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

Small Cap Consumer Research

Equity research on small cap consumer names.

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 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