BWMX Stock Forecast & Price Target

Betterware de Mexico SAPI has demonstrated significant financial improvement with a notable 31.8% increase in EBITDA and a robust 508 basis points rise in EBITDA margins year-over-year, driven by increased pricing and effective cost controls. The JAFRA segment has consistently contributed to this growth, recording a remarkable 22.2% revenue increase in 4Q24 and continuing a trend of annual revenue growth since its acquisition, accounting for around 60% of total revenue in the last quarter. Additionally, the expansion of the product offerings and the positive trends in the distribution network, marked by an 11.8% rise in average monthly orders for JAFRA Associates, indicate strong demand and potential for continued growth in both business segments.

Betterware de Mexico SAPI has reported an EBITDA margin of 20.4%, which reflects a significant decline of 370 basis points year-over-year, largely driven by increased costs, supply chain issues, and currency fluctuations. The company's distribution network has contracted, with combined Associate and Distributor levels dropping by 8.4% year-over-year, raising concerns about its growth potential in the competitive landscape. Additionally, ongoing market challenges, including the threat of tariffs on Mexican goods and potential impacts on the broader Mexican economy, contribute to a negative outlook for the company's financial stability and growth trajectory.