BETTERWARE DE MEXICO SAPI DE (BWMX)
MX00BW020002 - Common Stock
BWMX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 126 industry peers in the Specialty Retail industry. BWMX scores excellent on profitability, but there are some minor concerns on its financial health. BWMX has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
BWMX had positive earnings in the past year.
In the past year BWMX had a positive cash flow from operations.
Each year in the past 5 years BWMX has been profitable.
Each year in the past 5 years BWMX had a positive operating cash flow.
1.2 Ratios
BWMX has a better Return On Assets (10.63%) than 83.33% of its industry peers.
BWMX's Return On Equity of 76.46% is amongst the best of the industry. BWMX outperforms 96.83% of its industry peers.
BWMX's Return On Invested Capital of 23.33% is amongst the best of the industry. BWMX outperforms 92.06% of its industry peers.
BWMX had an Average Return On Invested Capital over the past 3 years of 36.19%. This is significantly above the industry average of 13.97%.
The 3 year average ROIC (36.19%) for BWMX is well above the current ROIC(23.33%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.63% | ||
| ROE | 76.46% | ||
| ROIC | 23.33% |
ROA(3y)17.06%
ROA(5y)17.04%
ROE(3y)96.84%
ROE(5y)99.89%
ROIC(3y)36.19%
ROIC(5y)53.28%
1.3 Margins
BWMX's Profit Margin of 8.66% is amongst the best of the industry. BWMX outperforms 88.10% of its industry peers.
In the last couple of years the Profit Margin of BWMX has declined.
BWMX has a Operating Margin of 18.32%. This is amongst the best in the industry. BWMX outperforms 96.03% of its industry peers.
In the last couple of years the Operating Margin of BWMX has declined.
BWMX has a better Gross Margin (71.79%) than 99.21% of its industry peers.
BWMX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.32% | ||
| PM (TTM) | 8.66% | ||
| GM | 71.79% |
OM growth 3Y-15.61%
OM growth 5Y-5.42%
PM growth 3Y20.11%
PM growth 5Y-8.97%
GM growth 3Y9.38%
GM growth 5Y4.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BWMX is creating value.
BWMX has more shares outstanding than it did 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 2.84 indicates that BWMX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.84, BWMX is doing good in the industry, outperforming 62.70% of the companies in the same industry.
The Debt to FCF ratio of BWMX is 2.83, which is a good value as it means it would take BWMX, 2.83 years of fcf income to pay off all of its debts.
BWMX has a Debt to FCF ratio of 2.83. This is in the better half of the industry: BWMX outperforms 64.29% of its industry peers.
A Debt/Equity ratio of 3.16 is on the high side and indicates that BWMX has dependencies on debt financing.
With a Debt to Equity ratio value of 3.16, BWMX is not doing good in the industry: 75.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.16 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.86
WACC12.51%
2.3 Liquidity
A Current Ratio of 1.04 indicates that BWMX should not have too much problems paying its short term obligations.
BWMX's Current ratio of 1.04 is on the low side compared to the rest of the industry. BWMX is outperformed by 79.37% of its industry peers.
A Quick Ratio of 0.55 indicates that BWMX may have some problems paying its short term obligations.
The Quick ratio of BWMX (0.55) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 84.28% over the past year.
Measured over the past years, BWMX shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.64% on average per year.
Looking at the last year, BWMX shows a small growth in Revenue. The Revenue has grown by 3.34% in the last year.
Measured over the past years, BWMX shows a very strong growth in Revenue. The Revenue has been growing by 41.21% on average per year.
EPS 1Y (TTM)84.28%
EPS 3Y41.44%
EPS 5Y27.64%
EPS growth Q2Q57.06%
Revenue 1Y (TTM)3.34%
Revenue growth 3Y21.46%
Revenue growth 5Y41.21%
Revenue growth Q2Q10.36%
3.2 Future
BWMX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.44% yearly.
Based on estimates for the next years, BWMX will show a quite strong growth in Revenue. The Revenue will grow by 8.54% on average per year.
EPS Next Y36.75%
EPS Next 2Y20.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.29%
Revenue Next 2Y8.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
BWMX is valuated reasonably with a Price/Earnings ratio of 9.28.
83.33% of the companies in the same industry are more expensive than BWMX, based on the Price/Earnings ratio.
BWMX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.28.
A Price/Forward Earnings ratio of 7.05 indicates a rather cheap valuation of BWMX.
Based on the Price/Forward Earnings ratio, BWMX is valued cheaper than 96.03% of the companies in the same industry.
BWMX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 7.05 |
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 80.16% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BWMX is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.62 | ||
| EV/EBITDA | 5.58 |
4.3 Compensation for Growth
BWMX's 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 20.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)0.34
EPS Next 2Y20.44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BWMX has a Yearly Dividend Yield of 7.25%, which is a nice return.
BWMX's Dividend Yield is rather good when compared to the industry average which is at 3.52. BWMX pays more dividend than 98.41% of the companies in the same industry.
BWMX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.25% |
5.2 History
BWMX has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
69.09% of the earnings are spent on dividend by BWMX. This is not a sustainable payout ratio.
DP69.09%
EPS Next 2Y20.44%
EPS Next 3YN/A
BETTERWARE DE MEXICO SAPI DE
NASDAQ:BWMX (5/3/2024, 7:00:02 PM)
17.08
+0.08 (+0.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap637.43M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.25% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 7.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.25
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.63% | ||
| ROE | 76.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.32% | ||
| PM (TTM) | 8.66% | ||
| GM | 71.79% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)84.28%
EPS 3Y41.44%
EPS 5Y
EPS growth Q2Q
EPS Next Y36.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.34%
Revenue growth 3Y21.46%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y