GICS Sector : Consumer Defensive
Vasta Platform Limited, an education company, provides educational printed and digital solutions to private schools operating in the K-12 education sector in Brazil.The company operates in two segments, Content & EdTech Platform and Digital Platform.The Content & EdTech Platform segment offers core and complementary educational content solutions through digital and printed content, including textbooks, learning systems, and other complimentary educational services.
Vasta Platform reported a robust financial performance in Q3 2025, with net revenue reaching BRL 250 million, representing a 13.4% organic growth. For the 2025 sales cycle, net revenue stood at BRL 1.737 billion, a 14% increase compared to 2024. The company's subscription revenue grew 14.3% to BRL 1.552 billion, while complementary solutions expanded at a significant 25.3% year-over-year. Adjusted EBITDA reached BRL 494 million, a 10% increase, with a margin of 28.4%. The actual EPS came out at '-0.07' relative to estimates at '-0.05'.
Publication Date: Dec -02
The company's operational discipline and cash management efficiency were evident in its free cash flow, which totaled BRL 316 million, a 117% increase. This improvement was driven by efficiency measures and disciplined cash management. As per the management's guidance, Vasta expects to sustain double-digit growth, with a mid-double-digit growth trend for 2026, driven by learning systems and complementary products.
Analyzing the company's valuation metrics, the current P/S Ratio stands at 1.25, while the EV/EBITDA is at 3.98. The Net Debt to last 12 months EBITDA decreased to 1.75x, down from 2.32x in Q3 2024, indicating a reduction in leverage. Analysts estimate next year's revenue growth at 14.6%, which is in line with the company's guidance. The current valuation multiples suggest that the market has priced in a certain level of growth, but the expected double-digit growth trend for 2026 could potentially support the current valuation.
Vasta's management expects pricing to be around EPCA plus 1-2%, indicating a stable pricing environment. With a ROIC of 8.48% and an ROE of 9.76%, the company is generating returns that are in line with its cost of capital. The Free Cash Flow Yield stands at 7.97%, which is a positive indicator for investors. Overall, Vasta's sustained growth, improved profitability, and reduced leverage position the company well for future growth.
Vasta Platform Limited (VSTA) Q3 2025 Earnings Call Transcript
Nov -07
Vasta Platform Limited (VSTA) Reports Q3 Loss, Lags Revenue Estimates
Nov -07
Vasta Announces Third Quarter 2025 Results
Nov -06
VSTA or LINC: Which Is the Better Value Stock Right Now?
Oct -29
Cogna Educação S.A. Announces Further Extension of the Offer to Purchase All Outstanding Class A Common Shares of Vasta Platform Limited
Oct -29
Vasta Platform Limited to Report Third Quarter 2025 Financial Results on November 06, 2025
Oct -24
VSTA or UTI: Which Is the Better Value Stock Right Now?
Oct -13
Vasta's Higher Price Is Fair Given Market Improvements
Aug -15
Growing demand for personalized learning, increasing adoption of digital platforms in education, and partnerships with schools to enhance teaching and learning outcomes drive growth in Vasta Platform's Educational Solutions and Digital Platform.
Growing demand for digital marketing and e-commerce solutions, increasing adoption of technology services, and rising need for businesses to grow and succeed drive the growth of Vasta Platform Limited's services.
A digital banking platform that provides a suite of financial services, including account opening, loan origination, and payment processing.
A payment processing platform that enables businesses to accept and process payments online, providing a secure and reliable payment gateway.
A lending platform that provides loan origination and management services, enabling financial institutions to offer loans to their customers.
An investment platform that provides a suite of investment products, including mutual funds, stocks, and bonds.
An insurance platform that provides a suite of insurance products, including life, health, and general insurance.
The threat of substitutes for Vasta Platform Limited is medium because while there are some alternatives available, they are not very attractive to customers.
The bargaining power of customers for Vasta Platform Limited is low because the company has a strong brand and customers are loyal to the brand.
The bargaining power of suppliers for Vasta Platform Limited is medium because while there are some suppliers with high bargaining power, the company has diversified its supply chain.
The threat of new entrants for Vasta Platform Limited is high because the industry is attractive and there are low barriers to entry.
The intensity of rivalry for Vasta Platform Limited is high because the industry is highly competitive and there are many players competing for market share.
| Value | |
|---|---|
| Debt Weight | 20.32% |
| Debt Cost | 4.83% |
| Equity Weight | 79.68% |
| Equity Cost | 4.83% |
| WACC | 4.83% |
| Leverage | 25.50% |
Value: 7.9
Growth: 6.8
Quality: 4.5
Yield: 4.4
Momentum: 9.0
Volatility: 7.7
1-Year Total Return ->
Value: 5.7
Growth: 5.6
Quality: 8.6
Yield: 2.0
Momentum: 10.0
Volatility: 6.0
1-Year Total Return ->
Value: 1.1
Growth: 7.8
Quality: 8.0
Yield: 1.2
Momentum: 8.5
Volatility: 9.7
1-Year Total Return ->
Value: 5.3
Growth: 6.9
Quality: 7.5
Yield: 2.0
Momentum: 4.5
Volatility: 8.7
1-Year Total Return ->
Value: 6.9
Growth: 7.0
Quality: 7.0
Yield: 0.0
Momentum: 5.0
Volatility: 6.7
1-Year Total Return ->
Value: 5.4
Growth: 4.7
Quality: 5.3
Yield: 0.0
Momentum: 5.0
Volatility: 2.7
1-Year Total Return ->