CONTROLADORA VUELA CIA-ADR (VLRS) Stock Fundamental Analysis
USA - NYSE:VLRS - US21240E1055 - ADR
7.03 USD
+0.06 (+0.86%)
7.07 USD
+0.04 (+0.57%)
Overall VLRS gets a fundamental rating of 3 out of 10. We evaluated VLRS against 21 industry peers in the Passenger Airlines industry. While VLRS is still in line with the averages on profitability rating, there are concerns on its financial health. VLRS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
VLRS had negative earnings in the past year.
In the past year VLRS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VLRS reported negative net income in multiple years.
VLRS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VLRS has a Return On Assets (-0.57%) which is in line with its industry peers.
With a Return On Equity value of -12.51%, VLRS perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
VLRS's Return On Invested Capital of 3.97% is in line compared to the rest of the industry. VLRS outperforms 52.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VLRS is significantly below the industry average of 14.50%.
The 3 year average ROIC (3.79%) for VLRS is below the current ROIC(3.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.57% | ||
| ROE | -12.51% | ||
| ROIC | 3.97% |
ROA(3y)0.19%
ROA(5y)-0.55%
ROE(3y)1.23%
ROE(5y)-21.78%
ROIC(3y)3.79%
ROIC(5y)N/A
1.3 Margins
VLRS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.98%, VLRS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of VLRS has remained more or less at the same level.
Looking at the Gross Margin, with a value of 50.34%, VLRS is in line with its industry, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Gross Margin of VLRS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.98% | ||
| PM (TTM) | N/A | ||
| GM | 50.34% |
OM growth 3Y-11.8%
OM growth 5Y0.58%
PM growth 3Y-5.97%
PM growth 5Y-11.94%
GM growth 3Y-1.52%
GM growth 5Y1.55%
2. Health
2.1 Basic Checks
VLRS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for VLRS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, VLRS has more shares outstanding
The debt/assets ratio for VLRS has been reduced compared to a year ago.
2.2 Solvency
VLRS has an Altman-Z score of 0.59. This is a bad value and indicates that VLRS is not financially healthy and even has some risk of bankruptcy.
VLRS has a Altman-Z score of 0.59. This is comparable to the rest of the industry: VLRS outperforms 42.86% of its industry peers.
VLRS has a debt to FCF ratio of 9.01. This is a negative value and a sign of low solvency as VLRS would need 9.01 years to pay back of all of its debts.
VLRS's Debt to FCF ratio of 9.01 is fine compared to the rest of the industry. VLRS outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 12.11 is on the high side and indicates that VLRS has dependencies on debt financing.
VLRS has a worse Debt to Equity ratio (12.11) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.11 | ||
| Debt/FCF | 9.01 | ||
| Altman-Z | 0.59 |
ROIC/WACC0.86
WACC4.61%
2.3 Liquidity
A Current Ratio of 0.69 indicates that VLRS may have some problems paying its short term obligations.
With a decent Current ratio value of 0.69, VLRS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
VLRS has a Quick Ratio of 0.69. This is a bad value and indicates that VLRS is not financially healthy enough and could expect problems in meeting its short term obligations.
VLRS has a better Quick ratio (0.68) than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
VLRS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -121.82%.
Measured over the past years, VLRS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -46.88% on average per year.
Looking at the last year, VLRS shows a decrease in Revenue. The Revenue has decreased by -6.83% in the last year.
The Revenue has been growing by 10.14% on average over the past years. This is quite good.
EPS 1Y (TTM)-121.82%
EPS 3Y-60.76%
EPS 5Y-46.88%
EPS Q2Q%-640%
Revenue 1Y (TTM)-6.83%
Revenue growth 3Y12.61%
Revenue growth 5Y10.14%
Sales Q2Q%-4.53%
3.2 Future
VLRS is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -38.77% yearly.
Based on estimates for the next years, VLRS will show a quite strong growth in Revenue. The Revenue will grow by 10.03% on average per year.
EPS Next Y-183.18%
EPS Next 2Y-51.29%
EPS Next 3Y-38.77%
EPS Next 5YN/A
Revenue Next Year-3.82%
Revenue Next 2Y4.07%
Revenue Next 3Y7.62%
Revenue Next 5Y10.03%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
VLRS reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for VLRS. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VLRS indicates a rather cheap valuation: VLRS is cheaper than 85.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VLRS is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.92 | ||
| EV/EBITDA | 4.52 |
4.3 Compensation for Growth
A cheap valuation may be justified as VLRS's earnings are expected to decrease with -38.77% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-51.29%
EPS Next 3Y-38.77%
5. Dividend
5.1 Amount
No dividends for VLRS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.03
+0.06 (+0.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners13.44%
Inst Owner Change0%
Ins Owners1.31%
Ins Owner ChangeN/A
Market Cap807.75M
Analysts80
Price Target7.22 (2.7%)
Short Float %3.77%
Short Ratio5.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.16%
Min EPS beat(2)22.28%
Max EPS beat(2)30.03%
EPS beat(4)3
Avg EPS beat(4)33.99%
Min EPS beat(4)-10.88%
Max EPS beat(4)94.52%
EPS beat(8)6
Avg EPS beat(8)62.08%
EPS beat(12)8
Avg EPS beat(12)89.13%
EPS beat(16)8
Avg EPS beat(16)55.59%
Revenue beat(2)1
Avg Revenue beat(2)1.3%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)3.58%
Revenue beat(4)3
Avg Revenue beat(4)0.95%
Min Revenue beat(4)-0.98%
Max Revenue beat(4)3.58%
Revenue beat(8)5
Avg Revenue beat(8)1.34%
Revenue beat(12)6
Avg Revenue beat(12)12.86%
Revenue beat(16)6
Avg Revenue beat(16)-2.49%
PT rev (1m)11.16%
PT rev (3m)47.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)74.04%
EPS NY rev (1m)-216.38%
EPS NY rev (3m)-122.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.27 | ||
| P/FCF | 1.92 | ||
| P/OCF | 0.97 | ||
| P/B | 3.18 | ||
| P/tB | 3.55 | ||
| EV/EBITDA | 4.52 |
EPS(TTM)-0.24
EYN/A
EPS(NY)-0.32
Fwd EYN/A
FCF(TTM)3.67
FCFY52.21%
OCF(TTM)7.26
OCFY103.26%
SpS26.28
BVpS2.21
TBVpS1.98
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.57% | ||
| ROE | -12.51% | ||
| ROCE | 5.74% | ||
| ROIC | 3.97% | ||
| ROICexc | 5.06% | ||
| ROICexgc | 5.1% | ||
| OM | 6.98% | ||
| PM (TTM) | N/A | ||
| GM | 50.34% | ||
| FCFM | 13.97% |
ROA(3y)0.19%
ROA(5y)-0.55%
ROE(3y)1.23%
ROE(5y)-21.78%
ROIC(3y)3.79%
ROIC(5y)N/A
ROICexc(3y)4.94%
ROICexc(5y)N/A
ROICexgc(3y)4.97%
ROICexgc(5y)N/A
ROCE(3y)5.48%
ROCE(5y)N/A
ROICexcg growth 3Y-13.17%
ROICexcg growth 5Y2.15%
ROICexc growth 3Y-13.24%
ROICexc growth 5Y2.06%
OM growth 3Y-11.8%
OM growth 5Y0.58%
PM growth 3Y-5.97%
PM growth 5Y-11.94%
GM growth 3Y-1.52%
GM growth 5Y1.55%
F-Score3
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.11 | ||
| Debt/FCF | 9.01 | ||
| Debt/EBITDA | 3.67 | ||
| Cap/Depr | 65.61% | ||
| Cap/Sales | 13.66% | ||
| Interest Coverage | 3.22 | ||
| Cash Conversion | 99.36% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.59 |
F-Score3
WACC4.61%
ROIC/WACC0.86
Cap/Depr(3y)94.98%
Cap/Depr(5y)80.78%
Cap/Sales(3y)15.54%
Cap/Sales(5y)14.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-121.82%
EPS 3Y-60.76%
EPS 5Y-46.88%
EPS Q2Q%-640%
EPS Next Y-183.18%
EPS Next 2Y-51.29%
EPS Next 3Y-38.77%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.83%
Revenue growth 3Y12.61%
Revenue growth 5Y10.14%
Sales Q2Q%-4.53%
Revenue Next Year-3.82%
Revenue Next 2Y4.07%
Revenue Next 3Y7.62%
Revenue Next 5Y10.03%
EBIT growth 1Y-43.47%
EBIT growth 3Y-0.68%
EBIT growth 5Y10.78%
EBIT Next Year86.75%
EBIT Next 3Y34.4%
EBIT Next 5Y33.34%
FCF growth 1Y110.83%
FCF growth 3Y-6.02%
FCF growth 5Y9.48%
OCF growth 1Y33.03%
OCF growth 3Y11.54%
OCF growth 5Y17%