19.97 USD
-0.06 (-0.3%)
20.091 USD
+0.12 (+0.61%)
Taking everything into account, VERX scores 3 out of 10 in our fundamental rating. VERX was compared to 276 industry peers in the Software industry. Both the profitability and financial health of VERX have multiple concerns. 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.
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
With a Return On Assets value of -4.39%, VERX perfoms like the industry average, outperforming 44.57% 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 60.14% 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
VERX's Gross Margin of 64.55% is in line compared to the rest of the industry. VERX outperforms 43.12% of its industry peers.
In the last couple of years the Gross Margin of VERX has remained more or less at the same level.
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.
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 2.54 indicates that VERX is not a great score, but indicates only limited risk for bankruptcy at the moment.
VERX has a Altman-Z score of 2.54. This is comparable to the rest of the industry: VERX outperforms 55.80% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 6.09, VERX is in line with its industry, outperforming 54.71% of the companies in the same industry.
VERX has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
VERX's Debt to Equity ratio of 1.27 is on the low side compared to the rest of the industry. VERX is outperformed by 78.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 2.54 |
ROIC/WACCN/A
WACC10.9%
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's Current ratio of 1.01 is on the low side compared to the rest of the industry. VERX is outperformed by 73.91% of its industry peers.
VERX has a Quick 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 Quick ratio of 1.01. This is in the lower half of the industry: VERX underperforms 72.83% 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.
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 13.83% in the past year. This is quite good.
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)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
The Earnings Per Share is expected to grow by 21.14% on average over the next years. This is a very strong growth
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.
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
VERX is valuated quite expensively with a Price/Earnings ratio of 32.21.
61.96% 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 26.51. VERX is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 26.65 indicates a quite expensive valuation of VERX.
VERX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VERX is cheaper than 63.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. VERX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.21 | ||
| Fwd PE | 26.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VERX is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
VERX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.52 | ||
| EV/EBITDA | 37.36 |
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.
A more expensive valuation may be justified as VERX's earnings are expected to grow with 14.76% in the coming years.
PEG (NY)10.8
PEG (5Y)N/A
EPS Next 2Y10.83%
EPS Next 3Y14.76%
5. Dividend
5.1 Amount
No dividends for VERX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
19.97
-0.06 (-0.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.81%
Inst Owner Change-8.5%
Ins Owners4.36%
Ins Owner Change0%
Market Cap3.19B
Revenue(TTM)732.19M
Net Income(TTM)-53.58M
Analysts78.26
Price Target29.11 (45.77%)
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)-24.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.83%
EPS NY rev (1m)-2.35%
EPS NY rev (3m)-1.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.21 | ||
| Fwd PE | 26.65 | ||
| P/S | 4.35 | ||
| P/FCF | 57.52 | ||
| P/OCF | 19.38 | ||
| P/B | 12.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 37.36 |
EPS(TTM)0.62
EY3.1%
EPS(NY)0.75
Fwd EY3.75%
FCF(TTM)0.35
FCFY1.74%
OCF(TTM)1.03
OCFY5.16%
SpS4.59
BVpS1.66
TBVpS-1.06
PEG (NY)10.8
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 | 2.54 |
F-Score5
WACC10.9%
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.