Betterware de Mexico SA de CV (BWMX)

[Renegades17]

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