VITRU LTD (VTRU)
KYG9440D1034 - Common Stock
We assign a fundamental rating of 5 out of 10 to VTRU. VTRU was compared to 65 industry peers in the Diversified Consumer Services industry. While VTRU has a great profitability rating, there are quite some concerns on its financial health. An interesting combination arises when we look at growth and value: VTRU is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
VTRU had positive earnings in the past year.
In the past year VTRU had a positive cash flow from operations.
VTRU had positive earnings in 4 of the past 5 years.
In the past 5 years VTRU always reported a positive cash flow from operatings.
1.2 Ratios
VTRU has a better Return On Assets (1.85%) than 65.63% of its industry peers.
Looking at the Return On Equity, with a value of 4.76%, VTRU is in the better half of the industry, outperforming 67.19% of the companies in the same industry.
VTRU has a Return On Invested Capital of 9.77%. This is amongst the best in the industry. VTRU outperforms 84.38% of its industry peers.
VTRU had an Average Return On Invested Capital over the past 3 years of 9.13%. This is significantly below the industry average of 15.00%.
The 3 year average ROIC (9.13%) for VTRU is below the current ROIC(9.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 4.76% | ||
| ROIC | 9.77% |
ROA(3y)2.71%
ROA(5y)1.03%
ROE(3y)5.23%
ROE(5y)1.27%
ROIC(3y)9.13%
ROIC(5y)7.55%
1.3 Margins
With a decent Profit Margin value of 5.54%, VTRU is doing good in the industry, outperforming 68.75% of the companies in the same industry.
In the last couple of years the Profit Margin of VTRU has declined.
Looking at the Operating Margin, with a value of 33.90%, VTRU belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
VTRU's Operating Margin has improved in the last couple of years.
VTRU has a better Gross Margin (65.89%) than 76.56% of its industry peers.
VTRU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.9% | ||
| PM (TTM) | 5.54% | ||
| GM | 65.89% |
OM growth 3Y8.52%
OM growth 5Y28.56%
PM growth 3Y-17.94%
PM growth 5YN/A
GM growth 3Y4.74%
GM growth 5Y4.85%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VTRU is destroying value.
VTRU has less shares outstanding than it did 1 year ago.
VTRU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VTRU has a worse debt to assets ratio.
2.2 Solvency
VTRU has an Altman-Z score of 1.65. This is a bad value and indicates that VTRU is not financially healthy and even has some risk of bankruptcy.
VTRU has a Altman-Z score (1.65) which is in line with its industry peers.
A Debt/Equity ratio of 1.01 is on the high side and indicates that VTRU has dependencies on debt financing.
VTRU has a worse Debt to Equity ratio (1.01) than 73.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.65 |
ROIC/WACC0.63
WACC15.48%
2.3 Liquidity
A Current Ratio of 1.18 indicates that VTRU should not have too much problems paying its short term obligations.
VTRU's Current ratio of 1.18 is in line compared to the rest of the industry. VTRU outperforms 48.44% of its industry peers.
VTRU has a Quick Ratio of 1.18. This is a normal value and indicates that VTRU is financially healthy and should not expect problems in meeting its short term obligations.
VTRU has a Quick ratio (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.14% over the past year.
VTRU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.90% yearly.
Looking at the last year, VTRU shows a very strong growth in Revenue. The Revenue has grown by 48.98%.
The Revenue has been growing by 38.62% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)2.14%
EPS 3Y9.9%
EPS 5YN/A
EPS growth Q2Q-85.58%
Revenue 1Y (TTM)48.98%
Revenue growth 3Y55.77%
Revenue growth 5Y38.62%
Revenue growth Q2Q18.13%
3.2 Future
VTRU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.32% yearly.
VTRU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.69% yearly.
EPS Next Y45.59%
EPS Next 2Y50.71%
EPS Next 3Y31.76%
EPS Next 5Y22.32%
Revenue Next Year16.64%
Revenue Next 2Y13.09%
Revenue Next 3Y9.69%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
VTRU is valuated reasonably with a Price/Earnings ratio of 9.20.
Based on the Price/Earnings ratio, VTRU is valued cheaper than 89.06% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.80, VTRU is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.34, the valuation of VTRU can be described as very cheap.
96.88% of the companies in the same industry are more expensive than VTRU, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, VTRU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.2 | ||
| Fwd PE | 6.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VTRU indicates a rather cheap valuation: VTRU is cheaper than 89.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.92 |
4.3 Compensation for Growth
VTRU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of VTRU may justify a higher PE ratio.
A more expensive valuation may be justified as VTRU's earnings are expected to grow with 31.76% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y50.71%
EPS Next 3Y31.76%
5. Dividend
5.1 Amount
VTRU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VITRU LTD
NASDAQ:VTRU (4/18/2024, 3:30:03 PM)
12.33
-0.52 (-4.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap413.55M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.2 | ||
| Fwd PE | 6.34 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 4.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 33.9% | ||
| PM (TTM) | 5.54% | ||
| GM | 65.89% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)2.14%
EPS 3Y9.9%
EPS 5Y
EPS growth Q2Q
EPS Next Y45.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)48.98%
Revenue growth 3Y55.77%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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