CONTROLADORA VUELA CIA-ADR (VLRS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VLRS - US21240E1055 - ADR
9.44 USD
-0.15 (-1.56%)
9.44 USD
0 (0%)
Taking everything into account, VLRS scores 3 out of 10 in our fundamental rating. VLRS was compared to 22 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 valued expensive and it does not seem to be growing.
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.
- VLRS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- VLRS's Return On Assets of -1.10% is in line compared to the rest of the industry. VLRS outperforms 54.55% of its industry peers.
- With a Return On Equity value of -23.95%, VLRS perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
- VLRS has a Return On Invested Capital (2.85%) which is comparable to the rest of the industry.
- VLRS had an Average Return On Invested Capital over the past 3 years of 3.79%. This is significantly below the industry average of 20.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.1% | ||
| ROE | -23.95% | ||
| ROIC | 2.85% |
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.
- With a decent Operating Margin value of 5.09%, VLRS is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- In the last couple of years the Operating Margin of VLRS has remained more or less at the same level.
- With a Gross Margin value of 50.82%, VLRS perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- VLRS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.09% | ||
| PM (TTM) | N/A | ||
| GM | 50.82% |
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.
- The number of shares outstanding for VLRS remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, VLRS has more shares outstanding
- VLRS has a better debt/assets ratio than last year.
2.2 Solvency
- VLRS has an Altman-Z score of 0.57. This is a bad value and indicates that VLRS is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.57, VLRS perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
- VLRS has a debt to FCF ratio of 9.16. This is a negative value and a sign of low solvency as VLRS would need 9.16 years to pay back of all of its debts.
- VLRS has a better Debt to FCF ratio (9.16) than 77.27% of its industry peers.
- VLRS has a Debt/Equity ratio of 11.87. This is a high value indicating a heavy dependency on external financing.
- VLRS has a Debt to Equity ratio (11.87) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.87 | ||
| Debt/FCF | 9.16 | ||
| Altman-Z | 0.57 |
ROIC/WACC0.51
WACC5.55%
2.3 Liquidity
- VLRS has a Current Ratio of 0.67. This is a bad value and indicates that VLRS is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of VLRS (0.67) is better than 68.18% of its industry peers.
- A Quick Ratio of 0.66 indicates that VLRS may have some problems paying its short term obligations.
- With a decent Quick ratio value of 0.66, VLRS is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- The earnings per share for VLRS have decreased strongly by -125.88% in the last year.
- VLRS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.00% yearly.
- VLRS shows a decrease in Revenue. In the last year, the revenue decreased by -6.70%.
- 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)-125.88%
EPS 3Y6.25%
EPS 5Y-4%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-6.7%
Revenue growth 3Y12.61%
Revenue growth 5Y10.14%
Sales Q2Q%-3.57%
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 -55.39% on average per year.
- VLRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.57% yearly.
EPS Next Y-173.3%
EPS Next 2Y-45.68%
EPS Next 3Y-55.39%
EPS Next 5YN/A
Revenue Next Year-2.93%
Revenue Next 2Y3.84%
Revenue Next 3Y6.52%
Revenue Next 5Y7.57%
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 decreasing.
- 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
- 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 90.91% 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 | 2.57 | ||
| EV/EBITDA | 5.17 |
4.3 Compensation for Growth
- VLRS's earnings are expected to decrease with -55.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-45.68%
EPS Next 3Y-55.39%
5. Dividend
5.1 Amount
- VLRS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CONTROLADORA VUELA CIA-ADR / VLRS FAQ
Can you provide the ChartMill fundamental rating for CONTROLADORA VUELA CIA-ADR?
ChartMill assigns a fundamental rating of 3 / 10 to VLRS.
What is the valuation status for VLRS stock?
ChartMill assigns a valuation rating of 2 / 10 to CONTROLADORA VUELA CIA-ADR (VLRS). This can be considered as Overvalued.
What is the profitability of VLRS stock?
CONTROLADORA VUELA CIA-ADR (VLRS) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for VLRS stock?
The Earnings per Share (EPS) of CONTROLADORA VUELA CIA-ADR (VLRS) is expected to decline by -173.3% in the next year.