Stock daily read

What happened with BWMX today?

Why it moved
Explains possible causes using the day’s news and filings
Moving with the market?
Uses market moves and trading volume to assess what drove the change
What to watch next
The next thing that could change the call, and what to look for

No read yet

Uses news and trading volume to explain the day’s move and how it relates to the market.

Investment outlook

BWMX in three months: buy, wait or sell?

Stop guessing. Get the call, a three-month target price, the best and worst cases, and a source for every claim.

In the report
  • Buy / Wait / Sell rating
  • 3-month target price
  • Bear · Base · Bull
  • vs. the market

Company

Company overview

Betterware de Mexico, S.A.P.I. de C.V. serves consumers mainly in Mexico. JAFRA beauty and personal-care products bring in most of its revenue; Betterware home-organization products make up the other main business, helping customers organize their homes and save space.

The company sells products to independent sales-network members, who connect it with final customers. Betterware distributors receive deliveries and supply associates, while JAFRA leaders supply consultants. Distributors and leaders earn commissions on their teams’ product sales; associates and consultants do not earn commissions. The company gives network members credit to pay for purchases, so its cash comes from collecting payment for products rather than simply recruiting sellers.

Sales depend on retaining active network members and on Mexican consumers’ willingness to spend on discretionary products. Betterware sources its home products mainly from manufacturers in China, while JAFRA makes most of its products at the company’s Querétaro plant in Mexico. Direct-selling rules require safeguards such as return rights and prohibit compensation based solely on recruitment, limiting how the company can run its sales networks.

Read allShow less
Source: SEC filing

Red flags

Know what’s buried in BWMX’s filings before you buy

The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.

Sorted into
  • Happening now
  • Could go wrong
  • Built in

Moat

BWMX says it has a moat. Does it hold up?

Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.

Each edge rated
  • Strong
  • Moderate
  • Limited
  • Unproven

Related companies

Betterware's results hinge on Mexican household spending, distributor and consultant activity, and peso–dollar import costs—not on the supplied companies' business performance.

Agenda

in 2 daysThu, Oct 22

  1. Time to be announced
    Major

    Betterware de Mexico, S.A.P.I. de C.V. earningsThis company

    Betterware de Mexico sells home-organization goods through associates and beauty products through JAFRA consultants, and this report will show whether JAFRA’s order growth can offset weakness in the home business.