Valid Soluções S.A.
Valid Soluções S.A. Fundamental Analysis
Valid Soluções S.A. (VSSPY) shows moderate financial fundamentals with a PE ratio of 6.56, profit margin of 12.68%, and ROE of 15.17%. The company generates $2.1B in annual revenue with weak year-over-year growth of -3.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze VSSPY's fundamental strength across five key dimensions:
Efficiency Score
WeakVSSPY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVSSPY trades at attractive valuation levels.
Growth Score
ModerateVSSPY shows steady but slowing expansion.
Financial Health Score
ExcellentVSSPY maintains a strong and stable balance sheet.
Profitability Score
ModerateVSSPY maintains healthy but balanced margins.
Key Financial Metrics
Is VSSPY Expensive or Cheap?
P/E Ratio
VSSPY trades at 6.56 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VSSPY's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values Valid Soluções S.A. at 1.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.05 times EBITDA. This is generally considered low.
How Well Does VSSPY Make Money?
Net Profit Margin
For every $100 in sales, Valid Soluções S.A. keeps $12.68 as profit after all expenses.
Operating Margin
Core operations generate 14.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.17 in profit for every $100 of shareholder equity.
ROA
Valid Soluções S.A. generates $8.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Valid Soluções S.A. produces operating cash flow of $410.73M, showing steady but balanced cash generation.
Free Cash Flow
Valid Soluções S.A. generates strong free cash flow of $326.45M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.16 in free cash annually.
FCF Yield
VSSPY converts 18.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.009
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How VSSPY Stacks Against Its Sector Peers
| Metric | VSSPY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.56 | 25.55 | Better (Cheaper) |
| ROE | 15.17% | 1262.00% | Weak |
| Net Margin | 12.68% | -42065.00% (disorted) | Strong |
| Debt/Equity | 0.46 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.42 | 10.09 | Strong Liquidity |
| ROA | 8.35% | -1502268.00% (disorted) | Weak |
VSSPY outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Valid Soluções S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-3.38%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
527.01%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
56.97%
Industry Style: Cyclical, Value, Infrastructure
High Growth