VTMX

We rate Vesta Real Estate Corporation, S.A.B. de C.V. (VTMX) as a Buy with a composite score of 67.0/100 at a current price of $37.02. The stock scores above average across the majority of our six quantitative factors and ranks #192 out of 7,333 stocks in our universe, reflecting a favorable risk-reward profile.

The rating is primarily driven by strength in momentum (80th percentile) and value (77th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (40th percentile) and stability (59th percentile) tempers our overall conviction. We assign a Narrow Moat rating (61/100), Low uncertainty, and Exemplary capital allocation.

Key items to watch: quarterly earnings execution and sector-level competitive dynamics. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

Vesta Real Estate Corporation, S.A.B. de C.V. holds a top-quartile position (#9 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 67.0/100 places it at rank #192 in our full 7,333-stock universe. At $2.2B in market capitalization, Vesta Real Estate Corporation, S.A.B. de C.V. is a mid-cap player in the Finance, Insurance, And Real Estate space, which limits certain scale advantages but may allow for more agile strategic execution.

The near-term outlook is constructive, with revenue growing at 18% and momentum in the 80th percentile confirming positive market sentiment and institutional accumulation. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy. Investment factor at the 40th percentile indicates reinvestment patterns that investors should monitor for sustainability.

The margin cascade tells an important story: gross margins of 99% (+22.2pp vs sector) narrow to operating margins of 76% (+58.7pp vs sector) and net margins of 88.5%, yielding a gross-to-net conversion rate of 90%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.

At a current price of $37.02, Vesta Real Estate Corporation, S.A.B. de C.V. appears undervalued relative to its fundamentals. Our value factor score of 77/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The stock screens as attractively priced on a majority of these measures, suggesting the market may be underappreciating the underlying fundamentals.

The stock currently trades at EV/EBITDA of 2.4x (discounted to peers), P/B of 1.2x, P/S of 3.0x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.

We assign a Low uncertainty rating to Vesta Real Estate Corporation, S.A.B. de C.V.. The company exhibits strong financial stability with a beta of 0.42, conservative leverage (34% D/E), and a stability factor in the 59th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.

Specific risk factors that inform our assessment include: low beta of 0.42 — while defensive, this may indicate limited upside participation in bull markets. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 59th percentile and quality factor at the 69th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: healthy gross margins of 99% provide a buffer against cost pressures; a 4.27% dividend yield anchors total return. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.

We rate Vesta Real Estate Corporation, S.A.B. de C.V.'s capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 34.4%, disciplined leverage (34% D/E), a 4.27% dividend yield. Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — Vesta Real Estate Corporation, S.A.B. de C.V. meets this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. The company returns capital via a 4.27% dividend yield, and the combination of 22.6% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, Vesta Real Estate Corporation, S.A.B. de C.V. receives a Buy rating with a composite score of 67.0/100 (rank #192 of 7,333). Our quantitative framework assigns a Narrow Moat (61/100, trend: stable), Low uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 65/100.

Our analysis supports a constructive view on Vesta Real Estate Corporation, S.A.B. de C.V.. The combination of identifiable competitive advantages, low uncertainty, and exemplary capital allocation creates a risk-reward profile that favors accumulation at current levels. We recommend investors consider adding this name to portfolios aligned with the stock's risk profile.