CONTROLADORA VUELA CIA-ADR (VLRS) Stock Fundamental Analysis
USA - NYSE:VLRS - US21240E1055 - ADR
6.04 USD
-0.2 (-3.21%)
6.04 USD
0 (0%)
VLRS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 21 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 is quite expensive at the moment. It does show a decent growth rate.
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.
The reported net income has been mixed in the past 5 years: VLRS reported negative net income in multiple years.
In the past 5 years VLRS always reported a positive cash flow from operatings.
1.2 Ratios
VLRS has a Return On Assets (-0.57%) which is in line with its industry peers.
VLRS has a Return On Equity of -12.51%. This is comparable to the rest of the industry: VLRS outperforms 52.38% of its industry peers.
The Return On Invested Capital of VLRS (3.97%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for VLRS is significantly below the industry average of 14.49%.
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.
VLRS's Operating Margin has been stable in the last couple of years.
VLRS has a Gross Margin of 50.34%. This is comparable to the rest of the industry: VLRS outperforms 42.86% of its industry peers.
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
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.
VLRS has more shares outstanding than it did 5 years ago.
VLRS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.58, we must say that VLRS is in the distress zone and has some risk of bankruptcy.
VLRS's Altman-Z score of 0.58 is in line compared to the rest of the industry. VLRS outperforms 42.86% of its industry peers.
The Debt to FCF ratio of VLRS is 9.01, which is on the high side as it means it would take VLRS, 9.01 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VLRS (9.01) is better than 71.43% of its industry peers.
VLRS has a Debt/Equity ratio of 12.11. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of VLRS (12.11) is worse than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.11 | ||
| Debt/FCF | 9.01 | ||
| Altman-Z | 0.58 |
ROIC/WACC0.94
WACC4.24%
2.3 Liquidity
A Current Ratio of 0.69 indicates that VLRS may have some problems paying its short term obligations.
VLRS has a better Current ratio (0.69) than 66.67% of its industry peers.
A Quick Ratio of 0.68 indicates that VLRS may have some problems paying its short term obligations.
The Quick ratio of VLRS (0.68) is better than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The earnings per share for VLRS have decreased strongly by -121.82% in the last year.
The earnings per share for VLRS have been decreasing by -46.88% on average. This is quite bad
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
Based on estimates for the next years, VLRS will show a very negative growth in Earnings Per Share. The EPS will decrease by -27.40% on average per year.
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 Y-28.53%
EPS Next 2Y-46.36%
EPS Next 3Y-27.4%
EPS Next 5YN/A
Revenue Next Year-3.82%
Revenue Next 2Y4.07%
Revenue Next 3Y7.62%
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.
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
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 | 1.65 | ||
| EV/EBITDA | 4.39 |
4.3 Compensation for Growth
A cheap valuation may be justified as VLRS's earnings are expected to decrease with -27.40% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-46.36%
EPS Next 3Y-27.4%
5. Dividend
5.1 Amount
No dividends for VLRS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.04
-0.2 (-3.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners13.48%
Inst Owner Change-10.95%
Ins Owners1.1%
Ins Owner ChangeN/A
Market Cap694.00M
Analysts80
Price Target6.77 (12.09%)
Short Float %3.63%
Short Ratio4.59
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)-31.69%
PT rev (3m)27%
EPS NQ rev (1m)57.74%
EPS NQ rev (3m)-110.34%
EPS NY rev (1m)-80.84%
EPS NY rev (3m)-80.83%
Revenue NQ rev (1m)-1.13%
Revenue NQ rev (3m)-4.77%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)-5.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.23 | ||
| P/FCF | 1.65 | ||
| P/OCF | 0.83 | ||
| P/B | 2.73 | ||
| P/tB | 3.05 | ||
| EV/EBITDA | 4.39 |
EPS(TTM)-0.24
EYN/A
EPS(NY)-0.16
Fwd EYN/A
FCF(TTM)3.67
FCFY60.76%
OCF(TTM)7.26
OCFY120.18%
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 | 0.58 |
F-Score3
WACC4.24%
ROIC/WACC0.94
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-28.53%
EPS Next 2Y-46.36%
EPS Next 3Y-27.4%
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 Year102.97%
EBIT Next 3Y40.21%
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%