CERTARA INC (CERT) Stock Fundamental Analysis
USA - NASDAQ:CERT - US15687V1098 - Common Stock
8.19 USD
+0.06 (+0.74%)
CERT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 35 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make CERT suitable for growth investing!
1. Profitability
1.1 Basic Checks
CERT had positive earnings in the past year.
In the past year CERT had a positive cash flow from operations.
CERT had negative earnings in 4 of the past 5 years.
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 amongst the best of the industry. CERT outperforms 85.71% of its industry peers.
CERT has a Return On Equity of 1.02%. This is amongst the best in the industry. CERT outperforms 85.71% of its industry peers.
CERT has a Return On Invested Capital of 1.48%. This is in the better half of the industry: CERT outperforms 71.43% 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 85.71% 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.
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%
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
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
CERT has an Altman-Z score of 1.99. 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's Altman-Z score of 1.99 is fine compared to the rest of the industry. CERT outperforms 65.71% 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.
Looking at the Debt to FCF ratio, with a value of 3.21, CERT is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
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 Debt to Equity ratio (0.27) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.14
WACC10.79%
2.3 Liquidity
A Current Ratio of 2.09 indicates that CERT has no problem at all paying its short term obligations.
CERT's Current ratio of 2.09 is in line compared to the rest of the industry. CERT outperforms 45.71% of its industry peers.
A Quick Ratio of 2.09 indicates that CERT has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.09, CERT is in line with its industry, outperforming 45.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 2.09 |
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%.
Measured over the past years, CERT shows a quite strong growth in Revenue. The Revenue has been growing by 13.06% on average per year.
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.
The Revenue is expected to grow by 9.01% on average over the next years. This is quite good.
EPS Next Y-0.92%
EPS Next 2Y11.01%
EPS Next 3Y12.25%
EPS Next 5Y19.16%
Revenue Next Year9.9%
Revenue Next 2Y8.96%
Revenue Next 3Y9.05%
Revenue Next 5Y9.01%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
With a Price/Earnings ratio of 16.38, CERT is valued correctly.
CERT's Price/Earnings ratio is rather cheap when compared to the industry. CERT is cheaper than 88.57% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.51, CERT is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.77, which indicates a correct valuation of CERT.
85.71% of the companies in the same industry are more expensive than CERT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, CERT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 14.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CERT is valued a bit cheaper than 77.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CERT is valued cheaply inside the industry as 88.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.37 | ||
| EV/EBITDA | 14.2 |
4.3 Compensation for Growth
CERT's earnings are expected to grow with 12.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.01%
EPS Next 3Y12.25%
5. Dividend
5.1 Amount
No dividends for CERT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:CERT (11/19/2025, 10:40:21 AM)
8.19
+0.06 (+0.74%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners81.56%
Inst Owner Change10.02%
Ins Owners2.42%
Ins Owner Change0.68%
Market Cap1.32B
Revenue(TTM)415.55M
Net Income(TTM)10.88M
Analysts75.56
Price Target15.2 (85.59%)
Short Float %14.83%
Short Ratio8.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-3.68%
Min EPS beat(2)-33.18%
Max EPS beat(2)25.82%
EPS beat(4)3
Avg EPS beat(4)8.05%
Min EPS beat(4)-33.18%
Max EPS beat(4)25.82%
EPS beat(8)4
Avg EPS beat(8)-0.69%
EPS beat(12)5
Avg EPS beat(12)0.42%
EPS beat(16)6
Avg EPS beat(16)-5.81%
Revenue beat(2)0
Avg Revenue beat(2)-2.25%
Min Revenue beat(2)-2.39%
Max Revenue beat(2)-2.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-2.39%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-1.5%
Revenue beat(12)3
Avg Revenue beat(12)-1.53%
Revenue beat(16)5
Avg Revenue beat(16)-2.04%
PT rev (1m)3.15%
PT rev (3m)-3.52%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)-4.35%
EPS NY rev (1m)0.45%
EPS NY rev (3m)-5.89%
Revenue NQ rev (1m)-1.4%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 14.77 | ||
| P/S | 3.17 | ||
| P/FCF | 14.37 | ||
| P/OCF | 11.26 | ||
| P/B | 1.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.2 |
EPS(TTM)0.5
EY6.11%
EPS(NY)0.55
Fwd EY6.77%
FCF(TTM)0.57
FCFY6.96%
OCF(TTM)0.73
OCFY8.88%
SpS2.59
BVpS6.63
TBVpS-1.04
PEG (NY)N/A
PEG (5Y)N/A
Graham Number8.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 1.02% | ||
| ROCE | 1.87% | ||
| ROIC | 1.48% | ||
| ROICexc | 1.68% | ||
| ROICexgc | N/A | ||
| OM | 6.3% | ||
| PM (TTM) | 2.62% | ||
| GM | 61.44% | ||
| FCFM | 22.02% |
ROA(3y)-1.12%
ROA(5y)-1.63%
ROE(3y)-1.69%
ROE(5y)-2.47%
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 3YN/A
ROICexc growth 5YN/A
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%
F-Score7
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.21 | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 34.15% | ||
| Cap/Sales | 6.1% | ||
| Interest Coverage | 1.19 | ||
| Cash Conversion | 116.35% | ||
| Profit Quality | 841.35% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 2.09 | ||
| Altman-Z | 1.99 |
F-Score7
WACC10.79%
ROIC/WACC0.14
Cap/Depr(3y)27.38%
Cap/Depr(5y)24.09%
Cap/Sales(3y)4.51%
Cap/Sales(5y)3.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)28.21%
EPS 3Y38.33%
EPS 5YN/A
EPS Q2Q%7.69%
EPS Next Y-0.92%
EPS Next 2Y11.01%
EPS Next 3Y12.25%
EPS Next 5Y19.16%
Revenue 1Y (TTM)11.47%
Revenue growth 3Y10.42%
Revenue growth 5Y13.06%
Sales Q2Q%10.33%
Revenue Next Year9.9%
Revenue Next 2Y8.96%
Revenue Next 3Y9.05%
Revenue Next 5Y9.01%
EBIT growth 1Y261.61%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year16.77%
EBIT Next 3Y12.28%
EBIT Next 5Y14.24%
FCF growth 1Y13.27%
FCF growth 3Y4.89%
FCF growth 5Y15.82%
OCF growth 1Y23.15%
OCF growth 3Y10.04%
OCF growth 5Y16.17%
CERTARA INC / CERT FAQ
What is the fundamental rating for CERT stock?
ChartMill assigns a fundamental rating of 5 / 10 to CERT.
Can you provide the valuation status for CERTARA INC?
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 5 / 10.
What are the PE and PB ratios of CERTARA INC (CERT) stock?
The Price/Earnings (PE) ratio for CERTARA INC (CERT) is 16.38 and the Price/Book (PB) ratio is 1.24.