CONTROLADORA VUELA CIA-ADR (VLRS) Stock Fundamental Analysis
NYSE:VLRS - New York Stock Exchange, Inc. - US21240E1055 - ADR - Currency: USD
We assign a fundamental rating of 5 out of 10 to VLRS. VLRS was compared to 23 industry peers in the Passenger Airlines industry. While VLRS is still in line with the averages on profitability rating, there are concerns on its financial health. VLRS scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year VLRS was profitable.
VLRS had a positive operating cash flow in the past year.
In multiple years VLRS reported negative net income over the last 5 years.
Of the past 5 years VLRS 4 years had a positive operating cash flow.
1.2 Ratios
VLRS's Return On Assets of 3.51% is fine compared to the rest of the industry. VLRS outperforms 73.91% of its industry peers.
VLRS has a Return On Equity of 60.35%. This is amongst the best in the industry. VLRS outperforms 95.65% of its industry peers.
The Return On Invested Capital of VLRS (9.78%) is better than 82.61% of its industry peers.
VLRS had an Average Return On Invested Capital over the past 3 years of 5.52%. This is significantly below the industry average of 11.15%.
The last Return On Invested Capital (9.78%) for VLRS is above the 3 year average (5.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 60.35% | ||
| ROIC | 9.78% |
ROA(3y)0.34%
ROA(5y)-0.11%
ROE(3y)1.01%
ROE(5y)-18.53%
ROIC(3y)5.52%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 6.02%, VLRS is doing good in the industry, outperforming 78.26% of the companies in the same industry.
VLRS has a better Operating Margin (14.35%) than 91.30% of its industry peers.
VLRS has a Gross Margin (43.31%) which is in line with its industry peers.
VLRS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.35% | ||
| PM (TTM) | 6.02% | ||
| GM | 43.31% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.9%
GM growth 5Y2.78%
2. Health
2.1 Basic Checks
VLRS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
VLRS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
VLRS has an Altman-Z score of 0.80. This is a bad value and indicates that VLRS is not financially healthy and even has some risk of bankruptcy.
VLRS has a Altman-Z score (0.80) which is comparable to the rest of the industry.
The Debt to FCF ratio of VLRS is 9.28, which is on the high side as it means it would take VLRS, 9.28 years of fcf income to pay off all of its debts.
VLRS has a Debt to FCF ratio of 9.28. This is in the better half of the industry: VLRS outperforms 73.91% of its industry peers.
VLRS has a Debt/Equity ratio of 9.51. This is a high value indicating a heavy dependency on external financing.
VLRS has a worse Debt to Equity ratio (9.51) than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.51 | ||
| Debt/FCF | 9.28 | ||
| Altman-Z | 0.8 |
ROIC/WACC2.8
WACC3.49%
2.3 Liquidity
A Current Ratio of 0.73 indicates that VLRS may have some problems paying its short term obligations.
VLRS has a Current ratio of 0.73. This is in the better half of the industry: VLRS outperforms 60.87% of its industry peers.
A Quick Ratio of 0.72 indicates that VLRS may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.72, VLRS is doing good in the industry, outperforming 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 632.84% over the past year.
VLRS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -46.88% yearly.
EPS 1Y (TTM)632.84%
EPS 3Y-60.76%
EPS 5Y-46.88%
EPS Q2Q%-60%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-7.12%
3.2 Future
Based on estimates for the next years, VLRS will show a small growth in Earnings Per Share. The EPS will grow by 5.10% on average per year.
The Revenue is expected to grow by 10.03% on average over the next years. This is quite good.
EPS Next Y273.08%
EPS Next 2Y-7.34%
EPS Next 3Y5.1%
EPS Next 5YN/A
Revenue Next Year4.36%
Revenue Next 2Y9.85%
Revenue Next 3YN/A
Revenue Next 5Y10.03%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 3.65, the valuation of VLRS can be described as very cheap.
100.00% of the companies in the same industry are more expensive than VLRS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.29. VLRS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 0.98, the valuation of VLRS can be described as very cheap.
Based on the Price/Forward Earnings ratio, VLRS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VLRS to the average of the S&P500 Index (20.42), we can say VLRS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.65 | ||
| Fwd PE | 0.98 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than VLRS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VLRS indicates a rather cheap valuation: VLRS is cheaper than 95.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.17 | ||
| EV/EBITDA | 3.25 |
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.
The decent profitability rating of VLRS may justify a higher PE ratio.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y-7.34%
EPS Next 3Y5.1%
5. Dividend
5.1 Amount
VLRS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.09
-0.07 (-1.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners10.81%
Inst Owner Change0.1%
Ins Owners1.1%
Ins Owner ChangeN/A
Market Cap470.36M
Analysts80
Price Target5.29 (29.34%)
Short Float %2.71%
Short Ratio2.17
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)159.04%
Min EPS beat(2)94.52%
Max EPS beat(2)223.56%
EPS beat(4)4
Avg EPS beat(4)156.9%
Min EPS beat(4)94.52%
Max EPS beat(4)223.56%
EPS beat(8)5
Avg EPS beat(8)47.9%
EPS beat(12)6
Avg EPS beat(12)70.78%
EPS beat(16)9
Avg EPS beat(16)134.09%
Revenue beat(2)1
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)1.13%
Revenue beat(4)3
Avg Revenue beat(4)3.31%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)12.69%
Revenue beat(8)3
Avg Revenue beat(8)0.09%
Revenue beat(12)4
Avg Revenue beat(12)4.37%
Revenue beat(16)6
Avg Revenue beat(16)-8.04%
PT rev (1m)-15.46%
PT rev (3m)-40.65%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)0.08%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.65 | ||
| Fwd PE | 0.98 | ||
| P/S | 0.15 | ||
| P/FCF | 1.17 | ||
| P/OCF | 0.47 | ||
| P/B | 1.47 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 3.25 |
EPS(TTM)1.12
EY27.38%
EPS(NY)4.16
Fwd EY101.73%
FCF(TTM)3.49
FCFY85.33%
OCF(TTM)8.69
OCFY212.5%
SpS27.87
BVpS2.78
TBVpS2.59
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 60.35% | ||
| ROCE | 12.37% | ||
| ROIC | 9.78% | ||
| ROICexc | 12.59% | ||
| ROICexgc | 12.68% | ||
| OM | 14.35% | ||
| PM (TTM) | 6.02% | ||
| GM | 43.31% | ||
| FCFM | 12.52% |
ROA(3y)0.34%
ROA(5y)-0.11%
ROE(3y)1.01%
ROE(5y)-18.53%
ROIC(3y)5.52%
ROIC(5y)N/A
ROICexc(3y)7.42%
ROICexc(5y)N/A
ROICexgc(3y)7.46%
ROICexgc(5y)N/A
ROCE(3y)6.98%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.9%
GM growth 5Y2.78%
F-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.51 | ||
| Debt/FCF | 9.28 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 106.35% | ||
| Cap/Sales | 18.66% | ||
| Interest Coverage | 7.74 | ||
| Cash Conversion | 97.75% | ||
| Profit Quality | 208.15% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 0.8 |
F-Score7
WACC3.49%
ROIC/WACC2.8
Cap/Depr(3y)81.25%
Cap/Depr(5y)73.77%
Cap/Sales(3y)12.14%
Cap/Sales(5y)12.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)632.84%
EPS 3Y-60.76%
EPS 5Y-46.88%
EPS Q2Q%-60%
EPS Next Y273.08%
EPS Next 2Y-7.34%
EPS Next 3Y5.1%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-7.12%
Revenue Next Year4.36%
Revenue Next 2Y9.85%
Revenue Next 3YN/A
Revenue Next 5Y10.03%
EBIT growth 1Y288.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year488.01%
EBIT Next 3Y87.65%
EBIT Next 5Y49.99%
FCF growth 1Y-6.68%
FCF growth 3Y70.46%
FCF growth 5Y5.69%
OCF growth 1Y34.22%
OCF growth 3Y43.92%
OCF growth 5Y17.34%