VERTEX INC - CLASS A (VERX) Stock Fundamental Analysis
USA - NASDAQ:VERX - US92538J1060 - Common Stock
20.365 USD
-0.35 (-1.67%)
20.365 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to VERX. VERX was compared to 281 industry peers in the Software industry. VERX has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
VERX had a positive operating cash flow in the past year.
VERX had negative earnings in each of the past 5 years.
In the past 5 years VERX always reported a positive cash flow from operatings.
1.2 Ratios
VERX's Return On Assets of -4.39% is in line compared to the rest of the industry. VERX outperforms 44.48% of its industry peers.
VERX's Return On Equity of -20.26% is in line compared to the rest of the industry. VERX outperforms 40.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.39% | ||
| ROE | -20.26% | ||
| 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 (64.55%) which is in line with its industry peers.
In the last couple of years the Gross Margin of VERX has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for VERX so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 64.55% |
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.
Compared to 1 year ago, VERX has more shares outstanding
The number of shares outstanding for VERX has been increased compared to 5 years ago.
The debt/assets ratio for VERX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.61 indicates that VERX is not a great score, but indicates only limited risk for bankruptcy at the moment.
VERX has a Altman-Z score (2.61) which is in line with its industry peers.
VERX has a debt to FCF ratio of 6.09. This is a slightly negative value and a sign of low solvency as VERX would need 6.09 years to pay back of all of its debts.
VERX has a Debt to FCF ratio of 6.09. This is comparable to the rest of the industry: VERX outperforms 55.87% of its industry peers.
VERX has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
VERX has a Debt to Equity ratio of 1.27. This is in the lower half of the industry: VERX underperforms 76.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 2.61 |
ROIC/WACCN/A
WACC10.83%
2.3 Liquidity
A Current Ratio of 1.01 indicates that VERX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.01, VERX is doing worse than 72.60% of the companies in the same industry.
A Quick Ratio of 1.01 indicates that VERX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.01, VERX is doing worse than 71.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
VERX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.08%.
The Earnings Per Share has been growing by 25.31% on average over the past years. This is a very strong growth
Looking at the last year, VERX shows a quite strong growth in Revenue. The Revenue has grown by 13.83% in the last year.
VERX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.71% yearly.
EPS 1Y (TTM)5.08%
EPS 3Y25.31%
EPS 5YN/A
EPS Q2Q%6.25%
Revenue 1Y (TTM)13.83%
Revenue growth 3Y16.15%
Revenue growth 5Y15.71%
Sales Q2Q%12.72%
3.2 Future
Based on estimates for the next years, VERX will show a very strong growth in Earnings Per Share. The EPS will grow by 20.95% on average per year.
The Revenue is expected to grow by 10.46% on average over the next years. This is quite good.
EPS Next Y5.46%
EPS Next 2Y13.32%
EPS Next 3Y20.64%
EPS Next 5Y20.95%
Revenue Next Year13.1%
Revenue Next 2Y13.1%
Revenue Next 3Y13.95%
Revenue Next 5Y10.46%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.85, the valuation of VERX can be described as expensive.
VERX's Price/Earnings ratio is a bit cheaper when compared to the industry. VERX is cheaper than 61.92% of the companies in the same industry.
VERX is valuated rather expensively when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.00 indicates a quite expensive valuation of VERX.
Based on the Price/Forward Earnings ratio, VERX is valued a bit cheaper than 65.84% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VERX to the average of the S&P500 Index (34.43), we can say VERX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.85 | ||
| Fwd PE | 26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VERX is valued a bit cheaper than 66.90% of the companies in the same industry.
VERX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.64 | ||
| EV/EBITDA | 38.72 |
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 20.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.02
PEG (5Y)N/A
EPS Next 2Y13.32%
EPS Next 3Y20.64%
5. Dividend
5.1 Amount
No dividends for VERX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.365
-0.35 (-1.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.12%
Inst Owner Change1.44%
Ins Owners4.73%
Ins Owner Change23.95%
Market Cap3.25B
Revenue(TTM)732.19M
Net Income(TTM)-53.58M
Analysts78.26
Price Target38.02 (86.69%)
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)3.89%
Min EPS beat(2)3.56%
Max EPS beat(2)4.22%
EPS beat(4)4
Avg EPS beat(4)6.03%
Min EPS beat(4)3.56%
Max EPS beat(4)9.3%
EPS beat(8)8
Avg EPS beat(8)10.02%
EPS beat(12)11
Avg EPS beat(12)10.09%
EPS beat(16)15
Avg EPS beat(16)14.59%
Revenue beat(2)0
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)-1.75%
Revenue beat(4)0
Avg Revenue beat(4)-1.68%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)-1.09%
Revenue beat(8)2
Avg Revenue beat(8)-0.58%
Revenue beat(12)4
Avg Revenue beat(12)-0.28%
Revenue beat(16)7
Avg Revenue beat(16)-0.15%
PT rev (1m)0.18%
PT rev (3m)-21.28%
EPS NQ rev (1m)3.7%
EPS NQ rev (3m)-2.45%
EPS NY rev (1m)1.11%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.85 | ||
| Fwd PE | 26 | ||
| P/S | 4.44 | ||
| P/FCF | 58.64 | ||
| P/OCF | 19.75 | ||
| P/B | 12.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 38.72 |
EPS(TTM)0.62
EY3.04%
EPS(NY)0.78
Fwd EY3.85%
FCF(TTM)0.35
FCFY1.71%
OCF(TTM)1.03
OCFY5.06%
SpS4.59
BVpS1.66
TBVpS-1.06
PEG (NY)6.02
PEG (5Y)N/A
Graham Number4.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.39% | ||
| ROE | -20.26% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 64.55% | ||
| FCFM | 7.56% |
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-Score5
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 6.09 | ||
| Debt/EBITDA | 3.92 | ||
| Cap/Depr | 118.4% | ||
| Cap/Sales | 14.89% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 191.41% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 2.61 |
F-Score5
WACC10.83%
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)5.08%
EPS 3Y25.31%
EPS 5YN/A
EPS Q2Q%6.25%
EPS Next Y5.46%
EPS Next 2Y13.32%
EPS Next 3Y20.64%
EPS Next 5Y20.95%
Revenue 1Y (TTM)13.83%
Revenue growth 3Y16.15%
Revenue growth 5Y15.71%
Sales Q2Q%12.72%
Revenue Next Year13.1%
Revenue Next 2Y13.1%
Revenue Next 3Y13.95%
Revenue Next 5Y10.46%
EBIT growth 1Y-173.81%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year23.99%
EBIT Next 3Y24.84%
EBIT Next 5Y26.7%
FCF growth 1Y5920.22%
FCF growth 3Y-49.75%
FCF growth 5Y-35.88%
OCF growth 1Y105.64%
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 3 / 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 32.85 and the Price/Book (PB) ratio is 12.28.
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%.