BWMX Stock Forecast & Price Target

Betterware de Mexico SAPI de CV demonstrated robust financial performance, highlighted by an impressive EBITDA margin of 23.8% for its JAFRA segment, which grew 425 basis points, marking its highest level since 4Q22. The company's strategic focus on financial discipline and cost control has led to a reduction in inventory by 8.1% year-over-year and a significant decrease in net debt, enhancing overall financial health. Additionally, the diversification and innovation in product offerings, particularly in the beauty and personal care segment, yielded a notable 7.9% year-over-year revenue increase, reflecting positive consumer engagement and market growth potential.

Betterware de Mexico SAPI de CV is experiencing significant challenges as evidenced by a decline in SKU counts and consecutive revenue drop, with a noted 5.3% decline in sales year-over-year during the third quarter of 2025. The company's management has revised its revenue and EBITDA growth expectations for the fourth quarter to a mere 1% to 5%, a stark contrast to prior forecasts that anticipated growth rates of 6% to 9%, highlighting deteriorating performance in an already sluggish Mexican consumer market. Furthermore, the sustained weakness in household spending and the notable decrease in discounted products, coupled with a lack of new offerings and five consecutive months of SKU declines, further raise concerns regarding the company’s ability to rebound in the near term.