Controladora Vuela Compañía de Aviación, S.A.B. de C.V.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. Fundamental Analysis
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) shows weak financial fundamentals with a PE ratio of -17.32, profit margin of -2.07%, and ROE of -20.74%. The company generates $3.0B in annual revenue with weak year-over-year growth of -3.59%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -15.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VLRS's fundamental strength across five key dimensions:
Efficiency Score
WeakVLRS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVLRS trades at attractive valuation levels.
Growth Score
ModerateVLRS shows steady but slowing expansion.
Financial Health Score
WeakVLRS carries high financial risk with limited liquidity.
Profitability Score
WeakVLRS struggles to sustain strong margins.
Key Financial Metrics
Is VLRS Expensive or Cheap?
P/E Ratio
VLRS trades at -17.32 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VLRS's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values Controladora Vuela Compañía de Aviación, S.A.B. de C.V. at 4.10 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -3.56 times EBITDA. This is generally considered low.
How Well Does VLRS Make Money?
Net Profit Margin
For every $100 in sales, Controladora Vuela Compañía de Aviación, S.A.B. de C.V. keeps $-2.07 as profit after all expenses.
Operating Margin
Core operations generate 5.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-20.74 in profit for every $100 of shareholder equity.
ROA
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. generates $-1.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. generates strong operating cash flow of $755.05M, reflecting robust business health.
Free Cash Flow
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. generates strong free cash flow of $530.86M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.62 in free cash annually.
FCF Yield
VLRS converts 49.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-17.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
14.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.21
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How VLRS Stacks Against Its Sector Peers
| Metric | VLRS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -17.32 | 26.49 | Better (Cheaper) |
| ROE | -20.74% | 1307.00% | Weak |
| Net Margin | -2.07% | -5131.00% (disorted) | Weak |
| Debt/Equity | 14.75 | 0.81 | Weak (High Leverage) |
| Current Ratio | 0.67 | 10.48 | Weak Liquidity |
| ROA | -1.09% | -1549792.00% (disorted) | Weak |
VLRS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Controladora Vuela Compañía de Aviación, S.A.B. de C.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.57%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-20.49%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
91.69%
Industry Style: Cyclical, Value, Infrastructure
High Growth