Vasta Platform Limited Fundamental Analysis (NASDAQ: VSTA)
Vasta Platform Limited Fundamental Analysis (NASDAQ: VSTA)
Vasta Platform Limited (NASDAQ: VSTA) shows weak financial fundamentals with a PE ratio of -16.80, profit margin of -11.48%, and ROE of -2.42%. The company generates $1.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VSTA's fundamental strength across five key dimensions:
Efficiency Score
WeakVSTA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVSTA trades at attractive valuation levels.
Growth Score
ModerateVSTA shows steady but slowing expansion.
Financial Health Score
ExcellentVSTA maintains a strong and stable balance sheet.
Profitability Score
WeakVSTA struggles to sustain strong margins.
Key Financial Metrics
Is VSTA Expensive or Cheap?
P/E Ratio
VSTA trades at -16.80 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VSTA's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Vasta Platform Limited at 0.41 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.24 times EBITDA. This is generally considered low.
How Well Does VSTA Make Money?
Net Profit Margin
For every $100 in sales, Vasta Platform Limited keeps $-11.48 as profit after all expenses.
Operating Margin
Core operations generate 1.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.42 in profit for every $100 of shareholder equity.
ROA
Vasta Platform Limited generates $-1.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Vasta Platform Limited generates strong operating cash flow of $267.95M, reflecting robust business health.
Free Cash Flow
Vasta Platform Limited generates strong free cash flow of $193.67M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.41 in free cash annually.
FCF Yield
VSTA converts 9.66% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-16.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.02
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.003
vs 25 benchmark
How VSTA Stacks Against Its Sector Peers
| Metric | VSTA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -16.80 | 19.57 | Better (Cheaper) |
| ROE | -2.42% | 675.00% | Weak |
| Net Margin | -11.48% | -3840.00% (disorted) | Weak |
| Debt/Equity | 0.25 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.50 | 2.39 | Neutral |
| ROA | -1.72% | 1251.00% | Weak |
VSTA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Vasta Platform Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility