VERTEX INC - CLASS A (VERX) Stock Fundamental Analysis
USA - NASDAQ:VERX - US92538J1060 - Common Stock
25.585 USD
-0.05 (-0.21%)
We assign a fundamental rating of 3 out of 10 to VERX. VERX was compared to 280 industry peers in the Software industry. VERX has a bad profitability rating. Also its financial health evaluation is rather negative. VERX is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year VERX was profitable.
VERX had a positive operating cash flow in the past year.
VERX had negative earnings in each of the past 5 years.
VERX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VERX has a Return On Assets (-4.21%) which is comparable to the rest of the industry.
VERX has a Return On Equity (-20.32%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.21% | ||
| ROE | -20.32% | ||
| 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
VERX's Gross Margin of 65.00% is in line compared to the rest of the industry. VERX outperforms 43.93% of its industry peers.
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 | 65% |
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
Compared to 1 year ago, VERX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.10 indicates that VERX is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.10, VERX perfoms like the industry average, outperforming 56.79% of the companies in the same industry.
VERX has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external financing.
VERX's Debt to Equity ratio of 1.36 is on the low side compared to the rest of the industry. VERX is outperformed by 78.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.1 |
ROIC/WACCN/A
WACC10.96%
2.3 Liquidity
VERX has a Current Ratio of 0.99. This is a bad value and indicates that VERX is not financially healthy enough and could expect problems in meeting its short term obligations.
VERX has a Current ratio of 0.99. This is in the lower half of the industry: VERX underperforms 73.21% of its industry peers.
VERX has a Quick Ratio of 0.99. This is a bad value and indicates that VERX is not financially healthy enough and could expect problems in meeting its short term obligations.
VERX's Quick ratio of 0.99 is on the low side compared to the rest of the industry. VERX is outperformed by 72.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.09% 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.
VERX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.01%.
VERX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.71% yearly.
EPS 1Y (TTM)15.09%
EPS 3Y25.31%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)15.01%
Revenue growth 3Y16.15%
Revenue growth 5Y15.71%
Sales Q2Q%14.56%
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.
The Revenue is expected to grow by 14.73% on average over the next years. This is quite good.
EPS Next Y4.44%
EPS Next 2Y13.41%
EPS Next 3Y20.3%
EPS Next 5Y20.95%
Revenue Next Year13.08%
Revenue Next 2Y13.08%
Revenue Next 3Y13.88%
Revenue Next 5Y14.73%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 41.94 indicates a quite expensive valuation of VERX.
The rest of the industry has a similar Price/Earnings ratio as VERX.
VERX is valuated expensively when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 32.61, which means the current valuation is very expensive for VERX.
Based on the Price/Forward Earnings ratio, VERX is valued a bit cheaper than 61.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, VERX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.94 | ||
| Fwd PE | 32.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VERX is valued a bit cheaper than 63.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 51.58 |
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 20.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)9.45
PEG (5Y)N/A
EPS Next 2Y13.41%
EPS Next 3Y20.3%
5. Dividend
5.1 Amount
No dividends for VERX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:VERX (9/19/2025, 10:34:37 AM)
25.585
-0.05 (-0.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.05%
Inst Owner Change16.43%
Ins Owners6.4%
Ins Owner Change23.73%
Market Cap4.08B
Analysts77.27
Price Target38.48 (50.4%)
Short Float %9.9%
Short Ratio4.73
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)6.43%
Min EPS beat(2)3.56%
Max EPS beat(2)9.3%
EPS beat(4)4
Avg EPS beat(4)8.81%
Min EPS beat(4)3.56%
Max EPS beat(4)15.34%
EPS beat(8)8
Avg EPS beat(8)10.53%
EPS beat(12)11
Avg EPS beat(12)12.06%
EPS beat(16)15
Avg EPS beat(16)17.85%
Revenue beat(2)0
Avg Revenue beat(2)-1.95%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)-1.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)0.84%
Revenue beat(8)2
Avg Revenue beat(8)-0.37%
Revenue beat(12)5
Avg Revenue beat(12)-0.07%
Revenue beat(16)8
Avg Revenue beat(16)0.16%
PT rev (1m)-20.33%
PT rev (3m)-18.65%
EPS NQ rev (1m)-0.66%
EPS NQ rev (3m)-6.32%
EPS NY rev (1m)-1.36%
EPS NY rev (3m)-1%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-2.14%
Revenue NY rev (1m)-1.47%
Revenue NY rev (3m)-1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.94 | ||
| Fwd PE | 32.61 | ||
| P/S | 5.74 | ||
| P/FCF | N/A | ||
| P/OCF | 28.46 | ||
| P/B | 16.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 51.58 |
EPS(TTM)0.61
EY2.38%
EPS(NY)0.78
Fwd EY3.07%
FCF(TTM)-0.14
FCFYN/A
OCF(TTM)0.9
OCFY3.51%
SpS4.46
BVpS1.56
TBVpS-1.16
PEG (NY)9.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.21% | ||
| ROE | -20.32% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 65% | ||
| 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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.19 | ||
| Cap/Depr | 189.92% | ||
| Cap/Sales | 23.28% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 178.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 3.1 |
F-Score4
WACC10.96%
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)15.09%
EPS 3Y25.31%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y4.44%
EPS Next 2Y13.41%
EPS Next 3Y20.3%
EPS Next 5Y20.95%
Revenue 1Y (TTM)15.01%
Revenue growth 3Y16.15%
Revenue growth 5Y15.71%
Sales Q2Q%14.56%
Revenue Next Year13.08%
Revenue Next 2Y13.08%
Revenue Next 3Y13.88%
Revenue Next 5Y14.73%
EBIT growth 1Y-557.49%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year31.41%
EBIT Next 3Y28.57%
EBIT Next 5Y26.7%
FCF growth 1Y-140.27%
FCF growth 3Y-49.75%
FCF growth 5Y-35.88%
OCF growth 1Y112.79%
OCF growth 3Y21.47%
OCF growth 5Y12.25%