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:72Outperform

Price Target:

$29.00

▲(13.50%Upside)

The stock score is driven by strong earnings call performance with robust revenue growth and strategic initiatives, supporting an optimistic outlook. Financial performance remains solid, but potential risks from declining revenue and liabilities must be monitored. Technical analysis suggests moderate market sentiment.

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

Market Cap

$2.25B

Dividend Yield2.63%

Average Volume (3M)156.77K

Price to Earnings (P/E)20.1

Beta (1Y)0.67

Revenue Growth13.21%

EPS Growth-74.96%

CountryUS

Employees96

SectorReal Estate

Sector Strength59

IndustryReal Estate - Development

Share Statistics

EPS (TTM)0.14

Shares Outstanding88,248,726

10 Day Avg. Volume204,983

30 Day Avg. Volume156,774

Financial Highlights & Ratios

PEG Ratio-3.35

Price to Book (P/B)0.86

Price to Sales (P/S)0.00

P/FCF Ratio14.39

Enterprise Value/Market Cap1.32

Enterprise Value/Revenue3.24

Enterprise Value/Gross Profit17.52

Enterprise Value/Ebitda1.80

Forecast

1Y Price Target

$37.00

Price Target Upside44.81% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

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 Earnings Call Summary

Earnings Call Date:Apr 23, 2025

(Q1-2025)

% Change Since: 0.47%|

Next Earnings Date:Jul 24, 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.

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

Summary

Vesta shows strong profitability with high margins and a solid return on equity. However, declining revenue and increased liabilities pose potential risks. The cash flow remains robust, supporting operational activities and investments, crucial for sustaining growth in real estate development.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	251.29M	214.47M	178.03M	160.79M	149.86M
Gross Profit	225.39M	196.23M	166.60M	150.06M	139.70M
EBITDA	194.17M	429.51M	339.71M	307.90M	168.03M
Net Income	222.43M	316.64M	243.62M	173.94M	66.96M
Balance Sheet
Total Assets	3.96B	3.79B	2.95B	2.76B	2.25B
Cash, Cash Equivalents and Short-Term Investments	184.11M	501.09M	139.06M	452.80M	120.42M
Total Debt	847.54M	916.08M	932.00M	934.91M	840.49M
Total Liabilities	1.36B	1.31B	1.31B	1.31B	1.15B
Stockholders Equity	2.60B	2.49B	1.64B	1.45B	1.11B
Cash Flow
Free Cash Flow	86.67M	142.72M	57.51M	106.95M	98.69M
Operating Cash Flow	87.26M	144.80M	57.73M	107.17M	99.52M
Investing Cash Flow	-225.73M	-223.07M	-254.67M	16.71M	-72.91M
Financing Cash Flow	-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 Price25.55

Price Trends

50DMA

27.45

Negative

100DMA

25.80

Positive

200DMA

25.40

Positive

Market Momentum

MACD

-0.42

Negative

RSI

49.11

Neutral

STOCH

58.24

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 25.55 is below the 20-day moving average (MA) of 26.34, below the 50-day MA of 27.45, and above the 200-day MA of 25.40, indicating a neutral trend. The MACD of -0.42 indicates Negative momentum. The RSI at 49.11 is Neutral, neither overbought nor oversold. The STOCH value of 58.24 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 (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FPH	81 Outperform	$696.08M	5.19	12.27%	―	11.66%	78.44%
AXR	79 Outperform	$115.80M	9.05	10.82%	―	30.36%	481.87%
FOR	74 Outperform	$1.31B	8.07	10.19%	―	2.35%	-17.20%
VTMX	72 Outperform	$2.25B	20.06	4.43%	2.63%	13.21%	-74.96%
Sector *	64 Neutral	$6.89B	17.45	-1.92%	7.02%	4.59%	-24.66%
ARL	52 Neutral	$208.68M	―	-2.20%	―	-6.48%	-592.10%

* Real Estate Sector Average

Performance Comparison

VTMX

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

26.40

-2.14

-7.50%

ARL

American Realty Investors

12.92

-4.82

-27.17%

AXR

Amrep

23.37

1.62

7.45%

FOR

Forestar Group

25.72

-5.28

-17.03%

FPH

Five Point Holdings

6.46

3.25

101.25%

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: Jul 24, 2025