VERTEX INC - CLASS A (VERX) Stock Fundamental Analysis
USA - NASDAQ:VERX - US92538J1060 - Common Stock
19.94 USD
+0.31 (+1.58%)
Overall VERX gets a fundamental rating of 3 out of 10. We evaluated VERX against 281 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
In the past year VERX was profitable.
In the past year VERX had a positive cash flow from operations.
VERX had negative earnings in each of the past 5 years.
Each year in the past 5 years VERX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.39%, VERX is in line with its industry, outperforming 44.13% of the companies in the same industry.
VERX has a Return On Equity of -20.26%. This is comparable 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
The Gross Margin of VERX (64.55%) is comparable to the rest of the industry.
VERX's Gross Margin has been stable in the last couple of years.
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.
VERX has more shares outstanding than it did 1 year ago.
VERX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VERX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.50 indicates that VERX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.50, VERX is in line with its industry, outperforming 57.30% of the companies in the same 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.
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.
A Debt/Equity ratio of 1.27 is on the high side and indicates that VERX has dependencies on debt financing.
VERX has a worse Debt to Equity ratio (1.27) than 77.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 2.5 |
ROIC/WACCN/A
WACC10.97%
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.
VERX has a worse Current ratio (1.01) than 73.31% 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 72.24% 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.
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
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.
Based on estimates for the next years, VERX will show a quite strong growth in Revenue. The Revenue will grow by 10.46% on average per year.
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.
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
The Price/Earnings ratio is 32.16, which means the current valuation is very expensive for VERX.
VERX's Price/Earnings ratio is a bit cheaper when compared to the industry. VERX is cheaper than 62.28% of the companies in the same industry.
VERX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.47.
VERX is valuated quite expensively with a Price/Forward Earnings ratio of 25.46.
Based on the Price/Forward Earnings ratio, VERX is valued a bit cheaper than the industry average as 66.19% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VERX to the average of the S&P500 Index (35.42), we can say VERX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.16 | ||
| Fwd PE | 25.46 |
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 66.90% of the companies listed in the same industry.
VERX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.41 | ||
| EV/EBITDA | 36.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VERX does not grow enough to justify the current Price/Earnings ratio.
VERX's earnings are expected to grow with 20.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.89
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 |
NASDAQ:VERX (11/20/2025, 9:30:00 AM)
19.94
+0.31 (+1.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.12%
Inst Owner Change-8.32%
Ins Owners4.73%
Ins Owner Change18.88%
Market Cap3.18B
Revenue(TTM)732.19M
Net Income(TTM)-53.58M
Analysts78.26
Price Target38.02 (90.67%)
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)0.18%
PT rev (3m)-21.28%
EPS NQ rev (1m)-7.57%
EPS NQ rev (3m)-7.46%
EPS NY rev (1m)1.11%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)-1.83%
Revenue NQ rev (3m)-2.39%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.16 | ||
| Fwd PE | 25.46 | ||
| P/S | 4.34 | ||
| P/FCF | 57.41 | ||
| P/OCF | 19.34 | ||
| P/B | 12.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.72 |
EPS(TTM)0.62
EY3.11%
EPS(NY)0.78
Fwd EY3.93%
FCF(TTM)0.35
FCFY1.74%
OCF(TTM)1.03
OCFY5.17%
SpS4.59
BVpS1.66
TBVpS-1.06
PEG (NY)5.89
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 | 2.5 |
F-Score5
WACC10.97%
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 32.16 and the Price/Book (PB) ratio is 12.02.
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%.