9.4 USD
-0.28 (-2.89%)
9.4 USD
0 (0%)
CERT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make CERT suitable for growth investing!
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.
- 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
- CERT has a Return On Assets of 0.71%. This is in the better half 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.
- CERT has a better Return On Invested Capital (1.48%) than 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 Profit Margin of 2.62%. This is amongst the best in the industry. CERT outperforms 85.29% of its industry peers.
- CERT has a better Operating Margin (6.30%) than 73.53% of its industry peers.
- CERT has a Gross Margin of 61.44%. This is comparable to the rest of the industry: CERT outperforms 55.88% of its industry peers.
- 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CERT is destroying value.
- Compared to 1 year ago, CERT has more shares outstanding
- CERT has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for CERT is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.29 indicates that CERT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CERT's Altman-Z score of 2.29 is fine compared to the rest of the industry. CERT outperforms 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.
- CERT has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
- CERT has a worse Debt to Equity ratio (0.27) than 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | 2.29 |
ROIC/WACC0.15
WACC9.54%
2.3 Liquidity
- A Current Ratio of 2.09 indicates that CERT has no problem at all paying its short term obligations.
- With a Current ratio value of 2.09, CERT perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
- A Quick Ratio of 2.09 indicates that CERT has no problem at all paying its short term obligations.
- CERT's Quick ratio of 2.09 is in line compared to the rest of the industry. CERT outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 2.09 |
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.
- 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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 18.80 indicates a rather expensive valuation of CERT.
- 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.
- When comparing the Price/Earnings ratio of CERT to the average of the S&P500 Index (28.82), we can say CERT is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 16.93, the valuation of CERT can be described as correct.
- Based on the Price/Forward Earnings ratio, CERT is valued a bit cheaper than 79.41% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. CERT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 16.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CERT is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
- CERT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CERT is cheaper than 85.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.36 | ||
| EV/EBITDA | 16.55 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)12.3
PEG (5Y)N/A
EPS Next 2Y11.09%
EPS Next 3Y11.8%
5. Dividend
5.1 Amount
- No dividends for CERT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CERTARA INC / CERT 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 5 / 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 5 / 10.
What are the PE and PB ratios of CERTARA INC (CERT) stock?
The Price/Earnings (PE) ratio for CERTARA INC (CERT) is 18.8 and the Price/Book (PB) ratio is 1.41.
Can you provide the financial health for CERT stock?
The financial health rating of CERTARA INC (CERT) is 5 / 10.