CERTARA INC (CERT) Stock Fundamental Analysis
USA - NASDAQ:CERT - US15687V1098 - Common Stock
8.17 USD
-0.16 (-1.92%)
8.17 USD
0 (0%)
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.
In the past year CERT had a positive cash flow from operations.
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
Looking at the Profit Margin, with a value of 2.62%, CERT belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
CERT has a Operating Margin of 6.30%. This is in the better half of the industry: CERT outperforms 74.29% of its industry peers.
Looking at the Gross Margin, with a value of 61.44%, CERT is in line with its industry, outperforming 57.14% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CERT is destroying value.
The number of shares outstanding for CERT has been increased compared to 1 year ago.
The number of shares outstanding for CERT has been increased compared to 5 years ago.
CERT has a worse debt/assets ratio than last year.
2.2 Solvency
CERT has an Altman-Z score of 2.03. 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 has a better Altman-Z score (2.03) than 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.
With a decent Debt to FCF ratio value of 3.21, CERT is doing good in the industry, outperforming 68.57% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that CERT is not too dependend on debt financing.
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.
CERT has a Quick Ratio of 2.09. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
With a Quick ratio value of 2.09, CERT perfoms like the industry average, 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
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.
The Earnings Per Share has been growing by 38.33% on average over the past years. This is a very strong growth
Looking at the last year, CERT shows a quite strong growth in Revenue. The Revenue has grown by 11.47% in the last year.
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.
CERT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.01% yearly.
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
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
The Price/Earnings ratio is 16.34, which indicates a correct 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 (25.56), we can say CERT is valued slightly cheaper.
CERT is valuated correctly with a Price/Forward Earnings ratio of 14.73.
Based on the Price/Forward Earnings ratio, CERT is valued cheaper than 85.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CERT to the average of the S&P500 Index (34.62), we can say CERT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 14.73 |
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 77.14% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CERT indicates a rather cheap valuation: CERT is cheaper than 88.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.34 | ||
| EV/EBITDA | 14.52 |
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 |
8.17
-0.16 (-1.92%)
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 Cap1.31B
Revenue(TTM)415.55M
Net Income(TTM)10.88M
Analysts75.56
Price Target15.2 (86.05%)
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)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 | 16.34 | ||
| Fwd PE | 14.73 | ||
| P/S | 3.16 | ||
| P/FCF | 14.34 | ||
| P/OCF | 11.23 | ||
| P/B | 1.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.52 |
EPS(TTM)0.5
EY6.12%
EPS(NY)0.55
Fwd EY6.79%
FCF(TTM)0.57
FCFY6.97%
OCF(TTM)0.73
OCFY8.91%
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 16.34 and the Price/Book (PB) ratio is 1.23.