CERTARA INC (CERT) Fundamental Analysis & Valuation

NASDAQ:CERT • US15687V1098

Current stock price

6.13 USD
+0.23 (+3.9%)
At close:
6.15 USD
+0.02 (+0.33%)
After Hours:

This CERT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. CERT Profitability Analysis

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.
CERT Yearly Net Income VS EBIT VS OCF VS FCFCERT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M

1.2 Ratios

  • CERT has a Return On Assets of -0.10%. This is in the better half of the industry: CERT outperforms 64.71% of its industry peers.
  • CERT has a better Return On Equity (-0.15%) than 64.71% of its industry peers.
  • CERT has a Return On Invested Capital of 1.18%. This is in the better half of the industry: CERT outperforms 70.59% of its industry peers.
Industry RankSector Rank
ROA -0.1%
ROE -0.15%
ROIC 1.18%
ROA(3y)-1.47%
ROA(5y)-0.87%
ROE(3y)-2.19%
ROE(5y)-1.3%
ROIC(3y)N/A
ROIC(5y)N/A
CERT Yearly ROA, ROE, ROICCERT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 2025 0 -2 -4 -6

1.3 Margins

  • CERT has a better Operating Margin (5.02%) than 70.59% of its industry peers.
  • In the last couple of years the Operating Margin of CERT has declined.
  • The Gross Margin of CERT (61.53%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of CERT has remained more or less at the same level.
Industry RankSector Rank
OM 5.02%
PM (TTM) N/A
GM 61.53%
OM growth 3Y-20.25%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.55%
GM growth 5Y0.97%
CERT Yearly Profit, Operating, Gross MarginsCERT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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5

2. CERT Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CERT is destroying value.
  • The number of shares outstanding for CERT has been reduced compared to 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.
CERT Yearly Shares OutstandingCERT Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
CERT Yearly Total Debt VS Total AssetsCERT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

  • CERT has an Altman-Z score of 1.42. This is a bad value and indicates that CERT is not financially healthy and even has some risk of bankruptcy.
  • CERT has a better Altman-Z score (1.42) than 64.71% of its industry peers.
  • CERT has a debt to FCF ratio of 4.20. This is a neutral value as CERT would need 4.20 years to pay back of all of its debts.
  • CERT has a Debt to FCF ratio of 4.20. This is in the better half of the industry: CERT outperforms 70.59% 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 RankSector Rank
Debt/Equity 0.27
Debt/FCF 4.2
Altman-Z 1.42
ROIC/WACC0.12
WACC9.89%
CERT Yearly LT Debt VS Equity VS FCFCERT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

2.3 Liquidity

  • CERT has a Current Ratio of 2.05. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of CERT (2.05) is comparable to the rest of the industry.
  • A Quick Ratio of 2.05 indicates that CERT has no problem at all paying its short term obligations.
  • CERT's Quick ratio of 2.05 is in line compared to the rest of the industry. CERT outperforms 58.82% of its industry peers.
Industry RankSector Rank
Current Ratio 2.05
Quick Ratio 2.05
CERT Yearly Current Assets VS Current LiabilitesCERT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. CERT Growth Analysis

3.1 Past

  • CERT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.22%.
  • Measured over the past years, CERT shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.47% on average per year.
  • The Revenue has grown by 8.75% in the past year. This is quite good.
  • CERT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.46% yearly.
EPS 1Y (TTM)-2.22%
EPS 3Y-1.47%
EPS 5YN/A
EPS Q2Q%-40%
Revenue 1Y (TTM)8.75%
Revenue growth 3Y7.67%
Revenue growth 5Y11.46%
Sales Q2Q%3.28%

3.2 Future

  • The Earnings Per Share is expected to grow by 24.30% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 9.47% on average over the next years. This is quite good.
EPS Next Y4.43%
EPS Next 2Y7.49%
EPS Next 3Y13.72%
EPS Next 5Y24.3%
Revenue Next Year2.3%
Revenue Next 2Y3.83%
Revenue Next 3Y5.91%
Revenue Next 5Y9.47%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
CERT Yearly Revenue VS EstimatesCERT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 200M 400M 600M
CERT Yearly EPS VS EstimatesCERT Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0.5 1 1.5

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6

4. CERT Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 13.93 indicates a correct valuation of CERT.
  • CERT's Price/Earnings ratio is rather cheap when compared to the industry. CERT is cheaper than 85.29% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.77, CERT is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 13.34 indicates a correct valuation of CERT.
  • Based on the Price/Forward Earnings ratio, CERT is valued cheaply inside the industry as 85.29% of the companies are valued more expensively.
  • CERT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.75, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.93
Fwd PE 13.34
CERT Price Earnings VS Forward Price EarningsCERT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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 76.47% of the companies listed in the same industry.
  • 82.35% of the companies in the same industry are more expensive than CERT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 13.47
EV/EBITDA 10.48
CERT Per share dataCERT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CERT does not grow enough to justify the current Price/Earnings ratio.
  • CERT's earnings are expected to grow with 13.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.14
PEG (5Y)N/A
EPS Next 2Y7.49%
EPS Next 3Y13.72%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. CERT Dividend Analysis

5.1 Amount

  • CERT does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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CERT Fundamentals: All Metrics, Ratios and Statistics

CERTARA INC

NASDAQ:CERT (4/30/2026, 8:00:00 PM)

After market: 6.15 +0.02 (+0.33%)

6.13

+0.23 (+3.9%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Industry Strength0.62
Industry Growth47.21
Earnings (Last)02-26
Earnings (Next)05-11
Inst Owners95.57%
Inst Owner Change-7.58%
Ins Owners0.79%
Ins Owner Change2.22%
Market Cap939.91M
Revenue(TTM)418.84M
Net Income(TTM)-1.59M
Analysts76
Price Target9.52 (55.3%)
Short Float %19.89%
Short Ratio5.83
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)2.33%
Min EPS beat(2)-21.15%
Max EPS beat(2)25.82%
EPS beat(4)2
Avg EPS beat(4)-1.19%
Min EPS beat(4)-33.18%
Max EPS beat(4)25.82%
EPS beat(8)4
Avg EPS beat(8)-0.95%
EPS beat(12)4
Avg EPS beat(12)-3.08%
EPS beat(16)6
Avg EPS beat(16)-1.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-2.39%
Max Revenue beat(4)-0.91%
Revenue beat(8)2
Avg Revenue beat(8)-1.65%
Revenue beat(12)2
Avg Revenue beat(12)-1.9%
Revenue beat(16)5
Avg Revenue beat(16)-1.43%
PT rev (1m)-24.58%
PT rev (3m)-24.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.52%
EPS NY rev (1m)-8.39%
EPS NY rev (3m)-17.25%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-4.14%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-3.79%
Valuation
Industry RankSector Rank
PE 13.93
Fwd PE 13.34
P/S 2.24
P/FCF 13.47
P/OCF 9.76
P/B 0.88
P/tB N/A
EV/EBITDA 10.48
EPS(TTM)0.44
EY7.18%
EPS(NY)0.46
Fwd EY7.5%
FCF(TTM)0.46
FCFY7.42%
OCF(TTM)0.63
OCFY10.25%
SpS2.73
BVpS6.93
TBVpS-1.03
PEG (NY)3.14
PEG (5Y)N/A
Graham Number8.28378 (35.14%)
Profitability
Industry RankSector Rank
ROA -0.1%
ROE -0.15%
ROCE 1.5%
ROIC 1.18%
ROICexc 1.37%
ROICexgc N/A
OM 5.02%
PM (TTM) N/A
GM 61.53%
FCFM 16.66%
ROA(3y)-1.47%
ROA(5y)-0.87%
ROE(3y)-2.19%
ROE(5y)-1.3%
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 3Y-13.68%
ROICexc growth 5YN/A
OM growth 3Y-20.25%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.55%
GM growth 5Y0.97%
F-Score6
Asset Turnover0.27
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 4.2
Debt/EBITDA 3.02
Cap/Depr 35.33%
Cap/Sales 6.34%
Interest Coverage 1.1
Cash Conversion 100.15%
Profit Quality N/A
Current Ratio 2.05
Quick Ratio 2.05
Altman-Z 1.42
F-Score6
WACC9.89%
ROIC/WACC0.12
Cap/Depr(3y)31.2%
Cap/Depr(5y)27.44%
Cap/Sales(3y)5.38%
Cap/Sales(5y)4.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.22%
EPS 3Y-1.47%
EPS 5YN/A
EPS Q2Q%-40%
EPS Next Y4.43%
EPS Next 2Y7.49%
EPS Next 3Y13.72%
EPS Next 5Y24.3%
Revenue 1Y (TTM)8.75%
Revenue growth 3Y7.67%
Revenue growth 5Y11.46%
Sales Q2Q%3.28%
Revenue Next Year2.3%
Revenue Next 2Y3.83%
Revenue Next 3Y5.91%
Revenue Next 5Y9.47%
EBIT growth 1Y1314.1%
EBIT growth 3Y-14.14%
EBIT growth 5YN/A
EBIT Next Year19.11%
EBIT Next 3Y8.12%
EBIT Next 5YN/A
FCF growth 1Y17.41%
FCF growth 3Y-4.46%
FCF growth 5Y13.61%
OCF growth 1Y19.71%
OCF growth 3Y1.35%
OCF growth 5Y16.54%

CERTARA INC / CERT Fundamental Analysis FAQ

What is the fundamental rating for CERT stock?

ChartMill assigns a fundamental rating of 5 / 10 to CERT.


What is the valuation status of CERTARA INC (CERT) stock?

ChartMill assigns a valuation rating of 6 / 10 to CERTARA INC (CERT). This can be considered as Fairly Valued.


What is the profitability of CERT stock?

CERTARA INC (CERT) has a profitability rating of 4 / 10.


What is the valuation of CERTARA INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for CERTARA INC (CERT) is 13.93 and the Price/Book (PB) ratio is 0.88.