Vasta Platform (VSTA) AI Stock Analysis

• Market Cap: $399.41M
• Dividend Yield: N/A
• Average Volume (3M): 50.04K
• Price to Earnings (P/E): 4.8
• Beta (1Y): -0.21
• Revenue Growth: 0.46%
• EPS Growth: N/A
• Country: US
• Employees: 1,808
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): -0.14
• Shares Outstanding: 15,765,930
• 10 Day Avg. Volume: 36,238
• 30 Day Avg. Volume: 50,042
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 21.06
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: $5.50 ▲(10.89% Upside)

Vasta Platform's strong financial performance and positive earnings call are the most significant factors driving its high score. The company's robust revenue growth, profitability, and strategic expansion plans are complemented by an attractive valuation. Technical indicators support a positive trend, though potential overbought conditions should be monitored. Overall, Vasta is well-positioned for continued growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Performance

Significant improvement in free cash flow enhances financial flexibility, enabling investment in growth opportunities and debt reduction.

Decreased Leverage

Reduced leverage improves financial stability and lowers risk, allowing for more strategic investments and operational resilience.

Negative Factors

EBITDA Margin Decrease

A decline in EBITDA margin may indicate rising costs or pricing pressures, potentially impacting profitability if not addressed.

Gross Margin Decline

Decreasing gross margin suggests cost management challenges, which could affect long-term profitability if not mitigated.

Operational Cash Flow Efficiency

Low operational cash flow efficiency may limit reinvestment capabilities, necessitating improvements to sustain growth momentum.

Vasta Platform Business Overview & Revenue Model

Company Description

Vasta Platform (VSTA) is a leading technology company focused on providing innovative solutions for the education sector. The company operates primarily in the digital education and e-learning markets, offering a range of products and services designed to enhance learning experiences for students and educators alike. Vasta's core offerings include digital content, learning management systems, and educational software that facilitate personalized learning and improve educational outcomes.

How the Company Makes Money

Vasta Platform generates revenue through several key streams. Primarily, the company earns money by selling its educational software and digital content licenses to schools, universities, and educational institutions. Additionally, Vasta partners with various educational organizations to offer tailored solutions and services, which further contributes to its revenue. The company may also receive income from subscription models for ongoing access to its learning management systems. Furthermore, Vasta's strategic partnerships with technology providers and content creators enhance its offerings, allowing it to expand its customer base and drive additional sales.

Vasta Platform Financial Statement Overview

Summary

Vasta Platform demonstrates strong financial health with robust revenue growth and profitability. The balance sheet is solid, with low leverage and a strong equity base. Cash flow generation is improving, though there is a need to enhance operational cash flow efficiency. Overall, the company is well-positioned for future growth, but should continue to monitor cost management and cash flow sustainability.

Income Statement

Vasta Platform shows strong revenue growth with a TTM increase of 1.72% and consistent profitability, evidenced by a solid net profit margin of 27.57% and an EBIT margin of 31.17%. The gross profit margin remains robust at 60.18%, indicating efficient cost management. However, the slight decrease in gross profit margin from previous periods suggests potential cost pressures.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.24, reflecting prudent financial leverage. The equity ratio stands at a strong 70.20%, indicating a solid capital structure. Return on equity is moderate at 9.76%, suggesting effective use of shareholder funds, though there is room for improvement in profitability.

Cash Flow

Vasta Platform's cash flow position is improving, with a notable free cash flow growth rate of 16.61% TTM. The operating cash flow to net income ratio is 0.22, indicating adequate cash generation relative to profits. However, the free cash flow to net income ratio of 0.65 suggests some reliance on non-operating cash flows, which could pose risks if not managed carefully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.74B	1.67B	1.49B	1.26B	947.42M	997.63M
Gross Profit	1.06B	1.02B	915.37M	791.14M	550.59M	619.63M
EBITDA	844.89M	606.80M	459.99M	423.49M	163.07M	201.54M
Net Income	488.28M	486.49M	-83.77M	-54.57M	-118.75M	-45.65M
Balance Sheet
Total Assets	6.95B	7.21B	7.40B	7.52B	7.33B	1.34B
Cash, Cash Equivalents and Short-Term Investments	390.87M	195.84M	341.81M	426.28M	476.24M	154.45M
Total Debt	1.20B	1.18B	1.15B	1.14B	1.09B	190.08M
Total Liabilities	2.07B	2.21B	2.88B	2.89B	2.67B	422.19M
Stockholders Equity	4.88B	4.99B	4.52B	4.63B	4.67B	921.28M
Cash Flow
Free Cash Flow	198.93M	47.17M	92.02M	23.11M	-98.40M	171.03M
Operating Cash Flow	292.16M	175.44M	218.85M	174.84M	-21.61M	215.46M
Investing Cash Flow	-213.78M	30.91M	44.69M	-394.94M	88.47M	-541.78M
Financing Cash Flow	-172.12M	-217.68M	-213.44M	-44.03M	-68.12M	594.18M

Vasta Platform Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VSTA, the sentiment is Positive. The current price of 4.96 is above the 20-day moving average (MA) of 4.95, above the 50-day MA of 4.95, and above the 200-day MA of 4.47, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 88.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VSTA.

Vasta Platform Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VSTA	81 Outperform	$399.41M	4.83	9.60%	―	0.46%	―
STG	68 Neutral	$81.22M	1.53	51.70%	―	-0.84%	-11.01%
IH	68 Neutral	$113.99M	7.84	11.71%	3.83%	-8.09%	-15.28%
QSG	68 Neutral	―	―	54.10%	―	-28.03%	-5.31%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VSA	51 Neutral	$57.75K	―	―	―	―	―
SKIL	40 Underperform	$67.79M	-0.49	-215.67%	―	-3.55%	61.83%

Vasta Platform Corporate Events

Vasta Platform Reports Strong Financial Growth in 2025 Sales Cycle

Vasta Platform Limited reported a 13.6% increase in net revenue for the 2025 sales cycle, reaching R$1,737 million, driven by the conversion of Annual Contract Value bookings into revenue and growth in the public-school sector. The company also saw a 14.3% rise in subscription revenue and a 25.3% increase in complementary solutions revenue. Despite a slight decrease in Adjusted EBITDA Margin, the Adjusted EBITDA grew by 9.9% to R$494 million. Free cash flow saw a substantial increase of 116.6%, and the company continued to focus on deleveraging and cash generation. The Start-Anglo bilingual schools expanded with six operating schools and 53 franchise contracts signed, indicating strong future growth potential.