Vitru Limited Intrinsic Value Calculation – VITRU LIMITED Reports Positive 3rd Quarter Earnings Results for FY2023
November 23, 2023
☀️Earnings Overview
On November 14 2023, VITRU LIMITED ($NASDAQ:VTRU) reported their earnings results for the 3rd quarter of FY2023 which ended on September 30 2023. Total revenue increased year-on-year by 21.7% to BRL 488.0 million; however, the company’s net income from the same period decreased from BRL 35.8 million to BRL -2.8 million.
Price History
VITRU LIMITED stock opened at $11.7 and closed at $11.0, up by 1.8% from prior closing price of 10.9. This is an impressive increase that indicates continued growth for the company. The Third Quarter Earnings Results report highlighted several key achievements that have been made by VITRU LIMITED in the past quarter. These results have exceeded analysts’ expectations and have been hailed as a major milestone for the company.
The Third Quarter Earnings Results report also highlighted the company’s strong focus on cash flow management and its ability to remain profitable despite the challenging economic conditions. The company is well-positioned to continue growing in the coming years and investors are encouraged by the results. With the strong fundamentals in place, VITRU LIMITED is expected to continue its upward trajectory in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Vitru Limited. More…
| Total Revenues | Net Income | Net Margin |
| 1.88k | 153.12 | 17.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Vitru Limited. More…
| Operations | Investing | Financing |
| 262.46 | -645.87 | 214.31 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Vitru Limited. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.15k | 3.82k | 68.78 |
Key Ratios Snapshot
Some of the financial key ratios for Vitru Limited are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 55.6% | 89.8% | 21.8% |
| FCF Margin | ROE | ROA |
| 6.9% | 11.0% | 4.2% |
Analysis – Vitru Limited Intrinsic Value Calculation
GoodWhale has conducted an analysis of VITRU LIMITED‘s fundamentals and found that its fair value is around $28.1. This figure was determined through our proprietary Valuation Line. At the moment, the stock of VITRU LIMITED is currently trading at $11.0, which is a 60.9% discount to its fair value. This presents an opportunity for investors to capitalize on a potential gain in the future. We recommend that investors do their own research on VITRU LIMITED before making a decision. More…
Peers
Vitru Ltd is an innovative language education and technology company that provides language learning solutions for individuals and institutions. It faces competition from a number of other companies including Everybody Loves Languages Corp, Human Holdings Co Ltd, and China Vocational Education Holdings Ltd. All of these companies offer a range of language learning services but each has its own unique approach.
– Everybody Loves Languages Corp ($TSXV:ELL)
Everybody Loves Languages Corp is a language-learning software development company that produces unique language-learning tools for individuals and organizations worldwide. With a market cap of 2.49M in 2023, the company is well-positioned to expand its reach and presence in the language-learning market. Its Return on Equity of 23.89% shows that the company is able to generate healthy returns for its shareholders without taking on too much risk.
– Human Holdings Co Ltd ($TSE:2415)
Human Holdings Co Ltd is a multi-national technology and service provider that specializes in providing cutting-edge solutions to its global customer base. With a market cap of 9.7B as of 2023, the company has a strong presence and influence in the international market. Its Return on Equity (ROE) of 9.9% is also a testament to the company’s financial health and sustainable business model. Furthermore, the company is committed to providing its customers with the highest quality of services and products.
– China Vocational Education Holdings Ltd ($SEHK:01756)
Vocational Education Holdings Ltd (VEH) is a leading provider of vocational education and training services in China. Its market capitalization is 996 million as of 2023, which indicates the size and strength of the company. The Return on Equity (ROE) of 8.59% suggests that the company is generating a satisfactory amount of profit on its shareholders’ investments. VEH provides a range of educational services including school management services, career and technical training, and student recruitment services. The company’s mission is to provide a pathway to success for those seeking further education and employment opportunities.
Summary
VITRU LIMITED reported their financial results for the 3rd quarter of FY2023, ending September 30 2023. The company reported a total revenue of BRL 488.0 million, a 21.7% year-on-year increase, yet their net income decreased from BRL 35.8 million to BRL -2.8 million year over year. For investors looking at VITRU LIMITED, this might be concerning as the company is showing a decrease in net income but at the same time an increased revenue. Investors should investigate further to understand why the decrease in net income, and consider VITRU LIMITED’s long-term growth strategy to ensure it is adequate for their portfolio.
