Betterware de México SAB de CV (BWMX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Warby Parker, Inc.

Rover Group, Inc.

Betterware de México SAB de CV

National Vision Holdings, Inc.

Monro, Inc.

Sonic Automotive, Inc.

ChargePoint Holdings, Inc.

Camping World Holdings, Inc.

MarineMax, Inc.

Leslie's, Inc.

Allego NV

Why is Betterware de México SAB de CV ?

High Management Efficiency with a high ROCE of 83.69%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.33 times

Healthy long term growth as Net Sales has grown by an annual rate of 23.39% and Operating profit at 8.85%

With a growth in Operating Profit of 6.55%, the company declared Very Positive results in Sep 25

The company has declared positive results in Jan 70 after 3 consecutive negative quarters
INTEREST COVERAGE RATIO(Q) Highest at 547.47
PRE-TAX PROFIT(Q) Highest at USD 26.93 MM
NET PROFIT(Q) At USD 16.86 MM has Grown at 138.06%

With ROCE of 33.65%, it has a very attractive valuation with a 2.77 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 43.59%, its profits have risen by 22.2% ; the PEG ratio of the company is 0.5

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Betterware de México SAB de CV should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Betterware de México SAB de CV for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Betterware de México SAB de CV

44.6%

0.19

47.09%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.39%

EBIT Growth (5y)

8.85%

EBIT to Interest (avg)

16.83

Debt to EBITDA (avg)

1.33

Net Debt to Equity (avg)

4.81

Sales to Capital Employed (avg)

2.10

Tax Ratio

43.39%

Dividend Payout Ratio

136.88%

Pledged Shares

Institutional Holding

14.41%

ROCE (avg)

83.69%

ROE (avg)

80.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

9.14

EV to EBIT

8.22

EV to EBITDA

6.94

EV to Capital Employed

2.77

EV to Sales

1.25

PEG Ratio

0.52

Dividend Yield

ROCE (Latest)

33.65%

ROE (Latest)

78.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

22What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 547.47

PRE-TAX PROFIT(Q)

Highest at USD 26.93 MM

NET PROFIT(Q)

At USD 16.86 MM has Grown at 138.06%

RAW MATERIAL COST(Y)

Fallen by -2.43% (YoY

OPERATING PROFIT(Q)

Highest at USD 38.76 MM

OPERATING PROFIT MARGIN(Q)

Highest at 21.38 %

EPS(Q)

Highest at USD 0.45

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 58.18 MM

CASH AND EQV(HY)

Lowest at USD 38.93 MM

Here's what is working for Betterware de México SAB de CV

Interest Coverage Ratio

Highest at 547.47

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

Highest at USD 26.93 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 26.93 MM has Grown at 116.11%

over average net sales of the previous four periods of USD 12.46 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 16.86 MM has Grown at 138.06%

over average net sales of the previous four periods of USD 7.08 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Profit

Highest at USD 38.76 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 21.38 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at USD 0.45

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -2.43% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Betterware de México SAB de CV

Operating Cash Flow

Lowest at USD 58.18 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 38.93 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents