VERRA MOBILITY CORP (VRRM) Stock Fundamental Analysis
USA - NASDAQ:VRRM - US92511U1025 - Common Stock
22.78 USD
-0.21 (-0.91%)
22.78 USD
0 (0%)
VRRM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. While VRRM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VRRM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year VRRM was profitable.
VRRM had a positive operating cash flow in the past year.
VRRM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years VRRM had a positive operating cash flow.
1.2 Ratios
VRRM has a Return On Assets (2.87%) which is comparable to the rest of the industry.
VRRM has a Return On Equity of 12.67%. This is in the better half of the industry: VRRM outperforms 74.12% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.69%, VRRM belongs to the top of the industry, outperforming 81.18% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VRRM is significantly below the industry average of 27.96%.
The last Return On Invested Capital (12.69%) for VRRM is above the 3 year average (10.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 12.67% | ||
| ROIC | 12.69% |
ROA(3y)3.47%
ROA(5y)2.46%
ROE(3y)21.81%
ROE(5y)15.98%
ROIC(3y)10.27%
ROIC(5y)7.68%
1.3 Margins
VRRM has a better Profit Margin (5.42%) than 64.71% of its industry peers.
VRRM's Profit Margin has been stable in the last couple of years.
VRRM has a Operating Margin of 26.42%. This is amongst the best in the industry. VRRM outperforms 97.65% of its industry peers.
In the last couple of years the Operating Margin of VRRM has grown nicely.
Looking at the Gross Margin, with a value of 93.48%, VRRM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
VRRM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.42% | ||
| PM (TTM) | 5.42% | ||
| GM | 93.48% |
OM growth 3Y9.3%
OM growth 5Y3.04%
PM growth 3Y-21.94%
PM growth 5Y-1.26%
GM growth 3Y0.41%
GM growth 5Y-0.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VRRM is still creating some value.
The number of shares outstanding for VRRM has been reduced compared to 1 year ago.
Compared to 5 years ago, VRRM has more shares outstanding
Compared to 1 year ago, VRRM has a worse debt to assets ratio.
2.2 Solvency
VRRM has an Altman-Z score of 2.70. This is not the best score and indicates that VRRM is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.70, VRRM perfoms like the industry average, outperforming 51.76% of the companies in the same industry.
The Debt to FCF ratio of VRRM is 6.75, which is on the high side as it means it would take VRRM, 6.75 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.75, VRRM is in line with its industry, outperforming 51.76% of the companies in the same industry.
A Debt/Equity ratio of 2.55 is on the high side and indicates that VRRM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.55, VRRM is doing worse than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 2.7 |
ROIC/WACC1.42
WACC8.95%
2.3 Liquidity
VRRM has a Current Ratio of 2.45. This indicates that VRRM is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.45, VRRM is doing good in the industry, outperforming 75.29% of the companies in the same industry.
VRRM has a Quick Ratio of 2.35. This indicates that VRRM is financially healthy and has no problem in meeting its short term obligations.
VRRM's Quick ratio of 2.35 is fine compared to the rest of the industry. VRRM outperforms 72.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
VRRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.54%, which is quite good.
Measured over the past years, VRRM shows a very strong growth in Earnings Per Share. The EPS has been growing by 42.41% on average per year.
Looking at the last year, VRRM shows a quite strong growth in Revenue. The Revenue has grown by 8.52% in the last year.
Measured over the past years, VRRM shows a quite strong growth in Revenue. The Revenue has been growing by 14.40% on average per year.
EPS 1Y (TTM)17.54%
EPS 3Y27.03%
EPS 5Y42.41%
EPS Q2Q%15.62%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y16.88%
Revenue growth 5Y14.4%
Sales Q2Q%16.13%
3.2 Future
Based on estimates for the next years, VRRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.88% on average per year.
The Revenue is expected to grow by 7.61% on average over the next years.
EPS Next Y10.65%
EPS Next 2Y7.42%
EPS Next 3Y9.88%
EPS Next 5YN/A
Revenue Next Year9.02%
Revenue Next 2Y8.02%
Revenue Next 3Y7.61%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.00 indicates a rather expensive valuation of VRRM.
Compared to the rest of the industry, the Price/Earnings ratio of VRRM indicates a somewhat cheap valuation: VRRM is cheaper than 70.59% of the companies listed in the same industry.
VRRM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.05 indicates a correct valuation of VRRM.
Based on the Price/Forward Earnings ratio, VRRM is valued a bit cheaper than 72.94% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VRRM to the average of the S&P500 Index (22.35), we can say VRRM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 16.05 |
4.2 Price Multiples
VRRM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VRRM is cheaper than 68.24% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRRM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.82 | ||
| EV/EBITDA | 12.44 |
4.3 Compensation for Growth
VRRM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VRRM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.6
PEG (5Y)0.4
EPS Next 2Y7.42%
EPS Next 3Y9.88%
5. Dividend
5.1 Amount
VRRM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.78
-0.21 (-0.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners101.94%
Inst Owner Change-0.34%
Ins Owners0.9%
Ins Owner Change0.28%
Market Cap3.63B
Revenue(TTM)942.72M
Net Income(TTM)51.10M
Analysts84.62
Price Target29.75 (30.6%)
Short Float %1.56%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.19%
Min EPS beat(2)1.01%
Max EPS beat(2)5.36%
EPS beat(4)4
Avg EPS beat(4)4.42%
Min EPS beat(4)1.01%
Max EPS beat(4)8.88%
EPS beat(8)6
Avg EPS beat(8)1.47%
EPS beat(12)10
Avg EPS beat(12)3.94%
EPS beat(16)12
Avg EPS beat(16)4.24%
Revenue beat(2)1
Avg Revenue beat(2)3.72%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)8.05%
Revenue beat(4)2
Avg Revenue beat(4)1.7%
Min Revenue beat(4)-1.5%
Max Revenue beat(4)8.05%
Revenue beat(8)4
Avg Revenue beat(8)0.83%
Revenue beat(12)6
Avg Revenue beat(12)0.69%
Revenue beat(16)9
Avg Revenue beat(16)0.89%
PT rev (1m)0%
PT rev (3m)0.86%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)0%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 16.05 | ||
| P/S | 3.86 | ||
| P/FCF | 23.82 | ||
| P/OCF | 14.18 | ||
| P/B | 9.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.44 |
EPS(TTM)1.34
EY5.88%
EPS(NY)1.42
Fwd EY6.23%
FCF(TTM)0.96
FCFY4.2%
OCF(TTM)1.61
OCFY7.05%
SpS5.91
BVpS2.53
TBVpS-3.28
PEG (NY)1.6
PEG (5Y)0.4
Graham Number8.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 12.67% | ||
| ROCE | 16.06% | ||
| ROIC | 12.69% | ||
| ROICexc | 14.53% | ||
| ROICexgc | 46.01% | ||
| OM | 26.42% | ||
| PM (TTM) | 5.42% | ||
| GM | 93.48% | ||
| FCFM | 16.19% |
ROA(3y)3.47%
ROA(5y)2.46%
ROE(3y)21.81%
ROE(5y)15.98%
ROIC(3y)10.27%
ROIC(5y)7.68%
ROICexc(3y)11.02%
ROICexc(5y)8.25%
ROICexgc(3y)50.23%
ROICexgc(5y)40.02%
ROCE(3y)12.99%
ROCE(5y)9.72%
ROICexgc growth 3Y9.79%
ROICexgc growth 5Y-1.24%
ROICexc growth 3Y34.5%
ROICexc growth 5Y14.79%
OM growth 3Y9.3%
OM growth 5Y3.04%
PM growth 3Y-21.94%
PM growth 5Y-1.26%
GM growth 3Y0.41%
GM growth 5Y-0.19%
F-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 6.75 | ||
| Debt/EBITDA | 2.85 | ||
| Cap/Depr | 92.01% | ||
| Cap/Sales | 11% | ||
| Interest Coverage | 3.72 | ||
| Cash Conversion | 70.85% | ||
| Profit Quality | 298.65% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.35 | ||
| Altman-Z | 2.7 |
F-Score5
WACC8.95%
ROIC/WACC1.42
Cap/Depr(3y)50.29%
Cap/Depr(5y)38.63%
Cap/Sales(3y)7.2%
Cap/Sales(5y)6.46%
Profit Quality(3y)310.13%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.54%
EPS 3Y27.03%
EPS 5Y42.41%
EPS Q2Q%15.62%
EPS Next Y10.65%
EPS Next 2Y7.42%
EPS Next 3Y9.88%
EPS Next 5YN/A
Revenue 1Y (TTM)8.52%
Revenue growth 3Y16.88%
Revenue growth 5Y14.4%
Sales Q2Q%16.13%
Revenue Next Year9.02%
Revenue Next 2Y8.02%
Revenue Next 3Y7.61%
Revenue Next 5YN/A
EBIT growth 1Y22.85%
EBIT growth 3Y27.75%
EBIT growth 5Y17.88%
EBIT Next Year30.54%
EBIT Next 3Y15.19%
EBIT Next 5YN/A
FCF growth 1Y-18.44%
FCF growth 3Y-3.15%
FCF growth 5Y7.98%
OCF growth 1Y6.84%
OCF growth 3Y5%
OCF growth 5Y10.82%
VERRA MOBILITY CORP / VRRM FAQ
Can you provide the ChartMill fundamental rating for VERRA MOBILITY CORP?
ChartMill assigns a fundamental rating of 5 / 10 to VRRM.
What is the valuation status of VERRA MOBILITY CORP (VRRM) stock?
ChartMill assigns a valuation rating of 4 / 10 to VERRA MOBILITY CORP (VRRM). This can be considered as Fairly Valued.
What is the profitability of VRRM stock?
VERRA MOBILITY CORP (VRRM) has a profitability rating of 7 / 10.
What are the PE and PB ratios of VERRA MOBILITY CORP (VRRM) stock?
The Price/Earnings (PE) ratio for VERRA MOBILITY CORP (VRRM) is 17 and the Price/Book (PB) ratio is 9.01.
How financially healthy is VERRA MOBILITY CORP?
The financial health rating of VERRA MOBILITY CORP (VRRM) is 5 / 10.