CERTARA INC (CERT) Stock Fundamental Analysis
USA - NASDAQ:CERT - US15687V1098 - Common Stock
8.415 USD
+0 (+0.06%)
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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make CERT a good candidate 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.
Each year in the past 5 years CERT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CERT (0.71%) is better than 85.71% of its industry peers.
With an excellent Return On Equity value of 1.02%, CERT belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
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
With an excellent Profit Margin value of 2.62%, CERT belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
CERT's Operating Margin of 6.30% is fine compared to the rest of the industry. CERT outperforms 74.29% of its industry peers.
CERT has a Gross Margin (61.44%) which is in line with its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
CERT has a worse debt/assets ratio than last year.
2.2 Solvency
CERT has an Altman-Z score of 2.05. 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 2.05 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.
CERT's Debt to Equity ratio of 0.27 is in line compared to the rest of the industry. CERT outperforms 45.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | 2.05 |
ROIC/WACC0.14
WACC10.43%
2.3 Liquidity
A Current Ratio of 2.09 indicates that CERT has no problem at all paying its short term obligations.
CERT has a Current ratio of 2.09. This is comparable 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.
The Quick ratio of CERT (2.09) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 2.09 |
3. Growth
3.1 Past
CERT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.21%, which is quite impressive.
Measured over the past years, CERT shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.33% on average per year.
CERT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.47%.
The Revenue has been growing by 13.06% on average over the past years. This is quite good.
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
CERT is valuated correctly with a Price/Earnings ratio of 16.83.
Compared to the rest of the industry, the Price/Earnings ratio of CERT indicates a rather cheap valuation: CERT is cheaper than 88.57% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, CERT is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.18, CERT is valued correctly.
Based on the Price/Forward Earnings ratio, CERT is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, CERT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.83 | ||
| Fwd PE | 15.18 |
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.
CERT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CERT is cheaper than 88.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.77 | ||
| EV/EBITDA | 14.65 |
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
CERT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:CERT (11/14/2025, 2:43:04 PM)
8.415
+0 (+0.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners81.56%
Inst Owner Change0.65%
Ins Owners2.42%
Ins Owner Change0.24%
Market Cap1.35B
Revenue(TTM)415.55M
Net Income(TTM)10.88M
Analysts75.56
Price Target15.2 (80.63%)
Short Float %13.21%
Short Ratio9.57
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)1.22%
EPS NQ rev (3m)0.39%
EPS NY rev (1m)0.45%
EPS NY rev (3m)-5.89%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.83 | ||
| Fwd PE | 15.18 | ||
| P/S | 3.25 | ||
| P/FCF | 14.77 | ||
| P/OCF | 11.56 | ||
| P/B | 1.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.65 |
EPS(TTM)0.5
EY5.94%
EPS(NY)0.55
Fwd EY6.59%
FCF(TTM)0.57
FCFY6.77%
OCF(TTM)0.73
OCFY8.65%
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 | 2.05 |
F-Score7
WACC10.43%
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 16.83 and the Price/Book (PB) ratio is 1.27.