VTEX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. While VTEX has a great health rating, its profitability is only average at the moment. VTEX has a correct valuation and a medium growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year VTEX was profitable.
In the past year VTEX had a positive cash flow from operations.
In the past 5 years VTEX reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: VTEX reported negative operating cash flow in multiple years.

1.2 Ratios

The Return On Assets of VTEX (4.65%) is better than 67.05% of its industry peers.
With a Return On Equity value of 6.81%, VTEX perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
The Return On Invested Capital of VTEX (4.15%) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
ROA	4.65%
ROE	6.81%
ROIC	4.15%

ROA(3y)-5.13%

ROA(5y)-6.12%

ROE(3y)-6.69%

ROE(5y)-7.95%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

VTEX has a Profit Margin of 7.03%. This is in the better half of the industry: VTEX outperforms 70.45% of its industry peers.
VTEX has a Operating Margin of 5.99%. This is in the better half of the industry: VTEX outperforms 61.36% of its industry peers.
With an excellent Gross Margin value of 76.21%, VTEX belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
In the last couple of years the Gross Margin of VTEX has grown nicely.

		Industry Rank	Sector Rank
OM	5.99%
PM (TTM)	7.03%
GM	76.21%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y6.8%

GM growth 5Y1.94%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

VTEX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VTEX has more shares outstanding than it did 1 year ago.
VTEX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, VTEX has an improved debt to assets ratio.

2.2 Solvency

VTEX has an Altman-Z score of 4.21. This indicates that VTEX is financially healthy and has little risk of bankruptcy at the moment.
VTEX's Altman-Z score of 4.21 is fine compared to the rest of the industry. VTEX outperforms 69.32% of its industry peers.
There is no outstanding debt for VTEX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	4.21

ROIC/WACC0.46

WACC9.05%

2.3 Liquidity

VTEX has a Current Ratio of 3.10. This indicates that VTEX is financially healthy and has no problem in meeting its short term obligations.
VTEX has a Current ratio of 3.10. This is in the better half of the industry: VTEX outperforms 79.55% of its industry peers.
A Quick Ratio of 3.10 indicates that VTEX has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.10, VTEX is doing good in the industry, outperforming 79.55% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	3.1
Quick Ratio	3.1

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 91.30% over the past year.
VTEX shows a small growth in Revenue. In the last year, the Revenue has grown by 3.62%.
Measured over the past years, VTEX shows a very strong growth in Revenue. The Revenue has been growing by 29.90% on average per year.

EPS 1Y (TTM)91.3%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%100%

Revenue 1Y (TTM)3.62%

Revenue growth 3Y21.69%

Revenue growth 5Y29.9%

Sales Q2Q%6.45%

3.2 Future

The Earnings Per Share is expected to grow by 57.07% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.10% on average over the next years. This is quite good.

EPS Next Y107.46%

EPS Next 2Y71.12%

EPS Next 3Y57.07%

EPS Next 5YN/A

Revenue Next Year4.58%

Revenue Next 2Y7.92%

Revenue Next 3Y9.49%

Revenue Next 5Y9.1%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

VTEX is valuated quite expensively with a Price/Earnings ratio of 37.33.
VTEX's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of VTEX to the average of the S&P500 Index (27.21), we can say VTEX is valued slightly more expensively.
VTEX is valuated rather expensively with a Price/Forward Earnings ratio of 18.21.
64.77% of the companies in the same industry are more expensive than VTEX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VTEX to the average of the S&P500 Index (25.98), we can say VTEX is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	37.33
Fwd PE	18.21

4.2 Price Multiples

73.86% of the companies in the same industry are more expensive than VTEX, based on the Enterprise Value to EBITDA ratio.
68.18% of the companies in the same industry are more expensive than VTEX, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	17.78
EV/EBITDA	12.24

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.
A more expensive valuation may be justified as VTEX's earnings are expected to grow with 57.07% in the coming years.