BWMX Stock Forecast & Price Target

Betterware de Mexico SAPI has demonstrated a positive financial trajectory, highlighted by a 12.2% growth in average orders for distributors and a notable rise in EBITDA margins to 21.4% in 3Q25, which reflects the highest level achieved since 4Q23. The company has effectively managed inventory, resulting in an 8.1% year-over-year decline, while maintaining net debt at the lowest point since the acquisition of JAFRA. Furthermore, the JAFRA segment achieved a 7.9% year-over-year sales increase, benefiting from new product launches and strategic cost controls, contributing to an overall strengthening of gross margins by 160 basis points during the quarter.

Betterware de Mexico SAPI de CV is facing significant challenges indicated by a decline in revenue and SKU count, with a notable 5.3% year-over-year decrease in 3Q25 and a decline in SKU offerings that has persisted for five consecutive months. Management has adjusted its guidance for 4Q revenue and EBITDA growth down to a modest 1% to 5%, a stark revision from initial expectations of 6% to 9%, reflective of weakness in consumer spending in Mexico. This ongoing sluggishness in the Mexican consumer market has led to a reduction in promotional activity, evidenced by a decrease in discounted products, exacerbating the company's revenue generation difficulties.