CERTARA INC (CERT) Stock Fundamental Analysis
NASDAQ:CERT - Nasdaq - US15687V1098 - Common Stock - Currency: USD
CERT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 36 industry peers in the Health Care Technology industry. CERT has an average financial health and profitability rating. CERT is not valued too expensively and it also shows a decent growth rate.
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.
CERT had negative earnings in 4 of the past 5 years.
CERT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CERT's Return On Assets of -0.17% is amongst the best of the industry. CERT outperforms 83.33% of its industry peers.
CERT's Return On Equity of -0.24% is amongst the best of the industry. CERT outperforms 83.33% of its industry peers.
With a decent Return On Invested Capital value of 0.39%, CERT is doing good in the industry, outperforming 69.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.17% | ||
| ROE | -0.24% | ||
| ROIC | 0.39% |
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
With a decent Operating Margin value of 1.82%, CERT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Gross Margin, with a value of 60.26%, CERT is in line with its industry, outperforming 52.78% of the companies in the same industry.
CERT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.82% | ||
| PM (TTM) | N/A | ||
| GM | 60.26% |
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
The number of shares outstanding for CERT has been increased compared to 5 years ago.
The debt/assets ratio for CERT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.63 indicates that CERT is not a great score, but indicates only limited risk for bankruptcy at the moment.
CERT's Altman-Z score of 2.63 is fine compared to the rest of the industry. CERT outperforms 69.44% of its industry peers.
The Debt to FCF ratio of CERT is 4.19, which is a neutral value as it means it would take CERT, 4.19 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.19, CERT is doing good in the industry, outperforming 72.22% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that CERT is not too dependend on debt financing.
CERT's Debt to Equity ratio of 0.27 is in line compared to the rest of the industry. CERT outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.04
WACC10.59%
2.3 Liquidity
A Current Ratio of 2.78 indicates that CERT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.78, CERT is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
CERT has a Quick Ratio of 2.78. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of CERT (2.78) is better than 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.78 |
3. Growth
3.1 Past
CERT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.67%, which is quite good.
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 9.37% in the past year. This is quite good.
CERT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.06% yearly.
EPS 1Y (TTM)16.67%
EPS 3Y38.33%
EPS 5YN/A
EPS Q2Q%40%
Revenue 1Y (TTM)9.37%
Revenue growth 3Y10.42%
Revenue growth 5Y13.06%
Sales Q2Q%9.67%
3.2 Future
The Earnings Per Share is expected to grow by 16.82% 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 8.25% on average per year.
EPS Next Y5.46%
EPS Next 2Y11.46%
EPS Next 3Y11.42%
EPS Next 5Y16.82%
Revenue Next Year9.77%
Revenue Next 2Y9.35%
Revenue Next 3Y9.57%
Revenue Next 5Y8.25%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.27, CERT is valued on the expensive side.
Based on the Price/Earnings ratio, CERT is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.30, CERT is valued at the same level.
A Price/Forward Earnings ratio of 20.39 indicates a rather expensive valuation of CERT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CERT indicates a rather cheap valuation: CERT is cheaper than 80.56% of the companies listed in the same industry.
CERT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 20.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CERT indicates a somewhat cheap valuation: CERT is cheaper than 75.00% of the companies listed in the same industry.
83.33% 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 | 26.31 | ||
| EV/EBITDA | 25.39 |
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)4.26
PEG (5Y)N/A
EPS Next 2Y11.46%
EPS Next 3Y11.42%
5. Dividend
5.1 Amount
No dividends for CERT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.4
+0.47 (+4.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners78.35%
Inst Owner Change-0.04%
Ins Owners2.43%
Ins Owner Change3.31%
Market Cap1.85B
Analysts75.29
Price Target16.09 (41.14%)
Short Float %7.36%
Short Ratio4.7
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)2
Avg EPS beat(2)19.78%
Min EPS beat(2)15.79%
Max EPS beat(2)23.76%
EPS beat(4)3
Avg EPS beat(4)5.46%
Min EPS beat(4)-33.58%
Max EPS beat(4)23.76%
EPS beat(8)3
Avg EPS beat(8)-0.71%
EPS beat(12)4
Avg EPS beat(12)-0.91%
EPS beat(16)6
Avg EPS beat(16)-6.67%
Revenue beat(2)1
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-2.08%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-1.75%
Revenue beat(12)4
Avg Revenue beat(12)-1.41%
Revenue beat(16)5
Avg Revenue beat(16)-1.85%
PT rev (1m)2.16%
PT rev (3m)9.23%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-5.44%
EPS NY rev (1m)2.53%
EPS NY rev (3m)1.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 20.39 | ||
| P/S | 4.69 | ||
| P/FCF | 26.31 | ||
| P/OCF | 19.78 | ||
| P/B | 1.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.39 |
EPS(TTM)0.49
EY4.3%
EPS(NY)0.56
Fwd EY4.9%
FCF(TTM)0.43
FCFY3.8%
OCF(TTM)0.58
OCFY5.06%
SpS2.43
BVpS6.68
TBVpS-0.96
PEG (NY)4.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.17% | ||
| ROE | -0.24% | ||
| ROCE | 0.49% | ||
| ROIC | 0.39% | ||
| ROICexc | 0.45% | ||
| ROICexgc | 16.63% | ||
| OM | 1.82% | ||
| PM (TTM) | N/A | ||
| GM | 60.26% | ||
| FCFM | 17.82% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.19 | ||
| Debt/EBITDA | 3.77 | ||
| Cap/Depr | 33.09% | ||
| Cap/Sales | 5.89% | ||
| Interest Coverage | 0.33 | ||
| Cash Conversion | 120.83% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.78 | ||
| Altman-Z | 2.63 |
F-Score5
WACC10.59%
ROIC/WACC0.04
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)16.67%
EPS 3Y38.33%
EPS 5YN/A
EPS Q2Q%40%
EPS Next Y5.46%
EPS Next 2Y11.46%
EPS Next 3Y11.42%
EPS Next 5Y16.82%
Revenue 1Y (TTM)9.37%
Revenue growth 3Y10.42%
Revenue growth 5Y13.06%
Sales Q2Q%9.67%
Revenue Next Year9.77%
Revenue Next 2Y9.35%
Revenue Next 3Y9.57%
Revenue Next 5Y8.25%
EBIT growth 1Y385.56%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year16.49%
EBIT Next 3Y12.31%
EBIT Next 5Y14.24%
FCF growth 1Y-12.29%
FCF growth 3Y4.89%
FCF growth 5Y15.82%
OCF growth 1Y0.89%
OCF growth 3Y10.04%
OCF growth 5Y16.17%