BWMX Stock Forecast & Price Target

Betterware de Mexico SAPI has demonstrated strong financial performance with a significant 31.8% increase in EBITDA and a notable rise in overall EBITDA margins by 508 basis points year-over-year. The JAFRA segment has been particularly successful, contributing approximately 60% of total revenue in the fourth quarter of 2024 and achieving consistent year-over-year revenue growth since its acquisition, highlighted by a 22.2% revenue increase in that quarter. Additionally, improvements in pricing discipline and an enhanced product offering, including a substantial increase in SKU count and average pricing, indicate a favorable trajectory for both segments of the business as they optimize costs and expand their market presence.

Betterware de Mexico SAPI has reported disappointing financial performance, with Q4 2024 EBITDA and EPS falling significantly below market expectations by $56.4 million, and a notable decline in EBITDA margin from the previous year, attributed to rising costs and difficult market comparisons, especially in the JAFRA segment. The company faces ongoing challenges in expanding its distribution network, evidenced by an 8.4% year-over-year drop in Associate and Distributor levels, further compounded by supply chain issues and foreign exchange impacts. Additionally, macroeconomic concerns, such as potential tariffs on Mexican goods and predictions of a negative effect on GDP growth and employment, contribute to the negative outlook for the company’s stock.