Taking everything into account, VTEX scores 5 out of 10 in our fundamental rating. VTEX was compared to 88 industry peers in the IT Services industry. VTEX is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. VTEX has a correct valuation and a medium growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

Looking at the Return On Assets, with a value of 4.65%, VTEX is in the better half of the industry, outperforming 67.05% of the companies in the same industry.
The Return On Equity of VTEX (6.81%) is comparable to the rest of the industry.
VTEX has a Return On Invested Capital (4.15%) which is in line with its industry peers.

		Industry Rank	Sector Rank
ROA	4.65%
ROE	6.81%
ROIC	4.15%

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

Looking at the Profit Margin, with a value of 7.03%, VTEX is in the better half of the industry, outperforming 70.45% of the companies in the same industry.
Looking at the Operating Margin, with a value of 5.99%, VTEX is in the better half of the industry, outperforming 61.36% of the companies in the same industry.
Looking at the Gross Margin, with a value of 76.21%, VTEX belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
In the last couple of years the Gross Margin of VTEX has grown nicely.

		Industry Rank	Sector Rank
OM	5.99%
PM (TTM)	7.03%
GM	76.21%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y6.8%

GM growth 5Y1.94%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VTEX is destroying value.
The number of shares outstanding for VTEX has been increased compared to 1 year ago.
The number of shares outstanding for VTEX has been reduced compared to 5 years ago.
The debt/assets ratio for VTEX has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 4.21 indicates that VTEX is not in any danger for bankruptcy at the moment.
VTEX's Altman-Z score of 4.21 is fine compared to the rest of the industry. VTEX outperforms 69.32% of its industry peers.
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	4.21

ROIC/WACC0.45

WACC9.29%

2.3 Liquidity

VTEX has a Current Ratio of 3.10. 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 3.10, VTEX is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
A Quick Ratio of 3.10 indicates that VTEX has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.10, VTEX is doing good in the industry, outperforming 79.55% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	3.1
Quick Ratio	3.1

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

VTEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 91.30%, which is quite impressive.
The Revenue has been growing slightly by 3.62% in the past year.
Measured over the past years, VTEX shows a very strong growth in Revenue. The Revenue has been growing by 29.90% on average per year.

EPS 1Y (TTM)91.3%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%100%

Revenue 1Y (TTM)3.62%

Revenue growth 3Y21.69%

Revenue growth 5Y29.9%

Sales Q2Q%6.45%

3.2 Future

The Earnings Per Share is expected to grow by 57.07% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.10% on average over the next years. This is quite good.

EPS Next Y107.46%

EPS Next 2Y71.12%

EPS Next 3Y57.07%

EPS Next 5YN/A

Revenue Next Year4.58%

Revenue Next 2Y7.92%

Revenue Next 3Y9.49%

Revenue Next 5Y9.1%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 37.56, VTEX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of VTEX is on the same level as its industry peers.
When comparing the Price/Earnings ratio of VTEX to the average of the S&P500 Index (27.25), we can say VTEX is valued slightly more expensively.
A Price/Forward Earnings ratio of 18.32 indicates a rather expensive valuation of VTEX.
Based on the Price/Forward Earnings ratio, VTEX is valued a bit cheaper than 64.77% of the companies in the same industry.
VTEX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	37.56
Fwd PE	18.32

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VTEX is valued a bit cheaper than 73.86% of the companies in the same industry.
68.18% of the companies in the same industry are more expensive than VTEX, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	17.89
EV/EBITDA	12.24

4.3 Compensation for Growth

VTEX's 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 57.07% in the coming years. This may justify a more expensive valuation.