Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR (VTMX) AI Stock Analysis

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Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR

(NYSE:VTMX)

69Neutral

Vesta's strong profitability and efficient operations, highlighted by high margins and a solid return on equity, are significant strengths. The technical analysis suggests positive momentum, although caution is advised due to potential overbought conditions. The valuation appears high, potentially limiting upside. The earnings call highlights robust revenue growth and strategic initiatives, though challenges such as decreased pre-tax income and higher costs remain. Overall, Vesta's stock is positioned well, but investors should be mindful of valuation concerns and operational risks.

Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR (VTMX) vs. S&P 500 (SPY)

Market Cap

$2.43B

Dividend Yield2.32%

Average Volume (3M)255.74K

Price to Earnings (P/E)21.7

Beta (1Y)0.64

Revenue Growth13.21%

EPS Growth-74.96%

CountryUS

Employees96

SectorReal Estate

Sector Strength61

IndustryReal Estate - Development

Share Statistics

EPS (TTM)0.14

Shares Outstanding88,248,726

10 Day Avg. Volume252,601

30 Day Avg. Volume255,738

Financial Highlights & Ratios

PEG Ratio-0.04

Price to Book (P/B)0.10

Price to Sales (P/S)0.00

P/FCF Ratio1.77

Enterprise Value/Market Cap0.41

Enterprise Value/Revenue1.08

Enterprise Value/Gross Profit5.82

Enterprise Value/Ebitda0.60

Forecast

1Y Price Target

$27.50

Price Target Upside-0.33% Downside

Rating ConsensusHold

Number of Analyst Covering2

Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR Business Overview & Revenue Model

Company DescriptionCorporacion Inmobiliaria Vesta S.A.B. de C.V. ADR (VTMX) is a leading real estate development company specializing in the acquisition, development, and management of industrial properties in Mexico. Established as a key player in the industrial real estate sector, Vesta focuses on providing high-quality facilities for manufacturing, logistics, and distribution companies. Its diversified portfolio includes industrial parks, warehouses, and custom-built properties designed to meet the specific needs of its clients.

How the Company Makes MoneyVesta generates revenue primarily through the leasing and sale of its industrial properties. The company earns rental income from long-term lease agreements with a diverse range of tenants, including multinational corporations and local businesses engaged in manufacturing, logistics, and distribution. Additionally, Vesta engages in strategic property sales, capitalizing on the appreciation of its real estate assets. The company also benefits from economies of scale and operational efficiencies that enhance its profitability. Partnerships with key industry players and a strong market presence in key industrial hubs of Mexico further bolster its revenue streams.

Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR Financial Statement Overview

Summary

Corporacion Inmobiliaria Vesta shows strong profitability and efficient operations, with high margins and solid return on equity. The balance sheet reflects a stable financial position with manageable leverage. However, declining revenue and increased liabilities pose potential risks. The cash flow remains robust, supporting operational activities and investments, which is crucial for sustaining growth in the real estate development sector.

Income Statement

Positive

The company's income statement is strong with a high gross profit margin of 89.46% and a net profit margin of 51.84% for the TTM period. However, revenue has decreased by 11.51% compared to the previous annual report, indicating a potential challenge in maintaining growth. The EBIT margin is robust at 78.45%, and the EBITDA margin is exceptionally high at 140.77%, reflecting strong operational efficiency.

Balance Sheet

Positive

The balance sheet shows a healthy equity ratio of 64.47% and a reasonable debt-to-equity ratio of 0.32, suggesting a solid capital structure with manageable leverage. Return on equity is strong at 39.23%, indicating efficient use of equity capital. However, the increase in total liabilities compared to the previous period requires monitoring.

Cash Flow

Positive

The cash flow statement shows a stable free cash flow with a minor decrease in free cash flow compared to the previous period. The operating cash flow to net income ratio is 1.36, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.35, suggesting excellent cash conversion efficiency, but the negative investing cash flow highlights significant capital investments or asset acquisitions.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
189.74M	251.29M	214.47M	178.03M	160.79M	149.86M
	Gross Profit
169.70M	225.39M	196.23M	166.60M	150.06M	139.70M
	EBIT
148.85M	192.76M	164.70M	338.24M	306.30M	166.56M
	EBITDA
267.06M	194.17M	429.51M	339.71M	307.90M	168.03M
	Net Income Common Stockholders
98.35M	222.43M	316.64M	243.62M	173.94M	66.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
184.11M	184.11M	501.09M	139.06M	452.80M	120.42M
	Total Assets
3.96B	3.96B	3.79B	2.95B	2.76B	2.25B
	Total Debt
847.54M	847.54M	916.08M	932.00M	934.91M	840.49M
	Net Debt
663.44M	663.44M	414.99M	792.95M	482.11M	720.76M
	Total Liabilities
1.36B	1.36B	1.31B	1.31B	1.31B	1.15B
	Stockholders Equity
2.60B	2.60B	2.49B	1.64B	1.45B	1.11B
Cash Flow		Free Cash Flow
132.85M	86.67M	142.72M	57.51M	106.95M	98.69M
	Operating Cash Flow
134.16M	87.26M	144.80M	57.73M	107.17M	99.52M
	Investing Cash Flow
-253.02M	-225.73M	-223.07M	-254.67M	16.71M	-72.91M
	Financing Cash Flow
-285.78M	-183.05M	444.74M	-119.78M	212.54M	17.54M

Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR Technical Analysis

Technical Analysis Sentiment

Positive

Last Price27.59

Price Trends

50DMA

24.60

Positive

100DMA

24.83

Positive

200DMA

25.52

Positive

Market Momentum

MACD

0.99

Positive

RSI

66.29

Neutral

STOCH

58.99

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTMX, the sentiment is Positive. The current price of 27.59 is above the 20-day moving average (MA) of 26.73, above the 50-day MA of 24.60, and above the 200-day MA of 25.52, indicating a bullish trend. The MACD of 0.99 indicates Positive momentum. The RSI at 66.29 is Neutral, neither overbought nor oversold. The STOCH value of 58.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VTMX.

Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXR	80 Outperform	$113.42M	9.26	10.82%	―	30.36%	481.87%
FPH	74 Outperform	$590.48M	4.35	12.27%	―	11.66%	78.44%
FOR	70 Outperform	$1.05B	6.04	10.81%	―	-5.60%	-17.86%
LSEA	70 Outperform	$410.34M	41.92	1.50%	―	24.15%	-60.70%
VTMX	69 Neutral	$2.43B	21.70	4.43%	2.32%	13.21%	-74.96%
Sector *	60 Neutral	$2.80B	10.72	0.24%	8543.13%	6.02%	-17.28%
ARL	54 Neutral	$211.59M	―	-2.20%	―	-6.48%	-592.10%

* Real Estate Sector Average

Performance Comparison

VTMX

Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR

27.64

-8.34

-23.18%

ARL

American Realty Investors

13.45

-0.37

-2.68%

AXR

Amrep

22.41

1.67

8.05%

FOR

Forestar Group

20.11

-14.26

-41.49%

FPH

Five Point Holdings

5.41

2.24

70.66%

LSEA

Landsea Homes

11.22

0.57

5.35%

Corporacion Inmobiliaria Vesta S.A.B. de C.V. ADR Earnings Call Summary

Earnings Call Date:Apr 23, 2025

(Q1-2025)

% Change Since: 7.77%|

Next Earnings Date:Jul 17, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed sentiment with strong revenue growth, successful share buybacks, and strategic land acquisitions, countered by decreased pre-tax income, slowed leasing activity, and increased costs impacting profitability.

Q1-2025 Updates

Positive Updates

Strong Revenue Growth

Total revenues increased by 10.7% reaching $60.6 million, primarily due to rental revenues from new leases and inflationary adjustments.

Successful Share Buyback

Vesta executed a major share buyback of 15.5 million shares worth $36 million, returning value to shareholders at a substantial discount to net value.

High Tenant Retention and Leasing Activity

Achieved an 11.5% trailing 12-month weighted average spread, with 139,000 square feet of new contracts and 1.2 million square feet in lease renewals.

Strategic Land Acquisitions

Made targeted land acquisitions in Mexico City and Monterrey, aligning with strategic growth in e-commerce and last-mile logistics.

Strong Financial Position

Loan to value ratio at 20.6% following a $50 million debt repayment, maintaining flexibility for future investments.

Negative Updates

Decreased Pre-Tax Income

Pre-tax income decreased to $28.6 million from $150.6 million in 2024 due to lower gains on revaluation of investment properties and reduced interest income.

Slowed Leasing Activity Due to Uncertainty

Leasing activity slowed in Mexico, the U.S., and Europe due to uncertainty and delayed decision-making, particularly around long-term commitments.

Higher Costs Impact Profitability

Adjusted net operating income margin contracted by 10 basis points to 95.7% due to higher costs related to rental income-generating properties.

Company Guidance

During the Vesta First Quarter 2025 Earnings Conference Call, management provided several key metrics and insights into the company's performance and strategic direction. Vesta reported a 10.7% increase in total revenues, reaching $60.6 million, primarily driven by new leases and inflationary rental adjustments. The company's adjusted net operating income rose by 8.5% to $62.1 million, while the adjusted EBITDA increased by 9.3% to $55 million. Vesta's leasing activity for the quarter amounted to $1.4 million, with 139,000 square feet of new contracts and 1.2 million square feet in lease renewals. The company also highlighted a weighted average rent spread of 11.5% and same-store NOI growth of 4.3% year-over-year. Vesta's loan-to-value ratio stood at 20.6%, and they executed a share buyback worth $36 million, acquiring 15.5 million shares. Additionally, they made strategic land acquisitions in Mexico City and Monterrey, aligning with their Route 2030 strategy, which focuses on urban infill markets and sectors like e-commerce and last-mile logistics.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.