Overall VTEX gets a fundamental rating of 5 out of 10. We evaluated VTEX 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.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

VTEX had positive earnings in the past year.
In the past year VTEX had a positive cash flow from operations.
VTEX had negative earnings in 4 of the past 5 years.
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

VTEX's Return On Assets of 4.65% is fine compared to the rest of the industry. VTEX outperforms 67.05% of its industry peers.
VTEX has a Return On Equity (6.81%) which is in line with its industry peers.
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

The Profit Margin of VTEX (7.03%) is better than 70.45% of its industry peers.
VTEX's Operating Margin of 5.99% is fine compared to the rest of the industry. VTEX outperforms 61.36% of its industry peers.
VTEX has a better Gross Margin (76.21%) than 95.45% of its industry peers.
VTEX's Gross Margin has improved in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

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

2.2 Solvency

An Altman-Z score of 4.21 indicates that VTEX is not in any danger for bankruptcy at the moment.
VTEX has a Altman-Z score of 4.21. This is in the better half of the industry: VTEX outperforms 69.32% of its industry peers.
VTEX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

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

ROIC/WACC0.45

WACC9.29%

2.3 Liquidity

A Current Ratio of 3.10 indicates that VTEX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.10, VTEX is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
A Quick Ratio of 3.10 indicates that VTEX has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.10, VTEX is in the better half of the industry, outperforming 79.55% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	3.1
Quick Ratio	3.1

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WACC

Debt/Equity

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Altman-Z score

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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
VTEX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.10% yearly.

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

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 37.33 indicates a quite expensive valuation of VTEX.
The rest of the industry has a similar Price/Earnings ratio as VTEX.
VTEX is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.21 indicates a rather expensive valuation of VTEX.
VTEX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VTEX is cheaper than 64.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.98. VTEX is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	37.33
Fwd PE	18.21

4.2 Price Multiples

VTEX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VTEX is cheaper than 73.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VTEX is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.

		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.
VTEX's earnings are expected to grow with 57.07% in the coming years. This may justify a more expensive valuation.