VERTEX INC - CLASS A (VERX)
US92538J1060 - Common Stock
Taking everything into account, VERX scores 4 out of 10 in our fundamental rating. VERX was compared to 279 industry peers in the Software industry. While VERX is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, VERX is valued expensive at the moment.
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 reported 4 times negative net income.
Each year in the past 5 years VERX had a positive operating cash flow.
1.2 Ratios
VERX has a Return On Assets of 2.55%. This is in the better half of the industry: VERX outperforms 69.18% of its industry peers.
VERX has a better Return On Equity (11.74%) than 82.44% of its industry peers.
VERX has a better Return On Invested Capital (0.90%) than 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.55% | ||
| ROE | 11.74% | ||
| ROIC | 0.9% |
ROA(3y)-1.22%
ROA(5y)-1.07%
ROE(3y)-3.73%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 4.73%, VERX is doing good in the industry, outperforming 70.25% of the companies in the same industry.
The Operating Margin of VERX (1.30%) is better than 64.87% of its industry peers.
With a Gross Margin value of 62.59%, VERX perfoms like the industry average, outperforming 42.65% of the companies in the same industry.
VERX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.3% | ||
| PM (TTM) | 4.73% | ||
| GM | 62.59% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.92%
GM growth 5Y-1.25%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VERX is destroying value.
The number of shares outstanding for VERX has been increased compared to 1 year ago.
VERX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VERX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.97 indicates that VERX is not in any danger for bankruptcy at the moment.
VERX has a Altman-Z score of 5.97. This is in the better half of the industry: VERX outperforms 67.38% of its industry peers.
The Debt to FCF ratio of VERX is 19.81, which is on the high side as it means it would take VERX, 19.81 years of fcf income to pay off all of its debts.
VERX's Debt to FCF ratio of 19.81 is in line compared to the rest of the industry. VERX outperforms 46.24% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that VERX has dependencies on debt financing.
VERX's Debt to Equity ratio of 1.29 is on the low side compared to the rest of the industry. VERX is outperformed by 79.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 19.81 | ||
| Altman-Z | 5.97 |
ROIC/WACC0.08
WACC11.78%
2.3 Liquidity
VERX has a Current Ratio of 1.04. This is a normal value and indicates that VERX is financially healthy and should not expect problems in meeting its short term obligations.
VERX's Current ratio of 1.04 is on the low side compared to the rest of the industry. VERX is outperformed by 75.99% of its industry peers.
A Quick Ratio of 1.04 indicates that VERX should not have too much problems paying its short term obligations.
The Quick ratio of VERX (1.04) is worse than 75.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 73.53% over the past year.
Looking at the last year, VERX shows a quite strong growth in Revenue. The Revenue has grown by 17.25% in the last year.
The Revenue has been growing by 16.01% on average over the past years. This is quite good.
EPS 1Y (TTM)73.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%60%
Revenue 1Y (TTM)17.25%
Revenue growth 3Y15.17%
Revenue growth 5Y16.01%
Sales Q2Q%17.52%
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 33.14% on average per year.
VERX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.03% yearly.
EPS Next Y56.79%
EPS Next 2Y34.63%
EPS Next 3Y33.14%
EPS Next 5YN/A
Revenue Next Year17.98%
Revenue Next 2Y16.27%
Revenue Next 3Y15.8%
Revenue Next 5Y12.03%
3.3 Evolution
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 90.73 indicates a quite expensive valuation of VERX.
The rest of the industry has a similar Price/Earnings ratio as VERX.
When comparing the Price/Earnings ratio of VERX to the average of the S&P500 Index (27.73), we can say VERX is valued expensively.
The Price/Forward Earnings ratio is 75.73, which means the current valuation is very expensive for VERX.
The rest of the industry has a similar Price/Forward Earnings ratio as VERX.
VERX is valuated expensively when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 90.73 | ||
| Fwd PE | 75.73 |
4.2 Price Multiples
VERX's Enterprise Value to EBITDA is on the same level as the industry average.
VERX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 494.14 | ||
| EV/EBITDA | 94.13 |
4.3 Compensation for Growth
VERX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VERX's earnings are expected to grow with 33.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.6
PEG (5Y)N/A
EPS Next 2Y34.63%
EPS Next 3Y33.14%
5. Dividend
5.1 Amount
No dividends for VERX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERTEX INC - CLASS A
NASDAQ:VERX (12/20/2024, 8:00:01 PM)
After market: 53.527 0 (-0.01%)53.53
-0.06 (-0.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners106.82%
Inst Owner Change0.78%
Ins Owners16.6%
Ins Owner Change-24.78%
Market Cap8.35B
Analysts82.22
Price Target56.29 (5.16%)
Short Float %8.54%
Short Ratio5.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)14.63%
Min EPS beat(2)13.93%
Max EPS beat(2)15.34%
EPS beat(4)4
Avg EPS beat(4)14.01%
Min EPS beat(4)12.52%
Max EPS beat(4)15.34%
EPS beat(8)7
Avg EPS beat(8)12.12%
EPS beat(12)11
Avg EPS beat(12)17.45%
EPS beat(16)15
Avg EPS beat(16)23.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)0.84%
Revenue beat(4)2
Avg Revenue beat(4)0.52%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)3.7%
Revenue beat(8)4
Avg Revenue beat(8)0.43%
Revenue beat(12)7
Avg Revenue beat(12)0.36%
Revenue beat(16)11
Avg Revenue beat(16)0.95%
PT rev (1m)32.53%
PT rev (3m)34.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.5%
EPS NY rev (1m)3.82%
EPS NY rev (3m)7.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 90.73 | ||
| Fwd PE | 75.73 | ||
| P/S | 12.98 | ||
| P/FCF | 494.14 | ||
| P/OCF | 48.73 | ||
| P/B | 32.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 94.13 |
EPS(TTM)0.59
EY1.1%
EPS(NY)0.71
Fwd EY1.32%
FCF(TTM)0.11
FCFY0.2%
OCF(TTM)1.1
OCFY2.05%
SpS4.12
BVpS1.66
TBVpS-1.07
PEG (NY)1.6
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.55% | ||
| ROE | 11.74% | ||
| ROCE | 1.14% | ||
| ROIC | 0.9% | ||
| ROICexc | 1.48% | ||
| ROICexgc | 31.7% | ||
| OM | 1.3% | ||
| PM (TTM) | 4.73% | ||
| GM | 62.59% | ||
| FCFM | 2.63% |
ROA(3y)-1.22%
ROA(5y)-1.07%
ROE(3y)-3.73%
ROE(5y)N/A
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 3Y2.92%
GM growth 5Y-1.25%
F-Score6
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 19.81 | ||
| Debt/EBITDA | 3.76 | ||
| Cap/Depr | 191.26% | ||
| Cap/Sales | 24.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 192.23% | ||
| Profit Quality | 55.57% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 5.97 |
F-Score6
WACC11.78%
ROIC/WACC0.08
Cap/Depr(3y)105.19%
Cap/Depr(5y)113.3%
Cap/Sales(3y)12.48%
Cap/Sales(5y)11.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)73.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%60%
EPS Next Y56.79%
EPS Next 2Y34.63%
EPS Next 3Y33.14%
EPS Next 5YN/A
Revenue 1Y (TTM)17.25%
Revenue growth 3Y15.17%
Revenue growth 5Y16.01%
Sales Q2Q%17.52%
Revenue Next Year17.98%
Revenue Next 2Y16.27%
Revenue Next 3Y15.8%
Revenue Next 5Y12.03%
EBIT growth 1Y145.57%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year82%
EBIT Next 3Y40.31%
EBIT Next 5YN/A
FCF growth 1Y190.29%
FCF growth 3Y-38.89%
FCF growth 5Y-33.57%
OCF growth 1Y172.37%
OCF growth 3Y7.68%
OCF growth 5Y-1.57%