CONTROLADORA VUELA CIA-ADR (VLRS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VLRS - US21240E1055 - ADR
7.81 USD
+0.07 (+0.9%)
7.8092 USD
0 (-0.01%)
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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year VLRS has reported negative net income.
In the past year VLRS had a positive cash flow from operations.
In multiple years VLRS reported negative net income over the last 5 years.
VLRS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VLRS's Return On Assets of -1.10% is in line compared to the rest of the industry. VLRS outperforms 52.38% of its industry peers.
VLRS's Return On Equity of -23.95% is in line compared to the rest of the industry. VLRS outperforms 52.38% of its industry peers.
VLRS has a Return On Invested Capital (2.85%) which is in line with its industry peers.
VLRS had an Average Return On Invested Capital over the past 3 years of 3.79%. This is below the industry average of 8.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.1% | ||
| ROE | -23.95% | ||
| ROIC | 2.85% |
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.
The Operating Margin of VLRS (5.09%) is better than 61.90% of its industry peers.
VLRS's Operating Margin has been stable in the last couple of years.
The Gross Margin of VLRS (50.82%) is comparable to the rest of the industry.
VLRS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.09% | ||
| PM (TTM) | N/A | ||
| GM | 50.82% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VLRS is destroying value.
Compared to 1 year ago, VLRS has about the same amount of shares outstanding.
The number of shares outstanding for VLRS has been increased compared to 5 years ago.
Compared to 1 year ago, VLRS has an improved debt to assets ratio.
2.2 Solvency
VLRS has an Altman-Z score of 0.54. This is a bad value and indicates that VLRS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VLRS (0.54) is comparable to the rest of the industry.
VLRS has a debt to FCF ratio of 9.16. This is a negative value and a sign of low solvency as VLRS would need 9.16 years to pay back of all of its debts.
VLRS has a better Debt to FCF ratio (9.16) than 71.43% of its industry peers.
A Debt/Equity ratio of 11.87 is on the high side and indicates that VLRS has dependencies on debt financing.
With a Debt to Equity ratio value of 11.87, VLRS is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.87 | ||
| Debt/FCF | 9.16 | ||
| Altman-Z | 0.54 |
ROIC/WACC0.59
WACC4.85%
2.3 Liquidity
A Current Ratio of 0.67 indicates that VLRS may have some problems paying its short term obligations.
VLRS's Current ratio of 0.67 is fine compared to the rest of the industry. VLRS outperforms 71.43% of its industry peers.
VLRS has a Quick Ratio of 0.67. 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's Quick ratio of 0.66 is fine compared to the rest of the industry. VLRS outperforms 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
VLRS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -125.88%.
VLRS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -46.88% yearly.
The Revenue has decreased by -6.70% in the past year.
The Revenue has been growing by 10.14% on average over the past years. This is quite good.
EPS 1Y (TTM)-125.88%
EPS 3Y-60.76%
EPS 5Y-46.88%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-6.7%
Revenue growth 3Y12.61%
Revenue growth 5Y10.14%
Sales Q2Q%-3.57%
3.2 Future
The Earnings Per Share is expected to decrease by -46.87% on average over the next years. This is quite bad
The Revenue is expected to grow by 7.57% on average over the next years.
EPS Next Y-174.84%
EPS Next 2Y-47.29%
EPS Next 3Y-46.87%
EPS Next 5YN/A
Revenue Next Year-3.12%
Revenue Next 2Y4.02%
Revenue Next 3Y6.57%
Revenue Next 5Y7.57%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for VLRS. In the last year negative earnings were reported.
Also next year VLRS is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
VLRS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VLRS is cheaper than 90.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VLRS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.13 | ||
| EV/EBITDA | 4.94 |
4.3 Compensation for Growth
VLRS's earnings are expected to decrease with -46.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-47.29%
EPS Next 3Y-46.87%
5. Dividend
5.1 Amount
No dividends for VLRS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
7.81
+0.07 (+0.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners13.86%
Inst Owner Change3.71%
Ins Owners1.31%
Ins Owner ChangeN/A
Market Cap897.37M
Revenue(TTM)2.99B
Net Income(TTM)-62.87M
Analysts78.33
Price Target8.28 (6.02%)
Short Float %3.3%
Short Ratio5.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)200.27%
Min EPS beat(2)30.03%
Max EPS beat(2)370.52%
EPS beat(4)3
Avg EPS beat(4)102.99%
Min EPS beat(4)-10.88%
Max EPS beat(4)370.52%
EPS beat(8)7
Avg EPS beat(8)129.94%
EPS beat(12)8
Avg EPS beat(12)66.26%
EPS beat(16)9
Avg EPS beat(16)78.83%
Revenue beat(2)1
Avg Revenue beat(2)0.76%
Min Revenue beat(2)-2.06%
Max Revenue beat(2)3.58%
Revenue beat(4)2
Avg Revenue beat(4)0.15%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)3.58%
Revenue beat(8)5
Avg Revenue beat(8)1.73%
Revenue beat(12)5
Avg Revenue beat(12)0.11%
Revenue beat(16)6
Avg Revenue beat(16)3.31%
PT rev (1m)16.3%
PT rev (3m)22.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)122.06%
EPS NY rev (1m)6.69%
EPS NY rev (3m)-204.7%
Revenue NQ rev (1m)2.16%
Revenue NQ rev (3m)7.17%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.3 | ||
| P/FCF | 2.13 | ||
| P/OCF | 1.11 | ||
| P/B | 3.42 | ||
| P/tB | 3.88 | ||
| EV/EBITDA | 4.94 |
EPS(TTM)-0.44
EYN/A
EPS(NY)-0.19
Fwd EYN/A
FCF(TTM)3.67
FCFY47.04%
OCF(TTM)7.02
OCFY89.85%
SpS26.03
BVpS2.28
TBVpS2.01
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.1% | ||
| ROE | -23.95% | ||
| ROCE | 4.13% | ||
| ROIC | 2.85% | ||
| ROICexc | 3.64% | ||
| ROICexgc | 3.68% | ||
| OM | 5.09% | ||
| PM (TTM) | N/A | ||
| GM | 50.82% | ||
| FCFM | 14.12% |
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
ROICexgc growth 3Y-13.17%
ROICexgc 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-Score4
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.87 | ||
| Debt/FCF | 9.16 | ||
| Debt/EBITDA | 3.89 | ||
| Cap/Depr | 59.28% | ||
| Cap/Sales | 12.84% | ||
| Interest Coverage | 2.31 | ||
| Cash Conversion | 100.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.54 |
F-Score4
WACC4.85%
ROIC/WACC0.59
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)-125.88%
EPS 3Y-60.76%
EPS 5Y-46.88%
EPS Q2Q%-66.67%
EPS Next Y-174.84%
EPS Next 2Y-47.29%
EPS Next 3Y-46.87%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.7%
Revenue growth 3Y12.61%
Revenue growth 5Y10.14%
Sales Q2Q%-3.57%
Revenue Next Year-3.12%
Revenue Next 2Y4.02%
Revenue Next 3Y6.57%
Revenue Next 5Y7.57%
EBIT growth 1Y-66.89%
EBIT growth 3Y-0.68%
EBIT growth 5Y10.78%
EBIT Next Year90.7%
EBIT Next 3Y33.33%
EBIT Next 5Y26.59%
FCF growth 1Y113.99%
FCF growth 3Y-6.02%
FCF growth 5Y9.48%
OCF growth 1Y18.63%
OCF growth 3Y11.54%
OCF growth 5Y17%
CONTROLADORA VUELA CIA-ADR / VLRS FAQ
Can you provide the ChartMill fundamental rating for CONTROLADORA VUELA CIA-ADR?
ChartMill assigns a fundamental rating of 3 / 10 to VLRS.
What is the valuation status of CONTROLADORA VUELA CIA-ADR (VLRS) stock?
ChartMill assigns a valuation rating of 2 / 10 to CONTROLADORA VUELA CIA-ADR (VLRS). This can be considered as Overvalued.
What is the profitability of VLRS stock?
CONTROLADORA VUELA CIA-ADR (VLRS) has a profitability rating of 4 / 10.
What is the expected EPS growth for CONTROLADORA VUELA CIA-ADR (VLRS) stock?
The Earnings per Share (EPS) of CONTROLADORA VUELA CIA-ADR (VLRS) is expected to decline by -174.84% in the next year.