Overall CERT gets a fundamental rating of 5 out of 10. We evaluated CERT against 34 industry peers in the Health Care Technology industry. CERT has only an average score on both its financial health and profitability. CERT is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make CERT a good candidate for growth investing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CERT was profitable.
CERT had a positive operating cash flow in the past year.
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.

1.2 Ratios

CERT's Return On Assets of 0.71% is fine compared to the rest of the industry. CERT outperforms 76.47% of its industry peers.
CERT has a better Return On Equity (1.02%) than 76.47% of its industry peers.
With a decent Return On Invested Capital value of 1.48%, CERT is doing good in the industry, outperforming 64.71% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	0.71%
ROE	1.02%
ROIC	1.48%

ROA(3y)-1.12%

ROA(5y)-1.63%

ROE(3y)-1.69%

ROE(5y)-2.47%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

The Profit Margin of CERT (2.62%) is better than 85.29% of its industry peers.
CERT has a Operating Margin of 6.30%. This is in the better half of the industry: CERT outperforms 73.53% of its industry peers.
CERT has a Gross Margin (61.44%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CERT has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	6.3%
PM (TTM)	2.62%
GM	61.44%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-0.61%

GM growth 5Y-0.61%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CERT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CERT has more shares outstanding
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.

2.2 Solvency

An Altman-Z score of 2.21 indicates that CERT is not a great score, but indicates only limited risk for bankruptcy at the moment.
CERT has a better Altman-Z score (2.21) than 64.71% of its industry peers.
CERT has a debt to FCF ratio of 3.21. This is a good value and a sign of high solvency as CERT would need 3.21 years to pay back of all of its debts.
The Debt to FCF ratio of CERT (3.21) is better than 67.65% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that CERT is not too dependend on debt financing.
The Debt to Equity ratio of CERT (0.27) is worse than 61.76% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.27
Debt/FCF	3.21
Altman-Z	2.21

ROIC/WACC0.15

WACC9.54%

2.3 Liquidity

CERT has a Current Ratio of 2.09. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CERT (2.09) is comparable to the rest of the industry.
CERT has a Quick Ratio of 2.09. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
With a Quick ratio value of 2.09, CERT perfoms like the industry average, outperforming 52.94% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.09
Quick Ratio	2.09

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

CERT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.21%, which is quite impressive.
The Earnings Per Share has been growing by 38.33% on average over the past years. This is a very strong growth
The Revenue has grown by 11.47% in the past year. This is quite good.
CERT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.06% yearly.

EPS 1Y (TTM)28.21%

EPS 3Y38.33%

EPS 5YN/A

EPS Q2Q%7.69%

Revenue 1Y (TTM)11.47%

Revenue growth 3Y10.42%

Revenue growth 5Y13.06%

Sales Q2Q%10.33%

3.2 Future

The Earnings Per Share is expected to grow by 19.16% on average over the next years. This is quite good.
Based on estimates for the next years, CERT will show a quite strong growth in Revenue. The Revenue will grow by 9.01% on average per year.

EPS Next Y1.53%

EPS Next 2Y11.09%

EPS Next 3Y11.8%

EPS Next 5Y19.16%

Revenue Next Year8.97%

Revenue Next 2Y7.64%

Revenue Next 3Y7.65%

Revenue Next 5Y9.01%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

CERT is valuated rather expensively with a Price/Earnings ratio of 17.58.
Compared to the rest of the industry, the Price/Earnings ratio of CERT indicates a rather cheap valuation: CERT is cheaper than 85.29% of the companies listed in the same industry.
CERT is valuated rather cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
CERT is valuated correctly with a Price/Forward Earnings ratio of 15.83.
Based on the Price/Forward Earnings ratio, CERT is valued a bit cheaper than 79.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CERT to the average of the S&P500 Index (25.57), we can say CERT is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	17.58
Fwd PE	15.83

4.2 Price Multiples

70.59% of the companies in the same industry are more expensive than CERT, based on the Enterprise Value to EBITDA ratio.
85.29% of the companies in the same industry are more expensive than CERT, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	15.3
EV/EBITDA	15.88

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CERT does not grow enough to justify the current Price/Earnings ratio.