CERTARA INC (CERT) Fundamental Analysis & Valuation

NASDAQ:CERT • US15687V1098

Current stock price

6.25 USD
-0.1 (-1.57%)
At close:
6.36 USD
+0.11 (+1.76%)
After Hours:

This CERT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. CERT Profitability Analysis

1.1 Basic Checks

  • In the past year CERT was profitable.
  • In the past year CERT had a positive cash flow from operations.
  • In the past 5 years CERT reported 4 times negative net income.
  • In the past 5 years CERT always reported a positive cash flow from operatings.
CERT Yearly Net Income VS EBIT VS OCF VS FCFCERT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M

1.2 Ratios

  • Looking at the Return On Assets, with a value of -0.10%, CERT is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of -0.15%, CERT is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
  • CERT's Return On Invested Capital of 1.18% is fine compared to the rest of the industry. CERT outperforms 71.43% of its industry peers.
Industry RankSector Rank
ROA -0.1%
ROE -0.15%
ROIC 1.18%
ROA(3y)-1.47%
ROA(5y)-0.87%
ROE(3y)-2.19%
ROE(5y)-1.3%
ROIC(3y)N/A
ROIC(5y)N/A
CERT Yearly ROA, ROE, ROICCERT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 2025 0 -2 -4 -6

1.3 Margins

  • Looking at the Operating Margin, with a value of 5.02%, CERT is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
  • In the last couple of years the Operating Margin of CERT has declined.
  • With a Gross Margin value of 61.53%, CERT perfoms like the industry average, outperforming 54.29% of the companies in the same industry.
  • CERT's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 5.02%
PM (TTM) N/A
GM 61.53%
OM growth 3Y-20.25%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.55%
GM growth 5Y0.97%
CERT Yearly Profit, Operating, Gross MarginsCERT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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5

2. CERT Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CERT is destroying value.
  • The number of shares outstanding for CERT has been reduced compared to 1 year ago.
  • The number of shares outstanding for CERT has been increased compared to 5 years ago.
  • The debt/assets ratio for CERT is higher compared to a year ago.
CERT Yearly Shares OutstandingCERT Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
CERT Yearly Total Debt VS Total AssetsCERT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

  • Based on the Altman-Z score of 1.53, we must say that CERT is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of 1.53, CERT perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
  • CERT has a debt to FCF ratio of 4.20. This is a neutral value as CERT would need 4.20 years to pay back of all of its debts.
  • CERT's Debt to FCF ratio of 4.20 is fine compared to the rest of the industry. CERT outperforms 71.43% of its industry peers.
  • A Debt/Equity ratio of 0.27 indicates that CERT is not too dependend on debt financing.
  • With a Debt to Equity ratio value of 0.27, CERT is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 4.2
Altman-Z 1.53
ROIC/WACC0.12
WACC9.6%
CERT Yearly LT Debt VS Equity VS FCFCERT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 2.05 indicates that CERT has no problem at all paying its short term obligations.
  • CERT's Current ratio of 2.05 is in line compared to the rest of the industry. CERT outperforms 57.14% of its industry peers.
  • CERT has a Quick Ratio of 2.05. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
  • CERT has a Quick ratio (2.05) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 2.05
Quick Ratio 2.05
CERT Yearly Current Assets VS Current LiabilitesCERT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M

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6

3. CERT Growth Analysis

3.1 Past

  • CERT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.22%.
  • The Earnings Per Share has been decreasing by -1.47% on average over the past years.
  • Looking at the last year, CERT shows a quite strong growth in Revenue. The Revenue has grown by 8.75% in the last year.
  • The Revenue has been growing by 11.46% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.22%
EPS 3Y-1.47%
EPS 5YN/A
EPS Q2Q%-40%
Revenue 1Y (TTM)8.75%
Revenue growth 3Y7.67%
Revenue growth 5Y11.46%
Sales Q2Q%3.28%

3.2 Future

  • The Earnings Per Share is expected to grow by 24.30% on average over the next years. This is a very strong growth
  • CERT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.47% yearly.
EPS Next Y14%
EPS Next 2Y9.78%
EPS Next 3Y15.68%
EPS Next 5Y24.3%
Revenue Next Year2.37%
Revenue Next 2Y3.87%
Revenue Next 3Y5.91%
Revenue Next 5Y9.47%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
CERT Yearly Revenue VS EstimatesCERT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 200M 400M 600M
CERT Yearly EPS VS EstimatesCERT Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0.5 1 1.5

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6

4. CERT Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 14.20, CERT is valued correctly.
  • Compared to the rest of the industry, the Price/Earnings ratio of CERT indicates a rather cheap valuation: CERT is cheaper than 85.71% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.50, CERT is valued a bit cheaper.
  • Based on the Price/Forward Earnings ratio of 12.46, the valuation of CERT can be described as correct.
  • Based on the Price/Forward Earnings ratio, CERT is valued cheaper than 82.86% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of CERT to the average of the S&P500 Index (22.67), we can say CERT is valued slightly cheaper.
Industry RankSector Rank
PE 14.2
Fwd PE 12.46
CERT Price Earnings VS Forward Price EarningsCERT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 71.43% of the companies in the same industry are more expensive than CERT, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, CERT is valued a bit cheaper than 80.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.26
EV/EBITDA 11.42
CERT Per share dataCERT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

  • CERT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • CERT's earnings are expected to grow with 15.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y9.78%
EPS Next 3Y15.68%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. CERT Dividend Analysis

5.1 Amount

  • CERT does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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CERT Fundamentals: All Metrics, Ratios and Statistics

CERTARA INC

NASDAQ:CERT (3/24/2026, 8:19:02 PM)

After market: 6.36 +0.11 (+1.76%)

6.25

-0.1 (-1.57%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)02-26
Earnings (Next)05-04
Inst Owners95.67%
Inst Owner Change4.58%
Ins Owners0.89%
Ins Owner Change0.35%
Market Cap994.63M
Revenue(TTM)418.84M
Net Income(TTM)-1.59M
Analysts76
Price Target12.62 (101.92%)
Short Float %18.96%
Short Ratio7.91
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.33%
Min EPS beat(2)-21.15%
Max EPS beat(2)25.82%
EPS beat(4)2
Avg EPS beat(4)-1.19%
Min EPS beat(4)-33.18%
Max EPS beat(4)25.82%
EPS beat(8)4
Avg EPS beat(8)-0.95%
EPS beat(12)4
Avg EPS beat(12)-3.08%
EPS beat(16)6
Avg EPS beat(16)-1.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-2.39%
Max Revenue beat(4)-0.91%
Revenue beat(8)2
Avg Revenue beat(8)-1.65%
Revenue beat(12)2
Avg Revenue beat(12)-1.9%
Revenue beat(16)5
Avg Revenue beat(16)-1.43%
PT rev (1m)0%
PT rev (3m)-1.33%
EPS NQ rev (1m)-24.52%
EPS NQ rev (3m)-24.6%
EPS NY rev (1m)-9.67%
EPS NY rev (3m)-9.81%
Revenue NQ rev (1m)-4.11%
Revenue NQ rev (3m)-4.11%
Revenue NY rev (1m)-3.72%
Revenue NY rev (3m)-3.89%
Valuation
Industry RankSector Rank
PE 14.2
Fwd PE 12.46
P/S 2.37
P/FCF 14.26
P/OCF 10.33
P/B 0.94
P/tB N/A
EV/EBITDA 11.42
EPS(TTM)0.44
EY7.04%
EPS(NY)0.5
Fwd EY8.03%
FCF(TTM)0.44
FCFY7.01%
OCF(TTM)0.61
OCFY9.68%
SpS2.63
BVpS6.68
TBVpS-0.99
PEG (NY)1.01
PEG (5Y)N/A
Graham Number8.13
Profitability
Industry RankSector Rank
ROA -0.1%
ROE -0.15%
ROCE 1.5%
ROIC 1.18%
ROICexc 1.37%
ROICexgc N/A
OM 5.02%
PM (TTM) N/A
GM 61.53%
FCFM 16.66%
ROA(3y)-1.47%
ROA(5y)-0.87%
ROE(3y)-2.19%
ROE(5y)-1.3%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-13.68%
ROICexc growth 5YN/A
OM growth 3Y-20.25%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.55%
GM growth 5Y0.97%
F-Score6
Asset Turnover0.27
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 4.2
Debt/EBITDA 3.02
Cap/Depr 35.33%
Cap/Sales 6.34%
Interest Coverage 1.1
Cash Conversion 100.15%
Profit Quality N/A
Current Ratio 2.05
Quick Ratio 2.05
Altman-Z 1.53
F-Score6
WACC9.6%
ROIC/WACC0.12
Cap/Depr(3y)31.2%
Cap/Depr(5y)27.44%
Cap/Sales(3y)5.38%
Cap/Sales(5y)4.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.22%
EPS 3Y-1.47%
EPS 5YN/A
EPS Q2Q%-40%
EPS Next Y14%
EPS Next 2Y9.78%
EPS Next 3Y15.68%
EPS Next 5Y24.3%
Revenue 1Y (TTM)8.75%
Revenue growth 3Y7.67%
Revenue growth 5Y11.46%
Sales Q2Q%3.28%
Revenue Next Year2.37%
Revenue Next 2Y3.87%
Revenue Next 3Y5.91%
Revenue Next 5Y9.47%
EBIT growth 1Y1314.1%
EBIT growth 3Y-14.14%
EBIT growth 5YN/A
EBIT Next Year20.66%
EBIT Next 3Y9.42%
EBIT Next 5YN/A
FCF growth 1Y17.41%
FCF growth 3Y-4.46%
FCF growth 5Y13.61%
OCF growth 1Y19.71%
OCF growth 3Y1.35%
OCF growth 5Y16.54%

CERTARA INC / CERT Fundamental Analysis FAQ

What is the fundamental rating for CERT stock?

ChartMill assigns a fundamental rating of 5 / 10 to CERT.


What is the valuation status of CERTARA INC (CERT) stock?

ChartMill assigns a valuation rating of 6 / 10 to CERTARA INC (CERT). This can be considered as Fairly Valued.


Can you provide the profitability details for CERTARA INC?

CERTARA INC (CERT) has a profitability rating of 4 / 10.


What are the PE and PB ratios of CERTARA INC (CERT) stock?

The Price/Earnings (PE) ratio for CERTARA INC (CERT) is 14.2 and the Price/Book (PB) ratio is 0.94.


Can you provide the financial health for CERT stock?

The financial health rating of CERTARA INC (CERT) is 5 / 10.