VERTEX INC - CLASS A (VERX) Stock Fundamental Analysis
USA - NASDAQ:VERX - US92538J1060 - Common Stock
23.24 USD
-1.87 (-7.45%)
23.3 USD
+0.06 (+0.26%)
Overall VERX gets a fundamental rating of 3 out of 10. We evaluated VERX against 285 industry peers in the Software industry. VERX may be in some trouble as it scores bad on both profitability and health. VERX is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
VERX had positive earnings in the past year.
In the past year VERX had a positive cash flow from operations.
In the past 5 years VERX always reported negative net income.
VERX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VERX's Return On Assets of -4.21% is in line compared to the rest of the industry. VERX outperforms 45.96% of its industry peers.
VERX has a Return On Equity (-20.32%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.21% | ||
| ROE | -20.32% | ||
| ROIC | N/A |
ROA(3y)-2.65%
ROA(5y)-4.32%
ROE(3y)-13.31%
ROE(5y)-14.67%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
VERX has a Gross Margin (65.00%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of VERX has remained more or less at the same level.
VERX does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 65% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.03%
GM growth 5Y-0.54%
2. Health
2.1 Basic Checks
VERX does not have a ROIC to compare to the WACC, probably because it is not profitable.
VERX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VERX has more shares outstanding
Compared to 1 year ago, VERX has a worse debt to assets ratio.
2.2 Solvency
VERX has an Altman-Z score of 2.86. This is not the best score and indicates that VERX is in the grey zone with still only limited risk for bankruptcy at the moment.
VERX has a Altman-Z score (2.86) which is in line with its industry peers.
A Debt/Equity ratio of 1.36 is on the high side and indicates that VERX has dependencies on debt financing.
VERX has a worse Debt to Equity ratio (1.36) than 77.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.86 |
ROIC/WACCN/A
WACC10.88%
2.3 Liquidity
A Current Ratio of 0.99 indicates that VERX may have some problems paying its short term obligations.
With a Current ratio value of 0.99, VERX is not doing good in the industry: 72.63% of the companies in the same industry are doing better.
A Quick Ratio of 0.99 indicates that VERX may have some problems paying its short term obligations.
VERX has a worse Quick ratio (0.99) than 71.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
VERX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.09%, which is quite good.
Measured over the past years, VERX shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.31% on average per year.
The Revenue has grown by 15.01% in the past year. This is quite good.
Measured over the past years, VERX shows a quite strong growth in Revenue. The Revenue has been growing by 15.71% on average per year.
EPS 1Y (TTM)15.09%
EPS 3Y25.31%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)15.01%
Revenue growth 3Y16.15%
Revenue growth 5Y15.71%
Sales Q2Q%14.56%
3.2 Future
The Earnings Per Share is expected to grow by 20.95% on average over the next years. This is a very strong growth
Based on estimates for the next years, VERX will show a quite strong growth in Revenue. The Revenue will grow by 14.73% on average per year.
EPS Next Y4.38%
EPS Next 2Y13.31%
EPS Next 3Y20.3%
EPS Next 5Y20.95%
Revenue Next Year13.08%
Revenue Next 2Y13.1%
Revenue Next 3Y13.74%
Revenue Next 5Y14.73%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 38.10, the valuation of VERX can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of VERX is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.76, VERX is valued a bit more expensive.
A Price/Forward Earnings ratio of 29.67 indicates a quite expensive valuation of VERX.
Based on the Price/Forward Earnings ratio, VERX is valued a bit cheaper than 62.81% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VERX to the average of the S&P500 Index (22.63), we can say VERX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.1 | ||
| Fwd PE | 29.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VERX is valued a bit cheaper than 64.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 46.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VERX's earnings are expected to grow with 20.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)8.7
PEG (5Y)N/A
EPS Next 2Y13.31%
EPS Next 3Y20.3%
5. Dividend
5.1 Amount
VERX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.24
-1.87 (-7.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.12%
Inst Owner Change-1.52%
Ins Owners4.73%
Ins Owner Change23.95%
Market Cap3.71B
Revenue(TTM)710.51M
Net Income(TTM)-50408000
Analysts78.26
Price Target37.95 (63.3%)
Short Float %10.16%
Short Ratio5.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.43%
Min EPS beat(2)3.56%
Max EPS beat(2)9.3%
EPS beat(4)4
Avg EPS beat(4)8.81%
Min EPS beat(4)3.56%
Max EPS beat(4)15.34%
EPS beat(8)8
Avg EPS beat(8)10.53%
EPS beat(12)11
Avg EPS beat(12)12.06%
EPS beat(16)15
Avg EPS beat(16)17.85%
Revenue beat(2)0
Avg Revenue beat(2)-1.95%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)-1.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)0.84%
Revenue beat(8)2
Avg Revenue beat(8)-0.37%
Revenue beat(12)5
Avg Revenue beat(12)-0.07%
Revenue beat(16)8
Avg Revenue beat(16)0.16%
PT rev (1m)-1.36%
PT rev (3m)-21.3%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)-5.93%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-1.41%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-2.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.1 | ||
| Fwd PE | 29.67 | ||
| P/S | 5.22 | ||
| P/FCF | N/A | ||
| P/OCF | 25.86 | ||
| P/B | 14.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 46.81 |
EPS(TTM)0.61
EY2.62%
EPS(NY)0.78
Fwd EY3.37%
FCF(TTM)-0.14
FCFYN/A
OCF(TTM)0.9
OCFY3.87%
SpS4.46
BVpS1.56
TBVpS-1.16
PEG (NY)8.7
PEG (5Y)N/A
Graham Number4.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.21% | ||
| ROE | -20.32% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 65% | ||
| FCFM | N/A |
ROA(3y)-2.65%
ROA(5y)-4.32%
ROE(3y)-13.31%
ROE(5y)-14.67%
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 3Y1.03%
GM growth 5Y-0.54%
F-Score4
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.19 | ||
| Cap/Depr | 189.92% | ||
| Cap/Sales | 23.28% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 178.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.86 |
F-Score4
WACC10.88%
ROIC/WACCN/A
Cap/Depr(3y)135.67%
Cap/Depr(5y)121.89%
Cap/Sales(3y)16.89%
Cap/Sales(5y)14.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.09%
EPS 3Y25.31%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y4.38%
EPS Next 2Y13.31%
EPS Next 3Y20.3%
EPS Next 5Y20.95%
Revenue 1Y (TTM)15.01%
Revenue growth 3Y16.15%
Revenue growth 5Y15.71%
Sales Q2Q%14.56%
Revenue Next Year13.08%
Revenue Next 2Y13.1%
Revenue Next 3Y13.74%
Revenue Next 5Y14.73%
EBIT growth 1Y-557.49%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year23.99%
EBIT Next 3Y24.84%
EBIT Next 5Y26.7%
FCF growth 1Y-140.27%
FCF growth 3Y-49.75%
FCF growth 5Y-35.88%
OCF growth 1Y112.79%
OCF growth 3Y21.47%
OCF growth 5Y12.25%
VERTEX INC - CLASS A / VERX FAQ
What is the ChartMill fundamental rating of VERTEX INC - CLASS A (VERX) stock?
ChartMill assigns a fundamental rating of 3 / 10 to VERX.
What is the valuation status of VERTEX INC - CLASS A (VERX) stock?
ChartMill assigns a valuation rating of 2 / 10 to VERTEX INC - CLASS A (VERX). This can be considered as Overvalued.
How profitable is VERTEX INC - CLASS A (VERX) stock?
VERTEX INC - CLASS A (VERX) has a profitability rating of 2 / 10.
What is the valuation of VERTEX INC - CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for VERTEX INC - CLASS A (VERX) is 38.1 and the Price/Book (PB) ratio is 14.94.
Is the dividend of VERTEX INC - CLASS A sustainable?
The dividend rating of VERTEX INC - CLASS A (VERX) is 0 / 10 and the dividend payout ratio is 0%.