CERTARA INC (CERT) Fundamental Analysis & Valuation

NASDAQ:CERT • US15687V1098

Current stock price

5.25 USD
-0.18 (-3.31%)
Last:

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

  • CERT had positive earnings in the past year.
  • CERT had a positive operating cash flow in the past year.
  • CERT had negative earnings in 4 of the past 5 years.
  • CERT had a positive operating cash flow in each of the past 5 years.
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

  • The Return On Assets of CERT (-0.10%) is better than 65.71% of its industry peers.
  • With a decent Return On Equity value of -0.15%, CERT is doing good in the industry, outperforming 65.71% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 1.18%, CERT is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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

  • CERT's Operating Margin of 5.02% is fine compared to the rest of the industry. CERT outperforms 71.43% of its industry peers.
  • CERT's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 61.53%, CERT is in line with its industry, 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.
  • CERT has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for CERT has been increased compared to 5 years ago.
  • Compared to 1 year ago, CERT has a worse debt to assets ratio.
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 1.37, we must say that CERT is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of CERT (1.37) is comparable to the rest of the 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.
  • CERT has a worse Debt to Equity ratio (0.27) than 60.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 4.2
Altman-Z 1.37
ROIC/WACC0.13
WACC8.87%
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

  • CERT has a Current Ratio of 2.05. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
  • CERT has a Current ratio (2.05) which is in line with 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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%.
  • Measured over the past years, CERT shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.47% on average per year.
  • Looking at the last year, CERT shows a quite strong growth in Revenue. The Revenue has grown by 8.75% in the last year.
  • CERT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.46% yearly.
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

  • Based on estimates for the next years, CERT will show a very strong growth in Earnings Per Share. The EPS will grow by 24.30% on average per year.
  • Based on estimates for the next years, CERT will show a quite strong growth in Revenue. The Revenue will grow by 9.47% on average per year.
EPS Next Y14%
EPS Next 2Y9.78%
EPS Next 3Y15.68%
EPS Next 5Y24.3%
Revenue Next Year2.3%
Revenue Next 2Y3.83%
Revenue Next 3Y5.91%
Revenue Next 5Y9.47%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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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8

4. CERT Valuation Analysis

4.1 Price/Earnings Ratio

  • CERT is valuated reasonably with a Price/Earnings ratio of 11.93.
  • 85.71% of the companies in the same industry are more expensive than CERT, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of CERT to the average of the S&P500 Index (26.91), we can say CERT is valued rather cheaply.
  • CERT is valuated reasonably with a Price/Forward Earnings ratio of 10.47.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CERT indicates a rather cheap valuation: CERT is cheaper than 82.86% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.69. CERT is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 11.93
Fwd PE 10.47
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CERT indicates a somewhat cheap valuation: CERT is cheaper than 74.29% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, CERT is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 11.98
EV/EBITDA 10.06
CERT Per share dataCERT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as CERT's earnings are expected to grow with 15.68% in the coming years.
PEG (NY)0.85
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

  • No dividends for CERT!.
Industry RankSector Rank
Dividend Yield 0%

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CERT Fundamentals: All Metrics, Ratios and Statistics

CERTARA INC

NASDAQ:CERT (4/9/2026, 12:25:01 PM)

5.25

-0.18 (-3.31%)

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 Change0%
Ins Owners0.89%
Ins Owner Change2.22%
Market Cap835.49M
Revenue(TTM)418.84M
Net Income(TTM)-1.59M
Analysts76
Price Target9.63 (83.43%)
Short Float %20.03%
Short Ratio7.07
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)-23.74%
PT rev (3m)-24.75%
EPS NQ rev (1m)-24.75%
EPS NQ rev (3m)-24.84%
EPS NY rev (1m)-9.67%
EPS NY rev (3m)-9.81%
Revenue NQ rev (1m)-4.14%
Revenue NQ rev (3m)-4.14%
Revenue NY rev (1m)-3.79%
Revenue NY rev (3m)-3.96%
Valuation
Industry RankSector Rank
PE 11.93
Fwd PE 10.47
P/S 1.99
P/FCF 11.98
P/OCF 8.67
P/B 0.79
P/tB N/A
EV/EBITDA 10.06
EPS(TTM)0.44
EY8.38%
EPS(NY)0.5
Fwd EY9.55%
FCF(TTM)0.44
FCFY8.35%
OCF(TTM)0.61
OCFY11.53%
SpS2.63
BVpS6.68
TBVpS-0.99
PEG (NY)0.85
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 1.37
F-Score6
WACC8.87%
ROIC/WACC0.13
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 Year2.3%
Revenue Next 2Y3.83%
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 7 / 10 to CERTARA INC (CERT). This can be considered as Undervalued.


What is the profitability of CERT stock?

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


What is the valuation of CERTARA INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for CERTARA INC (CERT) is 11.93 and the Price/Book (PB) ratio is 0.79.