BWMXBetterware de México, S.A.P.I. de C.V.
Is the business good?
The checks split: earnings fully cash-backed (1.3×), but returns that lean on debt.
Operating profit is fully backed by cash.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 61% = margin × turnover × leverage.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is BWMX?
Betterware de México, S.A.P.I. de C.V. earns 26% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 17 points above what the capital costs: growth creates value
- Operating margin
- 16%
Operating margin · Specialty Retail median 8.1% · fiscal year to FY2024
- Cash conversion
- 1.35×
Cash conversion · 1.38× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 68%
Gross margin
| Year | Operating margin |
|---|---|
| FY2019 | 26% |
| FY2020 | 29% |
| FY2021 | 26% |
| FY2022 | 18% |
| FY2023 | 18% |
| FY2024 | 16% |
Details›
- Gross marginfiscal year to FY2024
- 68%
- Operating marginfiscal year to FY2024
- 16%
- Net marginfiscal year to FY2024
- 5.1%
- Revenue, trailing twelve months
- $14.1B
- Net income, trailing twelve months
- $712M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 26%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.