We assign a fundamental rating of 5 out of 10 to CERT. CERT was compared to 34 industry peers in the Health Care Technology industry. Both the profitability and the financial health of CERT get a neutral evaluation. Nothing too spectacular is happening here. CERT is growing strongly while it is still valued neutral. This is a good combination! 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

CERT had positive earnings in the past year.
CERT had a positive operating cash flow in the past year.
In the past 5 years CERT reported 4 times negative net income.
Each year in the past 5 years CERT had a positive operating cash flow.

1.2 Ratios

CERT has a better Return On Assets (0.71%) than 76.47% of its industry peers.
CERT has a Return On Equity of 1.02%. This is in the better half of the industry: CERT outperforms 76.47% of its industry peers.
CERT's Return On Invested Capital of 1.48% is fine compared to the rest of the industry. CERT outperforms 64.71% of its industry peers.

		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 better Profit Margin (2.62%) 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 in line with its industry peers.
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.
CERT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CERT has more shares outstanding
The debt/assets ratio for CERT is higher compared to a year ago.

2.2 Solvency

CERT has an Altman-Z score of 2.36. This is not the best score and indicates that CERT is in the grey zone with still only limited risk for bankruptcy at the moment.
CERT has a better Altman-Z score (2.36) than 64.71% of its industry peers.
The Debt to FCF ratio of CERT is 3.21, which is a good value as it means it would take CERT, 3.21 years of fcf income to pay off all of its debts.
CERT's Debt to FCF ratio of 3.21 is fine compared to the rest of the industry. CERT outperforms 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	2.36

ROIC/WACC0.15

WACC9.56%

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 in line with its industry peers.
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.
Looking at the Quick ratio, with a value of 2.09, CERT is in line with its industry, 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

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.
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.
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

CERT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.16% yearly.
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.
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

A Price/Earnings ratio of 20.22 indicates a rather expensive valuation of CERT.
Based on the Price/Earnings ratio, CERT is valued cheaper than 85.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.21, CERT is valued a bit cheaper.
With a Price/Forward Earnings ratio of 18.21, CERT is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CERT is valued cheaper than 82.35% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CERT to the average of the S&P500 Index (25.98), we can say CERT is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	20.22
Fwd PE	18.21

4.2 Price Multiples

73.53% 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.