19.79 USD
+0.26 (+1.33%)
19.79 USD
0 (0%)
Taking everything into account, VERX scores 3 out of 10 in our fundamental rating. VERX was compared to 281 industry peers in the Software industry. Both the profitability and financial health of VERX have multiple concerns. 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.
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
The Return On Assets of VERX (-4.39%) is comparable to the rest of the industry.
VERX has a worse Return On Equity (-20.26%) than 60.14% 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 42.35% of the companies in the same industry.
VERX's Gross Margin has been stable in the last couple of years.
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.
The number of shares outstanding for VERX has been increased compared to 1 year ago.
The number of shares outstanding for VERX has been increased compared to 5 years ago.
Compared to 1 year ago, VERX has a worse debt to assets ratio.
2.2 Solvency
VERX has an Altman-Z score of 2.52. 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.
With a Altman-Z score value of 2.52, VERX perfoms like the industry average, outperforming 56.58% of the companies in the same 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.
The Debt to FCF ratio of VERX (6.09) is comparable to the rest of the 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 78.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 2.52 |
ROIC/WACCN/A
WACC10.89%
2.3 Liquidity
A Current Ratio of 1.01 indicates that VERX should not have too much problems paying its short term obligations.
VERX's Current ratio of 1.01 is on the low side compared to the rest of the industry. VERX is outperformed by 74.73% 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's Quick ratio of 1.01 is on the low side compared to the rest of the industry. VERX is outperformed by 73.67% of its industry peers.
| 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.
The Revenue has been growing by 15.71% on average over the past years. This is quite good.
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.
VERX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.46% yearly.
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
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
The Price/Earnings ratio is 31.92, which means the current valuation is very expensive for VERX.
Compared to the rest of the industry, the Price/Earnings ratio of VERX indicates a somewhat cheap valuation: VERX is cheaper than 61.57% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.45, VERX is valued a bit more expensive.
With a Price/Forward Earnings ratio of 25.27, VERX can be considered very expensive at the moment.
VERX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VERX is cheaper than 64.41% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. VERX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.92 | ||
| Fwd PE | 25.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VERX is valued a bit cheaper than 66.55% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VERX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.98 | ||
| EV/EBITDA | 37.02 |
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)5.85
PEG (5Y)N/A
EPS Next 2Y13.32%
EPS Next 3Y20.64%
5. Dividend
5.1 Amount
VERX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.79
+0.26 (+1.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.12%
Inst Owner Change-8.49%
Ins Owners4.73%
Ins Owner Change-7.19%
Market Cap3.16B
Revenue(TTM)732.19M
Net Income(TTM)-53.58M
Analysts78.26
Price Target29.11 (47.09%)
Short Float %9.6%
Short Ratio3.99
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)-23.29%
PT rev (3m)-24.34%
EPS NQ rev (1m)-7.57%
EPS NQ rev (3m)-7.33%
EPS NY rev (1m)1.03%
EPS NY rev (3m)0.98%
Revenue NQ rev (1m)-1.99%
Revenue NQ rev (3m)-2.25%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.92 | ||
| Fwd PE | 25.27 | ||
| P/S | 4.31 | ||
| P/FCF | 56.98 | ||
| P/OCF | 19.2 | ||
| P/B | 11.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 37.02 |
EPS(TTM)0.62
EY3.13%
EPS(NY)0.78
Fwd EY3.96%
FCF(TTM)0.35
FCFY1.75%
OCF(TTM)1.03
OCFY5.21%
SpS4.59
BVpS1.66
TBVpS-1.06
PEG (NY)5.85
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 | 2.52 |
F-Score5
WACC10.89%
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 31.92 and the Price/Book (PB) ratio is 11.93.
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%.