VTEX -CLASS A (VTEX) Stock Fundamental Analysis
NYSE:VTEX - KYG9470A1022 - Common Stock
4.08 USD
+0.01 (+0.25%)
4.08 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to VTEX. VTEX was compared to 85 industry peers in the IT Services industry. VTEX has an excellent financial health rating, but there are some minor concerns on its profitability. VTEX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year VTEX was profitable.
In the past year VTEX had a positive cash flow from operations.
VTEX had negative earnings in 4 of the past 5 years.
In multiple years VTEX reported negative operating cash flow during the last 5 years.
1.2 Ratios
VTEX's Return On Assets of 3.65% is fine compared to the rest of the industry. VTEX outperforms 61.18% of its industry peers.
VTEX has a Return On Equity of 5.34%. This is comparable to the rest of the industry: VTEX outperforms 60.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.59%, VTEX is in line with its industry, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 5.34% | ||
| ROIC | 3.59% |
ROA(3y)-5.13%
ROA(5y)-6.12%
ROE(3y)-6.69%
ROE(5y)-7.95%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
VTEX has a Profit Margin of 5.80%. This is in the better half of the industry: VTEX outperforms 67.06% of its industry peers.
VTEX has a Operating Margin (5.52%) which is in line with its industry peers.
The Gross Margin of VTEX (75.51%) is better than 91.76% of its industry peers.
In the last couple of years the Gross Margin of VTEX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.52% | ||
| PM (TTM) | 5.8% | ||
| GM | 75.51% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.8%
GM growth 5Y1.94%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VTEX is destroying value.
VTEX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VTEX has less shares outstanding
Compared to 1 year ago, VTEX has an improved debt to assets ratio.
2.2 Solvency
VTEX has an Altman-Z score of 4.85. This indicates that VTEX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.85, VTEX is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
VTEX 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 | 4.85 |
ROIC/WACC0.39
WACC9.23%
2.3 Liquidity
VTEX has a Current Ratio of 3.31. This indicates that VTEX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.31, VTEX belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
A Quick Ratio of 3.31 indicates that VTEX has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.31, VTEX belongs to the best of the industry, outperforming 83.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.31 | ||
| Quick Ratio | 3.31 |
3. Growth
3.1 Past
VTEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 343.75%, which is quite impressive.
Looking at the last year, VTEX shows a small growth in Revenue. The Revenue has grown by 4.51% in the last year.
VTEX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.90% yearly.
EPS 1Y (TTM)343.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-38.46%
Revenue 1Y (TTM)4.51%
Revenue growth 3Y21.69%
Revenue growth 5Y29.9%
Sales Q2Q%3.98%
3.2 Future
VTEX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 57.43% yearly.
The Revenue is expected to grow by 10.92% on average over the next years. This is quite good.
EPS Next Y77.4%
EPS Next 2Y64.36%
EPS Next 3Y57.43%
EPS Next 5YN/A
Revenue Next Year7.14%
Revenue Next 2Y11.09%
Revenue Next 3Y14.13%
Revenue Next 5Y10.92%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 58.29, the valuation of VTEX can be described as expensive.
VTEX's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of VTEX to the average of the S&P500 Index (27.13), we can say VTEX is valued expensively.
The Price/Forward Earnings ratio is 23.97, which indicates a rather expensive current valuation of VTEX.
VTEX's Price/Forward Earnings is on the same level as the industry average.
VTEX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.29 | ||
| Fwd PE | 23.97 |
4.2 Price Multiples
VTEX's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, VTEX is valued a bit cheaper than the industry average as 63.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.97 | ||
| EV/EBITDA | 20.56 |
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.
VTEX's earnings are expected to grow with 57.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)N/A
EPS Next 2Y64.36%
EPS Next 3Y57.43%
5. Dividend
5.1 Amount
VTEX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.08
+0.01 (+0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners35.6%
Inst Owner Change6.46%
Ins Owners1.68%
Ins Owner ChangeN/A
Market Cap742.40M
Analysts81.33
Price Target9.3 (127.94%)
Short Float %8.88%
Short Ratio3.85
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)80.39%
Min EPS beat(2)-37.25%
Max EPS beat(2)198.04%
EPS beat(4)1
Avg EPS beat(4)34.14%
Min EPS beat(4)-37.25%
Max EPS beat(4)198.04%
EPS beat(8)4
Avg EPS beat(8)50.16%
EPS beat(12)6
Avg EPS beat(12)32.64%
EPS beat(16)8
Avg EPS beat(16)26.61%
Revenue beat(2)1
Avg Revenue beat(2)-2%
Min Revenue beat(2)-4.42%
Max Revenue beat(2)0.43%
Revenue beat(4)1
Avg Revenue beat(4)-3.15%
Min Revenue beat(4)-4.44%
Max Revenue beat(4)0.43%
Revenue beat(8)3
Avg Revenue beat(8)-1.42%
Revenue beat(12)6
Avg Revenue beat(12)-0.94%
Revenue beat(16)8
Avg Revenue beat(16)-0.57%
PT rev (1m)-5.9%
PT rev (3m)-6.52%
EPS NQ rev (1m)10.41%
EPS NQ rev (3m)17.77%
EPS NY rev (1m)1.32%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)-2.2%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)-4.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.29 | ||
| Fwd PE | 23.97 | ||
| P/S | 3.22 | ||
| P/FCF | 21.97 | ||
| P/OCF | 21.33 | ||
| P/B | 2.97 | ||
| P/tB | 3.46 | ||
| EV/EBITDA | 20.56 |
EPS(TTM)0.07
EY1.72%
EPS(NY)0.17
Fwd EY4.17%
FCF(TTM)0.19
FCFY4.55%
OCF(TTM)0.19
OCFY4.69%
SpS1.27
BVpS1.38
TBVpS1.18
PEG (NY)0.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 5.34% | ||
| ROCE | 4.54% | ||
| ROIC | 3.59% | ||
| ROICexc | 14.56% | ||
| ROICexgc | 30.16% | ||
| OM | 5.52% | ||
| PM (TTM) | 5.8% | ||
| GM | 75.51% | ||
| FCFM | 14.66% |
ROA(3y)-5.13%
ROA(5y)-6.12%
ROE(3y)-6.69%
ROE(5y)-7.95%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
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 3Y6.8%
GM growth 5Y1.94%
F-Score8
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 27.43% | ||
| Cap/Sales | 0.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 212.3% | ||
| Profit Quality | 252.97% | ||
| Current Ratio | 3.31 | ||
| Quick Ratio | 3.31 | ||
| Altman-Z | 4.85 |
F-Score8
WACC9.23%
ROIC/WACC0.39
Cap/Depr(3y)21.4%
Cap/Depr(5y)35.19%
Cap/Sales(3y)0.45%
Cap/Sales(5y)0.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)343.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-38.46%
EPS Next Y77.4%
EPS Next 2Y64.36%
EPS Next 3Y57.43%
EPS Next 5YN/A
Revenue 1Y (TTM)4.51%
Revenue growth 3Y21.69%
Revenue growth 5Y29.9%
Sales Q2Q%3.98%
Revenue Next Year7.14%
Revenue Next 2Y11.09%
Revenue Next 3Y14.13%
Revenue Next 5Y10.92%
EBIT growth 1Y444.73%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year72.27%
EBIT Next 3Y58.49%
EBIT Next 5Y27.18%
FCF growth 1Y470.6%
FCF growth 3YN/A
FCF growth 5Y153.63%
OCF growth 1Y496.91%
OCF growth 3YN/A
OCF growth 5Y67.46%