CONTROLADORA VUELA CIA-ADR (VLRS) Stock Fundamental Analysis
USA - NYSE:VLRS - US21240E1055 - ADR
6.88 USD
-0.05 (-0.72%)
6.78 USD
-0.1 (-1.45%)
VLRS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 21 industry peers in the Passenger Airlines industry. There are concerns on the financial health of VLRS while its profitability can be described as average. VLRS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
VLRS had negative 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
Looking at the Return On Assets, with a value of -0.57%, VLRS is in line with its industry, outperforming 47.62% of the companies in the same industry.
VLRS's Return On Equity of -12.51% is in line compared to the rest of the industry. VLRS outperforms 52.38% of its industry peers.
VLRS has a Return On Invested Capital (3.97%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VLRS is significantly below the industry average of 14.49%.
The last Return On Invested Capital (3.97%) for VLRS is above the 3 year average (3.79%), which is a sign of increasing profitability.
| 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.
VLRS has a better Operating Margin (6.98%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of VLRS has remained more or less at the same level.
VLRS's Gross Margin of 50.34% is in line compared 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VLRS is destroying 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 0.59, we must say that VLRS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VLRS (0.59) is comparable to the rest of the industry.
VLRS has a debt to FCF ratio of 9.01. This is a negative value and a sign of low solvency as VLRS would need 9.01 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 9.01, VLRS is doing good in the industry, outperforming 71.43% of the companies in the same industry.
VLRS has a Debt/Equity ratio of 12.11. This is a high value indicating a heavy dependency on external financing.
VLRS has a worse Debt to Equity ratio (12.11) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.11 | ||
| Debt/FCF | 9.01 | ||
| Altman-Z | 0.59 |
ROIC/WACC0.87
WACC4.55%
2.3 Liquidity
A Current Ratio of 0.69 indicates that VLRS may have some problems paying its short term obligations.
VLRS's Current ratio of 0.69 is fine compared to the rest of the industry. VLRS outperforms 66.67% of its industry peers.
A Quick Ratio of 0.68 indicates that VLRS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.68, VLRS belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
| 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
VLRS shows a decrease in Revenue. In the last year, the revenue decreased by -6.83%.
VLRS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.14% yearly.
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
VLRS is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -38.77% yearly.
The Revenue is expected to grow by 10.03% on average over the next years. This is quite good.
EPS Next Y-183.18%
EPS Next 2Y-51.29%
EPS Next 3Y-38.77%
EPS Next 5YN/A
Revenue Next Year-3.82%
Revenue Next 2Y4.07%
Revenue Next 3Y7.62%
Revenue Next 5Y10.03%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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.
Also next year VLRS is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VLRS is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VLRS indicates a rather cheap valuation: VLRS is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.87 | ||
| EV/EBITDA | 4.51 |
4.3 Compensation for Growth
A cheap valuation may be justified as VLRS's earnings are expected to decrease with -38.77% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-51.29%
EPS Next 3Y-38.77%
5. Dividend
5.1 Amount
VLRS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.88
-0.05 (-0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners13.44%
Inst Owner Change0%
Ins Owners1.31%
Ins Owner ChangeN/A
Market Cap790.51M
Analysts80
Price Target7.22 (4.94%)
Short Float %3.77%
Short Ratio5.74
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)11.16%
PT rev (3m)47.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)74.04%
EPS NY rev (1m)-216.38%
EPS NY rev (3m)-122.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-5.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.26 | ||
| P/FCF | 1.87 | ||
| P/OCF | 0.95 | ||
| P/B | 3.11 | ||
| P/tB | 3.47 | ||
| EV/EBITDA | 4.51 |
EPS(TTM)-0.24
EYN/A
EPS(NY)-0.32
Fwd EYN/A
FCF(TTM)3.67
FCFY53.34%
OCF(TTM)7.26
OCFY105.51%
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 | 0.59 |
F-Score3
WACC4.55%
ROIC/WACC0.87
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-183.18%
EPS Next 2Y-51.29%
EPS Next 3Y-38.77%
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 Year86.75%
EBIT Next 3Y34.4%
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%