Controladora Vuela Compania de AviacionB de CV (NYSE:VLRS) Piotroski F-Score

: 4 (As of Today)

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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Controladora Vuela Compania de AviacionB de CV has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Controladora Vuela Compania de AviacionB de CV's Piotroski F-Score or its related term are showing as below:

VLRS' s Piotroski F-Score Range Over the Past 10 Years
Min: 1 Med: 5 Max: 9
Current: 4

During the past 13 years, the highest Piotroski F-Score of Controladora Vuela Compania de AviacionB de CV was 9. The lowest was 1. And the median was 5.

Controladora Vuela Compania de AviacionB de CV Piotroski F-Score Historical Data

The historical data trend for Controladora Vuela Compania de AviacionB de CV's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Controladora Vuela Compania de AviacionB de CV Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Piotroski F-Score

5.00

9.00

3.00

7.00

5.00

Controladora Vuela Compania de AviacionB de CV Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Piotroski F-Score																9.00	6.00	5.00	5.00	4.00

Competitive Comparison

For the Airlines subindustry, Controladora Vuela Compania de AviacionB de CV's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Annual Data Quarterly Data

Controladora Vuela Compania de AviacionB de CV Piotroski F-Score Distribution

For the Transportation industry and Industrials sector, Controladora Vuela Compania de AviacionB de CV's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Controladora Vuela Compania de AviacionB de CV's Piotroski F-Score falls in comparison to its industry or sector. The grey bar indicates the Piotroski F-Score's extreme value range as defined by GuruFocus.

How is the Piotroski F-Score calculated?

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Net Income was -49 + 40 + -22.224 + -71 = $-102 Mil.
Cash Flow from Operations was 158 + 88 + 167.602 + 208 = $622 Mil.
Revenue was 691 + 769 + 820.19 + 731 = $3,011 Mil.
Gross Profit was 21 + 86 + 126.495 + 29 = $262 Mil.
Average Total Assets from the begining of this year (Mar22)
to the end of this year (Mar23) was
(4065 + 4417 + 4415 + 4467.653 + 4665) / 5 = $4405.9306 Mil.
Total Assets at the begining of this year (Mar22) was $4,065 Mil.
Long-Term Debt & Capital Lease Obligation was $2,552 Mil.
Total Current Assets was $1,099 Mil.
Total Current Liabilities was $1,649 Mil.

Net Income was 77 + 76 + -9.547 + -49 = $94 Mil.

Revenue was 574 + 640 + 671.3 + 566 = $2,451 Mil.
Gross Profit was 169 + 201 + 186.835 + 10 = $567 Mil.
Average Total Assets from the begining of last year (Mar21)
to the end of last year (Mar22) was
(3282.396 + 3723.032 + 3668.278 + 3984.568 + 4065) / 5 = $3744.6548 Mil.
Total Assets at the begining of last year (Mar21) was $3,282 Mil.
Long-Term Debt & Capital Lease Obligation was $2,256 Mil.
Total Current Assets was $1,039 Mil.
Total Current Liabilities was $1,329 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Controladora Vuela Compania de AviacionB de CV's current Net Income (TTM) was -102. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Controladora Vuela Compania de AviacionB de CV's current Cash Flow from Operations (TTM) was 622. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)	=	Net Income	/	Total Assets (Mar22)
	=	-102.224	/	4065
	=	-0.02514736

ROA (Last Year)	=	Net Income	/	Total Assets (Mar21)
	=	94.453	/	3282.396
	=	0.02877563

Controladora Vuela Compania de AviacionB de CV's return on assets of this year was -0.02514736. Controladora Vuela Compania de AviacionB de CV's return on assets of last year was 0.02877563. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Controladora Vuela Compania de AviacionB de CV's current Net Income (TTM) was -102. Controladora Vuela Compania de AviacionB de CV's current Cash Flow from Operations (TTM) was 622. ==> 622 > -102 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar23)	=	Long-Term Debt & Capital Lease Obligation	/	Average Total Assets from Mar22 to Mar23
	=	2552	/	4405.9306
	=	0.57921929

Gearing (Last Year: Mar22)	=	Long-Term Debt & Capital Lease Obligation	/	Average Total Assets from Mar21 to Mar22
	=	2256	/	3744.6548
	=	0.60245874

Controladora Vuela Compania de AviacionB de CV's gearing of this year was 0.57921929. Controladora Vuela Compania de AviacionB de CV's gearing of last year was 0.60245874. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar23)	=	Total Current Assets	/	Total Current Liabilities
	=	1099	/	1649
	=	0.66646452

Current Ratio (Last Year: Mar22)	=	Total Current Assets	/	Total Current Liabilities
	=	1039	/	1329
	=	0.78179082

Controladora Vuela Compania de AviacionB de CV's current ratio of this year was 0.66646452. Controladora Vuela Compania de AviacionB de CV's current ratio of last year was 0.78179082. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Controladora Vuela Compania de AviacionB de CV's number of shares in issue this year was 116.598. Controladora Vuela Compania de AviacionB de CV's number of shares in issue last year was 116.598. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)	=	Gross Profit	/	Revenue
	=	262.495	/	3011.19
	=	0.08717318

Gross Margin (Last Year: TTM)	=	Gross Profit	/	Revenue
	=	566.835	/	2451.3
	=	0.23123853

Controladora Vuela Compania de AviacionB de CV's gross margin of this year was 0.08717318. Controladora Vuela Compania de AviacionB de CV's gross margin of last year was 0.23123853. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)	=	Revenue	/	Total Assets at the Beginning of This Year (Mar22)
	=	3011.19	/	4065
	=	0.74076015

Asset Turnover (Last Year)	=	Revenue	/	Total Assets at the Beginning of Last Year (Mar21)
	=	2451.3	/	3282.396
	=	0.74680203

Controladora Vuela Compania de AviacionB de CV's asset turnover of this year was 0.74076015. Controladora Vuela Compania de AviacionB de CV's asset turnover of last year was 0.74680203. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score

Que. 1

Que. 2

Que. 3

Que. 4

Que. 5

Que. 6

Que. 7

Que. 8

Que. 9

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Controladora Vuela Compania de AviacionB de CV has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Controladora Vuela Compania de AviacionB de CV (NYSE:VLRS) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.

Controladora Vuela Compania de AviacionB de CV Piotroski F-Score Related Terms

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Controladora Vuela Compania de AviacionB de CV (NYSE:VLRS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Controladora Vuela Compania de Aviacion SAB de CV (NYSE:VLRS) » Definitions » Piotroski F-Score

Traded in Other Exchanges

VOLARA:Mexico 2CDA:Germany

Address

Av. Antonio Dovali Jaime Number 70, 13th Floor, Tower B, Colonia Zedec Santa Fe, Mexico, DF, MEX, 01210

Website

https://www.volaris.com

Controladora Vuela Compania de Aviacion SAB de CV is a low-cost airline flying to Mexico, the United States, Central and South America. It currently operates up to 500 average daily flight segments on routes that connect 44 cities in Mexico as well as 22 cities in the United States, four in Central America and two in South America. It uses promotional fares to stimulate demand and the base fares are priced to compete with long-distance bus fares in Mexico. Revenues from the air transportation of passengers are recognized earlier when the service is provided or when the non-refundable ticket expires at the date of the scheduled travel. Non-passenger revenues include revenues generated from other non-passenger revenues and cargo services.