Quality | 227.28% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 2.66 |
F-Score7
WACC13.03%
ROIC/WACC1.83
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)-8.07%
EPS 3Y-13.1%
EPS 5Y4.06%
EPS Q2Q%-50.42%
EPS Next Y8.39%
EPS Next 2Y12.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.39%
Revenue growth 3Y11.99%
Revenue growth 5Y35.52%
Sales Q2Q%-6.9%
Revenue Next Year7.88%
Revenue Next 2Y7.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.45%
EBIT growth 3Y-5.96%
EBIT growth 5Y22.23%
EBIT Next Year18.2%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-28.37%
FCF growth 3Y14.61%
FCF growth 5Y30.52%
OCF growth 1Y-22.94%
OCF growth 3Y7.56%
OCF growth 5Y24.67%