VTEX (VTEX) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: N/A
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 79.1
• Beta (1Y): 0.82
• Revenue Growth: 7.71%
• EPS Growth: N/A
• Country: US
• Employees: 1,368
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): <0.01
• Shares Outstanding: 101,550,026
• 10 Day Avg. Volume: 1,730,615
• 30 Day Avg. Volume: 1,126,866
• PEG Ratio: 0.00
• Price to Book (P/B): 89.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.64K
• Enterprise Value/Market Cap: 3.53
• Enterprise Value/Revenue: 4.67
• Enterprise Value/Gross Profit: 24.85
• Enterprise Value/Ebitda: 96.18
• 1Y Price Target: $8.69
• Price Target Upside: 32.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: $7.00 ▲(7.03%Upside)

VTEX is well-positioned with strong financial health and robust earnings performance, as evidenced by its solid financial metrics and strategic expansions. However, the high P/E ratio raises concerns about valuation, and macroeconomic factors pose risks. The technical indicators show positive momentum but suggest caution due to overbought signals.

Positive Factors

AI Capabilities

VTEX's new AI capabilities improve their core DTC platform, leading to increased conversion and enhanced customer service.

Client Expansion

The potential announcement of new clients especially in the US and Europe is the main upside risk for VTEX, which is still not priced in.

International Recognition

VTEX brand is gaining international recognition as their platform is getting ranked as a global eCommerce leader by independent parties.

Negative Factors

Growth Guidance

The realization of this value might take longer than expected, given the underwhelming growth guidance for 2025 of 14%-17% expansion in subscription revenues.

Macroeconomic Weakness

A 2% revenue miss in the fourth quarter and weaker than expected guidance are attributed to macroeconomic weakness in Brazil, which accounts for 57% of annual revenues.

Net Income Revision

The downside revision of -40%/-35% in net income for 2025/2026 is mostly driven by lower financial income, which derives from a lower cash position.

VTEX Business Overview & Revenue Model

Company Description

VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.

How the Company Makes Money

VTEX primarily generates revenue through a subscription-based model, where businesses pay for access to its cloud-based digital commerce platform. This includes fees for the use of its e-commerce, marketplace, and order management solutions. The company also earns money from transactional fees, which are applied to the sales processed through its platform. Additionally, VTEX benefits from strategic partnerships with technology providers and system integrators, as well as offering professional services to help clients implement, customize, and optimize their digital commerce environments.

VTEX Financial Statement Overview

Summary

VTEX demonstrates strong financial health with consistent revenue growth and improved profitability metrics. The balance sheet is robust, featuring low leverage and a strong equity base. Cash flows indicate efficient cash management and operational efficiency. However, the slow revenue growth rate and significant cash outflows from financing activities are potential areas for improvement.

Income Statement

VTEX has shown consistent revenue growth over the past years, with a significant improvement in profitability margins. The TTM data indicates a gross profit margin of 74.2% and a net profit margin of 6.7%, which are strong indicators of operational efficiency. Notably, the revenue growth rate from 2024 to TTM is modest at 0.7%, suggesting stable but slow expansion. The EBIT and EBITDA margins are also positive, reflecting improved operational performance.

Balance Sheet

The balance sheet of VTEX reflects a strong equity position with an equity ratio of 69.1% TTM, indicating financial stability. The debt-to-equity ratio is low at 0.013, suggesting minimal reliance on debt financing. The return on equity for the TTM is 6.2%, indicating a reasonable return on shareholders' investments. The company has maintained a healthy cash position relative to its liabilities, supporting its financial robustness.

Cash Flow

VTEX has shown improvement in cash flow generation with a TTM free cash flow of $29.5 million, a growth of 17% from the previous year. The operating cash flow to net income ratio is 2.01, indicating efficient conversion of net income to cash. The free cash flow to net income ratio is 1.93, demonstrating strong cash generation capabilities. Despite these strengths, the cash flow from financing activities reflects significant outflows, which could impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	228.23M	226.71M	201.52M	157.62M	125.77M	98.68M
Gross Profit	169.27M	167.29M	140.57M	104.79M	76.18M	63.83M
EBITDA	15.65M	14.40M	-4.03M	-50.41M	-64.42M	7.06M
Net Income	15.30M	12.00M	-13.69M	-52.42M	-60.51M	-825.00K
Balance Sheet
Total Assets	353.53M	366.78M	341.14M	357.67M	414.97M	140.01M
Cash, Cash Equivalents and Short-Term Investments	230.89M	214.81M	209.41M	238.56M	298.20M	75.53M
Total Debt	6.05M	3.31M	4.10M	6.79M	9.27M	12.51M
Total Liabilities	86.00M	110.98M	100.81M	83.00M	87.78M	64.26M
Stockholders Equity	267.50M	255.75M	240.29M	274.66M	327.18M	75.62M
Cash Flow
Free Cash Flow	29.50M	25.19M	3.79M	-29.56M	-54.74M	9.52M
Operating Cash Flow	30.80M	27.26M	4.26M	-29.22M	-52.99M	11.16M
Investing Cash Flow	3.81M	-20.01M	38.42M	-43.38M	-166.78M	-6.10M
Financing Cash Flow	-28.92M	-14.03M	-38.43M	-19.58M	283.68M	24.96M

VTEX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTEX, the sentiment is Positive. The current price of 6.54 is above the 20-day moving average (MA) of 6.53, above the 50-day MA of 6.21, and above the 200-day MA of 6.11, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 54.16 is Neutral, neither overbought nor oversold. The STOCH value of 39.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VTEX.

VTEX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VTEX	72 Outperform	$1.19B	79.07	6.26%	―	7.71%	―
OLO	69 Neutral	$1.69B	578.29	0.49%	―	23.31%	―
Sector *	69 Neutral	¥229.24B	14.26	7.64%	2.72%	9.14%	8.60%
BIGC	59 Neutral	$410.90M	―	-64.59%	―	5.33%	58.41%
MLNK	58 Neutral	$1.32B	―	-6.49%	―	5.15%	28.27%
DSP	57 Neutral	$862.17M	457.81	4.15%	―	30.64%	―
BMBL	50 Neutral	$672.43M	―	-46.57%	―	-2.39%	-2961.26%