Betterware de Mexico S.A.P.I. de C.V. Ordinary Shares (BWMX)

FairStock Score: 78/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business. Betterware de México is a direct-to-consumer seller of home organization and beauty products in Mexico and the U.S. In the second quarter of fiscal 2026, it reported revenue of $4.2B and net income of $394.6M, a 9.48% net margin. That suggests the company can generate accounting profits. FairStock’s calculations at the 2026-10-13 close of $16.34 show a P/E of 6.33, EV/EBITDA of 2.78, and PEG of 0.31, which look cheap if those profits are durable. The Graham Number is $59.56, implying a 72.57% margin of safety. A 7.33% dividend yield adds appeal. But Graham would demand balance-sheet caution. The debt-to-equity ratio is 3.39, and FairStock’s Altman Z-Score is 0.64—a distress signal. Trailing free cash flow is negative $695.5M, with an FCF yield of -104.6%. That is a glaring contradiction: reported profits are not turning into cash. The Piotroski F-Score is only 5/9, and the P/B of 4.86 is not cheap on assets. ROE is 73.05%, but with high leverage that return may be borrowed rather than earned. ROCE is 12.08%, more modest. Growth is a positive: the provided data show revenue growth of 16.81% and profit growth of 20.56%. Yet no Peter Lynch category is assigned because there are only 0 years of filed annual results, so history is thin. My conclusion: this looks statistically cheap, but the negative cash flow and leverage mean the margin of safety is not as wide as the Graham Number implies. I would watch cash conversion and debt reduction before trusting the multiple.

In plain English: Betterware de México sells home organization and beauty products directly to consumers in Mexico and the United States. The business is profitable and growing, but it is burning cash and carries heavy debt, which makes it riskier than the headline numbers suggest. The share price looks cheap compared with its profits, but the weak cash flow means the bargain may be uncertain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer