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VERRA MOBILITY CORP (VRRM) Stock Fundamental Analysis

NASDAQ:VRRM - Nasdaq - US92511U1025 - Common Stock - Currency: USD

25.91  -0.25 (-0.96%)

After market: 25.91 0 (0%)

Fundamental Rating

5

VRRM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. VRRM scores excellent on profitability, but there are some minor concerns on its financial health. VRRM has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

VRRM had positive earnings in the past year.
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.
VRRM Yearly Net Income VS EBIT VS OCF VS FCFVRRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M 100M 150M 200M

1.2 Ratios

VRRM has a better Return On Assets (5.46%) than 69.23% of its industry peers.
The Return On Equity of VRRM (20.78%) is better than 83.33% of its industry peers.
The Return On Invested Capital of VRRM (8.51%) is better than 73.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRRM is below the industry average of 10.27%.
The 3 year average ROIC (6.74%) for VRRM is below the current ROIC(8.51%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.46%
ROE 20.78%
ROIC 8.51%
ROA(3y)3.57%
ROA(5y)2.32%
ROE(3y)23.16%
ROE(5y)14.71%
ROIC(3y)6.74%
ROIC(5y)5.53%
VRRM Yearly ROA, ROE, ROICVRRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30 40

1.3 Margins

The Profit Margin of VRRM (11.64%) is better than 85.90% of its industry peers.
The Operating Margin of VRRM (23.34%) is better than 98.72% of its industry peers.
In the last couple of years the Operating Margin of VRRM has grown nicely.
VRRM's Gross Margin of 94.86% is amongst the best of the industry. VRRM outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of VRRM has remained more or less at the same level.
Industry RankSector Rank
OM 23.34%
PM (TTM) 11.64%
GM 94.86%
OM growth 3Y34.08%
OM growth 5Y40.05%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.15%
GM growth 5Y-0.59%
VRRM Yearly Profit, Operating, Gross MarginsVRRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60 80

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4

2. Health

2.1 Basic Checks

VRRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for VRRM has been increased compared to 1 year ago.
The number of shares outstanding for VRRM has been increased compared to 5 years ago.
The debt/assets ratio for VRRM has been reduced compared to a year ago.
VRRM Yearly Shares OutstandingVRRM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
VRRM Yearly Total Debt VS Total AssetsVRRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 2.89 indicates that VRRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.89, VRRM is in line with its industry, outperforming 51.28% of the companies in the same industry.
The Debt to FCF ratio of VRRM is 6.92, which is on the high side as it means it would take VRRM, 6.92 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.92, VRRM perfoms like the industry average, outperforming 43.59% of the companies in the same industry.
VRRM has a Debt/Equity ratio of 2.13. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.13, VRRM is doing worse than 82.05% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.13
Debt/FCF 6.92
Altman-Z 2.89
ROIC/WACC0.79
WACC10.75%
VRRM Yearly LT Debt VS Equity VS FCFVRRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M 1B

2.3 Liquidity

VRRM has a Current Ratio of 2.61. This indicates that VRRM is financially healthy and has no problem in meeting its short term obligations.
VRRM's Current ratio of 2.61 is fine compared to the rest of the industry. VRRM outperforms 76.92% of its industry peers.
VRRM has a Quick Ratio of 2.52. This indicates that VRRM is financially healthy and has no problem in meeting its short term obligations.
VRRM's Quick ratio of 2.52 is fine compared to the rest of the industry. VRRM outperforms 76.92% of its industry peers.
Industry RankSector Rank
Current Ratio 2.61
Quick Ratio 2.52
VRRM Yearly Current Assets VS Current LiabilitesVRRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M

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4

3. Growth

3.1 Past

VRRM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.59%.
The Revenue has grown by 9.63% in the past year. This is quite good.
The Revenue has been growing by 17.17% on average over the past years. This is quite good.
EPS 1Y (TTM)4.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%10.34%
Revenue 1Y (TTM)9.63%
Revenue growth 3Y27.58%
Revenue growth 5Y17.17%
Sales Q2Q%7.44%

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 12.48% on average per year.
Based on estimates for the next years, VRRM will show a small growth in Revenue. The Revenue will grow by 7.48% on average per year.
EPS Next Y13.47%
EPS Next 2Y10.56%
EPS Next 3Y12.48%
EPS Next 5YN/A
Revenue Next Year8.68%
Revenue Next 2Y7.43%
Revenue Next 3Y7.48%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
VRRM Yearly Revenue VS EstimatesVRRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
VRRM Yearly EPS VS EstimatesVRRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 1 1.5

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 22.73, the valuation of VRRM can be described as rather expensive.
69.23% of the companies in the same industry are more expensive than VRRM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of VRRM to the average of the S&P500 Index (29.36), we can say VRRM is valued slightly cheaper.
VRRM is valuated rather expensively with a Price/Forward Earnings ratio of 19.63.
VRRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VRRM is cheaper than 71.79% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VRRM to the average of the S&P500 Index (22.65), we can say VRRM is valued inline with the index average.
Industry RankSector Rank
PE 22.73
Fwd PE 19.63
VRRM Price Earnings VS Forward Price EarningsVRRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

VRRM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VRRM is cheaper than 66.67% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as VRRM.
Industry RankSector Rank
P/FCF 28.49
EV/EBITDA 16.59
VRRM Per share dataVRRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4

4.3 Compensation for Growth

The 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.
A more expensive valuation may be justified as VRRM's earnings are expected to grow with 12.48% in the coming years.
PEG (NY)1.69
PEG (5Y)N/A
EPS Next 2Y10.56%
EPS Next 3Y12.48%

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0

5. Dividend

5.1 Amount

VRRM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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VERRA MOBILITY CORP

NASDAQ:VRRM (2/26/2025, 8:14:08 PM)

After market: 25.91 0 (0%)

25.91

-0.25 (-0.96%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)10-31 2024-10-31/amc
Earnings (Next)02-27 2025-02-27/amc
Inst Owners100.53%
Inst Owner Change-92.25%
Ins Owners0.75%
Ins Owner Change0%
Market Cap4.27B
Analysts81.54
Price Target29.58 (14.16%)
Short Float %2.18%
Short Ratio3.56
Dividend
Industry RankSector 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)1
Avg EPS beat(2)0.83%
Min EPS beat(2)-0.63%
Max EPS beat(2)2.28%
EPS beat(4)2
Avg EPS beat(4)-1.48%
Min EPS beat(4)-7.73%
Max EPS beat(4)2.28%
EPS beat(8)6
Avg EPS beat(8)3.7%
EPS beat(12)8
Avg EPS beat(12)4.17%
EPS beat(16)9
Avg EPS beat(16)-16.82%
Revenue beat(2)0
Avg Revenue beat(2)-1.74%
Min Revenue beat(2)-2.43%
Max Revenue beat(2)-1.05%
Revenue beat(4)2
Avg Revenue beat(4)-0.04%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)2.06%
Revenue beat(8)4
Avg Revenue beat(8)0.18%
Revenue beat(12)7
Avg Revenue beat(12)0.62%
Revenue beat(16)10
Avg Revenue beat(16)1.57%
PT rev (1m)-1.14%
PT rev (3m)-1.14%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-0.48%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.05%
Valuation
Industry RankSector Rank
PE 22.73
Fwd PE 19.63
P/S 4.92
P/FCF 28.49
P/OCF 19.51
P/B 8.78
P/tB N/A
EV/EBITDA 16.59
EPS(TTM)1.14
EY4.4%
EPS(NY)1.32
Fwd EY5.1%
FCF(TTM)0.91
FCFY3.51%
OCF(TTM)1.33
OCFY5.13%
SpS5.27
BVpS2.95
TBVpS-3.66
PEG (NY)1.69
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 5.46%
ROE 20.78%
ROCE 12.3%
ROIC 8.51%
ROICexc 9.72%
ROICexgc 39.77%
OM 23.34%
PM (TTM) 11.64%
GM 94.86%
FCFM 17.25%
ROA(3y)3.57%
ROA(5y)2.32%
ROE(3y)23.16%
ROE(5y)14.71%
ROIC(3y)6.74%
ROIC(5y)5.53%
ROICexc(3y)7.28%
ROICexc(5y)6.02%
ROICexgc(3y)40.42%
ROICexgc(5y)35.6%
ROCE(3y)9.74%
ROCE(5y)8%
ROICexcg growth 3Y61.57%
ROICexcg growth 5Y39.04%
ROICexc growth 3Y60.25%
ROICexc growth 5Y58.54%
OM growth 3Y34.08%
OM growth 5Y40.05%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.15%
GM growth 5Y-0.59%
F-Score9
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 2.13
Debt/FCF 6.92
Debt/EBITDA 3.35
Cap/Depr 64.33%
Cap/Sales 7.94%
Interest Coverage 2.55
Cash Conversion 70.6%
Profit Quality 148.19%
Current Ratio 2.61
Quick Ratio 2.52
Altman-Z 2.89
F-Score9
WACC10.75%
ROIC/WACC0.79
Cap/Depr(3y)35.67%
Cap/Depr(5y)30.71%
Cap/Sales(3y)6.02%
Cap/Sales(5y)6.17%
Profit Quality(3y)283.61%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%10.34%
EPS Next Y13.47%
EPS Next 2Y10.56%
EPS Next 3Y12.48%
EPS Next 5YN/A
Revenue 1Y (TTM)9.63%
Revenue growth 3Y27.58%
Revenue growth 5Y17.17%
Sales Q2Q%7.44%
Revenue Next Year8.68%
Revenue Next 2Y7.43%
Revenue Next 3Y7.48%
Revenue Next 5YN/A
EBIT growth 1Y-2.29%
EBIT growth 3Y71.06%
EBIT growth 5Y64.1%
EBIT Next Year25.92%
EBIT Next 3Y12.98%
EBIT Next 5YN/A
FCF growth 1Y-10.48%
FCF growth 3Y87.35%
FCF growth 5Y45.62%
OCF growth 1Y2.89%
OCF growth 3Y63.8%
OCF growth 5Y33.12%