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CERTARA INC (CERT) Stock Fundamental Analysis

NASDAQ:CERT - Nasdaq - US15687V1098 - Common Stock - Currency: USD

13.86  -0.12 (-0.86%)

After market: 13.85 -0.01 (-0.07%)

Fundamental Rating

4

Overall CERT gets a fundamental rating of 4 out of 10. We evaluated CERT against 39 industry peers in the Health Care Technology industry. The financial health of CERT is average, but there are quite some concerns on its profitability. CERT has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year CERT was profitable.
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 0 50M -50M

1.2 Ratios

CERT's Return On Assets of -2.01% is amongst the best of the industry. CERT outperforms 81.08% of its industry peers.
CERT has a better Return On Equity (-2.95%) than 81.08% of its industry peers.
Industry RankSector Rank
ROA -2.01%
ROE -2.95%
ROIC N/A
ROA(3y)-1.16%
ROA(5y)-1.65%
ROE(3y)-1.73%
ROE(5y)-2.6%
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 0 -2 -4 -6

1.3 Margins

Looking at the Gross Margin, with a value of 59.68%, CERT is in line with its industry, outperforming 51.35% of the companies in the same industry.
CERT's Gross Margin has been stable in the last couple of years.
CERT does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 59.68%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.88%
GM growth 5Y1.23%
CERT Yearly Profit, Operating, Gross MarginsCERT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

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5

2. Health

2.1 Basic Checks

CERT does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, CERT has more shares outstanding
CERT has more shares outstanding than it did 5 years ago.
CERT has about the same debt/assets ratio as last year.
CERT Yearly Shares OutstandingCERT Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 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 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 3.02 indicates that CERT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.02, CERT is in the better half of the industry, outperforming 67.57% of the companies in the same industry.
The Debt to FCF ratio of CERT is 8.50, which is on the high side as it means it would take CERT, 8.50 years of fcf income to pay off all of its debts.
CERT has a Debt to FCF ratio (8.50) which is in line with its industry peers.
CERT has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CERT (0.28) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 8.5
Altman-Z 3.02
ROIC/WACCN/A
WACC9.4%
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 200M 400M 600M 800M 1B

2.3 Liquidity

CERT has a Current Ratio of 2.86. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CERT (2.86) is better than 70.27% of its industry peers.
CERT has a Quick Ratio of 2.86. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.86, CERT is in the better half of the industry, outperforming 70.27% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.86
Quick Ratio 2.86
CERT Yearly Current Assets VS Current LiabilitesCERT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 100M 200M 300M

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4

3. Growth

3.1 Past

The earnings per share for CERT have decreased strongly by -23.53% in the last year.
CERT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.62%.
CERT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.70% yearly.
EPS 1Y (TTM)-23.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%18.18%
Revenue 1Y (TTM)5.62%
Revenue growth 3Y13.32%
Revenue growth 5Y16.7%
Sales Q2Q%10.8%

3.2 Future

CERT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.48% yearly.
The Revenue is expected to grow by 10.43% on average over the next years. This is quite good.
EPS Next Y-0.76%
EPS Next 2Y7.42%
EPS Next 3Y9.94%
EPS Next 5Y10.48%
Revenue Next Year8.55%
Revenue Next 2Y9.24%
Revenue Next 3Y9.18%
Revenue Next 5Y10.43%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
CERT Yearly Revenue VS EstimatesCERT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 100M 200M 300M 400M 500M
CERT Yearly EPS VS EstimatesCERT Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 35.54, the valuation of CERT can be described as expensive.
Based on the Price/Earnings ratio, CERT is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
CERT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.47.
CERT is valuated quite expensively with a Price/Forward Earnings ratio of 27.30.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CERT indicates a rather cheap valuation: CERT is cheaper than 83.78% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. CERT is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 35.54
Fwd PE 27.3
CERT Price Earnings VS Forward Price EarningsCERT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

64.86% of the companies in the same industry are more expensive than CERT, based on the Enterprise Value to EBITDA ratio.
CERT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CERT is cheaper than 62.16% of the companies in the same industry.
Industry RankSector Rank
P/FCF 64.04
EV/EBITDA 47.76
CERT Per share dataCERT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.42%
EPS Next 3Y9.94%

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0

5. Dividend

5.1 Amount

CERT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CERTARA INC

NASDAQ:CERT (2/4/2025, 8:00:00 PM)

After market: 13.85 -0.01 (-0.07%)

13.86

-0.12 (-0.86%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-26 2025-02-26/amc
Inst Owners71.24%
Inst Owner Change0.31%
Ins Owners2.35%
Ins Owner Change-0.77%
Market Cap2.23B
Analysts75.29
Price Target14.45 (4.26%)
Short Float %3.68%
Short Ratio3.49
Dividend
Industry RankSector 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)-8.86%
Min EPS beat(2)-33.58%
Max EPS beat(2)15.86%
EPS beat(4)1
Avg EPS beat(4)-9.44%
Min EPS beat(4)-33.58%
Max EPS beat(4)15.86%
EPS beat(8)2
Avg EPS beat(8)-3.4%
EPS beat(12)3
Avg EPS beat(12)-10.43%
EPS beat(16)6
Avg EPS beat(16)3.17%
Revenue beat(2)0
Avg Revenue beat(2)-3.71%
Min Revenue beat(2)-4.75%
Max Revenue beat(2)-2.66%
Revenue beat(4)1
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)1.2%
Revenue beat(8)2
Avg Revenue beat(8)-1.62%
Revenue beat(12)4
Avg Revenue beat(12)-2.27%
Revenue beat(16)6
Avg Revenue beat(16)-1.5%
PT rev (1m)-0.78%
PT rev (3m)-12.97%
EPS NQ rev (1m)0.89%
EPS NQ rev (3m)6.22%
EPS NY rev (1m)0.82%
EPS NY rev (3m)4.81%
Revenue NQ rev (1m)0.72%
Revenue NQ rev (3m)-2.99%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.71%
Valuation
Industry RankSector Rank
PE 35.54
Fwd PE 27.3
P/S 5.99
P/FCF 64.04
P/OCF 41
P/B 2.12
P/tB N/A
EV/EBITDA 47.76
EPS(TTM)0.39
EY2.81%
EPS(NY)0.51
Fwd EY3.66%
FCF(TTM)0.22
FCFY1.56%
OCF(TTM)0.34
OCFY2.44%
SpS2.32
BVpS6.54
TBVpS-0.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.01%
ROE -2.95%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 59.68%
FCFM 9.35%
ROA(3y)-1.16%
ROA(5y)-1.65%
ROE(3y)-1.73%
ROE(5y)-2.6%
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)1.22%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg 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 3Y0.88%
GM growth 5Y1.23%
F-Score4
Asset Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 8.5
Debt/EBITDA 6.05
Cap/Depr 30.28%
Cap/Sales 5.25%
Interest Coverage N/A
Cash Conversion 112.33%
Profit Quality N/A
Current Ratio 2.86
Quick Ratio 2.86
Altman-Z 3.02
F-Score4
WACC9.4%
ROIC/WACCN/A
Cap/Depr(3y)23.64%
Cap/Depr(5y)22.48%
Cap/Sales(3y)3.72%
Cap/Sales(5y)3.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-23.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%18.18%
EPS Next Y-0.76%
EPS Next 2Y7.42%
EPS Next 3Y9.94%
EPS Next 5Y10.48%
Revenue 1Y (TTM)5.62%
Revenue growth 3Y13.32%
Revenue growth 5Y16.7%
Sales Q2Q%10.8%
Revenue Next Year8.55%
Revenue Next 2Y9.24%
Revenue Next 3Y9.18%
Revenue Next 5Y10.43%
EBIT growth 1Y-162.34%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year6.42%
EBIT Next 3Y10.19%
EBIT Next 5Y11%
FCF growth 1Y-47.3%
FCF growth 3Y22.29%
FCF growth 5Y267.94%
OCF growth 1Y-30.13%
OCF growth 3Y22.69%
OCF growth 5Y48.16%