VTEX (VTEX) AI Stock Analysis

• Market Cap: $806.10M
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 81.1
• Beta (1Y): 0.66
• Revenue Growth: 4.51%
• EPS Growth: 8241.83%
• Country: US
• Employees: 1,368
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.04
• Shares Outstanding: 101,296,490
• 10 Day Avg. Volume: 1,245,338
• 30 Day Avg. Volume: 1,227,561
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 4.47
• Enterprise Value/Gross Profit: 5.92
• Enterprise Value/Ebitda: 60.92
• 1Y Price Target: $6.75
• Price Target Upside: 57.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 70 Neutral
• Price Target: $5.00 ▲(16.55% Upside)

VTEX's overall stock score reflects its strong financial performance and strategic global expansion, which are offset by high valuation concerns and mixed technical indicators. The company's ability to navigate macroeconomic challenges and maintain profitability is a positive, but the high P/E ratio and bearish technical signals suggest caution.

Positive Factors

Global Expansion

The expansion into the U.S. and Europe, with markets growing twice as fast as the overall company, strengthens VTEX's global footprint and enhances its competitive position.

Operational Efficiency

Improved operational efficiency, as evidenced by increased income margins, indicates VTEX's ability to manage costs effectively, supporting long-term profitability.

Innovation and Strategic Initiatives

VTEX's focus on innovation and strategic initiatives positions it to capture new market opportunities and sustain growth through diversified revenue streams.

Negative Factors

Challenges in Argentina

Economic instability in Argentina poses a risk to VTEX's revenue growth, highlighting the vulnerability of its operations to regional market conditions.

Brazil Market Dynamics

The shift in customer base in Brazil may limit revenue growth, as lower take rates could impact VTEX's profitability in this key market.

Subscription Revenue Below Guidance

Falling short of FX-neutral subscription revenue guidance indicates potential challenges in meeting growth targets, affecting investor confidence and long-term revenue projections.

VTEX Business Overview & Revenue Model

Company Description

VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.

How the Company Makes Money

VTEX generates revenue through a combination of subscription fees and transaction fees. The company operates a SaaS (Software as a Service) model, where merchants pay a recurring fee for access to its platform, which varies based on usage and service tiers. Additionally, VTEX earns revenue from transaction fees applied to sales processed through its platform. Significant partnerships with major brands and retailers enhance its market presence and contribute to revenue growth. The company's focus on providing integrated solutions that cover the entire e-commerce ecosystem also helps attract new customers and retain existing ones, bolstering its earnings.

VTEX Financial Statement Overview

Summary

VTEX's financial performance is commendable, with strong revenue growth, improved profitability, and efficient cash flow management. The balance sheet is stable with low leverage, enhancing financial stability. The company is well-positioned for future growth with its strong operational and financial metrics.

Income Statement

VTEX has shown impressive revenue growth with a TTM growth rate of 98.5%, indicating strong market demand and expansion. The gross profit margin is robust at 74.17%, reflecting efficient cost management. The net profit margin has improved significantly to 6.70%, showcasing enhanced profitability. EBIT and EBITDA margins have also improved, indicating better operational efficiency.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.013, suggesting minimal leverage and financial risk. Return on equity (ROE) has improved to 6.03%, indicating better returns for shareholders. The equity ratio is healthy, reflecting a solid capital structure.

Cash Flow

VTEX has demonstrated strong cash flow performance with a free cash flow growth rate of 12.71%. The operating cash flow to net income ratio is 0.38, indicating good cash generation relative to earnings. The free cash flow to net income ratio is high at 0.96, suggesting efficient conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	230.47M	226.71M	201.52M	157.62M	125.77M	98.68M
Gross Profit	174.04M	167.29M	140.57M	104.79M	76.18M	63.83M
EBITDA	16.91M	14.40M	-4.03M	-50.41M	-64.42M	7.06M
Net Income	13.36M	12.00M	-13.69M	-52.42M	-60.51M	-825.00K
Balance Sheet
Total Assets	365.57M	366.78M	341.14M	357.67M	414.97M	140.01M
Cash, Cash Equivalents and Short-Term Investments	210.79M	214.81M	209.41M	238.56M	298.20M	75.53M
Total Debt	3.84M	3.31M	4.10M	6.79M	9.27M	12.51M
Total Liabilities	115.31M	110.98M	100.81M	83.00M	87.78M	64.26M
Stockholders Equity	250.22M	255.75M	240.29M	274.66M	327.18M	75.62M
Cash Flow
Free Cash Flow	33.25M	25.19M	3.79M	-29.56M	-54.74M	9.52M
Operating Cash Flow	34.19M	27.26M	4.26M	-29.22M	-52.99M	11.16M
Investing Cash Flow	-3.02M	-20.01M	38.42M	-43.38M	-166.78M	-6.10M
Financing Cash Flow	-33.06M	-14.03M	-38.43M	-19.58M	283.68M	24.96M

VTEX Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTEX, the sentiment is Negative. The current price of 4.29 is below the 20-day moving average (MA) of 4.30, below the 50-day MA of 4.65, and below the 200-day MA of 5.55, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 44.87 is Neutral, neither overbought nor oversold. The STOCH value of 17.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VTEX.

VTEX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VTEX	70 Neutral	$806.10M	81.10	5.33%	―	4.51%	8241.83%
MLNK	63 Neutral	$1.47B	-67.26	-5.73%	―	5.96%	50.29%
CMRC	62 Neutral	$395.60M	-21.36	-46.74%	―	4.06%	57.50%
DSP	59 Neutral	$525.64M	248.51	8.57%	―	30.92%	―
BMBL	49 Neutral	$627.18M	-0.82	-147.04%	―	-5.06%	-2318.18%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

VTEX Corporate Events

VTEX Reports Strong Q2 2025 Results Amid Global Expansion

On August 7, 2025, VTEX reported its financial results for the second quarter of 2025, showcasing a resilient performance despite challenging market conditions in Brazil and Argentina. The company achieved a subscription revenue of $57.2 million, marking an 11.2% growth on an FX neutral basis, and a non-GAAP income from operations of $8.5 million, reflecting a 14.4% margin. VTEX’s strategic investments in AI and operational efficiency have led to a 10% increase in their guidance for non-GAAP income from operations and free cash flow. The company also highlighted its expanding global presence with new partnerships in the US and Europe, including iconic brands like KitchenAid and Road Runner Sports, reinforcing its position as a trusted global partner in enterprise commerce.

VTEX Reports Modest Revenue Growth in H1 2025

VTEX has released its financial statements for the six months ending June 30, 2025, showing a slight increase in total revenue compared to the previous year. The company reported a total revenue of $112.955 million, up from $109.167 million in the same period of 2024. Despite a decrease in services revenue, subscription revenue grew, contributing to an overall gross profit increase. The financial results indicate a stable financial position with a slight increase in total assets and equity, reflecting VTEX’s ongoing growth and resilience in the competitive e-commerce market.