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)

Rating:76Outperform

Price Target:

$32.00

▲(13.39% Upside)

Vesta's overall stock score is driven by its strong financial performance and positive earnings call sentiment. The company's operational efficiency and strategic growth initiatives are significant strengths. However, the high P/E ratio suggests potential overvaluation, and technical indicators show the stock is nearing overbought levels. Investors should consider these factors when evaluating the stock.

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

Market Cap

$2.45B

Dividend Yield2.57%

Average Volume (3M)85.69K

Price to Earnings (P/E)74.9

Beta (1Y)0.64

Revenue Growth11.09%

EPS Growth-92.51%

CountryUS

Employees96

SectorReal Estate

Sector Strength53

IndustryReal Estate - Development

Share Statistics

EPS (TTM)0.37

Shares Outstanding88,248,726

10 Day Avg. Volume97,504

30 Day Avg. Volume85,690

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.29

Enterprise Value/Revenue11.98

Enterprise Value/Gross Profit13.02

Enterprise Value/Ebitda13.76

Forecast

1Y Price Target

$38.00

Price Target Upside34.66% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

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

Company DescriptionCorporación Inmobiliaria Vesta, S.A.B. de C.V., together with its subsidiaries, acquires, develops, manages, operates, and leases industrial buildings and distribution centers in Mexico. The company was incorporated in 1998 and is headquartered in Mexico City, Mexico.

How the Company Makes MoneyCorporacion Inmobiliaria Vesta generates revenue primarily through the leasing of its industrial properties to a diverse range of tenants, including multinational corporations and local businesses. The company benefits from long-term lease agreements, which provide stable and recurring income. Key revenue streams include rental income from its portfolio of properties, ancillary services related to property management, and value-added services to tenants. Additionally, Vesta's strategic partnerships with various business entities enhance its market position and contribute to its earnings. The company's focus on expanding its property portfolio through acquisitions and developments also plays a crucial role in driving revenue growth.

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

Earnings Call Date:Jul 24, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 16, 2025

Earnings Call Sentiment Positive

The call reflected a cautious yet optimistic outlook for Vesta. Despite challenges in new leasing activity and decreased pre-tax income, the company demonstrated strong rent increases, revenue growth, and strategic land acquisitions, positioning itself for future growth. The positive highlights outweighed the lowlights, with management expressing confidence in meeting 2025 guidance and executing long-term strategies.

Q2-2025 Updates

Positive Updates

Strong Retention Rates and Rent Increases

Vesta achieved a strong retention rate of 84% and successfully increased rents with mark-to-market adjustments in the range of 20% to 30%.

Record Leasing Spread

The tracking 12-month spread for the second quarter reached 13.7%, indicating significant rent increases and strong relationships with tenants.

Revenue Growth

Total revenues increased by 6.8% year-over-year to $67 million, driven by rental income from new leases and inflationary adjustments.

Adjusted EBITDA Growth

Adjusted EBITDA increased by 9% year-over-year, reaching $55 million, with a margin expansion of 137 basis points to 84.1%.

Strategic Land Acquisitions

Vesta acquired 128.4 acres in Guadalajara and 20.2 acres in Monterrey, enhancing its strategic footprint for future growth.

Negative Updates

Decreased Pre-tax Income

Pre-tax income decreased to $54.5 million from $131.8 million in 2024, mainly due to lower gains on the valuation of investment properties.

Challenges in New Leasing Activity

New leasing activity continued at a slower pace, attributed to macro volatility, trade dynamics, and cautious investment decisions by global corporations.

Increased Costs

Operating costs increased due to higher real estate taxes, insurance, and property-related expenses, impacting the adjusted NOI margin.

Decreased Cash Position

A lower average cash position during the period resulted in reduced interest income.

Company Guidance

During Vesta's Second Quarter 2025 earnings call, the company highlighted its strong operational performance amidst ongoing macroeconomic volatility. Despite a slower pace in new leasing activity, Vesta achieved a total leasing activity of 1.8 million square feet, with renewals and re-leasing activity reaching some of the highest levels experienced in the first half of the year. The company's portfolio ended the quarter with a stabilized occupancy of 95.5%, and rents were indexed to inflation. Notably, Vesta achieved mark-to-market rent adjustments in the range of 20% to 30%, with a trailing 12-month spread reaching 13.7%. Financially, Vesta reported a 6.8% year-over-year increase in total revenues to $67 million, driven by new leases and inflationary adjustments. The adjusted net operating income grew by 7.2% to $61.8 million, maintaining a strong NOI margin of 94.5%. Adjusted EBITDA increased by 9% to $55 million, with a margin expansion to 84.1%. The company maintained a solid financial position, ending the quarter with $65.2 million in cash and a net debt to EBITDA ratio of 4x. Vesta remains committed to its long-term Route 2030 strategy, focusing on tenant retention, strategic positioning, and maintaining a resilient portfolio.

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

Summary

Vesta demonstrates solid financial health with strong operational efficiency and a stable balance sheet. While revenue growth has slowed, profitability margins remain impressive, and cash flows are managed effectively. The company should focus on boosting revenue growth to enhance overall financial performance.

Income Statement

Positive

The company's TTM (Trailing-Twelve-Months) gross profit margin is robust, indicating efficient cost management with a margin of 89.4%. However, the net profit margin stands at 8.7%, which is lower than previous periods, reflecting some challenges in converting revenue to net income. Revenue showed a decrease in the TTM compared to previous annual data, indicating a need to focus on growth strategies. EBIT and EBITDA margins are strong, at 77.3% and 89.8% respectively, showcasing operational efficiency.

Balance Sheet

Very Positive

The balance sheet reflects a strong equity base with an equity ratio of 63.3%, indicating financial stability. The debt-to-equity ratio is 0.35, suggesting manageable leverage. Return on equity is moderate at 6.7% in the TTM, which indicates room for improvement in generating returns for shareholders. Overall, the balance sheet is solid with a healthy asset structure.

Cash Flow

Very Positive

The company's cash flow shows positive trends, with a substantial operating cash flow to net income ratio of 8.6, indicating strong cash conversion capabilities. Free cash flow grew significantly over the previous period, showcasing efficient cash management. The free cash flow to net income ratio is 8.5, reflecting healthy cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	263.17M	251.29M	214.47M	178.03M	160.79M	149.86M
Gross Profit	242.08M	225.39M	196.23M	166.60M	150.06M	149.86M
EBITDA	229.07M	194.17M	429.51M	339.71M	307.90M	168.03M
Net Income	31.91M	222.43M	316.64M	243.62M	173.94M	66.96M
Balance Sheet
Total Assets	4.02B	3.96B	3.79B	2.95B	2.76B	2.25B
Cash, Cash Equivalents and Short-Term Investments	65.24M	184.11M	501.09M	139.06M	452.80M	120.42M
Total Debt	900.76M	847.54M	916.08M	932.00M	934.91M	840.49M
Total Liabilities	1.47B	1.36B	1.31B	1.31B	1.31B	1.15B
Stockholders Equity	2.54B	2.60B	2.49B	1.64B	1.45B	1.11B
Cash Flow
Free Cash Flow	145.46M	86.67M	142.72M	57.51M	106.95M	98.69M
Operating Cash Flow	146.51M	87.26M	144.80M	57.73M	107.17M	99.52M
Investing Cash Flow	-297.14M	-225.73M	-223.07M	-254.67M	16.71M	-72.91M
Financing Cash Flow	-175.02M	-183.05M	444.74M	-119.78M	212.54M	16.91M

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

Technical Analysis Sentiment

Positive

Last Price28.22

Price Trends

50DMA

27.36

Positive

100DMA

27.34

Positive

200DMA

25.80

Positive

Market Momentum

MACD

0.05

Positive

RSI

55.44

Neutral

STOCH

46.49

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 28.22 is above the 20-day moving average (MA) of 28.13, above the 50-day MA of 27.36, and above the 200-day MA of 25.80, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 55.44 is Neutral, neither overbought nor oversold. The STOCH value of 46.49 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXR	79 Outperform	$110.31M	8.88	10.25%	―	-3.26%	89.15%
FOR	78 Outperform	$1.43B	9.01	10.19%	―	2.35%	-17.21%
VTMX	76 Outperform	$2.45B	74.86	1.23%	2.57%	11.09%	-92.51%
FPH	76 Outperform	$606.66M	5.26	10.56%	―	-19.68%	44.82%
Sector *	63 Neutral	$7.02B	13.41	-0.50%	6.86%	4.08%	-25.24%
LSEA	61 Neutral		―		―	24.15%	-60.70%
ARL	43 Neutral	$256.17M	―	-1.93%	―	-4.84%	-412.72%

* Real Estate Sector Average

Performance Comparison

VTMX

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

28.22

2.86

11.28%

ARL

American Realty Investors

15.86

-0.72

-4.34%

AXR

Amrep

21.06

-0.59

-2.73%

FOR

Forestar Group

28.72

-1.30

-4.33%

FPH

Five Point Holdings

5.68

2.44

75.31%

LSEA

Landsea Homes

11.31

-0.44

-3.74%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 19, 2025