CERTARA INC (CERT) Stock Fundamental Analysis
USA - NASDAQ:CERT - US15687V1098 - Common Stock
8.24 USD
-0.05 (-0.6%)
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. CERT has an average financial health and profitability rating. CERT is growing strongly while it is still valued neutral. This is a good combination! This makes CERT very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year CERT was profitable.
CERT had a positive operating cash flow in the past year.
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 0.71% is amongst the best of the industry. CERT outperforms 85.71% of its industry peers.
CERT's Return On Equity of 1.02% is amongst the best of 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's Profit Margin of 2.62% is amongst the best of the industry. CERT outperforms 85.71% of its industry peers.
Looking at the Operating Margin, with a value of 6.30%, CERT is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
CERT has a Gross Margin (61.44%) which is comparable to the rest of the industry.
CERT's Gross Margin has been stable in the last couple of years.
| 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.
CERT has more shares outstanding than it did 1 year ago.
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 2.03 indicates that CERT is not a great score, but indicates only limited risk for bankruptcy at the moment.
CERT's Altman-Z score of 2.03 is fine compared to the rest of the industry. CERT outperforms 68.57% 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.
CERT has a better Debt to FCF ratio (3.21) than 68.57% 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.
The Debt to Equity ratio of CERT (0.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.14
WACC10.81%
2.3 Liquidity
A Current Ratio of 2.09 indicates that CERT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.09, CERT is in line with its industry, outperforming 45.71% 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.
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.
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.
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
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.
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 16.48 indicates a correct valuation of CERT.
Based on the Price/Earnings ratio, CERT is valued cheaper than 88.57% of the companies in the same industry.
CERT is valuated rather cheaply when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
CERT is valuated correctly with a Price/Forward Earnings ratio of 14.86.
Based on the Price/Forward Earnings ratio, CERT is valued cheaper than 85.71% of the companies in the same industry.
CERT is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.48 | ||
| Fwd PE | 14.86 |
4.2 Price Multiples
CERT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CERT is cheaper than 77.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CERT is valued cheaper than 88.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.46 | ||
| EV/EBITDA | 14.46 |
4.3 Compensation for Growth
A more expensive valuation may be justified as CERT's earnings are expected to grow with 12.25% in the coming years.
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 (11/20/2025, 11:05:27 AM)
8.24
-0.05 (-0.6%)
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 (84.47%)
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 | 16.48 | ||
| Fwd PE | 14.86 | ||
| P/S | 3.18 | ||
| P/FCF | 14.46 | ||
| P/OCF | 11.32 | ||
| P/B | 1.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.46 |
EPS(TTM)0.5
EY6.07%
EPS(NY)0.55
Fwd EY6.73%
FCF(TTM)0.57
FCFY6.91%
OCF(TTM)0.73
OCFY8.83%
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 | 2.03 |
F-Score7
WACC10.81%
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 16.48 and the Price/Book (PB) ratio is 1.24.