Overall CERT gets a fundamental rating of 5 out of 10. We evaluated CERT against 35 industry peers in the Health Care Technology industry. CERT has an average financial health and profitability rating. CERT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes CERT very considerable 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.
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.

1.2 Ratios

The Return On Assets of CERT (0.71%) is better than 77.14% of its industry peers.
CERT has a better Return On Equity (1.02%) than 77.14% of its industry peers.
With a decent Return On Invested Capital value of 1.48%, CERT is doing good in the industry, outperforming 65.71% 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

CERT has a Profit Margin of 2.62%. This is amongst the best in the industry. CERT outperforms 85.71% of its industry peers.
CERT has a Operating Margin of 6.30%. This is in the better half of the industry: CERT outperforms 74.29% of its industry peers.
The Gross Margin of CERT (61.44%) is comparable to the rest of the industry.
CERT's Gross Margin has been stable in the last couple of years.

		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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CERT is destroying value.
The number of shares outstanding for CERT has been increased compared to 1 year ago.
Compared to 5 years ago, CERT has more shares outstanding
Compared to 1 year ago, CERT has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.38 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 (2.38) than 62.86% 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.
CERT has a Debt to FCF ratio of 3.21. This is in the better half of the industry: CERT outperforms 68.57% of its industry peers.
CERT has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.27, CERT is doing worse than 62.86% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.27
Debt/FCF	3.21
Altman-Z	2.38

ROIC/WACC0.15

WACC9.78%

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.
CERT has a Current ratio (2.09) which 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.
CERT has a Quick ratio (2.09) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	2.09
Quick Ratio	2.09

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

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

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.
CERT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.01% yearly.

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

CERT is valuated rather expensively with a Price/Earnings ratio of 20.00.
CERT's Price/Earnings ratio is rather cheap when compared to the industry. CERT is cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. CERT is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 18.01, CERT is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CERT is valued a bit cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CERT to the average of the S&P500 Index (24.26), we can say CERT is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	20
Fwd PE	18.01

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.
85.71% 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	17.4
EV/EBITDA	17.23

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.