CERTARA INC (CERT)
US15687V1098 - Common Stock
Taking everything into account, CERT scores 4 out of 10 in our fundamental rating. CERT was compared to 37 industry peers in the Health Care Technology industry. The financial health of CERT is average, but there are quite some concerns on its profitability. CERT is valied quite expensively at the moment, while it does show a decent growth rate.
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
With a decent Return On Assets value of -2.01%, CERT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
CERT has a better Return On Equity (-2.95%) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.01% | ||
| ROE | -2.95% | ||
| ROIC | N/A |
ROA(3y)-1.16%
ROA(5y)-1.65%
ROE(3y)-1.73%
ROE(5y)-2.6%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CERT's Gross Margin of 59.68% is in line compared to the rest of the industry. CERT outperforms 48.57% of its industry peers.
In the last couple of years the Gross Margin of CERT has remained more or less at the same level.
CERT does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 59.68% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.88%
GM growth 5Y1.23%
2. Health
2.1 Basic Checks
CERT does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for CERT has been increased compared to 1 year ago.
Compared to 5 years ago, CERT has more shares outstanding
Compared to 1 year ago, CERT has about the same debt to assets ratio.
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's Altman-Z score of 2.36 is fine compared to the rest of the industry. CERT outperforms 62.86% of its industry peers.
CERT has a debt to FCF ratio of 8.50. This is a slightly negative value and a sign of low solvency as CERT would need 8.50 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.50, CERT is in line with its industry, outperforming 57.14% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that CERT is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.28, CERT perfoms like the industry average, outperforming 51.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 8.5 | ||
| Altman-Z | 2.36 |
ROIC/WACCN/A
WACC9.43%
2.3 Liquidity
CERT has a Current Ratio of 2.86. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.86, CERT is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
CERT has a Quick Ratio of 2.86. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
CERT has a Quick ratio of 2.86. This is in the better half of the industry: CERT outperforms 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.86 |
3. Growth
3.1 Past
The earnings per share for CERT have decreased strongly by -23.53% in the last year.
The Revenue has been growing slightly by 5.62% in the past year.
Measured over the past years, CERT shows a quite strong growth in Revenue. The Revenue has been growing by 16.70% on average per year.
EPS 1Y (TTM)-23.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%18.18%
Revenue 1Y (TTM)5.62%
Revenue growth 3Y13.32%
Revenue growth 5Y16.7%
Sales Q2Q%10.8%
3.2 Future
The Earnings Per Share is expected to grow by 10.48% on average over the next years. This is quite good.
CERT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.43% yearly.
EPS Next Y-1.57%
EPS Next 2Y8.32%
EPS Next 3Y9.75%
EPS Next 5Y10.48%
Revenue Next Year8.47%
Revenue Next 2Y9.24%
Revenue Next 3Y9.14%
Revenue Next 5Y10.43%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.74, CERT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CERT is valued cheaply inside the industry as 88.57% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CERT to the average of the S&P500 Index (27.41), we can say CERT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.72, the valuation of CERT can be described as rather expensive.
82.86% of the companies in the same industry are more expensive than CERT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.69. CERT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.74 | ||
| Fwd PE | 21.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CERT is valued a bit cheaper than 68.57% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CERT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.79 | ||
| EV/EBITDA | 36.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.32%
EPS Next 3Y9.75%
5. Dividend
5.1 Amount
No dividends for CERT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CERTARA INC
NASDAQ:CERT (1/3/2025, 8:26:54 PM)
After market: 11.21 0 (0%)11.21
+0.55 (+5.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners71.24%
Inst Owner Change-3.9%
Ins Owners2.35%
Ins Owner Change-0.79%
Market Cap1.80B
Analysts75.29
Price Target14.56 (29.88%)
Short Float %3.54%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-8.86%
Min EPS beat(2)-33.58%
Max EPS beat(2)15.86%
EPS beat(4)1
Avg EPS beat(4)-9.44%
Min EPS beat(4)-33.58%
Max EPS beat(4)15.86%
EPS beat(8)2
Avg EPS beat(8)-3.4%
EPS beat(12)3
Avg EPS beat(12)-10.43%
EPS beat(16)6
Avg EPS beat(16)3.17%
Revenue beat(2)0
Avg Revenue beat(2)-3.71%
Min Revenue beat(2)-4.75%
Max Revenue beat(2)-2.66%
Revenue beat(4)1
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)1.2%
Revenue beat(8)2
Avg Revenue beat(8)-1.62%
Revenue beat(12)4
Avg Revenue beat(12)-2.27%
Revenue beat(16)6
Avg Revenue beat(16)-1.5%
PT rev (1m)0%
PT rev (3m)-16.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.29%
EPS NY rev (1m)0.14%
EPS NY rev (3m)3.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.74 | ||
| Fwd PE | 21.72 | ||
| P/S | 4.84 | ||
| P/FCF | 51.79 | ||
| P/OCF | 33.16 | ||
| P/B | 1.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.72 |
EPS(TTM)0.39
EY3.48%
EPS(NY)0.52
Fwd EY4.61%
FCF(TTM)0.22
FCFY1.93%
OCF(TTM)0.34
OCFY3.02%
SpS2.32
BVpS6.54
TBVpS-0.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.01% | ||
| ROE | -2.95% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 59.68% | ||
| FCFM | 9.35% |
ROA(3y)-1.16%
ROA(5y)-1.65%
ROE(3y)-1.73%
ROE(5y)-2.6%
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)1.22%
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 3Y0.88%
GM growth 5Y1.23%
F-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 8.5 | ||
| Debt/EBITDA | 6.05 | ||
| Cap/Depr | 30.28% | ||
| Cap/Sales | 5.25% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 112.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.86 | ||
| Altman-Z | 2.36 |
F-Score4
WACC9.43%
ROIC/WACCN/A
Cap/Depr(3y)23.64%
Cap/Depr(5y)22.48%
Cap/Sales(3y)3.72%
Cap/Sales(5y)3.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-23.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%18.18%
EPS Next Y-1.57%
EPS Next 2Y8.32%
EPS Next 3Y9.75%
EPS Next 5Y10.48%
Revenue 1Y (TTM)5.62%
Revenue growth 3Y13.32%
Revenue growth 5Y16.7%
Sales Q2Q%10.8%
Revenue Next Year8.47%
Revenue Next 2Y9.24%
Revenue Next 3Y9.14%
Revenue Next 5Y10.43%
EBIT growth 1Y-162.34%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year6.34%
EBIT Next 3Y10.71%
EBIT Next 5Y11%
FCF growth 1Y-47.3%
FCF growth 3Y22.29%
FCF growth 5Y267.94%
OCF growth 1Y-30.13%
OCF growth 3Y22.69%
OCF growth 5Y48.16%