Vasta Platform (VSTA) AI Stock Analysis

• Market Cap: $339.25M
• Dividend Yield: N/A
• Average Volume (3M): 11.12K
• Price to Earnings (P/E): 4.4
• Beta (1Y): -0.34
• Revenue Growth: -7.36%
• EPS Growth: N/A
• Country: US
• Employees: 1,808
• Sector: Consumer Defensive
• Sector Strength: 68
• Industry: Education & Training Services
• EPS (TTM): <0.01
• Shares Outstanding: 15,765,930
• 10 Day Avg. Volume: 11,307
• 30 Day Avg. Volume: 11,116
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 0.46
• Enterprise Value/Ebitda: 0.66
• 1Y Price Target: $4.50
• Price Target Upside: 5.63% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 81 Outperform
• Price Target: $5.00 ▲(17.37% Upside)

Vasta Platform's strong financial performance and undervaluation are the most significant factors contributing to its high score. The positive technical indicators and optimistic earnings call further support the stock's potential. However, challenges in cash flow generation and specific revenue segments slightly temper the overall outlook.

Positive Factors

B2G Sales

The B2G sales were above expectations, showing strong demand.

Subscription Revenue

Subscription revenue grew by 20% year-over-year, with complementary solutions exceeding expectations.

Negative Factors

Competition

The analyst keeps an Underperform rating due to Vasta's decelerating growth pace, with an expected ACV expansion of 15% in 2025, down from historical levels of 20%, amidst fierce competition in the K-12 segment.

EBITDA

Adjusted EBITDA fell 25% year-over-year and was below expectations.

Margins

Margins declined significantly due to higher commercial expenses and an unfavorable sales mix.

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 has shown strong financial performance with significant improvements in revenue and profitability. The balance sheet indicates low leverage and strong equity. However, cash flow generation is an area for potential improvement.

Income Statement

Vasta Platform has demonstrated strong revenue growth with a 12.64% increase from 2023 to 2024. Gross profit margin is solid at approximately 61% for the latest year, indicating efficient cost management. The net profit has turned positive from a loss in the previous year, showcasing a significant improvement in profitability. EBIT and EBITDA margins have also improved, supporting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.24 indicates a relatively low level of indebtedness, reducing financial risk. Return on Equity (ROE) has significantly improved, reflecting better use of equity to generate profits. The equity ratio remains strong at 69%, highlighting a stable capital structure with a healthy buffer of equity.

Cash Flow

Operating cash flow is positive but has decreased compared to the prior year, suggesting potential challenges in cash generation. Free cash flow has grown, which is a positive indicator of cash availability for reinvestment and debt reduction. However, the operating cash flow to net income ratio indicates reliance on earnings rather than cash flow for profitability.

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

Vasta Platform Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.26
• 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 4.26 is above the 20-day moving average (MA) of 4.15, above the 50-day MA of 4.18, and above the 200-day MA of 3.43, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.33 is Neutral, neither overbought nor oversold. The STOCH value of 87.18 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	$339.25M	4.41	8.67%	―	-7.36%	―
COUR	75 Outperform	$1.99B	―	-8.40%	―	7.10%	49.18%
UDMY	66 Neutral	$999.79M	―	-12.62%	―	3.93%	63.52%
APEI	64 Neutral	$506.42M	26.57	10.20%	―	5.50%	338.59%
Sector *	63 Neutral	$20.96B	13.61	-6.24%	3.13%	3.51%	-6.37%
DAO	55 Neutral	$1.05B	51.41	25.15%	―	-2.04%	―
GOTU	54 Neutral	$889.23M	―	-36.29%	―	58.34%	-602.43%