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VERRA MOBILITY CORP (VRRM) Stock Fundamental Analysis

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

26.71  +0.25 (+0.94%)

After market: 26.71 0 (0%)

Fundamental Rating

5

Taking everything into account, VRRM scores 5 out of 10 in our fundamental rating. VRRM was compared to 82 industry peers in the IT Services industry. VRRM scores excellent on profitability, but there are some minor concerns on its financial health. VRRM is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year VRRM was profitable.
VRRM had a positive operating cash flow in the past year.
Of the past 5 years VRRM 4 years were profitable.
VRRM had a positive operating cash flow in each of the past 5 years.
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 Return On Assets of 5.46%. This is in the better half of the industry: VRRM outperforms 70.89% of its industry peers.
The Return On Equity of VRRM (20.78%) is better than 84.81% of its industry peers.
The Return On Invested Capital of VRRM (8.51%) is better than 72.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRRM is below the industry average of 9.86%.
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 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

VRRM has a better Profit Margin (11.64%) than 86.08% of its industry peers.
With an excellent Operating Margin value of 23.34%, VRRM belongs to the best of the industry, outperforming 98.73% of the companies in the same industry.
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

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.
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.
Compared to 1 year ago, VRRM has an improved debt to assets ratio.
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

VRRM has an Altman-Z score of 2.93. 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.
Looking at the Altman-Z score, with a value of 2.93, VRRM is in line with its industry, outperforming 46.84% 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.
VRRM's Debt to FCF ratio of 6.92 is in line compared to the rest of the industry. VRRM outperforms 45.57% of its industry peers.
A Debt/Equity ratio of 2.13 is on the high side and indicates that VRRM has dependencies on debt financing.
The Debt to Equity ratio of VRRM (2.13) is worse than 79.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.13
Debt/FCF 6.92
Altman-Z 2.93
ROIC/WACC0.78
WACC10.88%
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.
Looking at the Current ratio, with a value of 2.61, VRRM is in the better half of the industry, outperforming 77.22% of the companies in the same industry.
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.
The Quick ratio of VRRM (2.52) is better than 77.22% 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

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 4.59% over the past year.
VRRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.63%.
VRRM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.17% yearly.
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 12.73% on average per year.
VRRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.48% yearly.
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.
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

4

4. Valuation

4.1 Price/Earnings Ratio

VRRM is valuated rather expensively with a Price/Earnings ratio of 23.43.
Based on the Price/Earnings ratio, VRRM is valued a bit cheaper than the industry average as 67.09% of the companies are valued more expensively.
VRRM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.58, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.12, the valuation of VRRM can be described as rather expensive.
73.42% of the companies in the same industry are more expensive than VRRM, based on the Price/Forward Earnings ratio.
VRRM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.47.
Industry RankSector Rank
PE 23.43
Fwd PE 20.12
VRRM Price Earnings VS Forward Price EarningsVRRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VRRM is valued a bit cheaper than 67.09% 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 29.37
EV/EBITDA 16.88
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.
The decent profitability rating of VRRM may justify a higher PE ratio.
A more expensive valuation may be justified as VRRM's earnings are expected to grow with 12.73% in the coming years.
PEG (NY)1.72
PEG (5Y)N/A
EPS Next 2Y10.87%
EPS Next 3Y12.73%

0

5. Dividend

5.1 Amount

No dividends for VRRM!.
Industry RankSector Rank
Dividend Yield N/A

VERRA MOBILITY CORP

NASDAQ:VRRM (1/24/2025, 8:14:21 PM)

After market: 26.71 0 (0%)

26.71

+0.25 (+0.94%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)10-31 2024-10-31/amc
Earnings (Next)N/A N/A
Inst Owners102.72%
Inst Owner Change0.31%
Ins Owners0.75%
Ins Owner Change-0.24%
Market Cap4.40B
Analysts81.54
Price Target29.92 (12.02%)
Short Float %2.86%
Short Ratio3.62
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)0%
PT rev (3m)-4.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.26%
Valuation
Industry RankSector Rank
PE 23.43
Fwd PE 20.12
P/S 5.07
P/FCF 29.37
P/OCF 20.11
P/B 9.05
P/tB N/A
EV/EBITDA 16.88
EPS(TTM)1.14
EY4.27%
EPS(NY)1.33
Fwd EY4.97%
FCF(TTM)0.91
FCFY3.4%
OCF(TTM)1.33
OCFY4.97%
SpS5.27
BVpS2.95
TBVpS-3.66
PEG (NY)1.72
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 2.93
F-Score9
WACC10.88%
ROIC/WACC0.78
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 Y13.6%
EPS Next 2Y10.87%
EPS Next 3Y12.73%
EPS Next 5YN/A
Revenue 1Y (TTM)9.63%
Revenue growth 3Y27.58%
Revenue growth 5Y17.17%
Sales Q2Q%7.44%
Revenue Next Year8.63%
Revenue Next 2Y7.4%
Revenue Next 3Y7.48%
Revenue Next 5YN/A
EBIT growth 1Y-2.29%
EBIT growth 3Y71.06%
EBIT growth 5Y64.1%
EBIT Next Year25.93%
EBIT Next 3Y13.08%
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%