(TBBB) BBB Foods - Overview
Sector: Consumer Defensive | Industry: Discount Stores | Exchange: NYSE (USA) | Market Cap: 4.330m USD | Total Return: 23.1% in 12m
Avg Turnover: 11.2M
Qual. Beats: -2
Rev. Trend: 99.9%
Qual. Beats: 0
Warnings
High Debt/EBITDA (12.2) with thin interest coverage (-0.6)
Interest Coverage Ratio -0.6 is critical
Altman Z'' -15.00 < 1.0 - financial distress zone
Fakeout Below Avwap Earnings
Tailwinds
No distinct edge detected
BBB Foods Inc. (NYSE: TBBB) operates a grocery retail chain in Mexico, specifically targeting low-to-middle income households through a hard-discount business model. Headquartered in Mexico City, the company manages an inventory of essential food items, private label brands, and spot products including electronics and apparel.
The hard-discount sector in Mexico relies on high inventory turnover and a limited selection of stock-keeping units (SKUs) to maintain low operational overhead. This model thrives on high private-label penetration, which typically offers higher margins than third-party branded goods while maintaining competitive pricing for price-sensitive consumers.
Investors can evaluate the companys valuation metrics and historical growth trends on ValueRay to further their analysis. As a major player in the Mexican Food Retail sub-industry, BBB Foods focuses its logistics and store density on urban areas to optimize distribution efficiency.
- Aggressive store expansion strategy fuels consistent double-digit revenue growth in Mexico
- Private label product penetration drives margin expansion among low-income consumers
- Mexican peso fluctuations impact dollar-denominated financial reporting and share price
- Rising middle-class food inflation shifts consumer spending toward hard discount retailers
- High capital expenditure for logistics infrastructure limits short-term free cash flow generation
| Net Income: -3.28b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.97 > 0.02 and ΔFCF/TA 90.38 > 1.0 |
| NWC/Revenue: -18.12% < 20% (prev -4.92%; Δ -13.20% < -1%) |
| CFO/TA 3.06 > 3% & CFO 5.48b > Net Income -3.28b |
| Net Debt (13.5b) to EBITDA (1.10b): 12.25 < 3 |
| Current Ratio: 0.03 > 1.5 & < 3 |
| Outstanding Shares: last quarter (117.2m) vs 12m ago 2.98% < -2% |
| Gross Margin: 16.22% > 18% (prev 0.16%; Δ 1.61k% > 0.5%) |
| Asset Turnover: 646.6% > 50% (prev 258.2%; Δ 388.5% > 0%) |
| Interest Coverage Ratio: -0.58 > 6 (EBITDA TTM 1.10b / Interest Expense TTM 1.64b) |
| A: -8.44 (Total Current Assets 537.6m - Total Current Liabilities 15.6b) / Total Assets 1.79b |
| B: -0.28 (Retained Earnings -500.0m / Total Assets 1.79b) |
| C: -0.07 (EBIT TTM -949.0m / Avg Total Assets 12.9b) |
| D: 0.15 (Book Value of Equity 237.7m / Total Liabilities 1.55b) |
| Altman-Z'' = -56.60 = D |
| DSRI: 0.06 (Receivables 76.4m/990.7m, Revenue 83.3b/61.9b) |
| GMI: 1.00 (GM 16.22% / 16.25%) |
| AQI: 1.09 (AQ_t 0.04 / AQ_t-1 0.04) |
| SGI: 1.35 (Revenue 83.3b / 61.9b) |
| TATA: -4.90 (NI -3.28b - CFO 5.48b) / TA 1.79b) |
| Beneish M = -8.54 (Cap -4..+1) = AAA |
As of May 27, 2026, the stock is trading at USD 36.74 with a total of 493,400 shares traded.
Over the past week, the price has changed by +0.49%,
over one month by +1.38%,
over three months by -0.70% and
over the past year by +23.08%.
BBB Foods has received a consensus analysts rating of 3.80. Therefore, it is recommended to hold TBBB.
- StrongBuy: 2
- Buy: 4
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 42.1 | 14.6% |
Market Cap MXN = 74.7b (4.33b USD * 17.2619 USD.MXN)
P/E Forward = 163.9344
P/S = 0.0516
P/B = 17.5021
Revenue TTM = 83.3b MXN
EBIT TTM = -949.0m MXN
EBITDA TTM = 1.10b MXN
Long Term Debt = 207.7m MXN (from longTermDebt, last quarter)
Short Term Debt = 152.4m MXN (from shortTermDebt, last quarter)
Debt = 13.7b MXN (from shortLongTermDebtTotal, last quarter) + Leases 12.9b
Net Debt = 13.5b MXN (calculated: Debt 13.7b - CCE 225.7m)
Enterprise Value = 88.2b MXN (74.7b + Debt 13.7b - CCE 225.7m)
Interest Coverage Ratio = -0.58 (Ebit TTM -949.0m / Interest Expense TTM 1.64b)
EV/FCF = 50.99x (Enterprise Value 88.2b / FCF TTM 1.73b)
FCF Yield = 1.96% (FCF TTM 1.73b / Enterprise Value 88.2b)
FCF Margin = 2.08% (FCF TTM 1.73b / Revenue TTM 83.3b)
Net Margin = -3.93% (Net Income TTM -3.28b / Revenue TTM 83.3b)
Gross Margin = 16.22% ((Revenue TTM 83.3b - Cost of Revenue TTM 69.8b) / Revenue TTM)
Gross Margin QoQ = 16.20% (prev 16.29%)
Tobins Q-Ratio = 49.33 (Enterprise Value 88.2b / Total Assets 1.79b)
Interest Expense / Debt = 11.94% (Interest Expense 1.64b / Debt 13.7b)
Taxrate = 21.0% (US default 21%)
NOPAT = -749.7m (EBIT -949.0m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 0.03 (Total Current Assets 537.6m / Total Current Liabilities 15.6b)
Debt / Equity = 57.63 (Debt 13.7b / totalStockholderEquity, last quarter 237.7m)
Debt / EBITDA = 12.25 (Net Debt 13.5b / EBITDA 1.10b)
Debt / FCF = 7.79 (Net Debt 13.5b / FCF TTM 1.73b)
Total Stockholder Equity = 3.19b (last 4 quarters mean from totalStockholderEquity)
RoA = -25.44% (Net Income -3.28b / Total Assets 1.79b)
RoE = -88.72% (Net Income TTM -3.28b / Total Stockholder Equity 3.69b)
RoCE = -24.33% (EBIT -949.0m / Capital Employed (Equity 3.69b + L.T.Debt 207.7m))
RoIC = -71.38% (negative operating profit) (NOPAT -749.7m / Invested Capital 1.05b)
WACC = 8.45% (E(74.7b)/V(88.4b) * Re(8.27%) + D(13.7b)/V(88.4b) * Rd(11.94%) * (1-Tc(0.21)))
Discount Rate = 8.27% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 10.29 | Cagr: 1.78%
[DCF] Terminal Value 77.41% ; FCFF base≈1.65b ; Y1≈1.86b ; Y5≈2.65b
[DCF] Fair Price = 413.6 (EV 39.4b - Net Debt 13.5b = Equity 25.9b / Shares 62.6m; r=8.45% [WACC]; 5y FCF grow 13.48% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -2.10 | # QB: -2
Revenue Correlation: 99.90 | Revenue CAGR: 32.20% | SUE: 0.01 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-4.77 | Chg30d=-27.85% | Revisions=-20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=-3.36 | Chg30d=-46.77% | Revisions=-20% | Analysts=1
EPS current Year (2026-12-31): EPS=-11.28 | Chg30d=-31.69% | Revisions=N/A | GrowthEPS=+50.3% | GrowthRev=+31.4%
EPS next Year (2027-12-31): EPS=-3.98 | Chg30d=-256.87% | Revisions=N/A | GrowthEPS=+64.7% | GrowthRev=+28.2%
[Analyst] Revisions Ratio: -20%