Added to YB: 2026-04-09
Pitch date: 2025-12-21
TBBB [bullish]
BBB Foods Inc.
+9.66%
current return
Author Info
No bio for this author
Company Info
BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. The company provides spot products comprising food and non-food products, such as clothing, electronics, household goods, and others.
Market Cap
$75.9B
Pitch Price
$33.84
Price Target
138.40 (+273%)
Dividend
N/A
EV/EBITDA
72.42
P/E
-26.33
EV/Sales
1.10
Sector
Consumer Staples Distribution and Retail
Category
growth
Is BBB Foods (NYSE:TBBB) Good, Nice, and Cheap?
TBBB: Mexican hard discounter w/ negative 42-day working capital cycle. SSS accelerated to 18% in Q2-Q3 from mid-teens. Private label 53.6% of sales (vs 15% industry), targeting 65% by 2030. Adding 500+ stores/yr (484 in FY24), targeting 12K+ long-term. Base case PT $107.39 (25x FY27 OCF of MXN 8.76bn) vs current 19.5x—justified by 30% OCF 5Y CAGR vs peers' low-single-digit growth. Risks: wage inflation (50% of opex), supplier disruption, government-run stores, tariff/FX volatility.
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