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 4 out of 10 to VLRS. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on VLRS.
1. Profitability
1.1 Basic Checks
In the past year VLRS was profitable.
In the past year VLRS had a positive cash flow from operations.
In multiple years VLRS reported negative net income over the last 5 years.
In the past 5 years VLRS always reported a positive cash flow from operatings.
1.2 Ratios
VLRS's Return On Assets of 0.74% is in line compared to the rest of the industry. VLRS outperforms 50.00% of its industry peers.
With a decent Return On Equity value of 13.32%, VLRS is doing good in the industry, outperforming 72.73% of the companies in the same industry.
The Return On Invested Capital of VLRS (5.35%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for VLRS is below the industry average of 8.55%.
The 3 year average ROIC (3.79%) for VLRS is below the current ROIC(5.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 13.32% | ||
| ROIC | 5.35% |
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 has a Profit Margin (1.37%) which is in line with its industry peers.
VLRS's Profit Margin has declined in the last couple of years.
VLRS has a Operating Margin of 9.81%. This is in the better half of the industry: VLRS outperforms 77.27% of its industry peers.
In the last couple of years the Operating Margin of VLRS has remained more or less at the same level.
The Gross Margin of VLRS (49.80%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of VLRS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.81% | ||
| PM (TTM) | 1.37% | ||
| GM | 49.8% |
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) just above the Cost of Capital (WACC), VLRS is creating some value.
The number of shares outstanding for VLRS remains at a similar level compared to 1 year ago.
The number of shares outstanding for VLRS has been increased compared to 5 years ago.
The debt/assets ratio for VLRS has been reduced compared to a year ago.
2.2 Solvency
VLRS has an Altman-Z score of 0.66. This is a bad value and indicates that VLRS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.66, VLRS is in line with its industry, outperforming 40.91% of the companies in the same industry.
The Debt to FCF ratio of VLRS is 8.26, which is on the high side as it means it would take VLRS, 8.26 years of fcf income to pay off all of its debts.
VLRS has a Debt to FCF ratio of 8.26. This is in the better half of the industry: VLRS outperforms 68.18% of its industry peers.
VLRS has a Debt/Equity ratio of 10.13. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 10.13, VLRS is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.13 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 0.66 |
ROIC/WACC1.48
WACC3.61%
2.3 Liquidity
VLRS has a Current Ratio of 0.75. This is a bad value and indicates that VLRS is not financially healthy enough and could expect problems in meeting its short term obligations.
VLRS has a Current ratio of 0.75. This is comparable to the rest of the industry: VLRS outperforms 59.09% of its industry peers.
VLRS has a Quick Ratio of 0.75. This is a bad value and indicates that VLRS is not financially healthy enough and could expect problems in meeting its short term obligations.
VLRS's Quick ratio of 0.74 is fine compared to the rest of the industry. VLRS outperforms 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
VLRS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -61.90%.
VLRS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -46.88% yearly.
Looking at the last year, VLRS shows a decrease in Revenue. The Revenue has decreased by -7.39% in the last year.
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)-61.9%
EPS 3Y-60.76%
EPS 5Y-46.88%
EPS Q2Q%-233.33%
Revenue 1Y (TTM)-7.39%
Revenue growth 3Y12.61%
Revenue growth 5Y10.14%
Sales Q2Q%-11.72%
3.2 Future
The Earnings Per Share is expected to grow by 5.59% on average over the next years.
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 3Y5.59%
EPS Next 5YN/A
Revenue Next Year1.94%
Revenue Next 2Y7.03%
Revenue Next 3YN/A
Revenue Next 5Y10.03%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 12.05, which indicates a correct valuation of VLRS.
68.18% of the companies in the same industry are more expensive than VLRS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.28, VLRS is valued rather cheaply.
The Price/Forward Earnings ratio is 5.11, which indicates a rather cheap valuation of VLRS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VLRS indicates a rather cheap valuation: VLRS is cheaper than 95.45% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. VLRS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 5.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VLRS is valued cheaper than 86.36% of the companies in the same industry.
VLRS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VLRS is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.2 | ||
| EV/EBITDA | 3.83 |
4.3 Compensation for Growth
VLRS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y-7.34%
EPS Next 3Y5.59%
5. Dividend
5.1 Amount
No dividends for VLRS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.82
-0.04 (-0.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners13.48%
Inst Owner Change-7.43%
Ins Owners1.1%
Ins Owner ChangeN/A
Market Cap554.32M
Analysts80
Price Target4.89 (1.45%)
Short Float %4.53%
Short Ratio2.87
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)1
Avg EPS beat(2)5.7%
Min EPS beat(2)-10.88%
Max EPS beat(2)22.28%
EPS beat(4)3
Avg EPS beat(4)82.37%
Min EPS beat(4)-10.88%
Max EPS beat(4)223.56%
EPS beat(8)5
Avg EPS beat(8)51.02%
EPS beat(12)7
Avg EPS beat(12)82.58%
EPS beat(16)8
Avg EPS beat(16)63.49%
Revenue beat(2)1
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)1.13%
Revenue beat(8)4
Avg Revenue beat(8)0.46%
Revenue beat(12)5
Avg Revenue beat(12)12.44%
Revenue beat(16)5
Avg Revenue beat(16)-8.58%
PT rev (1m)0.09%
PT rev (3m)-21.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-117.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 5.11 | ||
| P/S | 0.18 | ||
| P/FCF | 1.2 | ||
| P/OCF | 0.55 | ||
| P/B | 1.76 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 3.83 |
EPS(TTM)0.4
EY8.3%
EPS(NY)0.94
Fwd EY19.59%
FCF(TTM)4.03
FCFY83.55%
OCF(TTM)8.71
OCFY180.76%
SpS26.54
BVpS2.74
TBVpS2.52
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 13.32% | ||
| ROCE | 7.73% | ||
| ROIC | 5.35% | ||
| ROICexc | 6.88% | ||
| ROICexgc | 6.94% | ||
| OM | 9.81% | ||
| PM (TTM) | 1.37% | ||
| GM | 49.8% | ||
| FCFM | 15.18% |
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-Score6
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.13 | ||
| Debt/FCF | 8.26 | ||
| Debt/EBITDA | 3.48 | ||
| Cap/Depr | 87.21% | ||
| Cap/Sales | 17.65% | ||
| Interest Coverage | 4.87 | ||
| Cash Conversion | 109.24% | ||
| Profit Quality | 1104.36% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 0.66 |
F-Score6
WACC3.61%
ROIC/WACC1.48
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)-61.9%
EPS 3Y-60.76%
EPS 5Y-46.88%
EPS Q2Q%-233.33%
EPS Next Y273.08%
EPS Next 2Y-7.34%
EPS Next 3Y5.59%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.39%
Revenue growth 3Y12.61%
Revenue growth 5Y10.14%
Sales Q2Q%-11.72%
Revenue Next Year1.94%
Revenue Next 2Y7.03%
Revenue Next 3YN/A
Revenue Next 5Y10.03%
EBIT growth 1Y-16.28%
EBIT growth 3Y-0.68%
EBIT growth 5Y10.78%
EBIT Next Year102.97%
EBIT Next 3Y40.21%
EBIT Next 5Y33.34%
FCF growth 1Y135.01%
FCF growth 3Y-6.02%
FCF growth 5Y9.48%
OCF growth 1Y60.06%
OCF growth 3Y11.54%
OCF growth 5Y17%