20.28 USD
-0.03 (-0.15%)
20.28 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to VERX. VERX was compared to 276 industry peers in the Software industry. VERX has a bad profitability rating. Also its financial health evaluation is rather negative. VERX shows excellent growth, but is valued quite expensive already.
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.
In the past 5 years VERX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.39%, VERX is in line with its industry, outperforming 44.20% of the companies in the same industry.
VERX has a Return On Equity of -20.26%. This is in the lower half of the industry: VERX underperforms 60.51% 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
With a Gross Margin value of 64.55%, VERX perfoms like the industry average, outperforming 43.12% of the companies in the same 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 | 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.
VERX has a worse debt/assets ratio than last year.
2.2 Solvency
VERX has an Altman-Z score of 2.57. 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 (2.57) which is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 6.09, VERX is in line with its industry, outperforming 54.71% of the companies in the same industry.
VERX has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of VERX (1.27) is worse than 79.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 2.57 |
ROIC/WACCN/A
WACC10.91%
2.3 Liquidity
A Current Ratio of 1.01 indicates that VERX should not have too much problems paying its short term obligations.
The Current ratio of VERX (1.01) is worse than 73.91% of its industry peers.
A Quick Ratio of 1.01 indicates that VERX should not have too much problems paying its short term obligations.
VERX has a Quick ratio of 1.01. This is in the lower half of the industry: VERX underperforms 72.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.08% over the past year.
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.
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)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
The Earnings Per Share is expected to grow by 21.14% 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 12.39% on average per year.
EPS Next Y2.98%
EPS Next 2Y10.83%
EPS Next 3Y14.76%
EPS Next 5Y21.14%
Revenue Next Year12.51%
Revenue Next 2Y11.66%
Revenue Next 3Y12.17%
Revenue Next 5Y12.39%
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.
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
A Price/Earnings ratio of 32.71 indicates a quite expensive valuation of VERX.
61.96% of the companies in the same industry are more expensive than VERX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.84. VERX is valued slightly more expensive when compared to this.
VERX is valuated quite expensively with a Price/Forward Earnings ratio of 27.07.
VERX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VERX is cheaper than 63.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VERX to the average of the S&P500 Index (23.40), we can say VERX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.71 | ||
| Fwd PE | 27.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VERX is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
VERX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.41 | ||
| EV/EBITDA | 37.94 |
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 14.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)10.97
PEG (5Y)N/A
EPS Next 2Y10.83%
EPS Next 3Y14.76%
5. Dividend
5.1 Amount
VERX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
20.28
-0.03 (-0.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.81%
Inst Owner Change-8.5%
Ins Owners4.36%
Ins Owner Change0%
Market Cap3.24B
Revenue(TTM)732.19M
Net Income(TTM)-53.58M
Analysts78.26
Price Target29.11 (43.54%)
Short Float %8.58%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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%
PT rev (3m)-24.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.83%
EPS NY rev (1m)-2.35%
EPS NY rev (3m)-1.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.71 | ||
| Fwd PE | 27.07 | ||
| P/S | 4.42 | ||
| P/FCF | 58.41 | ||
| P/OCF | 19.68 | ||
| P/B | 12.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 37.94 |
EPS(TTM)0.62
EY3.06%
EPS(NY)0.75
Fwd EY3.69%
FCF(TTM)0.35
FCFY1.71%
OCF(TTM)1.03
OCFY5.08%
SpS4.59
BVpS1.66
TBVpS-1.06
PEG (NY)10.97
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 | 2.57 |
F-Score5
WACC10.91%
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 Y2.98%
EPS Next 2Y10.83%
EPS Next 3Y14.76%
EPS Next 5Y21.14%
Revenue 1Y (TTM)13.83%
Revenue growth 3Y16.15%
Revenue growth 5Y15.71%
Sales Q2Q%12.72%
Revenue Next Year12.51%
Revenue Next 2Y11.66%
Revenue Next 3Y12.17%
Revenue Next 5Y12.39%
EBIT growth 1Y-173.81%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year25.04%
EBIT Next 3Y21.5%
EBIT Next 5Y21.75%
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 32.71 and the Price/Book (PB) ratio is 12.23.
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%.