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Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR (VTMX)
:VTMX
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Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR
(NYSE:VTMX)78Outperform
Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR (VTMX) vs. S&P 500 (SPY)
Market Cap
$2.15B
Dividend Yield2.51%
Average Volume (3M)311.33K
Price to Earnings (P/E)9.7
Beta (1Y)0.83
Revenue Growth16.66%
EPS Growth5.84%
CountryUS
Employees95
SectorReal Estate
Sector Strength72
IndustryReal Estate
Share Statistics
EPS (TTM)2.53
Shares Outstanding88,248,726
10 Day Avg. Volume351,342
30 Day Avg. Volume311,335
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)N/A
Price to Sales (P/S)10.17
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$34.00Price Target Upside37.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR Business Overview & Revenue Model
Company DescriptionCorporacion Inmobiliaria Vesta S.A.B. de C.V. ADR (VTMX) is a leading real estate company that specializes in the development, acquisition, and management of industrial properties in Mexico. The company primarily focuses on creating industrial parks and logistic facilities, catering to various sectors, including manufacturing, logistics, and distribution. Vesta is known for its strategic locations and high-quality infrastructure, serving the needs of multinational and domestic companies seeking efficient industrial spaces.
How the Company Makes MoneyCorporacion Inmobiliaria Vesta S.A.B. de C.V. earns revenue primarily through leasing its industrial properties to tenants. The company generates a stable income stream by signing long-term lease agreements with businesses operating in manufacturing, logistics, and distribution sectors. Additional revenue is derived from property management services, ensuring the upkeep and operational efficiency of the facilities. Vesta's growth strategy includes acquiring and developing new properties to expand its portfolio, which is a significant factor contributing to its earnings. Strategic partnerships and alliances with major corporations further bolster its revenue potential by ensuring high occupancy rates and attracting new clients to its industrial parks.
Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR Financial Statement Overview
Summary
Corporacion Inmobiliaria Vesta S.A.B. de C.V. demonstrates strong financial performance with robust profitability and efficiency, as indicated by high profit margins and effective equity utilization. The company has a stable capital structure with moderate leverage. However, there is a noted decline in free cash flow growth, which presents potential challenges. Overall, the company's financial health appears solid with strong growth potential.Income Statement
Corporacion Inmobiliaria Vesta S.A.B. de C.V. has shown strong revenue growth with a 12.89% increase in the TTM vs. the previous annual report. The company maintains a robust gross profit margin of 90.88% and an impressive net profit margin of 165.24%, indicating high profitability. The EBIT margin stands strong at 81.25%, with the EBITDA margin even stronger at 203.50%. These metrics suggest a high level of efficiency and profitability in operations.85
Very Positive
Balance Sheet
The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.32, indicating moderate leverage. The return on equity is strong at 14.86%, showcasing effective utilization of equity in generating profits. The equity ratio of 68.47% suggests a sound capital structure with a healthy equity base relative to assets, reducing risk exposure.78
Positive
Cash Flow
The cash flow analysis reveals a decline in free cash flow growth by 34.75% in the TTM, indicating potential challenges in cash generation. However, the operating cash flow to net income ratio is favorable at 0.24, and the free cash flow to net income ratio is 0.23, demonstrating reasonable cash earnings conversion despite the decline.72
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 242.09M | 214.47M | 178.03M | 160.79M | 150.19M | 144.91M | Gross Profit |
| 220.05M | 196.23M | 166.60M | 150.06M | 138.53M | 135.31M | EBIT |
| 196.72M | 164.70M | 143.32M | 123.06M | 121.31M | 117.74M | EBITDA |
| 492.42M | 429.51M | 144.79M | 124.66M | 122.79M | 80.20M | Net Income Common Stockholders |
| 399.04M | 316.64M | 243.62M | 173.94M | 66.25M | 132.86M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 501.09M | 501.09M | 139.06M | 452.80M | 120.55M | 75.06M | Total Assets |
| 3.79B | 3.79B | 2.95B | 2.76B | 2.25B | 2.09B | Total Debt |
| 916.08M | 916.08M | 932.00M | 934.91M | 840.54M | 715.53M | Net Debt |
| 414.99M | 414.99M | 792.95M | 482.11M | 719.99M | 640.47M | Total Liabilities |
| 1.31B | 1.31B | 1.31B | 1.31B | 1.15B | 982.48M | Stockholders Equity |
| 2.49B | 2.49B | 1.64B | 1.45B | 1.11B | 1.11B |
| Cash Flow | Free Cash Flow | ||||
| 93.13M | 142.72M | 64.99M | 107.71M | 61.15M | 60.15M | Operating Cash Flow |
| 95.10M | 144.80M | 65.21M | 107.93M | 61.98M | 61.75M | Investing Cash Flow |
| -170.60M | -223.07M | -262.16M | 15.95M | -73.39M | 1.19M | Financing Cash Flow |
| -58.01M | 444.74M | -119.78M | 212.54M | 55.64M | -52.96M |
Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR Technical Analysis
Negative
24.66
Price Trends
25.17
Negative
25.15
Negative
27.20
Negative
Market Momentum
-0.44
Positive
45.81
Neutral
86.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTMX, the sentiment is Negative. The current price of 24.66 is below the 20-day moving average (MA) of 24.81, below the 50-day MA of 25.17, and below the 200-day MA of 27.20, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 45.81 is Neutral, neither overbought nor oversold. The STOCH value of 86.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VTMX.
Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $113.94B | 29.93 | 6.97% | 3.20% | 2.22% | 23.71% | |
80 Outperform | $7.82B | 26.50 | 10.99% | 2.57% | 9.06% | 4.57% | |
79 Outperform | $7.00B | 35.49 | 5.53% | 4.02% | 8.41% | -2.96% | |
78 Outperform | $2.15B | 9.66 | 8.75% | 2.51% | 16.66% | 5.84% | |
74 Outperform | $9.22B | 33.62 | 3.38% | 4.13% | 17.48% | 7.45% | |
73 Outperform | $9.59B | 39.61 | 7.72% | 2.90% | 12.35% | 5.59% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% |
* Real Estate Sector Average
Performance Comparison
VTMX
Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR
24.31
-11.78
-32.64%
EGP
Eastgroup Properties
181.10
6.39
3.66%
PLD
Prologis
117.87
-12.02
-9.25%
STAG
Stag Industrial
36.78
0.16
0.44%
FR
First Industrial Realty
55.84
4.36
8.47%
REXR
Rexford Industrial Realty
39.69
-11.34
-22.22%
Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -8.05% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
Vesta demonstrated strong financial performance and strategic planning with significant leasing activity and revenue growth. However, there are challenges in specific markets like Monterrey and the North region, alongside some construction delays. The strategic initiatives and financial strength position Vesta well for future growth despite these hurdles.Highlights
Route 2030 Strategic Plan Unveiled
Vesta launched its Route 2030 strategic plan, focusing on investment, growth, profitability, and ambitious Net Zero and ESG objectives.
Record Leasing Activity
Leasing activity reached 7.7 million square feet for the full year, with 3.5 million square feet in new leases, 80% of which were with current best-in-class tenants.
Exceptional Financial Performance
Full year 2024 revenue was $152.3 million, a 17.7% increase year-over-year, with a 94.6% NOI margin and an 83.5% EBITDA margin.
Strong FFO Growth
Vesta FFO ended 2024 at $160.1 million, a 25.2% increase compared to $127.9 million in 2023.
Sustainability-Linked Credit Facility
Secured a global syndicated sustainability-linked credit facility for $545 million to ensure continued access to strategic liquidity.
High Dollar-Denominated Revenue
89% of 2024 revenues were dollar-denominated, providing a competitive advantage and financial stability.
Strategic Land Acquisitions
Acquired land in strategic locations like Guadalajara and Ciudad Juarez to support long-term growth.
Lowlights
Monterrey Market Concerns
Monterrey market faced excess capacity issues. Vesta has 1.1 million square feet under development, raising concerns about leasing activity.
Northern Mexico Market Weakness
Pressure in stabilized portfolio occupancy in the North region, particularly in Tijuana and Ciudad Juarez, due to a slowdown in demand.
Construction Delays
Minor delays in the Apodaca project in Monterrey due to upgrades and expanded size of buildings, impacting timing but not expected income.
Pre-Tax Income Decline
Fourth quarter pre-tax income decreased to $81.2 million from $99.8 million in 2023 due to lower gains on revaluation of investment properties.
Company Guidance
During the Vesta Fourth Quarter 2024 Earnings Conference Call, management provided guidance for the upcoming year, highlighting several key metrics and expectations. The company anticipates a more muted performance in 2025 due to ongoing industry challenges but remains optimistic about opportunities in Mexico, particularly with the $1.4 billion nearshoring incentive package announced by President Sheinbaum. Vesta's 2024 leasing activity reached 7.7 million square feet, with 3.5 million square feet from new leases and an 8.4% increase in rent spreads. The company's financial results for 2024 included a 17.7% year-over-year revenue increase to $152.3 million, with an adjusted NOI margin of 94.6% and an EBITDA margin of 83.5%. Vesta's FFO grew by 25.2% to $160.1 million. The company's development pipeline includes 2.8 million square feet under construction, with an estimated investment of $214.1 million and a 10.9% yield on cost. Vesta also secured a $545 million global syndicated sustainability-linked credit facility to support its strategic initiatives. The company is poised to continue its strategic investments, focusing on land acquisition and development while maintaining a disciplined approach to tenant selection and lease agreements.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.