VTEX (VTEX) AI Stock Analysis

• Market Cap: $1.13B
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 74.7
• Beta (1Y): 0.78
• Revenue Growth: 7.71%
• EPS Growth: N/A
• Country: US
• Employees: 1,368
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Application
• EPS (TTM): <0.01
• Shares Outstanding: 101,550,026
• 10 Day Avg. Volume: 937,913
• 30 Day Avg. Volume: 1,173,598
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.69
• Price Target Upside: 39.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 67 Neutral
• Price Target: $7.00 ▲(12.54%Upside)

VTEX's overall stock score reflects a strong financial foundation with robust earnings call performance, moderated by high valuation concerns and technical analysis signals pointing to cautious short-term outlook. The company's strategic focus on subscription revenue and market expansion supports optimism despite macroeconomic challenges.

Positive Factors

AI Capabilities

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

Financial Performance

VTEX reported slightly positive results, with a revenue and margin beat.

International Expansion

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.

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.

Revenue Miss

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.

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 shows strong financial health with consistent revenue growth and improved profitability metrics. The balance sheet is robust, with low leverage and a strong equity base, while cash flows indicate effective cash management and operational efficiency. However, the slow revenue growth rate and significant cash outflows from financing activities highlight areas for potential 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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

VTEX Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.22
• 50DMA: Negative
• 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 Negative. The current price of 6.22 is below the 20-day moving average (MA) of 6.37, below the 50-day MA of 6.43, and above the 200-day MA of 6.04, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 24.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VTEX.

VTEX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLO	71 Outperform	$1.72B	578.86	0.49%	―	23.31%	―
DSP	69 Neutral	$925.36M	491.36	4.15%	―	30.64%	―
VTEX	67 Neutral	$1.13B	74.72	6.26%	―	7.71%	―
BIGC	64 Neutral	$410.90M	―	-64.59%	―	5.33%	58.41%
Sector *	63 Neutral	$34.94B	5.14	-11.21%	1.86%	5.61%	-19.33%
MLNK	53 Neutral	$1.29B	―	-6.49%	―	5.15%	28.27%
BMBL	49 Neutral	$819.10M	―	-46.57%	―	-2.39%	-2961.26%