Vasta Platform (VSTA) AI Stock Analysis

• Market Cap: $397.00M
• Dividend Yield: N/A
• Average Volume (3M): 42.94K
• Price to Earnings (P/E): 5.2
• Beta (1Y): -0.33
• Revenue Growth: -7.36%
• EPS Growth: N/A
• Country: US
• Employees: 1,808
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): -0.08
• Shares Outstanding: 15,765,930
• 10 Day Avg. Volume: 78,723
• 30 Day Avg. Volume: 42,936
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 0.46
• Enterprise Value/Ebitda: 0.68
• 1Y Price Target: $5.20
• Price Target Upside: 5.05% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $5.50 ▲(11.11% Upside)

Vasta Platform's strong financial performance and positive earnings call sentiment are the primary drivers of its score. The stock's undervaluation further supports its attractiveness. However, technical indicators suggest caution due to overbought conditions, and attention to debt management is advised.

Positive Factors

Revenue Growth

Sustained double-digit growth in subscription revenue indicates strong market demand and effective business strategy, supporting long-term revenue expansion.

Cash Flow Improvement

Significant increase in free cash flow enhances financial flexibility, allowing for reinvestment in growth initiatives and debt reduction.

Deleveraging Success

Successful deleveraging reduces financial risk and interest expenses, improving the company's balance sheet and long-term financial health.

Negative Factors

Decline in B2G Revenue

A significant decline in B2G revenue suggests challenges in this segment, potentially affecting diversification and growth opportunities.

Adjusted Net Losses

Ongoing net losses indicate profitability challenges, which could strain financial resources and impact long-term sustainability if not addressed.

Gross Margin Decline

A decline in gross margin may signal cost pressures or pricing challenges, potentially impacting profitability and competitive positioning.

Vasta Platform Business Overview & Revenue Model

Company Description

Vasta Platform Limited, an education company, provides educational printed and digital solutions to private schools operating in the K-12 education sector in Brazil. The company operates in two segments, Content & EdTech Platform and Digital Platform. The Content & EdTech Platform segment offers core and complementary educational content solutions through digital and printed content, including textbooks, learning systems, and other complimentary educational services. The Digital Platform segment provides physical and digital e-commerce platforms, and other digital services. As of December 31, 2021, it had 4,508 partner schools with 1,335 thousand students. The company also sells textbooks, as well as operates an e-commerce channel for the sale of educational content, such as textbooks, school materials, stationery, and others; and offers university admission preparatory exam courses. It serves various stakeholders, including students, parents, educators, administrators, and private school owners. The company was founded in 1966 and is headquartered in São Paulo, Brazil.

How the Company Makes Money

Vasta Platform generates revenue primarily through the sale of educational content and learning systems to private schools. Its key revenue streams include subscription fees from its digital platforms, sales of printed and digital educational content, and service fees for training and consulting services offered to schools. The company also benefits from strategic partnerships with educational institutions and leveraging its vast network to expand its market reach, thus contributing to its earnings.

Vasta Platform Financial Statement Overview

Summary

Vasta Platform demonstrates strong growth and profitability metrics, supported by a stable balance sheet and improving cash flow. Revenue growth and healthy margins are positive, but attention is needed on maintaining profitability and managing debt levels.

Income Statement

Vasta Platform shows a strong revenue growth trajectory with a 3.9% increase in TTM, supported by solid gross and net profit margins of 60.18% and 28.05%, respectively. The EBIT and EBITDA margins are healthy, indicating efficient operational management. However, the slight decline in net income from the previous annual report suggests potential volatility in profitability.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.24, indicating conservative leverage. The return on equity is modest at 9.80%, reflecting decent profitability relative to shareholder equity. The equity ratio is strong, suggesting a solid capital structure. However, the slight increase in debt levels over time could pose future risks.

Cash Flow

Vasta Platform's cash flow performance is improving, with a notable 31.44% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 0.18, indicating adequate cash generation relative to net income. However, the free cash flow to net income ratio of 0.59 suggests room for improvement in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71B	1.67B	1.49B	1.26B	947.42M	997.60M
Gross Profit	1.03B	1.02B	915.37M	791.14M	550.59M	619.60M
EBITDA	699.77M	606.80M	459.99M	423.49M	163.07M	201.54M
Net Income	470.90M	486.49M	-83.77M	-54.57M	-118.75M	-45.60M
Balance Sheet
Total Assets	7.10B	7.21B	7.40B	7.52B	7.33B	6.98B
Cash, Cash Equivalents and Short-Term Investments	315.20M	195.84M	341.81M	426.28M	476.24M	802.30M
Total Debt	1.18B	1.18B	1.15B	1.14B	991.77M	987.50M
Total Liabilities	2.16B	2.21B	2.88B	2.89B	2.67B	2.19B
Stockholders Equity	4.93B	4.99B	4.52B	4.63B	4.67B	4.79B
Cash Flow
Free Cash Flow	170.60M	47.17M	92.02M	26.47M	-96.83M	156.66M
Operating Cash Flow	264.16M	175.44M	218.85M	174.97M	-20.04M	201.10M
Investing Cash Flow	-115.06M	30.91M	44.69M	-396.09M	88.47M	-541.78M
Financing Cash Flow	-185.72M	-217.68M	-213.44M	-43.01M	-69.69M	608.55M

Vasta Platform Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 4.95 is above the 20-day moving average (MA) of 4.71, above the 50-day MA of 4.40, and above the 200-day MA of 3.76, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 72.22 is Negative, neither overbought nor oversold. The STOCH value of 88.26 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	71 Outperform	$397.00M	5.16	8.67%	―	-7.36%	―
APEI	71 Outperform	696.31M	36.53	10.51%	―	5.50%	338.59%
COUR	70 Neutral	1.92B	-36.72	-13.31%	―	7.10%	49.18%
UDMY	64 Neutral	1.06B	-34.01	-13.13%	―	3.93%	63.52%
DAO	58 Neutral	1.13B	35.44	-3.84%	―	-1.66%	―
GOTU	52 Neutral	779.90M	-8.35	-54.25%	―	56.38%	-16.84%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Vasta Platform Corporate Events

Vasta Platform Announces AGM Results

On September 5, 2025, Vasta Platform Limited announced that all resolutions outlined in its Notice of Annual General Meeting dated August 15, 2025, were approved at the meeting held on the same day. This development underscores Vasta’s commitment to its strategic goals and may influence its operations and market positioning positively, benefiting stakeholders including students, educators, and school administrators.

Vasta Platform Schedules AGM for September 2025

Vasta Platform Limited has announced its Annual General Meeting (AGM) scheduled for September 5, 2025, in São Paulo, Brazil. The meeting will address the approval of the company’s financial statements for the fiscal year ending December 31, 2024, and the appointment of Guilherme Alves Mélega as a director. Shareholders are encouraged to participate and vote on these resolutions, which are crucial for the company’s governance and strategic direction.

Vasta Platform Reports Strong Q2 2025 Financial Performance

On August 6, 2025, Vasta Platform Limited announced its financial results for the second quarter of 2025, revealing a 14% increase in net revenue to R$1,488 million for the 2025 sales cycle. The company reported significant growth in subscription and complementary solutions revenue, with a notable performance in its Start-Anglo bilingual school operations. Despite a decrease in the Adjusted EBITDA margin, Vasta achieved an 8% increase in Adjusted EBITDA and a substantial rise in free cash flow, reflecting its growth and efficiency measures. The company’s strategy to expand its presence in the public school sector and improve cash flow processes has positively impacted its financial performance and market positioning.