BWMX Stock Forecast & Price Target

Betterware de Mexico SAPI has demonstrated strong financial performance, highlighted by a significant year-over-year increase in EBITDA margins of 508 basis points and an impressive EBITDA growth of 31.8%. The company's JAFRA segment has shown consistent revenue growth, achieving a 22.2% revenue increase in 4Q24, thereby contributing to approximately 60% of total revenues and bolstering overall financial health. Additionally, the implementation of pricing strategies and a focus on cost control have resulted in a notable rise in average order per Associate by 11.4%, indicating a positive trend in consumer demand and purchasing behavior.

Betterware de Mexico SAPI de CV has reported a disappointing financial performance, with its overall EBITDA margin declining by 370 basis points year-over-year to 20.4%, largely due to increased costs and supply chain issues, particularly affecting the JAFRA segment. Furthermore, the company has struggled to expand its distribution network, resulting in an 8.4% decrease in combined Associate and Distributor levels year-over-year, which raises concerns about future growth prospects. Additionally, external factors such as potential tariffs on Mexican goods and projected negative impacts on Mexican GDP and unemployment further contribute to a negative outlook for the stock.