Is Betterware de Mexico, S.a.p.i. de C.V (BWMX) a good stock to buy?
Nothing we have tested argues against it, and one check argues for it.
What each rating means, in numbers
Business quality — Strong. Passes 7 of the 9 health checks we can measure — things like making a profit, turning it into cash, and not piling on debt. Across 131,000 company-quarters the weakest scorers went on to fail at 5.4% against 1.4% for the strongest, in every era and all twelve sectors.
How wild is the price? — Average. The share price swings about 39% in a typical year, which puts it in the middling. Out of every 100 companies that swung like this, about 1.5 went bankrupt within the year. Across the three periods we tested that ran from 0.2% to 3.0%.
What "tested" means here, and why there is no score out of 100
Tested means the read was measured against what actually happened afterwards, on a history that keeps the companies that were later delisted, using only figures that had been filed on the day they are used. Survival was ranked on companies that really did fail. What an owner keeps was tested across the universe from 2011 to 2025.
The full record of everything we have tested is on the research pages.
Which benchmark. Over the period we tested, the median listed company returned +5.8% a year while the S&P 500 returned about +13.9% — the index is weighted by size and was carried by a handful of enormous winners. So "beats the index" and "beats the other companies you could have bought" are different questions. Where a read says it picks better companies, it means the second one. None of these gets you an index fund's return, and we would rather say that than imply otherwise.
The quality read is the strongest thing we have tested: 131,000 company-quarters across 5,300 companies, where the weakest scorers went on to fail at 5.4% against 1.4% for the strongest, holding in every era and all twelve sectors. It still says less likely to break, not likely to beat the market — every band in that study lost to the index at the median, because the median listed company does.
Each read is shown on its own rather than merged into a single score, so you can see which part is strong and which is weak instead of taking an average on trust.
▾ What goes into the smart-money reading
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend). See the Financial Health section for the full balance-sheet read.
Chance the S&P 500 falls 10% or more in the next three months.
Counted from every day since 2006. Says nothing about BWMX — see the board for how it is measured.
📍 Where to start on this page, and what to look at first
How to read BWMX
We are not publishing an intrinsic value for this one — the section below says exactly why. Everything on this page that comes straight from the filings and the tape is still here; treat the missing valuation as a known gap, not as a verdict on the business.
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1
Reported earnings & margins ↓
What the company actually reported — unaffected by the valuation being held.
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Balance sheet & book value ↓
Assets, liabilities and equity as filed.
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Who's selling & betting against it ↓
Insider and short-interest behaviour needs no valuation model.
Our DCF for BWMX lands well below today's price. For a non-cyclical that usually means the market is pricing in growth far beyond recent cash flows (or there's a data quirk), so we don't headline a single fair-value number.
What to use instead: The Reverse-DCF shows exactly how much growth the price demands — decide whether that's realistic. Pair it with peer multiples.
This note is only about the single DCF fair-value number — BWMX's full financial statements, health scores, and written analysis are all below.
Who owns BWMX, and how it moves
From the SEC's own filings: every fund manager over $100M reports its holdings each quarter, and every officer and director reports theirs. Each point is what was public at the time.
⚠ We found only 1 genuine same- or closely-related-industry (E-Commerce) comparable — fewer than the 4 we require for a reliable median. The 5 names in the table below therefore include 4 broader Consumer Cyclical names marked fallback, whose business models and margins differ — which is why any median below is computed over that wider set, not over true comparables. So we do not derive a peer-implied share value here. Read the multiples as rough context only.
How does BWMX stack up against its closest peers?
Ideally we compare BWMX only to same-industry peers, but too few exist in our universe right now, so the basket below mixes in broader-sector names. Treat the multiples as rough context, not a valuation. For a leveraged business, EV/EBIT and FCF yield (both in the table) are usually more reliable than EV/Sales, because revenue multiples ignore differences in margins and debt.
▾ What's "EV / Sales" in plain English?
EV (Enterprise Value) = market cap + total debt − cash. It's "what you'd pay to buy the entire company outright" — you pay the market cap to shareholders and take over their debt, but you keep their cash. EV is fairer than market cap alone because it includes the debt the new owner inherits.
EV / Sales = EV ÷ annual revenue. So "2.5×" means investors pay $2.50 of enterprise value per $1 of yearly sales. Higher = market is paying more per dollar of sales (usually because they expect future growth or fat margins).
p25 / median / p75 are the 25th, 50th (middle), and 75th percentile of the peers' multiples. Half the peers fall between p25 and p75. The median (p50) is the typical peer — that's the benchmark we compare to.
| EV / SalesEV / Sales — For every $1 of yearly revenue, this is how many dollars investors pay to own the whole business (including debt). Why it matters: Works for pre-profit growth companies where P/E and FCF don't apply. The most apples-to-apples cross-company multiple because it ignores accounting choices. Reference: 1–3x for mature companies · 4–10x for software/SaaS · 10–20x for hypergrowth · >20x is rare and demanding Full explanation → |
0.8x / 1.2x / 4.0x |
| EV / Gross ProfitEV / Gross Profit — Enterprise value divided by gross profit — the multiple paid for what each dollar of sales contributes after direct costs. Why it matters: More refined than EV/Sales for high-margin businesses (software, marketplaces) where gross margin is the real economic engine. Reference: 8–15x for SaaS · 15–25x for hypergrowth software · >30x demanding Full explanation → |
2.9x / 4.3x / 4.8x |
Bold middle number = median peer. Half the peers trade above it, half below. Computed over 5 peers (broad — see caveat); implausible multiples excluded.
⚠️ Important caveat: peer multiples only work if the peers are genuinely comparable. Always check the peer list below — if the auto-picker grabbed micro-caps or unrelated businesses, the comparison is noise. A medical-device giant priced against tiny biotech startups won't produce a useful signal.
▾ View peer list (5)
| Ticker | Company | Industry | Mcap | EV/Sales | EV/GP | EV/EBIT | FCF Yield |
|---|---|---|---|---|---|---|---|
| AMZN | AMAZON COM INC | E-Commerce | $2.83T | 4.0x | — | 36.2x | 0.5% |
| CPNG | Coupang, Inc. | E-Commerce ·fallback | $28.3B | 0.8x | 2.9x | 61.3x | 18.9% |
| AMZE | AMAZE HOLDINGS, INC. | E-Commerce ·fallback | $23.7B suspect | 12,060.2x | 15,106.0x | — | — |
| CDW | CDW Corp | E-Commerce ·fallback | $17.8B | 1.0x | 4.8x | 14.1x | 5.3% |
| W | Wayfair Inc. | E-Commerce ·fallback | $12.7B | 1.3x | 4.3x | 941.6x | 1.0% |
Bankruptcy + quality screens
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
What these health ratings mean, in numbers
Business quality — Strong. Passes 7 of the 9 health checks we can measure — things like making a profit, turning it into cash, and not piling on debt. Across 131,000 company-quarters the weakest scorers went on to fail at 5.4% within a year against 1.4% for the strongest, and that held in every era and all twelve sectors. It says "less likely to break", not "likely to beat the market".
Bankruptcy score (Altman Z) — Very safe. Altman Z is 823.05. It combines working capital, retained earnings, operating profit and market value against total assets into one bankruptcy score. Above 3.0 is the safe zone, 1.8 to 3.0 is grey, below 1.8 is the distress zone. It was calibrated on manufacturers in 1968, so it reads asset-light and heavily-financed businesses badly — which is why it is one input here and never the verdict.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
Safe zone under the classic Altman thresholds — companies scoring here have historically gone bankrupt only rarely within ~2 years. A screening signal, not a guarantee.
The classic Z-score was calibrated on manufacturers. It is less reliable for asset-light or non-manufacturing businesses (broadcasters, media, software, services) and not applicable to banks, REITs, or insurers — for those the coefficients and the asset-turnover term distort the result. Read it as one screening input, not a verdict.
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
▾ The checks — what passed, what didn't (and what we couldn't measure)
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✓ Positive net incomeNet income $39.1M in FY2024.
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✓ Positive operating cash flowOperating cash flow $98.6M (was $133.5M the prior year).
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✓ Cash flow backs up reported profitOperating cash flow $98.6M vs net income $39.1M.
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✗ Return on assets improvingReturn on assets 7.7% vs 8.9% a year ago.Why this matters: Is the company squeezing more profit out of each dollar of assets than last year? Rising = getting more efficient; falling = the opposite.
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✓ Debt load (vs assets)Long-term debt is 35.1% of assets vs 41.7% a year ago ($176.9M of $504.0M assets).
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✗ Short-term liquidity (current ratio)Current ratio 0.95x vs 1.04x a year ago — below 1.0, a caution flag.Why this matters: The current ratio compares assets it can turn to cash within a year against bills due within a year. Below 1.0 means it may struggle to cover near-term obligations.
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✓ Share count (dilution)Share count held roughly flat (37,244.0M → 37,244.0M year-over-year).
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✓ Pricing power (gross margin)Gross margin 67.9% vs 67.2% a year ago.
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✓ Sales per asset (asset turnover)Asset turnover 1.54x vs 1.12x a year ago.
Missing data is never counted as a pass or a fail — it's shown as n/a and excluded from the denominator. Each check compares the company against its own prior year.
A standard discounted cash flowDCF — Discounted Cash Flow — sums up all future cash a business will produce, adjusted for the fact that future dollars are worth less than dollars today.
Why it matters: It is the most fundamentally honest valuation method when applicable — but only works for companies with predictable, positive cash flow.
Reference: Best for: mature, profitable businesses. Fails for: pre-profit growth, banks, REITs.
Full explanation → (DCF) valuation is not meaningful for Betterware de Mexico due to its base free cash flowFree Cash Flow (FCF) — Operating cash flow minus capital spending: cash left after a company covers operating costs, taxes and interest and reinvests in the business — but BEFORE repaying debt principal or paying dividends. The cash actually available to investors.
Why it matters: A company can show big profits on paper while burning through cash. FCF is what actually fills the bank account.
Reference: Healthy mature businesses convert 8–15% of revenue into FCF · Growth companies often negative
Full explanation → per share being less than 0.5% of its price, indicating unreliability. Investors are likely focused on the company's revenue growth, which has been 15.9% annually over the last three years, and its positive net income and operating cash flow. The biggest risk to our assumptions is the rising long-term debt, which has increased from $73M to $177M, and a current ratio below 1, suggesting potential liquidity challenges.
As of 6 days ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What's free cash flow / what do these mean?
Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.
Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.
Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real dilution cost even though it's non-cash). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.
Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Next quarter's revenue growth rate
- Movement in the current ratio
- Changes in long-term debt levels
The trend, in plain numbers (FY2023 → FY2024, latest reported)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Revenue grew +5% to $774.0M.
- Gross margin improved to 68% (+1 pts).
- Free cash flow fell to $98.6M.
- Net income fell -33% to $39.1M.
Management & Leadership
Andres Campos Chevallier serves as the Chief Executive Officer, with Raul Luis Del Villar Zanella as the Chief Financial Officer. Santiago Campos Chevallier is the MD Betterware Mexico, and Fernando Salazar is the Strategy Office Senior Manager. These executives lead the company's operations and strategic initiatives.
CHIEF EXECUTIVE OFFICER
Chief Financial Officer
What They Make
Betterware de Mexico sells household products and personal care items through a direct-to-consumer model, primarily to distributors and associates who then sell to end consumers.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
What we use instead: earnings (P/E, EV/EBIT), book value (P/B), dividend yield & payout — computed from the figures this company does report, shown in the sections below. Those numbers are unaffected by the missing cash-flow data.
The market is pricing BWMX based on its consistent revenue growth of 15.9% annually over the last three years and its positive net income and operating cash flow. Despite a low current ratio of 0.95 and rising debt, investors are likely betting on the company's ability to sustain its growth trajectory and improve its financial health over time, rather than its current free cash flowFree Cash Flow (FCF) — Operating cash flow minus capital spending: cash left after a company covers operating costs, taxes and interest and reinvests in the business — but BEFORE repaying debt principal or paying dividends. The cash actually available to investors.
Why it matters: A company can show big profits on paper while burning through cash. FCF is what actually fills the bank account.
Reference: Healthy mature businesses convert 8–15% of revenue into FCF · Growth companies often negative
Full explanation → generation.
Business Model & Valuation
How They Make Money
Free Cash Flow DCF
This is the model the pipeline would normally apply to a company like this. Its output failed our checks here, so no intrinsic value is published; the notes below are context, not a valuation.
▾ Exactly how the $— normalized FCF/share is computed
2024: 98.6M
2023: 125.9M
2022: -163.9M
Sum ÷ 3 = 20.2M average total FCF
÷ 37,244.0M current diluted shares = $0.00/share
We divide the multi-year total-FCF average by today's share count (not each year's own share count), so the buyback effect is captured once, via the current denominator.
Show advanced inputs
| Revenue Growth | 16.0% |
| Eps Growth | -23.1% |
| Sector Default | 8.0% |
| Sector Default Source | Consumer Cyclical sector default |
| Best Estimate | 10.4% |
| Method | blend(30% revenue_cagr, 70% sector) |
| Growth Basis | total |
What this model does NOT do: this is a consolidated owner-earnings cash-flow model. Standalone segment assumptions: none. It does not project its revenue segments independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Revenue has been growing at 15.9% per year over the last three years, from $497M to $774.0 million.
Geography & Markets
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)47.3NeutralMomentum is balanced — neither overbought nor oversold.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (8 notes — click to expand/collapse)
Guardrail Notes (7)
- Latest FCF ($0.1B, net of stock-based compensation) is 2.5x net income ($0.0B) - using 3yr average FCF to reduce one-time inflation.
- Base metric ($0/sh) is <0.5% of price ($16) - FCF DCF output will be unreliable. Growth/revenue model would be more appropriate for this stock.
- Model implies no positive equity value under these assumptions. Valuation is speculative/low-confidence.
- Illiquidity discount 7% applied (small/micro-cap — harder to exit, demand a margin).
- Extreme valuation: the price is far above the model output for a non-cyclical — likely dominated by a data issue. The model value is suppressed.
- VALUATION HELD (EXTREME_MODEL_GAP): per-share values suppressed due to the model output failed plausibility checks.
- Extreme valuation gap (P/IV withheld — see the note above): result may be dominated by model assumptions, share count issues, or sector-specific dynamics. Treat as low confidence.
FINANCIALS
Financial Statements (5-year tables — click to expand)
From Betterware de Mexico, S.a.p.i. de C.V's SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2024 | 774.0M | 39.1M | $1.05 |
| 2023 | 733.9M | 58.5M | $1.57 |
| 2022 | 572.3M | 43.3M | $1.16 |
| 2021 | 496.5M | 86.2M | $2.31 |
Cash Flow (5yr)
CapEx is approximated. This filer reports capital expenditure under a company-specific tag our parser cannot read, so the CapEx column uses total investing outflow instead. That includes acquisitions and investment purchases, so the free cash flow shown is a conservative (lower-bound) figure in years with large deals.
| Year | Operating CF | Investing outflow (capex proxy) | − SBC | Free Cash Flow |
|---|---|---|---|---|
| 2024 | 98.6M | 25,578 | — | 98.6M |
| 2023 | 133.5M | 7.4M | — | 125.9M |
| 2022 | 70.1M | 233.7M | — | -163.9M |
| 2021 | 72.3M | 19.8M | 1.5M | 50.9M |
| 2020 | — | 29.0M | 1.5M | -30.5M |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). This is the same owner-earnings FCF definition the valuation model uses, though the DCF's starting value is a trailing 3-year average, not this single year.
Balance Sheet
| Total Assets | 504.0M |
| Total Liabilities | 447.9M |
| Equity | 56.1M |
| Total Debt | 232.6M |
Similar companies worth a look
Same sector and industry, similar fundamentals shape. Verify everything yourself — this list is computed mechanically and does not reflect our judgment about whether any of these are a good investment.
The questions people ask about BWMX
Is Betterware de Mexico, S.a.p.i. de C.V (BWMX) a good stock to buy?
We do not publish a single fair value for Betterware de Mexico, S.a.p.i. de C.V, because one number would not be reliable for this business (the page explains why). Judge it on what today's price assumes, its financial-health checks and what insiders are doing, all shown here from SEC filings. This is educational research from SEC filings, not investment advice.
Is Betterware de Mexico, S.a.p.i. de C.V (BWMX) overvalued?
A single fair-value number is not reliable for Betterware de Mexico, S.a.p.i. de C.V, so we do not call it overvalued or undervalued. The page shows what growth today's price assumes and how the company's finances look instead. This is educational research from SEC filings, not investment advice.
Where do these numbers come from?
From Betterware de Mexico, S.a.p.i. de C.V's own SEC filings (10-K and 10-Q), Form 4 insider filings and daily market prices. Every figure on the page links to how it was calculated, and the model's weak spots are listed next to its results.