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 4 out of 10 to VLRS. VLRS was compared to 22 industry peers in the Passenger Airlines industry. VLRS has a medium profitability rating, but doesn't score so well on its financial health evaluation. VLRS scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
The reported net income has been mixed in the past 5 years: VLRS reported negative net income in multiple years.
Each year in the past 5 years VLRS had a positive operating cash flow.
1.2 Ratios
VLRS has a Return On Assets (0.74%) which is in line with its industry peers.
With a decent Return On Equity value of 13.32%, VLRS is doing good in the industry, outperforming 72.73% of the companies in the same industry.
VLRS has a Return On Invested Capital (5.35%) 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 8.55%.
The last Return On Invested Capital (5.35%) for VLRS is above the 3 year average (3.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 13.32% | ||
| ROIC | 5.35% |
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 has a Profit Margin (1.37%) which is in line with its industry peers.
VLRS's Profit Margin has declined in the last couple of years.
VLRS's Operating Margin of 9.81% is fine compared to the rest of the industry. VLRS outperforms 77.27% of its industry peers.
VLRS's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 49.80%, VLRS is in line with its industry, outperforming 45.45% of the companies in the same industry.
VLRS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.81% | ||
| PM (TTM) | 1.37% | ||
| GM | 49.8% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VLRS is creating some value.
VLRS has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, VLRS has more shares outstanding
Compared to 1 year ago, VLRS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.66, we must say that VLRS is in the distress zone and has some risk of bankruptcy.
VLRS has a Altman-Z score of 0.66. This is comparable to the rest of the industry: VLRS outperforms 40.91% of its industry peers.
The Debt to FCF ratio of VLRS is 8.26, which is on the high side as it means it would take VLRS, 8.26 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VLRS (8.26) is better than 68.18% of its industry peers.
VLRS has a Debt/Equity ratio of 10.13. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 10.13, VLRS is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.13 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 0.66 |
ROIC/WACC1.48
WACC3.61%
2.3 Liquidity
A Current Ratio of 0.75 indicates that VLRS may have some problems paying its short term obligations.
With a Current ratio value of 0.75, VLRS perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
A Quick Ratio of 0.74 indicates that VLRS may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.74, VLRS is doing good in the industry, outperforming 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
VLRS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -61.90%.
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.
The Revenue has decreased by -7.39% in the past year.
Measured over the past years, VLRS shows a quite strong growth in Revenue. The Revenue has been growing by 10.14% on average per year.
EPS 1Y (TTM)-61.9%
EPS 3Y-60.76%
EPS 5Y-46.88%
EPS Q2Q%-233.33%
Revenue 1Y (TTM)-7.39%
Revenue growth 3Y12.61%
Revenue growth 5Y10.14%
Sales Q2Q%-11.72%
3.2 Future
The Earnings Per Share is expected to grow by 5.59% on average over the next years.
VLRS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.03% yearly.
EPS Next Y273.08%
EPS Next 2Y-7.34%
EPS Next 3Y5.59%
EPS Next 5YN/A
Revenue Next Year1.94%
Revenue Next 2Y7.03%
Revenue Next 3YN/A
Revenue Next 5Y10.03%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.88, the valuation of VLRS can be described as reasonable.
VLRS's Price/Earnings ratio is a bit cheaper when compared to the industry. VLRS is cheaper than 72.73% of the companies in the same industry.
VLRS is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.03 indicates a rather cheap valuation of VLRS.
Based on the Price/Forward Earnings ratio, VLRS is valued cheaper than 95.45% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.60. VLRS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 5.03 |
4.2 Price Multiples
86.36% of the companies in the same industry are more expensive than VLRS, based on the Enterprise Value to EBITDA ratio.
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 | 1.18 | ||
| EV/EBITDA | 3.8 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y-7.34%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
No dividends for VLRS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.75
+0.08 (+1.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners13.48%
Inst Owner Change-7.43%
Ins Owners1.1%
Ins Owner ChangeN/A
Market Cap546.27M
Analysts80
Price Target4.89 (2.95%)
Short Float %4.46%
Short Ratio2.72
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)1
Avg EPS beat(2)5.7%
Min EPS beat(2)-10.88%
Max EPS beat(2)22.28%
EPS beat(4)3
Avg EPS beat(4)82.37%
Min EPS beat(4)-10.88%
Max EPS beat(4)223.56%
EPS beat(8)5
Avg EPS beat(8)51.02%
EPS beat(12)7
Avg EPS beat(12)82.58%
EPS beat(16)8
Avg EPS beat(16)63.49%
Revenue beat(2)1
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)1.13%
Revenue beat(8)4
Avg Revenue beat(8)0.46%
Revenue beat(12)5
Avg Revenue beat(12)12.44%
Revenue beat(16)5
Avg Revenue beat(16)-8.58%
PT rev (1m)0.09%
PT rev (3m)-21.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-117.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 5.03 | ||
| P/S | 0.18 | ||
| P/FCF | 1.18 | ||
| P/OCF | 0.55 | ||
| P/B | 1.73 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 3.8 |
EPS(TTM)0.4
EY8.42%
EPS(NY)0.94
Fwd EY19.88%
FCF(TTM)4.03
FCFY84.79%
OCF(TTM)8.71
OCFY183.42%
SpS26.54
BVpS2.74
TBVpS2.52
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 13.32% | ||
| ROCE | 7.73% | ||
| ROIC | 5.35% | ||
| ROICexc | 6.88% | ||
| ROICexgc | 6.94% | ||
| OM | 9.81% | ||
| PM (TTM) | 1.37% | ||
| GM | 49.8% | ||
| FCFM | 15.18% |
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-Score6
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.13 | ||
| Debt/FCF | 8.26 | ||
| Debt/EBITDA | 3.48 | ||
| Cap/Depr | 87.21% | ||
| Cap/Sales | 17.65% | ||
| Interest Coverage | 4.87 | ||
| Cash Conversion | 109.24% | ||
| Profit Quality | 1104.36% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 0.66 |
F-Score6
WACC3.61%
ROIC/WACC1.48
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)-61.9%
EPS 3Y-60.76%
EPS 5Y-46.88%
EPS Q2Q%-233.33%
EPS Next Y273.08%
EPS Next 2Y-7.34%
EPS Next 3Y5.59%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.39%
Revenue growth 3Y12.61%
Revenue growth 5Y10.14%
Sales Q2Q%-11.72%
Revenue Next Year1.94%
Revenue Next 2Y7.03%
Revenue Next 3YN/A
Revenue Next 5Y10.03%
EBIT growth 1Y-16.28%
EBIT growth 3Y-0.68%
EBIT growth 5Y10.78%
EBIT Next Year102.97%
EBIT Next 3Y40.21%
EBIT Next 5Y33.34%
FCF growth 1Y135.01%
FCF growth 3Y-6.02%
FCF growth 5Y9.48%
OCF growth 1Y60.06%
OCF growth 3Y11.54%
OCF growth 5Y17%