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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Warby Parker, Inc.

Rover Group, Inc.

Betterware de México SAB de CV

Sonic Automotive, Inc.

National Vision Holdings, Inc.

ChargePoint Holdings, Inc.

MarineMax, Inc.

Monro, Inc.

Camping World Holdings, 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 30.57% and Operating profit at 15.38%

With ROCE of 34.94%, it has a very attractive valuation with a 1.85 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 12.78%, its profits have fallen by -64.6%

Majority shareholders : FIIs

Market Beating performance in long term as well as near term

Along with generating 12.78% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

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, Low Return

Absolute

Risk Adjusted

Volatility

Betterware de México SAB de CV

13.99%

-0.17

45.60%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.57%

EBIT Growth (5y)

15.38%

EBIT to Interest (avg)

16.83

Debt to EBITDA (avg)

1.33

Net Debt to Equity (avg)

4.81

Sales to Capital Employed (avg)

2.06

Tax Ratio

43.39%

Dividend Payout Ratio

136.88%

Pledged Shares

Institutional Holding

13.49%

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

5.97

EV to EBIT

5.31

EV to EBITDA

4.42

EV to Capital Employed

1.85

EV to Sales

0.76

PEG Ratio

Dividend Yield

ROCE (Latest)

34.94%

ROE (Latest)

45.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

10What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 470.5

RAW MATERIAL COST(Y)

Fallen by 1.02% (YoY

PRE-TAX PROFIT(Q)

Highest at USD 24.39 MM

NET PROFIT(Q)

Highest at USD 18.41 MM

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 40.8 MM

NET PROFIT(9M)

At USD 38.67 MM has Grown at -31.17%

ROCE(HY)

Lowest at 39.74%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 63.3%

DEBT-EQUITY RATIO (HY)

Highest at 425.86 %

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

Net Profit

At USD 18.41 MM has Grown at 212.83%

over average net sales of the previous four periods of USD 5.89 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Interest Coverage Ratio

Highest at 470.5

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At USD 24.39 MM has Grown at 111.99%

over average net sales of the previous four periods of USD 11.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

Highest at USD 24.39 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 18.41 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Raw Material Cost

Fallen by 1.02% (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 40.8 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)

Debt-Equity Ratio

Highest at 425.86 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend Payout Ratio

Lowest at 63.3%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)