One-glance verdict
Undervalued
$64.24 our estimate vs market $16.72
Wall Street consensus: $29.65 (-53.9% lower than our fair-value estimate)
74% below our estimate, below the bear case
Fundamentals snapshot
Betterware de México, S.A.P.I. de C.V.
BWMX · NYQ · Consumer Cyclical · Specialty Retail
Current price
$16.72
52-week range
$12.34 - $19.79
Market cap
$622.72M
Balance sheet
Distressed
4.17x Stretched
Net debt $420.56M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 1.0% last year.
- Reward Returns 73.0% on equity, ahead of 80% of its peers.
- Risk Stock trades 1253.6% above its 5-year average P/E.
- Risk Operating margin compressed from 17.8% to 16.4% over 3 years.
What this company does
Betterware de México, S.A.P.I. de C.V.
Betterware de México sells a variety of household goods, from kitchen gadgets to bathroom organizers, as well as beauty and personal care products. The company makes its money through direct-to-consumer sales, relying on a large network of independent sellers who use catalogues to sell products to customers primarily in Mexico. This business model means Betterware's sales are closely tied to its ability to recruit and motivate these individual sellers.
How the company got here
Betterware started in London in 1928, but the company you see today was shaped in Mexico. In 2001, its current chairman, Luis Campos, bought the Latin American division and established it as a separate Mexican company focused on household products. It grew by building a large network of independent sellers and in 2020, it became the first Mexican company to be listed directly on the American Nasdaq stock exchange. A major turning point came in 2022 when Betterware bought the Mexican and U.S. operations of Jafra Cosmetics, adding a major beauty business to its portfolio.
What it actually does
Betterware is a direct-to-consumer company, which is a fancy way of saying it sells its products directly to people in their homes, not in traditional stores. It relies on a large, independent sales force, which it calls 'distributors' and 'associates,' who use catalogs to show products to friends, family, and neighbors. These sellers place orders with Betterware, deliver the items to the final customer, and earn a profit on the sale. This business model (the company's plan for making money) allows Betterware to reach households all over the country without the cost of running physical retail stores.
Home Organization Products
This is the company's original and core business, operating under the 'Betterware' brand name. It designs and sells a wide variety of clever and affordable items intended to make home life easier and more organized. Think of things like special containers for your kitchen, space-saving solutions for your closets, practical items for the bathroom, and cleaning supplies. Customers, typically value-conscious households, buy these products from the company's network of sellers who present them in a regularly updated catalog.
Beauty and Personal Care Products
This part of the company operates under the well-known 'Jafra' brand, which Betterware acquired in 2022. This segment sells beauty and personal care items, including perfumes, makeup, skin creams, and toiletries. Just like the home goods side, Jafra uses a direct-selling model with its own large network of independent 'consultants' who sell products to customers in Mexico and the United States. This acquisition was a strategic move to diversify (to expand into a new business area to reduce risk) and enter the large beauty market.
What management is betting on now
The company's main focus is on growth, both by selling more in Mexico and by expanding into other countries. A top priority is the United States market, where it is introducing its Betterware home products after successfully acquiring the U.S. operations of Jafra. Management is also betting heavily on technology and business intelligence (using data to make smarter decisions) to understand what customers want and to help their sellers be more effective. A key part of their strategy is to apply Betterware's tech and data expertise to help the Jafra beauty business grow even faster.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $64.24 vs current price $16.72
Wall Street consensus is the average analyst price target: $29.65 (-53.9% lower than our fair-value estimate).
Our most-likely fair value is $64.24 a share — about 284.2% above today's price of $16.72, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $420.6M. Interest coverage 4.2x.
Net debt
$420.56M
Interest coverage
4.17x
Betterware de México, S.A.P.I. de C.V.'s profit covers its interest bill about 4.2 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
BWMX
BASELINE
Betterware de México, S.A.P.I. de C.V.
Total debt $451.00M Interest coverage 4.17x This is the baseline the peer rows are being compared against.
Total debt $303.25M Interest coverage 6.52x +56% vs BWMX Carries about 1.6x more debt cushion than BWMX.
Total debt $0.00 Interest coverage 60.41x +1,348% vs BWMX Carries about 14.5x more debt cushion than BWMX.
Total debt $9.51M Interest coverage -53.17x -100% vs BWMX This peer has almost no interest-payment cushion compared with BWMX.
Total debt $27.62M Interest coverage -20.28x -100% vs BWMX This peer has almost no interest-payment cushion compared with BWMX.
What you should know
The case for and against BWMX
3 Rewards
2 Risks
Rewards
-
Revenue grew 1.0% last year.
-
Returns 73.0% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 1253.6% above its 5-year average P/E.
-
Operating margin compressed from 17.8% to 16.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
6.46x
Forward P/E
5.95x
P/B
4.97x
P/S
0.04x
EV/EBITDA
2.95x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
66.1%
Operating margin
16.4%
Net margin
8.5%
ROE
73.0%
ROA
12.1%
Health
Liquidity and balance-sheet strength
Debt / equity
3.39x
Current ratio
1.11x
Quick ratio
0.45x
Total debt
$451.00M
Total cash
$30.44M
Growth
How the business has been compounding
Revenue TTM
$867.74M
Revenue 5Y CAGR
7.4%
EPS TTM
2.59
EPS 5Y CAGR
13.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$130.68M
Free CF TTM
$123.99M
FCF margin
14.3%
Dividend
Shareholder payout
Yield
7.6%
Payout ratio
48.7%
Last ex-div date
2026-08-06