Current Analysis: Betterware De Mexico

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TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Betterware de Mexico SAPI de CV (BWMX) is a direct-to-consumer selling company.

The company operates through two business segments: (1) the home organization products (Betterware segment or BWM segment) and (2) the beauty and personal care products (B and PC) (JAFRA segment).

The Betterware’s segment is divided into six categories of the home organization: i) Kitchen and food preservation, ii) Home solutions, iii) Bedroom, iv) Bathroom, v) Laundry and Cleaning, and vi) Tech and mobility.

The JAFRA’s segment is divided in four categories of beauty and personal care: i) fragrance, ii) color, iii) skincare, and iv) toiletries. The company's segment products are sold in twelve catalogs published throughout the year. The company operates mainly in Mexico and the United States.

The company is headquartered in El Arenal, Mexico. Betterware de México, S.A.P.I. de C.V. is a subsidiary of Ebc Holdings, Inc.

Three key data points gauge

Betterware de Mexico SAPI de CV or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

BWMX Price

Over the past year, Betterware's share price rose about 47% from $9.28 to $13.67 as of Friday’s market close.

If BWMX trades in the range of $9.00 to $18.00 this next year, its recent $13.67 share price might rise to $16.00 by next year. Of course, Betterwares price could drop about the same $2.33 estimated amount or more.

My annual upside estimate of $2.33 however, is a little better than half the average annual price upside for BWMX over the past year.

BWMX Dividend

Betterware has declared variable quarterly dividends since May 2020. BWMX’s most recent Q dividend of $0.27 was declared on November 1st to shareholders of record on November 17th. The payout was made on November 24th.

A forward-looking $0.88 annual dividend yields 6.43% at Friday’s $13.67 share price.

BWMX Returns

To put it all together, add Betterware’s estimated annual dividend of $0.88 to the estimated price upside of $2.33 to find a $3.21 gross gain.

At Friday’s $13.67 share price, a little under $1000 would buy 42 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.24 per share.

Subtracting that likely $0.24 brokerage cost from the $3.21 gross gain produces a net gain of $2.97 X 42 shares = $124.74 for a 12.5% estimated net gain.

You might choose to pounce on Betterware de Mexico SAPI de CV It is a 4-year-old dividend-paying Mexico-based specialty retail company.

Furthermore, the estimated $64.30 of annual dividend income from $1k invested is over 4.7 times greater than BWMX’s recent $13.67 single share price.

The exact track of Betterware’s ongoing future price and dividend will be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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