VTEX Class A Common Shares (VTEX)

FairStock Score: 56/100 — STEADY

Key Financials

Strengths

• Generates $35 million in annual free cash flow (5.1% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 4.2 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($2) with negative 114% margin of safety—limited downside protection

AI Analysis

VTEX Class A Common Shares is a micro-cap technology company valued at $679 million. The business generates $241 million in annual revenue with a 4.1% net margin and $35 million in free cash flow. From a quality standpoint, VTEX shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and healthy Altman Z-Score of 4.2. On valuation, the stock is trading at a premium 35.5x earnings, with trades far above its Graham Number ($2) with no margin of safety. Growth dynamics show revenue growing at 10.4% and profit growth of 56.6%. Our composite FairStock Score of 56/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $35 million in annual free cash flow (5.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 36x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer