Betterware Return On Asset vs. Profit Margin

BWMX Stock  USD 11.47  0.28  2.38%   
Based on the measurements of profitability obtained from Betterware's financial statements, Betterware de Mxico, is yielding more profit at the moment then in previous quarter. It has a moderate risk of reporting better profitability numbers in January. Profitability indicators assess Betterware's ability to earn profits and add value for shareholders. At this time, Betterware's Days Sales Outstanding is fairly stable compared to the past year. Operating Cash Flow Sales Ratio is likely to rise to 0.21 in 2024, whereas Price To Sales Ratio is likely to drop 0.64 in 2024. At this time, Betterware's Interest Income is fairly stable compared to the past year. Income Tax Expense is likely to rise to about 431.1 M in 2024, despite the fact that Accumulated Other Comprehensive Income is likely to grow to (33.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.490.7155
Way Down
Pretty Stable
Net Profit Margin0.120.0807
Way Up
Slightly volatile
Operating Profit Margin0.250.1803
Significantly Up
Very volatile
Pretax Profit Margin0.20.11
Way Up
Slightly volatile
Return On Assets0.190.0946
Way Up
Very volatile
Return On Equity0.680.7117
Sufficiently Down
Pretty Stable
For Betterware profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Betterware to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Betterware de Mxico, utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Betterware's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Betterware de Mxico, over time as well as its relative position and ranking within its peers.
  
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Is Home Improvement Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Betterware. If investors know Betterware will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Betterware listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.164
Dividend Share
29.124
Earnings Share
1.18
Revenue Per Share
369.054
Quarterly Revenue Growth
0.066
The market value of Betterware de Mxico, is measured differently than its book value, which is the value of Betterware that is recorded on the company's balance sheet. Investors also form their own opinion of Betterware's value that differs from its market value or its book value, called intrinsic value, which is Betterware's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Betterware's market value can be influenced by many factors that don't directly affect Betterware's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Betterware's value and its price as these two are different measures arrived at by different means. Investors typically determine if Betterware is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Betterware's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Betterware de Mxico, Profit Margin vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Betterware's current stock value. Our valuation model uses many indicators to compare Betterware value to that of its competitors to determine the firm's financial worth.
Betterware de Mxico, is rated third in return on asset category among its peers. It also is rated third in profit margin category among its peers fabricating about  0.57  of Profit Margin per Return On Asset. The ratio of Return On Asset to Profit Margin for Betterware de Mxico, is roughly  1.75 . At this time, Betterware's Net Profit Margin is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Betterware's earnings, one of the primary drivers of an investment's value.

Betterware Profit Margin vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Betterware

Return On Asset

 = 

Net Income

Total Assets

 = 
0.11
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Betterware

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.06 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Betterware Profit Margin Comparison

Betterware is currently under evaluation in profit margin category among its peers.

Betterware Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Betterware, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Betterware will eventually generate negative long term returns. The profitability progress is the general direction of Betterware's change in net profit over the period of time. It can combine multiple indicators of Betterware, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-35.6 M-33.8 M
Net Interest Income-777.5 M-738.6 M
Interest Income45.2 M47.5 M
Operating Income2.3 B1.5 B
Net Income From Continuing Ops889.9 M748.5 M
Income Before Tax1.4 B1.1 B
Total Other Income Expense Net-914.6 M-868.9 M
Net Income Applicable To Common Shares845.4 M609.7 M
Net IncomeB676.9 M
Income Tax Expense384.4 M431.1 M
Change To Netincome1.2 B750.4 M
Net Income Per Share 28.16  15.73 
Income Quality 2.26  1.65 
Net Income Per E B T 0.73  0.51 

Betterware Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Betterware. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Betterware position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Betterware's important profitability drivers and their relationship over time.

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Additional Tools for Betterware Stock Analysis

When running Betterware's price analysis, check to measure Betterware's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Betterware is operating at the current time. Most of Betterware's value examination focuses on studying past and present price action to predict the probability of Betterware's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Betterware's price. Additionally, you may evaluate how the addition of Betterware to your portfolios can decrease your overall portfolio volatility.