19.73 USD
-0.18 (-0.9%)
19.73 USD
0 (0%)
Overall VERX gets a fundamental rating of 3 out of 10. We evaluated VERX against 276 industry peers in the Software industry. Both the profitability and financial health of VERX have multiple concerns. VERX shows excellent growth, but is valued quite expensive already.
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.
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
Looking at the Return On Assets, with a value of -4.39%, VERX is in line with its industry, outperforming 43.84% of the companies in the same industry.
VERX's Return On Equity of -20.26% is on the low side compared to the rest of the industry. VERX is outperformed by 60.87% 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.
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.
Compared to 5 years ago, VERX has more shares outstanding
VERX has a worse debt/assets ratio than last year.
2.2 Solvency
VERX has an Altman-Z score of 2.53. 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.
The Altman-Z score of VERX (2.53) is comparable to the rest of the industry.
The Debt to FCF ratio of VERX is 6.09, which is on the high side as it means it would take VERX, 6.09 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.09, VERX perfoms like the industry average, outperforming 54.35% of the companies in the same industry.
A Debt/Equity ratio of 1.27 is on the high side and indicates that VERX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.27, VERX is doing worse than 79.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 2.53 |
ROIC/WACCN/A
WACC10.94%
2.3 Liquidity
VERX has a Current Ratio of 1.01. This is a normal value and indicates that VERX is financially healthy and should not expect problems in meeting 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.
The Quick ratio of VERX (1.01) is worse than 72.83% 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%.
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 13.83% in the past year. This is quite good.
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
VERX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.14% yearly.
VERX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.39% yearly.
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 31.82, the valuation of VERX can be described as expensive.
62.68% 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 27.30. VERX is around the same levels.
A Price/Forward Earnings ratio of 26.33 indicates a quite expensive valuation of VERX.
Based on the Price/Forward Earnings ratio, VERX is valued a bit cheaper than the industry average as 63.77% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VERX to the average of the S&P500 Index (24.04), we can say VERX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.82 | ||
| Fwd PE | 26.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VERX indicates a somewhat cheap valuation: VERX is cheaper than 65.58% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as VERX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.83 | ||
| EV/EBITDA | 37.25 |
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)10.67
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% |
19.73
-0.18 (-0.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.96%
Inst Owner Change-0.4%
Ins Owners4.36%
Ins Owner Change0%
Market Cap3.15B
Revenue(TTM)732.19M
Net Income(TTM)-53.58M
Analysts78.26
Price Target29.11 (47.54%)
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)-23.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.82 | ||
| Fwd PE | 26.33 | ||
| P/S | 4.3 | ||
| P/FCF | 56.83 | ||
| P/OCF | 19.14 | ||
| P/B | 11.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 37.25 |
EPS(TTM)0.62
EY3.14%
EPS(NY)0.75
Fwd EY3.8%
FCF(TTM)0.35
FCFY1.76%
OCF(TTM)1.03
OCFY5.22%
SpS4.59
BVpS1.66
TBVpS-1.06
PEG (NY)10.67
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 | 2.53 |
F-Score5
WACC10.94%
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.
Can you provide the valuation status for VERTEX INC - CLASS A?
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 financial health of VERTEX INC - CLASS A (VERX) stock?
The financial health rating of VERTEX INC - CLASS A (VERX) is 2 / 10.
Can you provide the expected EPS growth for VERX stock?
The Earnings per Share (EPS) of VERTEX INC - CLASS A (VERX) is expected to grow by 2.98% in the next year.