I3 VERTICALS INC-CLASS A (IIIV) Stock Fundamental Analysis
NASDAQ:IIIV - Nasdaq - US46571Y1073 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to IIIV. IIIV was compared to 285 industry peers in the Software industry. While IIIV belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. IIIV has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
IIIV had positive earnings in the past year.
IIIV had a positive operating cash flow in the past year.
IIIV had negative earnings in 4 of the past 5 years.
In the past 5 years IIIV always reported a positive cash flow from operatings.
1.2 Ratios
IIIV has a better Return On Assets (15.89%) than 92.28% of its industry peers.
Looking at the Return On Equity, with a value of 30.77%, IIIV belongs to the top of the industry, outperforming 91.58% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.38%, IIIV is in the better half of the industry, outperforming 68.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.89% | ||
| ROE | 30.77% | ||
| ROIC | 1.38% |
ROA(3y)4.4%
ROA(5y)2.48%
ROE(3y)7.23%
ROE(5y)3.84%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
IIIV has a Profit Margin of 39.57%. This is amongst the best in the industry. IIIV outperforms 96.14% of its industry peers.
With a decent Operating Margin value of 3.37%, IIIV is doing good in the industry, outperforming 70.53% of the companies in the same industry.
In the last couple of years the Operating Margin of IIIV has grown nicely.
IIIV's Gross Margin of 86.42% is amongst the best of the industry. IIIV outperforms 93.68% of its industry peers.
IIIV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.37% | ||
| PM (TTM) | 39.57% | ||
| GM | 86.42% |
OM growth 3Y53.95%
OM growth 5Y12.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.37%
GM growth 5Y31.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IIIV is destroying value.
IIIV has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, IIIV has more shares outstanding
IIIV has a better debt/assets ratio than last year.
2.2 Solvency
IIIV has an Altman-Z score of 2.06. This is not the best score and indicates that IIIV is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of IIIV (2.06) is comparable to the rest of the industry.
IIIV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.11
WACC12.14%
2.3 Liquidity
IIIV has a Current Ratio of 0.94. This is a bad value and indicates that IIIV is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.94, IIIV is doing worse than 77.89% of the companies in the same industry.
A Quick Ratio of 0.92 indicates that IIIV may have some problems paying its short term obligations.
IIIV has a Quick ratio of 0.92. This is in the lower half of the industry: IIIV underperforms 77.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
IIIV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.76%.
Measured over the past 5 years, IIIV shows a small growth in Earnings Per Share. The EPS has been growing by 1.84% on average per year.
Looking at the last year, IIIV shows a very negative growth in Revenue. The Revenue has decreased by -22.48% in the last year.
Measured over the past years, IIIV shows a decrease in Revenue. The Revenue has been decreasing by -9.38% on average per year.
EPS 1Y (TTM)-42.76%
EPS 3Y-4%
EPS 5Y1.84%
EPS Q2Q%-13.89%
Revenue 1Y (TTM)-22.48%
Revenue growth 3Y0.86%
Revenue growth 5Y-9.38%
Sales Q2Q%-32.94%
3.2 Future
Based on estimates for the next years, IIIV will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.21% on average per year.
The Revenue is expected to grow by 4.01% on average over the next years.
EPS Next Y30.46%
EPS Next 2Y22.16%
EPS Next 3Y17.21%
EPS Next 5YN/A
Revenue Next Year-0.64%
Revenue Next 2Y3.71%
Revenue Next 3Y4.01%
Revenue Next 5YN/A
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.22, IIIV can be considered very expensive at the moment.
IIIV's Price/Earnings ratio is a bit cheaper when compared to the industry. IIIV is cheaper than 65.96% of the companies in the same industry.
IIIV's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.64.
Based on the Price/Forward Earnings ratio of 18.52, the valuation of IIIV can be described as rather expensive.
78.95% of the companies in the same industry are more expensive than IIIV, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.44. IIIV is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.22 | ||
| Fwd PE | 18.52 |
4.2 Price Multiples
81.75% of the companies in the same industry are more expensive than IIIV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IIIV is valued a bit cheaper than 74.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.69 | ||
| EV/EBITDA | 17.25 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of IIIV may justify a higher PE ratio.
A more expensive valuation may be justified as IIIV's earnings are expected to grow with 17.21% in the coming years.
PEG (NY)0.96
PEG (5Y)15.92
EPS Next 2Y22.16%
EPS Next 3Y17.21%
5. Dividend
5.1 Amount
No dividends for IIIV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.425
+0.05 (+0.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners94.57%
Inst Owner Change1.1%
Ins Owners2.69%
Ins Owner Change2.3%
Market Cap840.80M
Analysts81.54
Price Target32.49 (27.79%)
Short Float %4.52%
Short Ratio4.04
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)2.42%
Min EPS beat(2)-14.34%
Max EPS beat(2)19.18%
EPS beat(4)1
Avg EPS beat(4)-21.87%
Min EPS beat(4)-80.71%
Max EPS beat(4)19.18%
EPS beat(8)2
Avg EPS beat(8)-11.74%
EPS beat(12)6
Avg EPS beat(12)-6.95%
EPS beat(16)9
Avg EPS beat(16)-4.32%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)2.88%
Revenue beat(4)1
Avg Revenue beat(4)-12.15%
Min Revenue beat(4)-43.03%
Max Revenue beat(4)2.88%
Revenue beat(8)2
Avg Revenue beat(8)-7.01%
Revenue beat(12)5
Avg Revenue beat(12)-3.94%
Revenue beat(16)9
Avg Revenue beat(16)-1.92%
PT rev (1m)0%
PT rev (3m)14.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.22 | ||
| Fwd PE | 18.52 | ||
| P/S | 2.88 | ||
| P/FCF | 25.69 | ||
| P/OCF | 17.95 | ||
| P/B | 2.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.25 |
EPS(TTM)0.87
EY3.42%
EPS(NY)1.37
Fwd EY5.4%
FCF(TTM)0.99
FCFY3.89%
OCF(TTM)1.42
OCFY5.57%
SpS8.82
BVpS11.34
TBVpS-3.7
PEG (NY)0.96
PEG (5Y)15.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.89% | ||
| ROE | 30.77% | ||
| ROCE | 1.74% | ||
| ROIC | 1.38% | ||
| ROICexc | 1.63% | ||
| ROICexgc | N/A | ||
| OM | 3.37% | ||
| PM (TTM) | 39.57% | ||
| GM | 86.42% | ||
| FCFM | 11.22% |
ROA(3y)4.4%
ROA(5y)2.48%
ROE(3y)7.23%
ROE(5y)3.84%
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y62.71%
ROICexc growth 5Y-6.22%
OM growth 3Y53.95%
OM growth 5Y12.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.37%
GM growth 5Y31.13%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.8 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 39.91% | ||
| Cap/Sales | 4.84% | ||
| Interest Coverage | 0.42 | ||
| Cash Conversion | 103.64% | ||
| Profit Quality | 28.36% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 2.06 |
F-Score7
WACC12.14%
ROIC/WACC0.11
Cap/Depr(3y)43.62%
Cap/Depr(5y)39.42%
Cap/Sales(3y)6.08%
Cap/Sales(5y)5.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-42.76%
EPS 3Y-4%
EPS 5Y1.84%
EPS Q2Q%-13.89%
EPS Next Y30.46%
EPS Next 2Y22.16%
EPS Next 3Y17.21%
EPS Next 5YN/A
Revenue 1Y (TTM)-22.48%
Revenue growth 3Y0.86%
Revenue growth 5Y-9.38%
Sales Q2Q%-32.94%
Revenue Next Year-0.64%
Revenue Next 2Y3.71%
Revenue Next 3Y4.01%
Revenue Next 5YN/A
EBIT growth 1Y-61.54%
EBIT growth 3Y55.27%
EBIT growth 5Y2.13%
EBIT Next Year52.22%
EBIT Next 3Y22.12%
EBIT Next 5YN/A
FCF growth 1Y20.95%
FCF growth 3Y-2.81%
FCF growth 5Y7.26%
OCF growth 1Y11.24%
OCF growth 3Y2.82%
OCF growth 5Y12.72%