Did you do work on the new incentives, and whether the rebound in distributors is sustainable? If this doesn't grow, 6x p/e does not seem that undervalued given their dd CoD.
If you look at their website and previous versions (through wayback machine), there really doesn't appear to be a difference in the incentives (on the splits of the economics), so I'm wondering if the changes were made to their point system. I will see if I can ask management, but if this is directionally correct, it would be a positive.
One thing that gives me more confidence in the sustainability of the trend is the corresponding rise in search interest for betterware, which says to me that consumption is likely increasing as well.
On the earnings side, I think 6x doesn't necessarily seem cheap if you look at HLF or some of the others, but the whole sector has gotten crushed post-COVID, and I think BWMX is actually the best positioned due to their geographic coverage. LATAM is the best geo for direct-sales, so you have pure-play exposure. If BWMX can sustainably get back to growth, 6x will prove to be too cheap, IMO
Thanks. On valuation: Earnings in MXN are not as valuable as earnings in USD. But yes, that should partially get offset through growth, if only to offset inflation.
Did you do work on the new incentives, and whether the rebound in distributors is sustainable? If this doesn't grow, 6x p/e does not seem that undervalued given their dd CoD.
Hey apologies, I don't know how I missed this.
If you look at their website and previous versions (through wayback machine), there really doesn't appear to be a difference in the incentives (on the splits of the economics), so I'm wondering if the changes were made to their point system. I will see if I can ask management, but if this is directionally correct, it would be a positive.
One thing that gives me more confidence in the sustainability of the trend is the corresponding rise in search interest for betterware, which says to me that consumption is likely increasing as well.
On the earnings side, I think 6x doesn't necessarily seem cheap if you look at HLF or some of the others, but the whole sector has gotten crushed post-COVID, and I think BWMX is actually the best positioned due to their geographic coverage. LATAM is the best geo for direct-sales, so you have pure-play exposure. If BWMX can sustainably get back to growth, 6x will prove to be too cheap, IMO
Thanks. On valuation: Earnings in MXN are not as valuable as earnings in USD. But yes, that should partially get offset through growth, if only to offset inflation.