BWMX Stock Forecast & Price Target

Betterware de Mexico SAPI has indicated a positive trajectory in its financial performance, with projected EBITDA increasing by 24.7% from prior estimates, underscoring strong operational growth. The successful integration of JAFRA, which experienced notable revenue growth at a CAGR of 18% and EBITDA growth at a CAGR of 23%, highlights the company's effective utilization of its production facilities and expansion into new product lines, supporting sustained profitability. Additionally, the company has demonstrated resilience in pricing strategy, achieving a 3.6% year-over-year increase in average ticket prices, indicative of robust demand and effective market positioning.

Betterware de Mexico SAPI de CV has experienced a significant decline in its SKU count, reflecting a 7.6% year-over-year decrease over the last five months, indicating weakening product variety and potential consumer demand. The company’s inventory levels fell 8% year-over-year, well below the overall market's modest growth, and it aims for a further 15% reduction by year-end 2025, which raises concerns about inventory management and future cash flow generation. Additionally, the adverse impact of declining revenues from Tupperware's operations in Brazil and Argentina, coupled with reduced plant utilization rates in Mexico, highlights a broader instability within the company's geographic and operational landscape.