VMEO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 70 industry peers in the Interactive Media & Services industry. Both the profitability and the financial health of VMEO get a neutral evaluation. Nothing too spectacular is happening here. VMEO does not seem to be growing, but still is valued expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year VMEO was profitable.
In the past year VMEO had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VMEO reported negative net income in multiple years.
VMEO had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

VMEO has a Return On Assets of 0.22%. This is comparable to the rest of the industry: VMEO outperforms 53.52% of its industry peers.
With a Return On Equity value of 0.36%, VMEO perfoms like the industry average, outperforming 57.75% of the companies in the same industry.
VMEO has a Return On Invested Capital of 0.38%. This is comparable to the rest of the industry: VMEO outperforms 50.70% of its industry peers.

		Industry Rank	Sector Rank
ROA	0.22%
ROE	0.36%
ROIC	0.38%

ROA(3y)-1.86%

ROA(5y)-5.47%

ROE(3y)-3.46%

ROE(5y)-16.82%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

The Profit Margin of VMEO (0.34%) is comparable to the rest of the industry.
VMEO has a Operating Margin (0.43%) which is in line with its industry peers.
VMEO's Gross Margin of 77.64% is fine compared to the rest of the industry. VMEO outperforms 74.65% of its industry peers.
VMEO's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	0.43%
PM (TTM)	0.34%
GM	77.64%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.97%

GM growth 5Y5.32%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VMEO is destroying value.
The number of shares outstanding for VMEO has been reduced compared to 1 year ago.
Compared to 5 years ago, VMEO has more shares outstanding
There is no outstanding debt for VMEO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

VMEO has an Altman-Z score of 3.38. This indicates that VMEO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.38, VMEO is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
VMEO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	3.38

ROIC/WACC0.04

WACC10.47%

2.3 Liquidity

A Current Ratio of 1.57 indicates that VMEO should not have too much problems paying its short term obligations.
VMEO has a Current ratio of 1.57. This is in the lower half of the industry: VMEO underperforms 60.56% of its industry peers.
A Quick Ratio of 1.57 indicates that VMEO should not have too much problems paying its short term obligations.
VMEO has a Quick ratio of 1.57. This is in the lower half of the industry: VMEO underperforms 60.56% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.57
Quick Ratio	1.57

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

VMEO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -90.00%.
The Revenue has decreased by -0.67% in the past year.
Measured over the past years, VMEO shows a quite strong growth in Revenue. The Revenue has been growing by 16.30% on average per year.

EPS 1Y (TTM)-90%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-120%

Revenue 1Y (TTM)-0.67%

Revenue growth 3Y2.11%

Revenue growth 5Y16.3%

Sales Q2Q%1.14%

3.2 Future

The Earnings Per Share is expected to grow by 2.72% on average over the next years.
The Revenue is expected to grow by 5.74% on average over the next years.

EPS Next Y-45.81%

EPS Next 2Y-14.38%

EPS Next 3Y2.72%

EPS Next 5YN/A

Revenue Next Year1.48%

Revenue Next 2Y2.79%

Revenue Next 3Y3.87%

Revenue Next 5Y5.74%

3.3 Evolution

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 392.50, VMEO can be considered very expensive at the moment.
VMEO's Price/Earnings is on the same level as the industry average.
VMEO is valuated expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
VMEO is valuated quite expensively with a Price/Forward Earnings ratio of 66.92.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VMEO is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of VMEO to the average of the S&P500 Index (24.32), we can say VMEO is valued expensively.

		Industry Rank	Sector Rank
PE	392.5
Fwd PE	66.92

4.2 Price Multiples

VMEO's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, VMEO is valued a bit cheaper than the industry average as 64.79% of the companies are valued more expensively.