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. VLRS has a medium profitability rating, but doesn't score so well on its financial health evaluation. VLRS has a correct valuation and a medium 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.
VLRS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VLRS has a Return On Assets (0.74%) which is in line with 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.
VLRS has a Return On Invested Capital (5.35%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for VLRS is significantly below the industry average of 9.02%.
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
With a Profit Margin value of 1.37%, VLRS perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
In the last couple of years the Profit Margin of VLRS has declined.
With a decent Operating Margin value of 9.81%, VLRS is doing good in the industry, outperforming 77.27% of the companies in the same industry.
VLRS's Operating Margin has been stable in the last couple of years.
VLRS's Gross Margin of 49.80% is in line compared to the rest of the industry. VLRS outperforms 45.45% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VLRS is still 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.
Compared to 1 year ago, VLRS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.67, we must say that VLRS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.67, VLRS is in line with its industry, outperforming 45.45% 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.
With a decent Debt to FCF ratio value of 8.26, VLRS is doing good in the industry, outperforming 72.73% of the companies in the same industry.
A Debt/Equity ratio of 10.13 is on the high side and indicates that VLRS has dependencies on debt financing.
VLRS has a worse Debt to Equity ratio (10.13) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.13 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 0.67 |
ROIC/WACC1.31
WACC4.09%
2.3 Liquidity
A Current Ratio of 0.75 indicates that VLRS may have some problems paying its short term obligations.
VLRS has a Current ratio of 0.75. This is in the better half of the industry: VLRS outperforms 72.73% of its industry peers.
A Quick Ratio of 0.74 indicates that VLRS may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.74, VLRS is doing good in the industry, outperforming 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The earnings per share for VLRS have decreased strongly by -121.82% in the last 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.
Looking at the last year, VLRS shows a decrease in Revenue. The Revenue has decreased by -3.59% in the last year.
Measured over the past years, VLRS shows a quite strong growth in Revenue. The Revenue has been growing by 10.14% on average per year.
EPS 1Y (TTM)-121.82%
EPS 3Y-60.76%
EPS 5Y-46.88%
EPS Q2Q%-640%
Revenue 1Y (TTM)-3.59%
Revenue growth 3Y12.61%
Revenue growth 5Y10.14%
Sales Q2Q%-4.53%
3.2 Future
The Earnings Per Share is expected to grow by 5.56% on average over the next years.
Based on estimates for the next years, VLRS will show a quite strong growth in Revenue. The Revenue will grow by 10.03% on average per year.
EPS Next Y273.08%
EPS Next 2Y-7.34%
EPS Next 3Y5.56%
EPS Next 5YN/A
Revenue Next Year-4.01%
Revenue Next 2Y4.08%
Revenue Next 3Y7.79%
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.
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.
A Price/Forward Earnings ratio of 6.05 indicates a rather cheap valuation of VLRS.
81.82% of the companies in the same industry are more expensive than VLRS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.21. VLRS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.05 |
4.2 Price Multiples
81.82% of the companies in the same industry are more expensive than VLRS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VLRS is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.42 | ||
| EV/EBITDA | 3.93 |
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.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.34%
EPS Next 3Y5.56%
5. Dividend
5.1 Amount
No dividends for VLRS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.72
-0.17 (-2.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners13.48%
Inst Owner Change-6.8%
Ins Owners1.1%
Ins Owner ChangeN/A
Market Cap657.23M
Analysts80
Price Target5.3 (-7.34%)
Short Float %3.6%
Short Ratio3.54
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)8.42%
PT rev (3m)0.21%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-78.97%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-1.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)-5.83%
Revenue NY rev (3m)-8.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.05 | ||
| P/S | 0.22 | ||
| P/FCF | 1.42 | ||
| P/OCF | 0.66 | ||
| P/B | 2.09 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 3.93 |
EPS(TTM)-0.24
EYN/A
EPS(NY)0.95
Fwd EY16.52%
FCF(TTM)4.03
FCFY70.47%
OCF(TTM)8.72
OCFY152.45%
SpS26.56
BVpS2.74
TBVpS2.52
PEG (NY)N/A
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 | 0.67 |
F-Score6
WACC4.09%
ROIC/WACC1.31
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 Y273.08%
EPS Next 2Y-7.34%
EPS Next 3Y5.56%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.59%
Revenue growth 3Y12.61%
Revenue growth 5Y10.14%
Sales Q2Q%-4.53%
Revenue Next Year-4.01%
Revenue Next 2Y4.08%
Revenue Next 3Y7.79%
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%