Research from Water Tower Research, Water Tower Research

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.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

Betterware de Mexico Sab de CV / Equity Bottom-Up

<div><ul><li>BeFra has built a 25-year track record of ~20% revenue CAGR as a group, transforming from a single Mexican household products business into a diversified three-brand platform spanning Betterware, Jafra, and now Tupperware Latin America.</li><li>The person-to-person selling model remains central to BeFra’s differentiation, offering ~1.5 million independent sellers across its three brands an extra-income opportunity that management likens to the broader gig economy, generating ~4.1 billion pesos in earnings for its sales force last year alone.</li><li>The 2022 Jafra acquisition demonstrates BeFra’s brand-turnaround playbook, with the brand nearly doubling in size and climbing from the 14th to the seventh largest beauty brand in Mexico after 15 years of stagnation, driven by refreshed innovation, a revamped catalog, and an expanded US presence.</li></ul></div>

BeFra has built a 25-year track record of ~20% revenue CAGR as a group, transforming from a single Mexican household products business into a diversified three-brand platform spanning Betterware, Jafra, and now Tupperware Latin America.The person-to-person selling model remains central to BeFra’s differentiation, offering ~1.5 million independent sellers across its three brands an extra-income opportunity that management likens to the broader gig economy, generating ~4.1 billion pesos in earnings for its sales force last year alone.The 2022 Jafra acquisition demonstrates BeFra’s brand-turnaround playbook, with the brand nearly doubling in size and climbing from the 14th to the seventh largest beauty brand in Mexico after 15 years of stagnation, driven by refreshed innovation, a revamped catalog, and an expanded US presence.

BWMX: Conference Recap - A House of Brands Built on People-To-People Selling and Disciplined Growth