Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

Betterware de Mexico Sab de CV / Equity Bottom-Up

<ul><li>We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the January catalog.</li><li>The catalog has continued to focus on driving overall newness, with SKU counts remaining near record highs.</li><li>with a combination of new products and returning favorites.</li></ul>

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the January catalog.The catalog has continued to focus on driving overall newness, with SKU counts remaining near record highs.with a combination of new products and returning favorites.

BWMX: Snapping the Catalog; Ready for the New Year; Reiterate Buy, $22.50 PT

<ul><li>We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico as we look forward to 2025.</li><li>After a mixed 2024, investors, worried over potential United States tariffs impact on the Mexican economy, and the continued weakness in the Mexican Peso (versus the United States Dollar) have continued to punish Mexican companies.</li><li>While we understand the negative sentiment, we believe, with Betterware still overwhelmingly a Mexican company serving Mexican consumers (and with a large percentage of product manufactured in Mexico), the current valuation of BWMX at 5.3X our 2025 EPS, and with the stock registering a dividend yield of over 12%, is an over-reaction, and we reiterate our Buy rating and $22.50 price target.</li></ul>

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico as we look forward to 2025.After a mixed 2024, investors, worried over potential United States tariffs impact on the Mexican economy, and the continued weakness in the Mexican Peso (versus the United States Dollar) have continued to punish Mexican companies.While we understand the negative sentiment, we believe, with Betterware still overwhelmingly a Mexican company serving Mexican consumers (and with a large percentage of product manufactured in Mexico), the current valuation of BWMX at 5.3X our 2025 EPS, and with the stock registering a dividend yield of over 12%, is an over-reaction, and we reiterate our Buy rating and $22.50 price target.

BWMX: 2025 Signposts: Showing Their Mettle; Reiterate Buy, $22.50 PT

<ul><li>We are reiterating or Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the December 2024 Betterware catalog.</li><li>We believe, with prices increased again on a YoY basis, even with SKU counts unchanged and sale levels elevated, Betterware is taking the necessary steps to maintain margins in the face of a further 3%+ strengthening of the United States Dollar in 4Q24 (as of 12-4).</li><li>Further, Betterware management is focused on returning key winners and adding newness to the mix to drive Holiday driven traffic and position Betterware for continued strong results in 2025.</li></ul>

We are reiterating or Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the December 2024 Betterware catalog.We believe, with prices increased again on a YoY basis, even with SKU counts unchanged and sale levels elevated, Betterware is taking the necessary steps to maintain margins in the face of a further 3%+ strengthening of the United States Dollar in 4Q24 (as of 12-4).Further, Betterware management is focused on returning key winners and adding newness to the mix to drive Holiday driven traffic and position Betterware for continued strong results in 2025.

BWMX: Snapping the Catalog: Ending 2024 with a Focus on Returns; Reiterate Buy

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul><li>While our potential universe includes a broad range of branded consumer companies across the market capitalization, one corner of that universe that we have done a lot of work on over the years involves those companies utilizing a direct selling business model, which deploys a sales force of independent contractors to get their products in the hands of consumers.</li><li>The top trend we are monitoring for 2025 is the impact that the burgeoning market for GLP-1 drugs has on the weight loss stocks.</li><li>Two pure-play weight- loss names we monitor, MED and WW, have already been severely affected by the disruption caused by the GLP-1 drugs and have been on the defensive in recent years.</li></ul>

While our potential universe includes a broad range of branded consumer companies across the market capitalization, one corner of that universe that we have done a lot of work on over the years involves those companies utilizing a direct selling business model, which deploys a sales force of independent contractors to get their products in the hands of consumers.The top trend we are monitoring for 2025 is the impact that the burgeoning market for GLP-1 drugs has on the weight loss stocks.Two pure-play weight- loss names we monitor, MED and WW, have already been severely affected by the disruption caused by the GLP-1 drugs and have been on the defensive in recent years.

2025 Outlook: Focus Is on Top Line - November 13, 2024

<ul><li>We are reiterating our Buy rating, $22.50 price target and projections after reviewing the Betterware November catalog.</li><li>We believe Betterware has continued to drive newness and add favorites from prior catalogs as we enter the crucial Holiday season.</li><li>Further, as the division has ramped up newness and excitement, Betterware has also increased pricing as the United States Dollar remains strong versus the Mexican Peso ("FX") with a second month of material, double-digit YoY price rises.</li></ul>

We are reiterating our Buy rating, $22.50 price target and projections after reviewing the Betterware November catalog.We believe Betterware has continued to drive newness and add favorites from prior catalogs as we enter the crucial Holiday season.Further, as the division has ramped up newness and excitement, Betterware has also increased pricing as the United States Dollar remains strong versus the Mexican Peso ("FX") with a second month of material, double-digit YoY price rises.

BWMX: Snapping the Catalog: Maximizing Returns: Reiterate Buy, $22.50 PT

United States

Nu Skin Enterprises, Inc. is a global direct selling company.  The Company distributes premium quality personal care products and nutritional supplements. Nu Skin markets its products in the Americas, Europe, and the Asia Pacific region.  The Company provides marketing and distribution of technology-based products through Big Planet, Inc.

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Nu Skin Enterprises Inc A (NUS US)

BWMX: Snapping the Catalog; Ready for the New Year; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the January catalog. The catalog...

Small Cap Consumer Research

BWMX: 2025 Signposts: Showing Their Mettle; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico as we look forward to 2025. After a mixed 2024,...

Small Cap Consumer Research

BWMX: Snapping the Catalog: Ending 2024 with a Focus on Returns; Reiterate Buy

We are reiterating or Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the December 2024 Betterware...

Small Cap Consumer Research

2025 Outlook: Focus Is on Top Line - November 13, 2024

The top trend we are monitoring for 2025 is the impact that the burgeoning market for GLP-1 drugs has on the weight loss stocks.

Water Tower Research

BWMX: Snapping the Catalog: Maximizing Returns: Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, $22.50 price target and projections after reviewing the Betterware November catalog. We believe Betterware has...

Small Cap Consumer Research

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