BETTERWARE DE MEXICO SAPI DE (BWMX) Stock Fundamental Analysis
NYSE:BWMX - New York Stock Exchange, Inc. - MX00BW020002 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to BWMX. BWMX was compared to 120 industry peers in the Specialty Retail industry. BWMX scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on BWMX.
1. Profitability
1.1 Basic Checks
In the past year BWMX was profitable.
BWMX had a positive operating cash flow in the past year.
BWMX had positive earnings in each of the past 5 years.
Each year in the past 5 years BWMX had a positive operating cash flow.
1.2 Ratios
BWMX's Return On Assets of 6.74% is fine compared to the rest of the industry. BWMX outperforms 74.38% of its industry peers.
The Return On Equity of BWMX (60.51%) is better than 96.69% 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 13.00%.
The 3 year average ROIC (20.69%) for BWMX is below the current ROIC(23.83%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 5.00%, BWMX is in the better half of the industry, outperforming 76.86% of the companies in the same industry.
BWMX's Profit Margin has declined in the last couple of years.
BWMX has a better Operating Margin (15.68%) than 93.39% of its industry peers.
BWMX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 71.02%, BWMX belongs to the top of the industry, outperforming 95.87% of the companies in the same industry.
BWMX's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for BWMX remains at a similar level compared to 1 year ago.
BWMX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BWMX has an improved debt to assets ratio.
2.2 Solvency
BWMX has an Altman-Z score of 2.60. This is not the best score and indicates that BWMX is in the grey zone with still only limited risk for bankruptcy at the moment.
BWMX has a Altman-Z score (2.60) which is in line with its industry peers.
BWMX has a debt to FCF ratio of 3.23. This is a good value and a sign of high solvency as BWMX would need 3.23 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.23, BWMX is doing good in the industry, outperforming 71.07% of the companies in the same industry.
A Debt/Equity ratio of 3.78 is on the high side and indicates that BWMX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.78, BWMX is doing worse than 78.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.78 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.84
WACC12.93%
2.3 Liquidity
A Current Ratio of 1.09 indicates that BWMX should not have too much problems paying its short term obligations.
BWMX's Current ratio of 1.09 is on the low side compared to the rest of the industry. BWMX is outperformed by 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.
BWMX's Quick ratio of 0.50 is in line compared to the rest of the industry. BWMX outperforms 46.28% 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 -7.61%.
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.
Looking at the last year, BWMX shows a small growth in Revenue. The Revenue has grown by 4.87% in the last year.
The Revenue has been growing by 35.52% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-7.61%
EPS 3Y-13.1%
EPS 5Y4.06%
EPS Q2Q%-48.61%
Revenue 1Y (TTM)4.87%
Revenue growth 3Y11.99%
Revenue growth 5Y35.52%
Sales Q2Q%-2.87%
3.2 Future
BWMX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.48% yearly.
The Revenue is expected to grow by 5.04% on average over the next years.
EPS Next Y-0.48%
EPS Next 2Y11.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.02%
Revenue Next 2Y5.04%
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.
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 cheaply with a Price/Earnings ratio of 5.74.
Compared to the rest of the industry, the Price/Earnings ratio of BWMX indicates a rather cheap valuation: BWMX is cheaper than 92.56% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, BWMX is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.07, the valuation of BWMX can be described as very cheap.
BWMX's Price/Forward Earnings ratio is rather cheap when compared to the industry. BWMX is cheaper than 98.35% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.77. BWMX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.74 | ||
| Fwd PE | 4.07 |
4.2 Price Multiples
BWMX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BWMX is cheaper than 85.95% 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 96.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.83 | ||
| EV/EBITDA | 4.23 |
4.3 Compensation for Growth
BWMX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.42
EPS Next 2Y11.48%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.61%, BWMX is a good candidate for dividend investing.
In the last 3 months the price of BWMX has falen by -30.27%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
BWMX's Dividend Yield is rather good when compared to the industry average which is at 5.28. 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.61% |
5.2 History
BWMX has been paying a dividend for over 5 years, so it has already some track record.
BWMX has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
141.65% of the earnings are spent on dividend by BWMX. This is not a sustainable payout ratio.
DP141.65%
EPS Next 2Y11.48%
EPS Next 3YN/A
8.5
-0.69 (-7.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.67%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap317.22M
Analysts82.86
Price Target19.13 (125.06%)
Short Float %0.7%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.61% |
Yearly Dividend1.38
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)-7.41%
PT rev (3m)-7.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.67%
EPS NY rev (1m)-8.18%
EPS NY rev (3m)-16.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)-3.58%
Revenue NY rev (3m)-2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.74 | ||
| Fwd PE | 4.07 | ||
| P/S | 0.44 | ||
| P/FCF | 3.83 | ||
| P/OCF | 3.36 | ||
| P/B | 5.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.23 |
EPS(TTM)1.48
EY17.41%
EPS(NY)2.09
Fwd EY24.57%
FCF(TTM)2.22
FCFY26.11%
OCF(TTM)2.53
OCFY29.73%
SpS19.54
BVpS1.61
TBVpS-2.78
PEG (NY)N/A
PEG (5Y)1.42
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 | 2.6 |
F-Score7
WACC12.93%
ROIC/WACC1.84
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)-7.61%
EPS 3Y-13.1%
EPS 5Y4.06%
EPS Q2Q%-48.61%
EPS Next Y-0.48%
EPS Next 2Y11.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.87%
Revenue growth 3Y11.99%
Revenue growth 5Y35.52%
Sales Q2Q%-2.87%
Revenue Next Year4.02%
Revenue Next 2Y5.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.45%
EBIT growth 3Y-5.96%
EBIT growth 5Y22.23%
EBIT Next Year4.21%
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%