BWMX Stock Forecast & Price Target

Betterware de Mexico SAPI has demonstrated strong financial performance, with a notable 9.7% increase in revenue for 3Q25, reaching Ps. 245.96 million, marking the highest recorded price since 2021. The company has achieved significant operational efficiency, as reflected in an EBITDA margin of 21.4%, which rose 360 basis points year-over-year, alongside a 12.2% growth in average orders for distributors. Furthermore, effective management strategies, including lower inventory levels and decreased net debt, contribute to a positive outlook for the company's financial health, particularly within its JAFRA segment, which benefited from a 7.9% year-over-year sales increase.

Betterware de Mexico SAPI de CV is experiencing significant financial challenges, reflected in the downward revision of its 4Q revenue and EBITDA growth projections to only +1% to +5%, compared to previous expectations of 6% to 9%. The company's revenue has shown a concerning decline of 5.3% year-over-year in 3Q25, marking the third consecutive quarter of decreasing sales, primarily within the Betterware segment which has suffered due to sluggish consumer spending in Mexico. Additionally, the company is facing further headwinds with a reduction in both its Associate and Distributor bases by 2.7% and 3.2%, respectively, coupled with a drop in monthly orders by 3.6%, indicating a weakening market presence and potential challenges in sustaining future growth.