CORP INMOBILIARIA VESTA-ADR (VTMX) Stock Fundamental Analysis
NYSE:VTMX - New York Stock Exchange, Inc. - US92540K1097 - ADR - Currency: USD
We assign a fundamental rating of 5 out of 10 to VTMX. VTMX was compared to 65 industry peers in the Real Estate Management & Development industry. VTMX has an excellent profitability rating, but there are some minor concerns on its financial health. VTMX is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
VTMX had positive earnings in the past year.
VTMX had a positive operating cash flow in the past year.
Each year in the past 5 years VTMX has been profitable.
Each year in the past 5 years VTMX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VTMX (2.92%) is better than 80.00% of its industry peers.
VTMX's Return On Equity of 4.52% is fine compared to the rest of the industry. VTMX outperforms 75.38% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.54%, VTMX is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VTMX is below the industry average of 5.47%.
The last Return On Invested Capital (3.54%) for VTMX is above the 3 year average (3.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 4.52% | ||
| ROIC | 3.54% |
ROA(3y)7.41%
ROA(5y)6.3%
ROE(3y)12.06%
ROE(5y)10.84%
ROIC(3y)3.29%
ROIC(5y)3.37%
1.3 Margins
Looking at the Profit Margin, with a value of 43.82%, VTMX belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
VTMX's Profit Margin has been stable in the last couple of years.
VTMX has a Operating Margin of 77.88%. This is amongst the best in the industry. VTMX outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of VTMX has remained more or less at the same level.
VTMX has a better Gross Margin (90.23%) than 95.38% of its industry peers.
In the last couple of years the Gross Margin of VTMX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 77.88% | ||
| PM (TTM) | 43.82% | ||
| GM | 90.23% |
OM growth 3Y-1.21%
OM growth 5Y-1.13%
PM growth 3Y-6.47%
PM growth 5Y-1.04%
GM growth 3Y-1.11%
GM growth 5Y-0.89%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VTMX is destroying value.
VTMX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VTMX has more shares outstanding
The debt/assets ratio for VTMX has been reduced compared to a year ago.
2.2 Solvency
VTMX has an Altman-Z score of 1.61. This is a bad value and indicates that VTMX is not financially healthy and even has some risk of bankruptcy.
VTMX has a Altman-Z score of 1.61. This is comparable to the rest of the industry: VTMX outperforms 56.92% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that VTMX is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.32, VTMX is doing good in the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.61 |
ROIC/WACC0.32
WACC10.96%
2.3 Liquidity
A Current Ratio of 3.25 indicates that VTMX has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.25, VTMX is doing good in the industry, outperforming 76.92% of the companies in the same industry.
VTMX has a Quick Ratio of 3.25. This indicates that VTMX is financially healthy and has no problem in meeting its short term obligations.
VTMX has a better Quick ratio (3.25) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.25 | ||
| Quick Ratio | 3.25 |
3. Growth
3.1 Past
The earnings per share for VTMX have decreased strongly by -65.38% in the last year.
The Earnings Per Share has been growing slightly by 6.40% on average over the past years.
The Revenue has decreased by -5.91% in the past year.
VTMX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.82% yearly.
EPS 1Y (TTM)-65.38%
EPS 3Y6.69%
EPS 5Y6.4%
EPS Q2Q%-85.71%
Revenue 1Y (TTM)-5.91%
Revenue growth 3Y16.21%
Revenue growth 5Y11.82%
Sales Q2Q%10.69%
3.2 Future
VTMX is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -13.91% yearly.
Based on estimates for the next years, VTMX will show a small growth in Revenue. The Revenue will grow by 6.03% on average per year.
EPS Next Y-39.71%
EPS Next 2Y-14.69%
EPS Next 3Y-18.1%
EPS Next 5Y-13.91%
Revenue Next Year13.51%
Revenue Next 2Y12.66%
Revenue Next 3Y9.16%
Revenue Next 5Y6.03%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 14.02, the valuation of VTMX can be described as correct.
VTMX's Price/Earnings ratio is rather cheap when compared to the industry. VTMX is cheaper than 83.08% of the companies in the same industry.
When comparing the Price/Earnings ratio of VTMX to the average of the S&P500 Index (27.30), we can say VTMX is valued slightly cheaper.
A Price/Forward Earnings ratio of 11.58 indicates a reasonable valuation of VTMX.
93.85% of the companies in the same industry are more expensive than VTMX, based on the Price/Forward Earnings ratio.
VTMX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 11.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VTMX indicates a somewhat cheap valuation: VTMX is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.5 |
4.3 Compensation for Growth
VTMX has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as VTMX's earnings are expected to decrease with -18.10% in the coming years.
PEG (NY)N/A
PEG (5Y)2.19
EPS Next 2Y-14.69%
EPS Next 3Y-18.1%
5. Dividend
5.1 Amount
VTMX has a Yearly Dividend Yield of 2.87%.
VTMX's Dividend Yield is rather good when compared to the industry average which is at 3.47. VTMX pays more dividend than 93.85% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, VTMX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
5.2 History
The dividend of VTMX has a limited annual growth rate of 1.01%.
VTMX has been paying a dividend for over 5 years, so it has already some track record.
VTMX has decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.01%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
VTMX pays out 57.04% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of VTMX has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP57.04%
EPS Next 2Y-14.69%
EPS Next 3Y-18.1%
25.94
-0.13 (-0.5%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners37.65%
Inst Owner Change0%
Ins Owners1.78%
Ins Owner ChangeN/A
Market Cap2.19B
Analysts80
Price Target28.7 (10.64%)
Short Float %1.36%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend0.07
Dividend Growth(5Y)1.01%
DP57.04%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-180.37%
Min EPS beat(2)-303.32%
Max EPS beat(2)-57.41%
EPS beat(4)2
Avg EPS beat(4)14.11%
Min EPS beat(4)-303.32%
Max EPS beat(4)220.86%
EPS beat(8)6
Avg EPS beat(8)118.17%
EPS beat(12)10
Avg EPS beat(12)112.41%
EPS beat(16)13
Avg EPS beat(16)118.37%
Revenue beat(2)0
Avg Revenue beat(2)-5.33%
Min Revenue beat(2)-6.51%
Max Revenue beat(2)-4.15%
Revenue beat(4)0
Avg Revenue beat(4)-3.99%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)-1.42%
Revenue beat(8)1
Avg Revenue beat(8)-3.3%
Revenue beat(12)4
Avg Revenue beat(12)5.89%
Revenue beat(16)7
Avg Revenue beat(16)10.71%
PT rev (1m)-4.01%
PT rev (3m)18.56%
EPS NQ rev (1m)-3.32%
EPS NQ rev (3m)7.76%
EPS NY rev (1m)0%
EPS NY rev (3m)2.24%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 11.58 | ||
| P/S | 8.48 | ||
| P/FCF | N/A | ||
| P/OCF | 15.81 | ||
| P/B | 0.88 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 14.5 |
EPS(TTM)1.85
EY7.13%
EPS(NY)2.24
Fwd EY8.63%
FCF(TTM)-1.4
FCFYN/A
OCF(TTM)1.64
OCFY6.33%
SpS3.06
BVpS29.62
TBVpS29.62
PEG (NY)N/A
PEG (5Y)2.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 4.52% | ||
| ROCE | 5.23% | ||
| ROIC | 3.54% | ||
| ROICexc | 3.59% | ||
| ROICexgc | 3.59% | ||
| OM | 77.88% | ||
| PM (TTM) | 43.82% | ||
| GM | 90.23% | ||
| FCFM | N/A |
ROA(3y)7.41%
ROA(5y)6.3%
ROE(3y)12.06%
ROE(5y)10.84%
ROIC(3y)3.29%
ROIC(5y)3.37%
ROICexc(3y)3.57%
ROICexc(5y)3.71%
ROICexgc(3y)3.57%
ROICexgc(5y)3.71%
ROCE(3y)4.86%
ROCE(5y)4.98%
ROICexcg growth 3Y-2.74%
ROICexcg growth 5Y-2.23%
ROICexc growth 3Y-2.74%
ROICexc growth 5Y-2.23%
OM growth 3Y-1.21%
OM growth 5Y-1.13%
PM growth 3Y-6.47%
PM growth 5Y-1.04%
GM growth 3Y-1.11%
GM growth 5Y-0.89%
F-Score4
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.92 | ||
| Cap/Depr | 14923.7% | ||
| Cap/Sales | 99.47% | ||
| Interest Coverage | 4.76 | ||
| Cash Conversion | 68.3% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.25 | ||
| Quick Ratio | 3.25 | ||
| Altman-Z | 1.61 |
F-Score4
WACC10.96%
ROIC/WACC0.32
Cap/Depr(3y)62.97%
Cap/Depr(5y)51.65%
Cap/Sales(3y)0.44%
Cap/Sales(5y)0.4%
Profit Quality(3y)43.19%
Profit Quality(5y)67.69%
High Growth Momentum
Growth
EPS 1Y (TTM)-65.38%
EPS 3Y6.69%
EPS 5Y6.4%
EPS Q2Q%-85.71%
EPS Next Y-39.71%
EPS Next 2Y-14.69%
EPS Next 3Y-18.1%
EPS Next 5Y-13.91%
Revenue 1Y (TTM)-5.91%
Revenue growth 3Y16.21%
Revenue growth 5Y11.82%
Sales Q2Q%10.69%
Revenue Next Year13.51%
Revenue Next 2Y12.66%
Revenue Next 3Y9.16%
Revenue Next 5Y6.03%
EBIT growth 1Y-7.14%
EBIT growth 3Y14.8%
EBIT growth 5Y10.56%
EBIT Next Year16.36%
EBIT Next 3Y10.38%
EBIT Next 5Y11.71%
FCF growth 1Y21.32%
FCF growth 3Y6.48%
FCF growth 5Y4.91%
OCF growth 1Y52.26%
OCF growth 3Y6.57%
OCF growth 5Y4.67%