Betterware de Mexico SAPI de CV (BWMX)

Hi, are you still in this stock? Has grown tremendously, both share price and biz.

Great earnings call

This one is well worth looking into. Revenue growth in June was over 100%, which marked an acceleration from earlier in the quarter. They've sandbagged guidance too, which they basically admitted on the call. The current valuation at 6x EBITDA and 8x PE is ridiculously too low.

There were a few institutional investors on the call and a couple of analysts. My understanding is that more analysts will start covering the stock soon.

Dividend yield is 14% and is paid in USD.

It should run

Significantly undervalued and should be trading at $35-$40 at least based on a reasonable PE (yes, it has significant earnings) and a target dividend yield of 5% (current yield is over 13%!). Stock has a thin float so any buying pressure will get magnified.

Earnings call is tomorrow morning, but they released excellent results on Friday morning.

Is this going to run $$$$

Comparable valuation

This company compares very favorably to MercadoLibre, which trades at 16x revenue and is EBITDA negative. Both companies are growing revenues at similar rates, but BWMX has much better margins and cash conversion. It also has a dividend yield of 13+%!

At 8x revenue, BWMX would be valued at $57 per share. That would be a PE of ~40x.

Any way you look at it, BWMX is extraordinarily undervalued and should have great downside support.

Significantly undervalued

This is a very new listing on the Nasdaq that I believe few people know about as evidenced by the low trading volume prior to Friday. Not sure why the company didn't PR the earnings results, which were excellent, but I've communicated to them that they should.

The company generated 82% revenue growth, with 27% EBITDA margins EPS of $0.35 in the June 2020 quarter. If you annualize the EPS, the stock is trading at a PE of only 9.3x. The company is also proposing a dividend that equates to an annualized yield of over 13% at the current price. I believe there are ~34.45mm shares outstanding, but am waiting for confirmation from management. I think the free float is probably a few million, but need to confirm.

At a 25x PE, which is arguably very conservative given the growth rate and dividend yield, the stock would be priced at $35. That would represent a 5% dividend yield. The risk/reward is highly favorable in these shares.


There's going to be an earnings call on Aug 4th if anyone is interested:

Management will hold a conference call with investors on August 4th, 2020 at 9am Central Standard Time (CST)/10am Eastern Time (EST). For anyone who wishes to join live, the dial-in information is:



Toll Free: 1-877-451-6152

Toll/International: 1-201-389-0879



If you wish to listen to the replay of the conference call, please see instructions below:



Toll Free: 1-844-512-2921

Toll/International: 1-412-317-6671

Replay Pin Number: 13707625

Is 100.00 comin