CERTARA INC (CERT) Stock Fundamental Analysis
USA - NASDAQ:CERT - US15687V1098 - Common Stock
12.435 USD
+0.46 (+3.88%)
Taking everything into account, CERT scores 5 out of 10 in our fundamental rating. CERT was compared to 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 growing strongly while it is still valued neutral. This is a good combination! These ratings could make CERT a good candidate 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
With an excellent Return On Assets value of 0.52%, CERT belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Equity of CERT (0.75%) is better than 85.71% of its industry peers.
CERT's Return On Invested Capital of 1.44% is fine compared to the rest of the industry. CERT outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 0.75% | ||
| ROIC | 1.44% |
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's Profit Margin of 1.97% is amongst the best of the industry. CERT outperforms 85.71% of its industry peers.
With a decent Operating Margin value of 6.35%, CERT is doing good in the industry, outperforming 74.29% of the companies in the same industry.
With a Gross Margin value of 61.14%, CERT perfoms like the industry average, outperforming 54.29% 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 | 6.35% | ||
| PM (TTM) | 1.97% | ||
| GM | 61.14% |
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.
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 2.76. 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.
With a decent Altman-Z score value of 2.76, CERT is doing good in the industry, outperforming 68.57% of the companies in the same industry.
CERT has a debt to FCF ratio of 3.80. This is a good value and a sign of high solvency as CERT would need 3.80 years to pay back of all of its debts.
CERT has a Debt to FCF ratio of 3.80. This is in the better half of the industry: CERT outperforms 65.71% 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.
Looking at the Debt to Equity ratio, with a value of 0.27, CERT is in line with its industry, outperforming 45.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.14
WACC10.53%
2.3 Liquidity
CERT has a Current Ratio of 2.16. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
CERT has a Current ratio (2.16) which is in line with its industry peers.
CERT has a Quick Ratio of 2.16. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of CERT (2.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
CERT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.43%, which is quite impressive.
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 11.61%.
The Revenue has been growing by 13.06% on average over the past years. This is quite good.
EPS 1Y (TTM)32.43%
EPS 3Y38.33%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)11.61%
Revenue growth 3Y10.42%
Revenue growth 5Y13.06%
Sales Q2Q%12.06%
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 16.82% yearly.
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 Y-1.37%
EPS Next 2Y9.83%
EPS Next 3Y10.02%
EPS Next 5Y16.82%
Revenue Next Year9.9%
Revenue Next 2Y8.97%
Revenue Next 3Y9.15%
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
A Price/Earnings ratio of 25.38 indicates a quite expensive valuation of CERT.
88.57% of the companies in the same industry are more expensive than CERT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CERT to the average of the S&P500 Index (27.53), we can say CERT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.91, the valuation of CERT can be described as rather expensive.
CERT's Price/Forward Earnings ratio is rather cheap when compared to the industry. CERT is cheaper than 82.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.04. CERT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 22.91 |
4.2 Price Multiples
71.43% of the companies in the same industry are more expensive than CERT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CERT indicates a rather cheap valuation: CERT is cheaper than 82.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.78 | ||
| EV/EBITDA | 20.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.83%
EPS Next 3Y10.02%
5. Dividend
5.1 Amount
CERT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:CERT (10/16/2025, 10:54:04 AM)
12.435
+0.46 (+3.88%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners81.56%
Inst Owner Change0%
Ins Owners2.42%
Ins Owner Change0.24%
Market Cap2.00B
Analysts75.56
Price Target14.73 (18.46%)
Short Float %12.26%
Short Ratio9.42
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)-4.71%
Min EPS beat(2)-33.18%
Max EPS beat(2)23.76%
EPS beat(4)3
Avg EPS beat(4)5.56%
Min EPS beat(4)-33.18%
Max EPS beat(4)23.76%
EPS beat(8)3
Avg EPS beat(8)-4.05%
EPS beat(12)4
Avg EPS beat(12)-2.02%
EPS beat(16)6
Avg EPS beat(16)-6.22%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-2.39%
Max Revenue beat(2)-0.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-2.66%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-1.57%
Revenue beat(12)4
Avg Revenue beat(12)-1.19%
Revenue beat(16)5
Avg Revenue beat(16)-1.94%
PT rev (1m)0%
PT rev (3m)-8.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)-1.87%
EPS NY rev (3m)-6.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 22.91 | ||
| P/S | 4.92 | ||
| P/FCF | 25.78 | ||
| P/OCF | 19.67 | ||
| P/B | 1.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.92 |
EPS(TTM)0.49
EY3.94%
EPS(NY)0.54
Fwd EY4.37%
FCF(TTM)0.48
FCFY3.88%
OCF(TTM)0.63
OCFY5.08%
SpS2.53
BVpS6.67
TBVpS-1.06
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 0.75% | ||
| ROCE | 1.82% | ||
| ROIC | 1.44% | ||
| ROICexc | 1.63% | ||
| ROICexgc | 222.71% | ||
| OM | 6.35% | ||
| PM (TTM) | 1.97% | ||
| GM | 61.14% | ||
| FCFM | 19.09% |
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-Score7
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.8 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 33.24% | ||
| Cap/Sales | 5.93% | ||
| Interest Coverage | 1.33 | ||
| Cash Conversion | 103.4% | ||
| Profit Quality | 970.69% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | 2.76 |
F-Score7
WACC10.53%
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)32.43%
EPS 3Y38.33%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y-1.37%
EPS Next 2Y9.83%
EPS Next 3Y10.02%
EPS Next 5Y16.82%
Revenue 1Y (TTM)11.61%
Revenue growth 3Y10.42%
Revenue growth 5Y13.06%
Sales Q2Q%12.06%
Revenue Next Year9.9%
Revenue Next 2Y8.97%
Revenue Next 3Y9.15%
Revenue Next 5Y8.25%
EBIT growth 1Y204.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year16.77%
EBIT Next 3Y12.28%
EBIT Next 5Y14.24%
FCF growth 1Y4.56%
FCF growth 3Y4.89%
FCF growth 5Y15.82%
OCF growth 1Y16.06%
OCF growth 3Y10.04%
OCF growth 5Y16.17%