BBB FOODS INC-CLASS A (TBBB) Stock Fundamental Analysis
NYSE:TBBB - New York Stock Exchange, Inc. - VGG0896C1032 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to TBBB. TBBB was compared to 40 industry peers in the Consumer Staples Distribution & Retail industry. While TBBB is still in line with the averages on profitability rating, there are concerns on its financial health. TBBB is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
TBBB had positive earnings in the past year.
TBBB had a positive operating cash flow in the past year.
TBBB had negative earnings in 4 of the past 5 years.
Each year in the past 5 years TBBB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TBBB (1.47%) is worse than 60.00% of its industry peers.
TBBB's Return On Equity of 8.29% is in line compared to the rest of the industry. TBBB outperforms 50.00% of its industry peers.
TBBB has a Return On Invested Capital of 9.06%. This is in the better half of the industry: TBBB outperforms 75.00% of its industry peers.
TBBB had an Average Return On Invested Capital over the past 3 years of 9.43%. This is in line with the industry average of 8.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 8.29% | ||
| ROIC | 9.06% |
ROA(3y)-1.79%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.43%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 0.58%, TBBB is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
TBBB has a Operating Margin (2.31%) which is in line with its industry peers.
TBBB's Operating Margin has improved in the last couple of years.
The Gross Margin of TBBB (16.32%) is worse than 77.50% of its industry peers.
In the last couple of years the Gross Margin of TBBB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.31% | ||
| PM (TTM) | 0.58% | ||
| GM | 16.32% |
OM growth 3Y10.67%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.13%
GM growth 5YN/A
2. Health
2.1 Basic Checks
TBBB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TBBB remains at a similar level compared to 1 year ago.
The debt/assets ratio for TBBB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.08 indicates that TBBB is not in any danger for bankruptcy at the moment.
The Altman-Z score of TBBB (4.08) is comparable to the rest of the industry.
The Debt to FCF ratio of TBBB is 7.02, which is on the high side as it means it would take TBBB, 7.02 years of fcf income to pay off all of its debts.
TBBB has a Debt to FCF ratio (7.02) which is comparable to the rest of the industry.
TBBB has a Debt/Equity ratio of 1.86. This is a high value indicating a heavy dependency on external financing.
TBBB has a Debt to Equity ratio of 1.86. This is amonst the worse of the industry: TBBB underperforms 82.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 4.08 |
ROIC/WACC0.36
WACC25.19%
2.3 Liquidity
TBBB has a Current Ratio of 0.76. This is a bad value and indicates that TBBB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of TBBB (0.76) is worse than 87.50% of its industry peers.
TBBB has a Quick Ratio of 0.76. This is a bad value and indicates that TBBB is not financially healthy enough and could expect problems in meeting its short term obligations.
TBBB has a Quick ratio of 0.49. This is in the lower half of the industry: TBBB underperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
TBBB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 187.79%, which is quite impressive.
The Revenue has grown by 30.31% in the past year. This is a very strong growth!
The Revenue has been growing by 35.49% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)187.79%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%97.4%
Revenue 1Y (TTM)30.31%
Revenue growth 3Y35.49%
Revenue growth 5YN/A
Sales Q2Q%32.73%
3.2 Future
TBBB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.85% yearly.
Based on estimates for the next years, TBBB will show a very strong growth in Revenue. The Revenue will grow by 24.19% on average per year.
EPS Next Y61.78%
EPS Next 2Y36.39%
EPS Next 3Y26.03%
EPS Next 5Y35.85%
Revenue Next Year31.35%
Revenue Next 2Y29.39%
Revenue Next 3Y27.35%
Revenue Next 5Y24.19%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 183.36, which means the current valuation is very expensive for TBBB.
75.00% of the companies in the same industry are cheaper than TBBB, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.69. TBBB is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 74.36 indicates a quite expensive valuation of TBBB.
TBBB's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TBBB is more expensive than 65.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.36. TBBB is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 183.36 | ||
| Fwd PE | 74.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TBBB is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
TBBB's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TBBB is more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.95 | ||
| EV/EBITDA | 19.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TBBB does not grow enough to justify the current Price/Earnings ratio.
TBBB's earnings are expected to grow with 26.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.97
PEG (5Y)N/A
EPS Next 2Y36.39%
EPS Next 3Y26.03%
5. Dividend
5.1 Amount
TBBB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:TBBB (7/24/2025, 11:15:09 AM)
25.67
-0.08 (-0.31%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.56%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.95B
Analysts77.5
Price Target33.66 (31.13%)
Short Float %2.22%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)28.22%
Min EPS beat(2)-120.12%
Max EPS beat(2)176.56%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.6%
Min Revenue beat(2)-5.76%
Max Revenue beat(2)-1.44%
Revenue beat(4)0
Avg Revenue beat(4)-3.2%
Min Revenue beat(4)-5.76%
Max Revenue beat(4)-1.44%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1%
PT rev (3m)-1.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-82.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)2.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 183.36 | ||
| Fwd PE | 74.36 | ||
| P/S | 0.96 | ||
| P/FCF | 41.95 | ||
| P/OCF | 14.66 | ||
| P/B | 13.62 | ||
| P/tB | 13.65 | ||
| EV/EBITDA | 19.94 |
EPS(TTM)0.14
EY0.55%
EPS(NY)0.35
Fwd EY1.34%
FCF(TTM)0.61
FCFY2.38%
OCF(TTM)1.75
OCFY6.82%
SpS26.82
BVpS1.88
TBVpS1.88
PEG (NY)2.97
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 8.29% | ||
| ROCE | 11.46% | ||
| ROIC | 9.06% | ||
| ROICexc | 14.82% | ||
| ROICexgc | 14.83% | ||
| OM | 2.31% | ||
| PM (TTM) | 0.58% | ||
| GM | 16.32% | ||
| FCFM | 2.28% |
ROA(3y)-1.79%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.43%
ROIC(5y)N/A
ROICexc(3y)12.25%
ROICexc(5y)N/A
ROICexgc(3y)12.27%
ROICexgc(5y)N/A
ROCE(3y)11.93%
ROCE(5y)N/A
ROICexcg growth 3Y-5.62%
ROICexcg growth 5YN/A
ROICexc growth 3Y-5.53%
ROICexc growth 5YN/A
OM growth 3Y10.67%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.13%
GM growth 5YN/A
F-Score7
Asset Turnover2.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 7.02 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | 160.55% | ||
| Cap/Sales | 4.24% | ||
| Interest Coverage | 0.38 | ||
| Cash Conversion | 131.66% | ||
| Profit Quality | 391.84% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 4.08 |
F-Score7
WACC25.19%
ROIC/WACC0.36
Cap/Depr(3y)156.38%
Cap/Depr(5y)128.1%
Cap/Sales(3y)3.93%
Cap/Sales(5y)3.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)187.79%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%97.4%
EPS Next Y61.78%
EPS Next 2Y36.39%
EPS Next 3Y26.03%
EPS Next 5Y35.85%
Revenue 1Y (TTM)30.31%
Revenue growth 3Y35.49%
Revenue growth 5YN/A
Sales Q2Q%32.73%
Revenue Next Year31.35%
Revenue Next 2Y29.39%
Revenue Next 3Y27.35%
Revenue Next 5Y24.19%
EBIT growth 1Y58.86%
EBIT growth 3Y49.95%
EBIT growth 5YN/A
EBIT Next Year167.36%
EBIT Next 3Y64.87%
EBIT Next 5Y45.07%
FCF growth 1Y-2.29%
FCF growth 3Y16.34%
FCF growth 5YN/A
OCF growth 1Y19.37%
OCF growth 3Y39.99%
OCF growth 5YN/A