Betterware de México, S.A.P.I. de C.V.
- Open
- 15.95
- Day high
- 16.42
- Day low
- 15.95
- Prev close
- 16.13
- Volume
- 72K
- Mkt cap
- $607M
- P/E (TTM)
- 8.4
- EPS (TTM)
- $1.94
- P/B
- 4.6
- P/S
- 0.7
- Yield
- 7.79%
- Per share
- $1.27
- ▲Insiders net buying $835K over the last 3 months (2 open-market buys, 0 sales)
- 🏛Institutions accumulating (13F)
Betterware de México, S.A.P.I. de C.V. (BWMX) is a Consumer Cyclical company listed on NASDAQ. The stock is up 24% over the past year. Over the trailing 3 months, insiders filed 2 open-market buys and 0 sales (SEC Form 4).
Betterware de México, S.A.P.I. de C.V. (BWMX) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
BWMX earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 23, 2026 | $0.54 | $0.58 | +6.6% | $238M | +7.9% |
| Apr 23, 2026 | $0.42 | $0.43 | +2.4% | $196M | -1.2% |
| Oct 23, 2025 | $0.44 | $0.45 | +2.3% | $3.4B | -12.7% |
| Jul 24, 2025 | $0.30 | $0.45 | +50.0% | $191M | -94.7% |
| Apr 24, 2025 | $0.41 | $0.20 | -51.2% | $170M | -95.0% |
| Feb 27, 2025 | $0.54 | $0.58 | +7.0% | $181M | -95.2% |
| Oct 24, 2024 | $0.29 | $0.26 | -10.3% | $173M | -3.8% |
| Jul 25, 2024 | $0.43 | $0.47 | +9.3% | $185M | +6.0% |
| Apr 25, 2024 | $0.56 | $0.47 | -16.1% | $217M | +8.2% |
| Feb 22, 2024 | $0.28 | $0.62 | +121.4% | $197M | +9.5% |
| Oct 26, 2023 | $0.37 | $0.31 | -16.2% | $178M | -3.0% |
| Jul 27, 2023 | $0.35 | $0.39 | +11.4% | $188M | -5.6% |
BWMX insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 4, 2026 | Campos Luisdirector, 10 percent owner, other: Chairman | Buy | 3,917 | $16.93 |
| Jul 29, 2026 | Campos Luisdirector, 10 percent owner, other: Chairman | Buy | 46,830 | $16.41 |
| May 4, 2026 | SALAZAR FERNANDOofficer: STRATEGY OFFICE SENIOR MANAGER | Buy | 159 | $16.96 |
| Apr 30, 2026 | CHEVALLIER ANDRES CAMPOSdirector, officer: CHIEF EXECUTIVE OFFICER | Buy | 10,000 | $16.81 |
Source: BWMX SEC Form 4 filings, latest Aug 4, 2026. For informational purposes only — not investment advice.
See the full BWMX insider & 13F page →Betterware de México, S.A.P.I. de C.V. company profile
Overview
Betterware de México, S.A.P.I. de C.V. (NASDAQ:BWMX) is a Mexican direct-to-consumer company founded in 1995 and headquartered in Zapopan, Mexico. The company went public on the U.S. stock exchange in 2019 and operates as a subsidiary of Campalier, S.A. de C.V. Betterware has evolved from a domestic home organization products company into a diversified direct sales enterprise through strategic acquisitions, most notably the purchase of beauty brand Jafra in 2022. The company now operates across multiple product categories and geographic markets, maintaining a strong presence in Mexico while expanding internationally into the United States and planning further Latin American expansion.
Business
Betterware operates in the direct-to-consumer specialty retail industry, utilizing a catalog-based sales model combined with independent sales force distribution. The company's business is structured around three main segments: Betterware Mexico (approximately 60-65% of revenue): This segment focuses on home organization and household solutions, offering products across categories including home solutions, kitchen and food preservation, technology and mobility, bedroom, bathroom, laundry and cleaning supplies. The company distributes these products through twelve different catalogs, targeting Mexican households with practical, affordable home improvement items. The direct sales model relies on independent distributors who sell products door-to-door and through personal networks. Jafra Mexico (approximately 25-30% of revenue): Acquired in 2022, Jafra operates in the beauty and personal care market, specializing in fragrances, cosmetics, skincare, and toiletries. This segment uses a similar direct sales approach but targets beauty-conscious consumers through beauty consultants who provide personalized product demonstrations and recommendations. Jafra has been experiencing stronger growth rates compared to the home goods segment. Jafra USA (approximately 5-10% of revenue): The U.S. operations of the Jafra beauty brand, which has faced challenges and revenue declines. The company is working to revitalize this segment through digital transformation initiatives, including a new Shopify Plus platform, and focusing primarily on Hispanic markets in states like Texas. The direct sales industry in Mexico and Latin America represents a significant retail channel, particularly appealing to consumers who prefer personalized service and flexible purchasing options. This model allows companies to reach customers in areas where traditional retail infrastructure may be limited while building strong customer relationships through personal consultants.
Revenue model
Betterware generates revenue primarily through product sales via its direct-to-consumer model. The company's paying customers are end consumers who purchase products through independent sales representatives, distributors, and beauty consultants. Revenue is generated when products are sold to these intermediaries, who then sell to final customers, as well as through direct online sales via company websites and mobile applications. The business model creates multiple revenue streams: catalog sales through independent distributors for home products, beauty consultant networks for Jafra products, and emerging digital channels including mobile apps and e-commerce platforms. The company maintains gross margins around 67-68%, indicating strong pricing power and efficient sourcing. Several factors influence the company's profitability margins. Positive margin drivers include the company's ability to implement strategic price increases, successful new product innovations that command premium pricing, operational synergies from the Jafra acquisition, and the expansion of higher-margin beauty products within the portfolio. The direct sales model also eliminates traditional retail markups, allowing for better margin capture. Negative margin pressures come from several sources: Mexican peso depreciation against the U.S. dollar significantly impacts costs since many products are sourced from China and other international suppliers. Rising freight and logistics costs, particularly container shipping rates, directly affect gross margins. Import tariffs and taxes, such as the 17% increase on 116 SKUs mentioned in recent calls, create additional cost pressures. Macroeconomic challenges in Mexico, including softening consumer spending, force the company to increase promotional activities and adjust pricing strategies, potentially compressing margins. Competition in both home goods and beauty markets requires ongoing investment in product innovation and marketing to maintain market position.
Competitive moat
Betterware's competitive moat is moderate but faces significant challenges. The company's primary defensive advantages stem from its established distribution network and market position in Mexico's direct sales industry. With 30 years of operation in Mexico, Betterware has built substantial brand recognition and customer loyalty, particularly in the home organization segment where it holds approximately 4% market share with 25% household penetration. The direct sales model itself provides some protection by creating switching costs through personal relationships between consultants and customers. This model also allows the company to reach underserved markets where traditional retail infrastructure is limited. The company's extensive catalog system and product portfolio breadth create customer convenience and consultant efficiency that would be difficult for new entrants to replicate quickly. However, the moat's strength is questionable due to several vulnerabilities. The direct sales industry faces secular challenges as younger consumers increasingly prefer digital shopping experiences over traditional catalog-based purchasing. E-commerce giants and traditional retailers expanding their home goods and beauty offerings present significant competitive threats with superior logistics, pricing power, and digital capabilities. The company's heavy reliance on imported products, particularly from China, creates supply chain vulnerabilities and currency exposure that competitors with more diversified sourcing may not face. Additionally, the beauty segment through Jafra competes against well-established multinational brands with substantially larger marketing budgets and broader distribution networks. Potential disruption comes from digital-native brands that can offer similar products through more convenient online channels, social commerce platforms that enable direct sales without traditional consultant networks, and large retailers who can leverage economies of scale to offer competitive pricing. The company's international expansion efforts, while promising, face established competitors in each new market with deeper local knowledge and resources.
Risks & safety
The margin of safety appears limited with several concerning financial metrics: Liquidity and Solvency Concerns: 1. Current ratio of 0.92 indicates potential short-term liquidity stress 2. Quick ratio of 0.44 suggests difficulty meeting immediate obligations without inventory liquidation 3. Net debt-to-EBITDA ratio of 2.08, while manageable, limits financial flexibility 4. Negative free cash flow of -$2.7 million in Q1 2025 raises concerns about cash generation 5. Cash position of only $16.5 million provides minimal buffer Valuation Metrics: 1. P/E ratio of 14.3 appears reasonable but not compelling given growth challenges 2. Price-to-book ratio of 8.2 suggests premium valuation relative to tangible assets 3. EV/EBITDA of 6.6 is moderate but concerning given declining EBITDA trends 4. Graham number of $50.79 versus current price of $10.49 suggests potential undervaluation Other Considerations: 1. High debt-to-equity ratio of 5.37 indicates significant leverage risk 2. Revenue declining 2.9% year-over-year with EBITDA down 29.1% shows deteriorating fundamentals 3. Exposure to peso depreciation and China sourcing creates ongoing margin pressure 4. Dividend payments continue despite negative free cash flow, potentially unsustainable
Recent development
Over the past few years, Betterware has undergone significant strategic transformation through both organic initiatives and acquisitions. The most significant development was the acquisition of Jafra in 2022, which expanded the company beyond home goods into the beauty and personal care market. This acquisition has generated identified synergies of 200-300 million pesos and diversified the revenue base, with Jafra Mexico showing strong double-digit growth rates. The company has pursued aggressive international expansion, launching Betterware operations in the United States in 2024, initially targeting Hispanic markets in Texas. However, recent earnings calls indicate this expansion is being scaled back due to tariff concerns and challenging market conditions. Plans for expansion into Latin American markets including Peru, Ecuador, and Colombia remain in development, with Peru launch targeted for 2025. Digital transformation initiatives have been a key focus, including the launch of enhanced mobile applications (BetterWare+ app), implementation of Shopify Plus platform for Jafra U.S., and development of chatbot and digital tools for sales consultants. These initiatives aim to modernize the traditional catalog-based direct sales model and attract younger demographics. Product portfolio expansion has been continuous, with new categories including wellness, kids, and pet products for Betterware Mexico, and significant innovation in skincare, fragrances, and cosmetics for Jafra. The company has expanded its catalog from 370 to 420 SKUs and increased new product innovations to represent 15% of Jafra's revenue. Recent strategic responses to market challenges include exploring alternative manufacturing sources beyond China to reduce supply chain risks, implementing strategic pricing adjustments to offset currency and cost pressures, and centralizing support services across business units to capture operational efficiencies.
BWMX company profile · for informational purposes only — not investment advice.
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