VERRA MOBILITY CORP (VRRM)
US92511U1025 - Common Stock
VRRM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the IT Services industry. While VRRM has a great profitability rating, there are some minor concerns on its financial health. VRRM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year VRRM was profitable.
In the past year VRRM had a positive cash flow from operations.
Of the past 5 years VRRM 4 years were profitable.
VRRM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VRRM has a better Return On Assets (5.46%) than 69.51% of its industry peers.
With an excellent Return On Equity value of 20.78%, VRRM belongs to the best of the industry, outperforming 84.15% of the companies in the same industry.
The Return On Invested Capital of VRRM (8.51%) is better than 73.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VRRM is below the industry average of 9.59%.
The last Return On Invested Capital (8.51%) for VRRM is above the 3 year average (6.74%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
VRRM has a better Profit Margin (11.64%) than 85.37% of its industry peers.
VRRM has a Operating Margin of 23.34%. This is amongst the best in the industry. VRRM outperforms 98.78% of its industry peers.
VRRM's Operating Margin has improved in the last couple of years.
VRRM has a Gross Margin of 94.86%. This is amongst the best in 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 Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VRRM is destroying value.
VRRM has more shares outstanding than it did 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.
2.2 Solvency
VRRM has an Altman-Z score of 2.65. 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.
VRRM has a Altman-Z score of 2.65. This is comparable to the rest of the industry: VRRM outperforms 51.22% of its industry peers.
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.
The Debt to FCF ratio of VRRM (6.92) is comparable to the rest of the industry.
VRRM has a Debt/Equity ratio of 2.13. This is a high value indicating a heavy dependency on external financing.
VRRM has a Debt to Equity ratio of 2.13. This is amonst the worse of the industry: VRRM underperforms 81.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 6.92 | ||
| Altman-Z | 2.65 |
ROIC/WACC0.8
WACC10.57%
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 has a better Current ratio (2.61) than 79.27% of its industry peers.
A Quick Ratio of 2.52 indicates that VRRM has no problem at all paying its short term obligations.
The Quick ratio of VRRM (2.52) is better than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.52 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.59% over the past year.
Looking at the last year, VRRM shows a quite strong growth in Revenue. The Revenue has grown by 9.63% in the last year.
Measured over the past years, VRRM shows a quite strong growth in Revenue. The Revenue has been growing by 17.17% on average per year.
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
The Earnings Per Share is expected to grow by 12.73% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.48% on average over the next years.
EPS Next Y13.6%
EPS Next 2Y10.87%
EPS Next 3Y12.73%
EPS Next 5YN/A
Revenue Next Year8.63%
Revenue Next 2Y7.4%
Revenue Next 3Y7.48%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.34, which indicates a rather expensive current 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 69.51% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, VRRM is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.47 indicates a rather expensive valuation of VRRM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRRM indicates a somewhat cheap valuation: VRRM is cheaper than 74.39% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, VRRM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.34 | ||
| Fwd PE | 17.47 |
4.2 Price Multiples
VRRM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VRRM is cheaper than 68.29% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRRM indicates a somewhat cheap valuation: VRRM is cheaper than 62.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.5 | ||
| EV/EBITDA | 14.89 |
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.
VRRM's earnings are expected to grow with 12.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.5
PEG (5Y)N/A
EPS Next 2Y10.87%
EPS Next 3Y12.73%
5. Dividend
5.1 Amount
No dividends for VRRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERRA MOBILITY CORP
NASDAQ:VRRM (11/21/2024, 8:00:28 PM)
After market: 23.19 0 (0%)23.19
+0.22 (+0.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.34 | ||
| Fwd PE | 17.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 20.78% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.34% | ||
| PM (TTM) | 11.64% | ||
| GM | 94.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.52 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)4.59%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y13.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.63%
Revenue growth 3Y27.58%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y