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VERTEX INC - CLASS A (VERX) Stock Fundamental Analysis

NASDAQ:VERX - Nasdaq - US92538J1060 - Common Stock - Currency: USD

34.94  -1.27 (-3.51%)

After market: 34.94 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to VERX. VERX was compared to 282 industry peers in the Software industry. VERX may be in some trouble as it scores bad on both profitability and health. VERX is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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3

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.
VERX Yearly Net Income VS EBIT VS OCF VS FCFVERX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M 150M

1.2 Ratios

VERX has a Return On Assets of -3.84%. This is comparable to the rest of the industry: VERX outperforms 52.84% of its industry peers.
With a Return On Equity value of -22.09%, VERX perfoms like the industry average, outperforming 41.49% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.53%, VERX is in the better half of the industry, outperforming 63.83% of the companies in the same industry.
Industry RankSector Rank
ROA -3.84%
ROE -22.09%
ROIC 0.53%
ROA(3y)-2.65%
ROA(5y)-4.32%
ROE(3y)-13.31%
ROE(5y)-14.67%
ROIC(3y)N/A
ROIC(5y)N/A
VERX Yearly ROA, ROE, ROICVERX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 -20 -40 -60 -80

1.3 Margins

Looking at the Operating Margin, with a value of 0.62%, VERX is in the better half of the industry, outperforming 63.12% of the companies in the same industry.
Looking at the Gross Margin, with a value of 64.53%, VERX is in line with its industry, outperforming 44.33% 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.
Industry RankSector Rank
OM 0.62%
PM (TTM) N/A
GM 64.53%
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%
VERX Yearly Profit, Operating, Gross MarginsVERX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VERX is destroying value.
Compared to 1 year ago, VERX has more shares outstanding
Compared to 5 years ago, VERX has more shares outstanding
VERX has a worse debt/assets ratio than last year.
VERX Yearly Shares OutstandingVERX Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
VERX Yearly Total Debt VS Total AssetsVERX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

VERX has an Altman-Z score of 4.16. This indicates that VERX is financially healthy and has little risk of bankruptcy at the moment.
VERX's Altman-Z score of 4.16 is fine compared to the rest of the industry. VERX outperforms 64.89% of its industry peers.
VERX has a Debt/Equity ratio of 1.67. This is a high value indicating a heavy dependency on external financing.
VERX's Debt to Equity ratio of 1.67 is on the low side compared to the rest of the industry. VERX is outperformed by 79.08% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.67
Debt/FCF N/A
Altman-Z 4.16
ROIC/WACC0.05
WACC10.7%
VERX Yearly LT Debt VS Equity VS FCFVERX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M 300M

2.3 Liquidity

A Current Ratio of 0.98 indicates that VERX may have some problems paying its short term obligations.
With a Current ratio value of 0.98, VERX is not doing good in the industry: 75.53% of the companies in the same industry are doing better.
A Quick Ratio of 0.98 indicates that VERX may have some problems paying its short term obligations.
VERX's Quick ratio of 0.98 is on the low side compared to the rest of the industry. VERX is outperformed by 74.47% of its industry peers.
Industry RankSector Rank
Current Ratio 0.98
Quick Ratio 0.98
VERX Yearly Current Assets VS Current LiabilitesVERX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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8

3. Growth

3.1 Past

VERX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.61%, which is quite impressive.
The Earnings Per Share has been growing by 25.31% on average over the past years. This is a very strong growth
The Revenue has grown by 15.20% 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)32.61%
EPS 3Y25.31%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)15.2%
Revenue growth 3Y16.15%
Revenue growth 5Y15.71%
Sales Q2Q%12.94%

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 23.03% on average per year.
The Revenue is expected to grow by 15.87% on average over the next years. This is quite good.
EPS Next Y5.87%
EPS Next 2Y14.97%
EPS Next 3Y24.47%
EPS Next 5Y23.03%
Revenue Next Year14.76%
Revenue Next 2Y14.66%
Revenue Next 3Y15.59%
Revenue Next 5Y15.87%

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 Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
VERX Yearly Revenue VS EstimatesVERX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
VERX Yearly EPS VS EstimatesVERX Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6 0.8 1

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2

4. Valuation

4.1 Price/Earnings Ratio

VERX is valuated quite expensively with a Price/Earnings ratio of 57.28.
VERX's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.19, VERX is valued quite expensively.
With a Price/Forward Earnings ratio of 43.33, VERX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VERX is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.33, VERX is valued a bit more expensive.
Industry RankSector Rank
PE 57.28
Fwd PE 43.33
VERX Price Earnings VS Forward Price EarningsVERX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

VERX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VERX is cheaper than 61.35% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 65.71
VERX Per share dataVERX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 2 3 4

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as VERX's earnings are expected to grow with 24.47% in the coming years.
PEG (NY)9.75
PEG (5Y)N/A
EPS Next 2Y14.97%
EPS Next 3Y24.47%

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0

5. Dividend

5.1 Amount

No dividends for VERX!.
Industry RankSector Rank
Dividend Yield N/A

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VERTEX INC - CLASS A

NASDAQ:VERX (7/15/2025, 8:00:01 PM)

After market: 34.94 0 (0%)

34.94

-1.27 (-3.51%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-07 2025-05-07/bmo
Earnings (Next)08-06 2025-08-06/bmo
Inst Owners109.63%
Inst Owner Change0%
Ins Owners6.35%
Ins Owner Change26.99%
Market Cap5.54B
Analysts79.09
Price Target47.97 (37.29%)
Short Float %8.91%
Short Ratio4.34
Dividend
Industry RankSector 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)8.16%
Min EPS beat(2)7.01%
Max EPS beat(2)9.3%
EPS beat(4)4
Avg EPS beat(4)11.4%
Min EPS beat(4)7.01%
Max EPS beat(4)15.34%
EPS beat(8)7
Avg EPS beat(8)9.6%
EPS beat(12)11
Avg EPS beat(12)12.37%
EPS beat(16)15
Avg EPS beat(16)21.26%
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-1.91%
Max Revenue beat(2)-1.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-1.91%
Max Revenue beat(4)0.84%
Revenue beat(8)3
Avg Revenue beat(8)-0.04%
Revenue beat(12)6
Avg Revenue beat(12)0.1%
Revenue beat(16)9
Avg Revenue beat(16)0.49%
PT rev (1m)1.43%
PT rev (3m)-2.75%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)-2.79%
EPS NY rev (1m)0.36%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.09%
Valuation
Industry RankSector Rank
PE 57.28
Fwd PE 43.33
P/S 8.06
P/FCF N/A
P/OCF 35.71
P/B 27.62
P/tB N/A
EV/EBITDA 65.71
EPS(TTM)0.61
EY1.75%
EPS(NY)0.81
Fwd EY2.31%
FCF(TTM)-0.07
FCFYN/A
OCF(TTM)0.98
OCFY2.8%
SpS4.34
BVpS1.27
TBVpS-1.33
PEG (NY)9.75
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.84%
ROE -22.09%
ROCE 0.67%
ROIC 0.53%
ROICexc 0.91%
ROICexgc N/A
OM 0.62%
PM (TTM) N/A
GM 64.53%
FCFM 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg 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-Score4
Asset Turnover0.6
Health
Industry RankSector Rank
Debt/Equity 1.67
Debt/FCF N/A
Debt/EBITDA 3.8
Cap/Depr 197.33%
Cap/Sales 24.14%
Interest Coverage 250
Cash Conversion 175.54%
Profit Quality N/A
Current Ratio 0.98
Quick Ratio 0.98
Altman-Z 4.16
F-Score4
WACC10.7%
ROIC/WACC0.05
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)32.61%
EPS 3Y25.31%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y5.87%
EPS Next 2Y14.97%
EPS Next 3Y24.47%
EPS Next 5Y23.03%
Revenue 1Y (TTM)15.2%
Revenue growth 3Y16.15%
Revenue growth 5Y15.71%
Sales Q2Q%12.94%
Revenue Next Year14.76%
Revenue Next 2Y14.66%
Revenue Next 3Y15.59%
Revenue Next 5Y15.87%
EBIT growth 1Y142.14%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year27.81%
EBIT Next 3Y28.57%
EBIT Next 5Y28.3%
FCF growth 1Y-252.96%
FCF growth 3Y-49.75%
FCF growth 5Y-35.88%
OCF growth 1Y91.41%
OCF growth 3Y21.47%
OCF growth 5Y12.25%