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VITRU LTD (VTRU) Stock Fundamental Analysis

NASDAQ:VTRU - Nasdaq - KYG9440D1034 - Common Stock - Currency: USD

9.07  +0.22 (+2.48%)

After market: 4 -5.07 (-55.9%)

Fundamental Rating

5

Overall VTRU gets a fundamental rating of 5 out of 10. We evaluated VTRU against 73 industry peers in the Diversified Consumer Services industry. VTRU has an excellent profitability rating, but there are 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.


Dividend Valuation Growth Profitability Health

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7

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.
Of the past 5 years VTRU 4 years were profitable.
In the past 5 years VTRU always reported a positive cash flow from operatings.
VTRU Yearly Net Income VS EBIT VS OCF VS FCFVTRU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 500M -500M -1B -1.5B -2B

1.2 Ratios

VTRU has a Return On Assets (1.04%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 2.68%, VTRU is in the better half of the industry, outperforming 60.94% of the companies in the same industry.
VTRU has a Return On Invested Capital of 10.10%. 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 below the industry average of 12.00%.
The last Return On Invested Capital (10.10%) for VTRU is above the 3 year average (9.13%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.04%
ROE 2.68%
ROIC 10.1%
ROA(3y)2.71%
ROA(5y)1.03%
ROE(3y)5.22%
ROE(5y)1.27%
ROIC(3y)9.13%
ROIC(5y)7.55%
VTRU Yearly ROA, ROE, ROICVTRU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 5 -5 10 -10

1.3 Margins

VTRU has a Profit Margin of 3.00%. This is comparable to the rest of the industry: VTRU outperforms 59.38% of its industry peers.
In the last couple of years the Profit Margin of VTRU has declined.
VTRU's Operating Margin of 33.50% is amongst the best of the industry. VTRU outperforms 98.44% of its industry peers.
In the last couple of years the Operating Margin of VTRU has grown nicely.
The Gross Margin of VTRU (66.60%) is better than 76.56% of its industry peers.
In the last couple of years the Gross Margin of VTRU has grown nicely.
Industry RankSector Rank
OM 33.5%
PM (TTM) 3%
GM 66.6%
OM growth 3Y8.52%
OM growth 5Y28.56%
PM growth 3Y-17.95%
PM growth 5YN/A
GM growth 3Y4.74%
GM growth 5Y4.85%
VTRU Yearly Profit, Operating, Gross MarginsVTRU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 20 40 60

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2

2. Health

2.1 Basic Checks

VTRU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, VTRU has less shares outstanding
VTRU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VTRU has a worse debt to assets ratio.
VTRU Yearly Shares OutstandingVTRU Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 10M 20M 30M
VTRU Yearly Total Debt VS Total AssetsVTRU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

Based on the Altman-Z score of 1.08, we must say that VTRU is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VTRU (1.08) is comparable to the rest of the industry.
VTRU has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of VTRU (1.05) is worse than 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.05
Debt/FCF N/A
Altman-Z 1.08
ROIC/WACC0.64
WACC15.73%
VTRU Yearly LT Debt VS Equity VS FCFVTRU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 0 1B -1B 2B -2B

2.3 Liquidity

VTRU has a Current Ratio of 1.22. This is a normal value and indicates that VTRU is financially healthy and should not expect problems in meeting its short term obligations.
VTRU's Current ratio of 1.22 is in line compared to the rest of the industry. VTRU outperforms 48.44% of its industry peers.
A Quick Ratio of 1.22 indicates that VTRU should not have too much problems paying its short term obligations.
VTRU has a Quick ratio of 1.22. This is comparable to the rest of the industry: VTRU outperforms 48.44% of its industry peers.
Industry RankSector Rank
Current Ratio 1.22
Quick Ratio 1.22
VTRU Yearly Current Assets VS Current LiabilitesVTRU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 200M 400M 600M

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8

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 2.14% over the past year.
The Earnings Per Share has been growing by 12.58% on average over the past years. This is quite good.
Looking at the last year, VTRU shows a very strong growth in Revenue. The Revenue has grown by 27.72%.
VTRU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.62% yearly.
EPS 1Y (TTM)2.14%
EPS 3Y12.58%
EPS 5YN/A
EPS Q2Q%-84.84%
Revenue 1Y (TTM)27.72%
Revenue growth 3Y55.77%
Revenue growth 5Y38.62%
Sales Q2Q%13.53%

3.2 Future

Based on estimates for the next years, VTRU will show a very strong growth in Earnings Per Share. The EPS will grow by 22.32% on average per year.
The Revenue is expected to grow by 9.69% on average over the next years. This is quite good.
EPS Next Y21.68%
EPS Next 2Y17.47%
EPS Next 3Y31.76%
EPS Next 5Y22.32%
Revenue Next Year13.46%
Revenue Next 2Y13.58%
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.
VTRU Yearly Revenue VS EstimatesVTRU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B 2.5B
VTRU Yearly EPS VS EstimatesVTRU Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20

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8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 6.92, which indicates a rather cheap valuation of VTRU.
VTRU's Price/Earnings ratio is rather cheap when compared to the industry. VTRU is cheaper than 90.63% of the companies in the same industry.
When comparing the Price/Earnings ratio of VTRU to the average of the S&P500 Index (26.68), we can say VTRU is valued rather cheaply.
The Price/Forward Earnings ratio is 5.01, which indicates a rather cheap valuation of VTRU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VTRU indicates a rather cheap valuation: VTRU is cheaper than 93.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, VTRU is valued rather cheaply.
Industry RankSector Rank
PE 6.92
Fwd PE 5.01
VTRU Price Earnings VS Forward Price EarningsVTRU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

89.06% of the companies in the same industry are more expensive than VTRU, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 3.93
VTRU Per share dataVTRU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 -10

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)0.32
PEG (5Y)N/A
EPS Next 2Y17.47%
EPS Next 3Y31.76%

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0

5. Dividend

5.1 Amount

VTRU does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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VITRU LTD

NASDAQ:VTRU (6/6/2024, 8:10:24 PM)

After market: 4 -5.07 (-55.9%)

9.07

+0.22 (+2.48%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)05-13 2024-05-13/amc
Earnings (Next)08-08 2024-08-08/amc
Inst Owners0.06%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap304.21M
Analysts83.64
Price Target22.7 (150.28%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-10.4%
PT rev (3m)-13.31%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-16.43%
EPS NY rev (3m)-26.38%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.72%
Revenue NY rev (3m)-2.39%
Valuation
Industry RankSector Rank
PE 6.92
Fwd PE 5.01
P/S 0.81
P/FCF N/A
P/OCF 6.03
P/B 0.72
P/tB N/A
EV/EBITDA 3.93
EPS(TTM)1.31
EY14.44%
EPS(NY)1.81
Fwd EY19.96%
FCF(TTM)-1.9
FCFYN/A
OCF(TTM)1.5
OCFY16.58%
SpS11.24
BVpS12.57
TBVpS-11.43
PEG (NY)0.32
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.04%
ROE 2.68%
ROCE 12.79%
ROIC 10.1%
ROICexc 10.86%
ROICexgc 87.95%
OM 33.5%
PM (TTM) 3%
GM 66.6%
FCFM N/A
ROA(3y)2.71%
ROA(5y)1.03%
ROE(3y)5.22%
ROE(5y)1.27%
ROIC(3y)9.13%
ROIC(5y)7.55%
ROICexc(3y)10.69%
ROICexc(5y)9.95%
ROICexgc(3y)53.97%
ROICexgc(5y)85.37%
ROCE(3y)11.56%
ROCE(5y)9.56%
ROICexcg growth 3Y-35.93%
ROICexcg growth 5Y18.15%
ROICexc growth 3Y-12.84%
ROICexc growth 5Y23.98%
OM growth 3Y8.52%
OM growth 5Y28.56%
PM growth 3Y-17.95%
PM growth 5YN/A
GM growth 3Y4.74%
GM growth 5Y4.85%
F-Score6
Asset Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 1.05
Debt/FCF N/A
Debt/EBITDA 2.67
Cap/Depr 285.95%
Cap/Sales 30.23%
Interest Coverage 1.82
Cash Conversion 30.35%
Profit Quality N/A
Current Ratio 1.22
Quick Ratio 1.22
Altman-Z 1.08
F-Score6
WACC15.73%
ROIC/WACC0.64
Cap/Depr(3y)834.9%
Cap/Depr(5y)617.34%
Cap/Sales(3y)80.63%
Cap/Sales(5y)61.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.14%
EPS 3Y12.58%
EPS 5YN/A
EPS Q2Q%-84.84%
EPS Next Y21.68%
EPS Next 2Y17.47%
EPS Next 3Y31.76%
EPS Next 5Y22.32%
Revenue 1Y (TTM)27.72%
Revenue growth 3Y55.77%
Revenue growth 5Y38.62%
Sales Q2Q%13.53%
Revenue Next Year13.46%
Revenue Next 2Y13.58%
Revenue Next 3Y9.69%
Revenue Next 5YN/A
EBIT growth 1Y39.36%
EBIT growth 3Y69.04%
EBIT growth 5Y78.21%
EBIT Next Year105.6%
EBIT Next 3Y36.83%
EBIT Next 5YN/A
FCF growth 1Y-232.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y260.2%
OCF growth 3Y44.6%
OCF growth 5Y35.52%