CERTARA INC (CERT) Fundamental Analysis & Valuation
NASDAQ:CERT • US15687V1098
Current stock price
6.5 USD
-0.13 (-1.96%)
At close:
6.45 USD
-0.05 (-0.77%)
Pre-Market:
This CERT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- CERT had negative earnings in 4 of the past 5 years.
- Each year in the past 5 years CERT had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of -0.10%, CERT is doing good in the industry, outperforming 68.57% of the companies in the same industry.
- CERT's Return On Equity of -0.15% is fine compared to the rest of the industry. CERT outperforms 68.57% of its industry peers.
- With a decent Return On Invested Capital value of 1.18%, CERT is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
- The Operating Margin of CERT (5.02%) is better than 68.57% of its industry peers.
- In the last couple of years the Operating Margin of CERT has declined.
- CERT has a Gross Margin (61.53%) which 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 | 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%
2. CERT Health Analysis
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.
- CERT has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CERT has more shares outstanding
- CERT has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.58, we must say that CERT is in the distress zone and has some risk of bankruptcy.
- CERT's Altman-Z score of 1.58 is in line compared to the rest of the industry. CERT outperforms 60.00% of its industry peers.
- 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 has a Debt to FCF ratio of 4.20. This is in the better half 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.
- The Debt to Equity ratio of CERT (0.27) is worse than 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.2 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.13
WACC9.36%
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.
- A Quick Ratio of 2.05 indicates that CERT has no problem at all paying its short term obligations.
- The Quick ratio of CERT (2.05) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 |
3. CERT Growth Analysis
3.1 Past
- The earnings per share for CERT have decreased by -2.22% in the last year.
- The Earnings Per Share has been decreasing by -1.47% on average over the past years.
- CERT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.75%.
- Measured over the past years, CERT shows a quite strong growth in Revenue. The Revenue has been growing by 11.46% on average per year.
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 Year3.15%
Revenue Next 2Y4.43%
Revenue Next 3Y6.33%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. CERT Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.77, which indicates a correct valuation of CERT.
- 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.
- CERT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.79.
- A Price/Forward Earnings ratio of 12.96 indicates a correct valuation of CERT.
- Based on the Price/Forward Earnings ratio, CERT is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
- CERT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 12.96 |
4.2 Price Multiples
- CERT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CERT is cheaper than 71.43% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CERT indicates a somewhat cheap valuation: CERT is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.83 | ||
| EV/EBITDA | 11.83 |
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)1.06
PEG (5Y)N/A
EPS Next 2Y9.78%
EPS Next 3Y15.68%
5. CERT Dividend Analysis
5.1 Amount
- No dividends for CERT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CERT Fundamentals: All Metrics, Ratios and Statistics
6.5
-0.13 (-1.96%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)02-26 2026-02-26/bmo
Earnings (Next)05-04 2026-05-04/amc
Inst Owners93.43%
Inst Owner Change4.58%
Ins Owners0.89%
Ins Owner Change0.35%
Market Cap1.03B
Revenue(TTM)418.84M
Net Income(TTM)-1.59M
Analysts76
Price Target12.62 (94.15%)
Short Float %18.96%
Short Ratio7.91
Dividend
| Industry Rank | Sector 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)-6.31%
EPS NQ rev (1m)-16.27%
EPS NQ rev (3m)-16.36%
EPS NY rev (1m)-9.67%
EPS NY rev (3m)-9.98%
Revenue NQ rev (1m)-3.42%
Revenue NQ rev (3m)-3.62%
Revenue NY rev (1m)-2.99%
Revenue NY rev (3m)-3.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 12.96 | ||
| P/S | 2.47 | ||
| P/FCF | 14.83 | ||
| P/OCF | 10.74 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.83 |
EPS(TTM)0.44
EY6.77%
EPS(NY)0.5
Fwd EY7.72%
FCF(TTM)0.44
FCFY6.74%
OCF(TTM)0.61
OCFY9.31%
SpS2.63
BVpS6.68
TBVpS-0.99
PEG (NY)1.06
PEG (5Y)N/A
Graham Number8.13
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.58 |
F-Score6
WACC9.36%
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 Year3.15%
Revenue Next 2Y4.43%
Revenue Next 3Y6.33%
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 14.77 and the Price/Book (PB) ratio is 0.97.
Can you provide the financial health for CERT stock?
The financial health rating of CERTARA INC (CERT) is 5 / 10.