Controladora Vuela Compañía de Aviación SAB de CV (VOLARA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Controladora Vuela Compañía de Aviación SAB de CV

Why is Controladora Vuela Compañía de Aviación SAB de CV ?

High Debt company with Weak Long Term Fundamental Strength

The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 19.39% signifying low profitability per unit of shareholders funds

The company has declared negative results for the last 7 consecutive quarters

The company has declared negative results in Dec 24 after 4 consecutive negative quarters
ROCE(HY) Lowest at -109.37%
INTEREST COVERAGE RATIO(Q) Lowest at 41.98
RAW MATERIAL COST(Y) Grown by 260.47% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 30.99%, its profits have fallen by -403%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Airline)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Controladora Vuela Compañía de Aviación SAB de CV for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Controladora Vuela Compañía de Aviación SAB de CV

-100.0%

0.19

47.22%

Mexico IPC

14.41%

0.77

19.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.69%

EBIT Growth (5y)

8.81%

EBIT to Interest (avg)

0.61

Debt to EBITDA (avg)

0.27

Net Debt to Equity (avg)

0.95

Sales to Capital Employed (avg)

2.26

Tax Ratio

5.16%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

147.97%

ROE (avg)

19.39%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

5.19

EV to EBIT

-15.10

EV to EBITDA

2.44

EV to Capital Employed

2.51

EV to Sales

0.45

PEG Ratio

Dividend Yield

ROCE (Latest)

-16.60%

ROE (Latest)

-61.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at MXN 16,548.44 MM

-24What is not working for the Company

ROCE(HY)

Lowest at -109.37%

INTEREST COVERAGE RATIO(Q)

Lowest at 41.98

RAW MATERIAL COST(Y)

Grown by 260.47% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 4,496.79 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.93 times

OPERATING PROFIT(Q)

Lowest at MXN 591.44 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.96 %

PRE-TAX PROFIT(Q)

Lowest at MXN -3,218.11 MM

NET PROFIT(Q)

Lowest at MXN -2,209.19 MM

EPS(Q)

Lowest at MXN -1.92

Here's what is working for Controladora Vuela Compañía de Aviación SAB de CV

Operating Cash Flow

Highest at MXN 16,548.44 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (MXN MM)

Here's what is not working for Controladora Vuela Compañía de Aviación SAB de CV

Pre-Tax Profit

At MXN -3,218.11 MM has Fallen at -89.44%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (MXN MM)

Net Profit

At MXN -2,209.19 MM has Fallen at -79.59%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (MXN MM)

Interest Coverage Ratio

Lowest at 41.98

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at MXN 591.44 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (MXN MM)

Operating Profit Margin

Lowest at 3.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at MXN -3,218.11 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (MXN MM)

Net Profit

Lowest at MXN -2,209.19 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (MXN MM)

EPS

Lowest at MXN -1.92

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (MXN)

Debt-Equity Ratio

Highest at 4,496.79 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 11.93 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 260.47% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales