We assign a fundamental rating of 5 out of 10 to CERT. CERT was compared to 34 industry peers in the Health Care Technology industry. CERT has an average financial health and profitability rating. CERT is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes CERT very considerable for growth investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years CERT always reported a positive cash flow from operatings.

1.2 Ratios

CERT has a Return On Assets of 0.71%. This is in the better half of the industry: CERT outperforms 77.14% of its industry peers.
CERT has a better Return On Equity (1.02%) than 77.14% of its industry peers.
CERT has a better Return On Invested Capital (1.48%) than 65.71% 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.
With a decent Operating Margin value of 6.30%, CERT is doing good in the industry, outperforming 74.29% of the companies in the same industry.
With a Gross Margin value of 61.44%, 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	6.3%
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CERT is destroying value.
Compared to 1 year ago, CERT has more shares outstanding
The number of shares outstanding for CERT has been increased compared to 5 years ago.
The debt/assets ratio for CERT is higher compared to a year ago.

2.2 Solvency

CERT has an Altman-Z score of 2.36. 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 Altman-Z score of 2.36. This is in the better half of the industry: CERT outperforms 62.86% of its industry peers.
The Debt to FCF ratio of CERT is 3.21, which is a good value as it means it would take CERT, 3.21 years of fcf income to pay off all of its debts.
CERT has a Debt to FCF ratio of 3.21. This is in the better half of the industry: CERT outperforms 68.57% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that CERT is not too dependend on debt financing.
CERT has a worse Debt to Equity ratio (0.27) than 62.86% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.27
Debt/FCF	3.21
Altman-Z	2.36

ROIC/WACC0.15

WACC9.78%

2.3 Liquidity

CERT has a Current Ratio of 2.09. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
CERT's Current ratio of 2.09 is in line compared to the rest of the industry. CERT outperforms 51.43% of its industry peers.
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.
CERT has a Quick ratio of 2.09. This is comparable to the rest of the industry: CERT outperforms 51.43% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.09
Quick Ratio	2.09

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 28.21% over the past year.
CERT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.33% yearly.
Looking at the last year, CERT shows a quite strong growth in Revenue. The Revenue has grown by 11.47% in the last year.
CERT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.06% yearly.

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

Based on estimates for the next years, CERT will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.16% on average per year.
Based on estimates for the next years, CERT will show a quite strong growth in Revenue. The Revenue will grow by 9.01% on average per year.

EPS Next Y1.53%

EPS Next 2Y11.09%

EPS Next 3Y11.8%

EPS Next 5Y19.16%

Revenue Next Year8.97%

Revenue Next 2Y7.64%

Revenue Next 3Y7.65%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 20.00, the valuation of CERT can be described as rather expensive.
85.71% 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 (27.21), we can say CERT is valued slightly cheaper.
With a Price/Forward Earnings ratio of 18.01, CERT is valued on the expensive side.
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.
When comparing the Price/Forward Earnings ratio of CERT to the average of the S&P500 Index (25.98), we can say CERT is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	20
Fwd PE	18.01

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CERT is valued a bit cheaper than 74.29% 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 85.71% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	17.4
EV/EBITDA	17.06

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.