BWMXBetterware de México, S.A.P.I. de C.V.
Is the business good?
The checks split: earnings fully cash-backed (1.6×), but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 78% = margin × turnover × leverage.
Unless marked, from derived.
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 29% 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% · 20 points above what the capital costs: growth creates value
- Operating margin
- 16%
Operating margin · Specialty Retail median 8.0% · fiscal year to FY2025
- Cash conversion
- 1.61×
Cash conversion · 1.35× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 67%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 29% |
| FY2021 | 26% |
| FY2022 | 18% |
| FY2023 | 18% |
| FY2024 | 16% |
| FY2025 | 16% |
Details›
- Gross marginfiscal year to FY2025
- 67%
- Operating marginfiscal year to FY2025
- 16%
- Net marginfiscal year to FY2025
- 7.4%
- Revenue, trailing twelve months
- $14.2B
- Net income, trailing twelve months
- $1.06B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 29%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.