CONTROLADORA VUELA CIA-ADR (VLRS) Stock Fundamental Analysis
NYSE:VLRS - New York Stock Exchange, Inc. - US21240E1055 - ADR - Currency: USD
We assign a fundamental rating of 5 out of 10 to VLRS. VLRS was compared to 23 industry peers in the Passenger Airlines industry. VLRS has an excellent profitability rating, but there are concerns on its financial health. VLRS is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
VLRS had positive earnings in the past year.
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 3.51% is fine compared to the rest of the industry. VLRS outperforms 73.91% of its industry peers.
VLRS's Return On Equity of 60.35% is amongst the best of the industry. VLRS outperforms 95.65% of its industry peers.
VLRS has a Return On Invested Capital of 9.78%. This is amongst the best in the industry. VLRS outperforms 82.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VLRS is below the industry average of 8.77%.
The last Return On Invested Capital (9.78%) for VLRS is above the 3 year average (5.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 60.35% | ||
| ROIC | 9.78% |
ROA(3y)0.34%
ROA(5y)-0.11%
ROE(3y)1.01%
ROE(5y)-18.53%
ROIC(3y)5.52%
ROIC(5y)N/A
1.3 Margins
VLRS has a Profit Margin of 6.02%. This is amongst the best in the industry. VLRS outperforms 82.61% of its industry peers.
VLRS has a better Operating Margin (14.35%) than 95.65% of its industry peers.
VLRS has a Gross Margin (43.31%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of VLRS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.35% | ||
| PM (TTM) | 6.02% | ||
| GM | 43.31% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.9%
GM growth 5Y2.78%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VLRS is still creating some value.
VLRS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for VLRS has been increased compared to 5 years ago.
VLRS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that VLRS is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.86, VLRS is doing good in the industry, outperforming 60.87% of the companies in the same industry.
The Debt to FCF ratio of VLRS is 9.28, which is on the high side as it means it would take VLRS, 9.28 years of fcf income to pay off all of its debts.
VLRS's Debt to FCF ratio of 9.28 is amongst the best of the industry. VLRS outperforms 82.61% of its industry peers.
A Debt/Equity ratio of 9.51 is on the high side and indicates that VLRS has dependencies on debt financing.
The Debt to Equity ratio of VLRS (9.51) is worse than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.51 | ||
| Debt/FCF | 9.28 | ||
| Altman-Z | 0.86 |
ROIC/WACC1.79
WACC5.45%
2.3 Liquidity
VLRS has a Current Ratio of 0.73. 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 Current ratio of 0.73 is fine compared to the rest of the industry. VLRS outperforms 60.87% of its industry peers.
A Quick Ratio of 0.72 indicates that VLRS may have some problems paying its short term obligations.
The Quick ratio of VLRS (0.72) is better than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
VLRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 361.58%, which is quite impressive.
The Revenue has been growing slightly by 0.79% in the past year.
VLRS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.44% yearly.
EPS 1Y (TTM)361.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%200%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y37.84%
Revenue growth 5Y16.44%
Sales Q2Q%-4.09%
3.2 Future
VLRS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 70.82% yearly.
Based on estimates for the next years, VLRS will show a small growth in Revenue. The Revenue will grow by 7.35% on average per year.
EPS Next Y686.67%
EPS Next 2Y165.17%
EPS Next 3Y96.93%
EPS Next 5Y70.82%
Revenue Next Year-3.11%
Revenue Next 2Y1.68%
Revenue Next 3Y7.35%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.52 indicates a rather cheap valuation of VLRS.
VLRS's Price/Earnings ratio is rather cheap when compared to the industry. VLRS is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, VLRS is valued rather cheaply.
The Price/Forward Earnings ratio is 7.27, which indicates a rather cheap valuation of VLRS.
Based on the Price/Forward Earnings ratio, VLRS is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
VLRS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.52 | ||
| Fwd PE | 7.27 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than VLRS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VLRS indicates a rather cheap valuation: VLRS is cheaper than 95.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.23 | ||
| EV/EBITDA | 3.74 |
4.3 Compensation for Growth
VLRS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of VLRS may justify a higher PE ratio.
A more expensive valuation may be justified as VLRS's earnings are expected to grow with 96.93% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y165.17%
EPS Next 3Y96.93%
5. Dividend
5.1 Amount
VLRS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.77
-0.68 (-8.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners10.81%
Inst Owner Change-3.97%
Ins Owners1.1%
Ins Owner ChangeN/A
Market Cap894.32M
Analysts81.82
Price Target8.91 (14.67%)
Short Float %0.25%
Short Ratio0.44
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)159.04%
Min EPS beat(2)94.52%
Max EPS beat(2)223.56%
EPS beat(4)4
Avg EPS beat(4)156.9%
Min EPS beat(4)94.52%
Max EPS beat(4)223.56%
EPS beat(8)5
Avg EPS beat(8)47.9%
EPS beat(12)6
Avg EPS beat(12)70.78%
EPS beat(16)9
Avg EPS beat(16)134.09%
Revenue beat(2)1
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)1.13%
Revenue beat(4)3
Avg Revenue beat(4)3.31%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)12.69%
Revenue beat(8)3
Avg Revenue beat(8)0.09%
Revenue beat(12)4
Avg Revenue beat(12)4.37%
Revenue beat(16)6
Avg Revenue beat(16)-8.04%
PT rev (1m)6.18%
PT rev (3m)17.05%
EPS NQ rev (1m)29.04%
EPS NQ rev (3m)96.98%
EPS NY rev (1m)51.65%
EPS NY rev (3m)51.58%
Revenue NQ rev (1m)-1.1%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)1.91%
Revenue NY rev (3m)2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.52 | ||
| Fwd PE | 7.27 | ||
| P/S | 0.28 | ||
| P/FCF | 2.23 | ||
| P/OCF | 0.89 | ||
| P/B | 2.8 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 3.74 |
EPS(TTM)1.72
EY22.14%
EPS(NY)1.07
Fwd EY13.76%
FCF(TTM)3.49
FCFY44.88%
OCF(TTM)8.68
OCFY111.76%
SpS27.85
BVpS2.78
TBVpS2.59
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 60.35% | ||
| ROCE | 12.37% | ||
| ROIC | 9.78% | ||
| ROICexc | 12.59% | ||
| ROICexgc | 12.68% | ||
| OM | 14.35% | ||
| PM (TTM) | 6.02% | ||
| GM | 43.31% | ||
| FCFM | 12.52% |
ROA(3y)0.34%
ROA(5y)-0.11%
ROE(3y)1.01%
ROE(5y)-18.53%
ROIC(3y)5.52%
ROIC(5y)N/A
ROICexc(3y)7.42%
ROICexc(5y)N/A
ROICexgc(3y)7.46%
ROICexgc(5y)N/A
ROCE(3y)6.98%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.9%
GM growth 5Y2.78%
F-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.51 | ||
| Debt/FCF | 9.28 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 106.35% | ||
| Cap/Sales | 18.66% | ||
| Interest Coverage | 7.74 | ||
| Cash Conversion | 97.75% | ||
| Profit Quality | 208.15% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 0.86 |
F-Score7
WACC5.45%
ROIC/WACC1.79
Cap/Depr(3y)81.25%
Cap/Depr(5y)73.77%
Cap/Sales(3y)12.14%
Cap/Sales(5y)12.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)361.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%200%
EPS Next Y686.67%
EPS Next 2Y165.17%
EPS Next 3Y96.93%
EPS Next 5Y70.82%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y37.84%
Revenue growth 5Y16.44%
Sales Q2Q%-4.09%
Revenue Next Year-3.11%
Revenue Next 2Y1.68%
Revenue Next 3Y7.35%
Revenue Next 5YN/A
EBIT growth 1Y288.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year438.25%
EBIT Next 3Y86.32%
EBIT Next 5YN/A
FCF growth 1Y-6.68%
FCF growth 3Y70.46%
FCF growth 5Y5.69%
OCF growth 1Y34.22%
OCF growth 3Y43.92%
OCF growth 5Y17.34%