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Controladora Vuela Compa
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE: VLRS) is a Mexican airline holding company that operates through its subsidiaries, including Aeromexico, Aeromexico Connect, and Aeromexico Cargo. The company offers passenger and cargo air transportation services. It also provides a range of services related to air travel, such as hotel bookings, car rentals, and vacation packages.
Here are some key points to consider when evaluating VLRS:
* Revenue: In 2020, the company's revenue decreased by 57% compared to the previous year, mainly due to the COVID-19 pandemic. However, its revenue has been steadily growing since then, showing a recovery trend.
* Net income: The company's net income in 2020 was negative, mainly due to the pandemic's impact. However, it has shown a positive net income in the past, and there are signs of recovery.
* Earnings per share (EPS): The company's EPS has been growing steadily since 2019, and its fourth-quarter 2020 EPS was positive, indicating a recovery.
* Business segments: Aeromexico Transport's main business segments include passenger transport, cargo transportation, and maintenance and engineering services. Passenger transport represents most of its revenue, followed by cargo transport.
* Fleet size: As of December 2020, the company's fleet consisted of 62 aircraft, which is smaller compared to other significant airlines. However, it has placed firm orders for additional aircraft to modernize its fleet and expand its operations.
* Code-sharing agreements: Aeromexico has code-sharing agreements with Delta Air Lines, Air France, and KLM Royal Dutch Airlines, among others. These alliances can help increase passenger traffic and revenue.
* Network expansion: The company has expanded its network by adding new routes and destinations in North America and internationally. This expansion could lead to increased revenue and growth.
* Risk factors: Like any airline company, VLRS faces industry-specific risks, including fuel price volatility, competition, economic and political conditions, pandemics, and unexpected events like accidents or natural disasters.
* Valuation: Based on its anticipated earnings and growth, VLRS's forward price-earnings ratio (P/E Ratio) is approximately 8.54, below the industry average of 10.15, suggesting the stock is undervalued.
However, it's essential to remember that this is and that investing in stocks is dangerous. Stock market investments should align with one's risk tolerance and investment goals. It would be best to conduct thorough research and seek the advice of a financial advisor before making investment decisions.