Veste S.A. Estilo is a Brazilian company that specializes in high-end apparel and accessories. The company manages a portfolio of brands including Le Lis, Dudalina, John John, BO.BO and Individual, with Le Lis the most representative in terms of sales. Its business model is multichannel, encompassing direct to consumer (B2C) sales through its own physical stores and digital platforms, such as websites and apps. Veste also operates in the B2B (wholesale) segment, using a digital platform to provide products to multi-brands. The physical chain consists of its own stores and a growing number of franchises, focusing on expanding the Dudalina brand in this format. The company uses outlet channels, operated under the “Stock” flag, as a complementary way to sell products. The operating structure also includes the use of its own factory for part of John John's production.
The EBITDA margin is a measure of a company's operating profit desconsidering D&A costs as a percentage of its revenue.
The EBIT margin is a measure of a company's operating profit considering D&A costs as a percentage of its revenue.
The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue. It is the ratio of net profits to revenues for a company or business segment.
Many companies have a high D&A in relation to the company's operating profit (EBITDA) and although this indicator does not have an effective cash effect, it ends up influencing the accounting net income, so analyzing this relationship can help to understand when D&A has a relevant impact to the company's results.
Shows the amount spent on investments in Capex in relation to Net Revenue for the period. The company can use these investments to try to increase its revenue in the future.
Indicates a comparison between investments in fixed/intangible assets and the depreciation and amortization of some company assets. It serves to let managers know that the company's assets are devaluing periodically, and whether CAPEX has followed the same pace or not.
It shows the percentage of operating cash flow that the company uses in Capex (investments in fixed and intangible assets). When your result is greater than 100%, it demonstrates that there are expenses greater than what the company produces in its operations.
Return on equity (ROE) is the measure of a company's net income divided by its shareholders' equity and is a gauge of a corporation's profitability and how efficiently it generates those profits.
Return on invested capital (ROIC) is a calculation used to assess a company's efficiency in allocating capital to profitable investments. The formula for calculating ROIC in Morningstar involves dividing Net Income by the average of invested capital.
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