VERRA MOBILITY CORP (VRRM) Fundamental Analysis & Valuation
NASDAQ:VRRM • US92511U1025
Current stock price
14.83 USD
-0.04 (-0.27%)
At close:
14.84 USD
+0.01 (+0.07%)
Pre-Market:
This VRRM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. VRRM Profitability Analysis
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 each of the past 5 years.
- In the past 5 years VRRM always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.30%, VRRM is in the better half of the industry, outperforming 74.16% of the companies in the same industry.
- With an excellent Return On Equity value of 46.64%, VRRM belongs to the best of the industry, outperforming 95.51% of the companies in the same industry.
- VRRM's Return On Invested Capital of 13.12% is amongst the best of the industry. VRRM outperforms 84.27% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for VRRM is in line with the industry average of 11.54%.
- The 3 year average ROIC (11.88%) for VRRM is below the current ROIC(13.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.3% | ||
| ROE | 46.64% | ||
| ROIC | 13.12% |
ROA(3y)4.48%
ROA(5y)4.19%
ROE(3y)24.01%
ROE(5y)25.6%
ROIC(3y)11.88%
ROIC(5y)9.85%
1.3 Margins
- VRRM's Profit Margin of 13.96% is amongst the best of the industry. VRRM outperforms 86.52% of its industry peers.
- In the last couple of years the Profit Margin of VRRM has grown nicely.
- Looking at the Operating Margin, with a value of 24.35%, VRRM belongs to the top of the industry, outperforming 97.75% of the companies in the same industry.
- In the last couple of years the Operating Margin of VRRM has grown nicely.
- With an excellent Gross Margin value of 92.25%, VRRM belongs to the best 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 | 24.35% | ||
| PM (TTM) | 13.96% | ||
| GM | 92.25% |
OM growth 3Y3.12%
OM growth 5Y20.45%
PM growth 3Y3.81%
PM growth 5YN/A
GM growth 3Y-0.49%
GM growth 5Y0.17%
2. VRRM Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VRRM is creating some value.
- Compared to 1 year ago, VRRM has less shares outstanding
- Compared to 5 years ago, VRRM has less shares outstanding
- The debt/assets ratio for VRRM has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.03 indicates that VRRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- VRRM has a Altman-Z score (2.03) which is in line with its industry peers.
- VRRM has a debt to FCF ratio of 7.52. This is a slightly negative value and a sign of low solvency as VRRM would need 7.52 years to pay back of all of its debts.
- The Debt to FCF ratio of VRRM (7.52) is comparable to the rest of the industry.
- VRRM has a Debt/Equity ratio of 3.49. This is a high value indicating a heavy dependency on external financing.
- VRRM's Debt to Equity ratio of 3.49 is on the low side compared to the rest of the industry. VRRM is outperformed by 78.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | 7.52 | ||
| Altman-Z | 2.03 |
ROIC/WACC1.26
WACC10.39%
2.3 Liquidity
- A Current Ratio of 2.09 indicates that VRRM has no problem at all paying its short term obligations.
- VRRM has a Current ratio (2.09) which is in line with its industry peers.
- VRRM has a Quick Ratio of 2.00. This is a normal value and indicates that VRRM is financially healthy and should not expect problems in meeting its short term obligations.
- VRRM's Quick ratio of 2.00 is in line compared to the rest of the industry. VRRM outperforms 57.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 2 |
3. VRRM Growth Analysis
3.1 Past
- VRRM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.50%.
- Measured over the past years, VRRM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.06% on average per year.
- The Revenue has grown by 11.36% in the past year. This is quite good.
- Measured over the past years, VRRM shows a quite strong growth in Revenue. The Revenue has been growing by 19.99% on average per year.
EPS 1Y (TTM)6.5%
EPS 3Y9.06%
EPS 5YN/A
EPS Q2Q%-9.09%
Revenue 1Y (TTM)11.36%
Revenue growth 3Y9.7%
Revenue growth 5Y19.99%
Sales Q2Q%16.42%
3.2 Future
- Based on estimates for the next years, VRRM will show a small growth in Earnings Per Share. The EPS will grow by 5.64% on average per year.
- Based on estimates for the next years, VRRM will show a small growth in Revenue. The Revenue will grow by 4.71% on average per year.
EPS Next Y5.21%
EPS Next 2Y9.99%
EPS Next 3Y9.08%
EPS Next 5Y5.64%
Revenue Next Year6.53%
Revenue Next 2Y6.7%
Revenue Next 3Y5.41%
Revenue Next 5Y4.71%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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. VRRM Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.32, the valuation of VRRM can be described as very reasonable.
- 68.54% of the companies in the same industry are more expensive than VRRM, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 26.77. VRRM is valued rather cheaply when compared to this.
- VRRM is valuated reasonably with a Price/Forward Earnings ratio of 10.76.
- VRRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VRRM is cheaper than 73.03% of the companies in the same industry.
- VRRM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.75.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 10.76 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRRM indicates a somewhat cheap valuation: VRRM is cheaper than 71.91% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, VRRM is valued a bit cheaper than 62.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.48 | ||
| EV/EBITDA | 9.12 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- VRRM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.17
PEG (5Y)N/A
EPS Next 2Y9.99%
EPS Next 3Y9.08%
5. VRRM Dividend Analysis
5.1 Amount
- No dividends for VRRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
VRRM Fundamentals: All Metrics, Ratios and Statistics
14.83
-0.04 (-0.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Industry Strength4.97
Industry Growth77.64
Earnings (Last)02-24 2026-02-24/amc
Earnings (Next)05-06 2026-05-06/amc
Inst Owners106.18%
Inst Owner Change-0.1%
Ins Owners1.01%
Ins Owner Change1.41%
Market Cap2.25B
Revenue(TTM)979.08M
Net Income(TTM)136.63M
Analysts82.86
Price Target26.35 (77.68%)
Short Float %2.1%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-0.26%
Min EPS beat(2)-5.88%
Max EPS beat(2)5.36%
EPS beat(4)3
Avg EPS beat(4)0.73%
Min EPS beat(4)-5.88%
Max EPS beat(4)5.36%
EPS beat(8)6
Avg EPS beat(8)1.7%
EPS beat(12)9
Avg EPS beat(12)2.43%
EPS beat(16)11
Avg EPS beat(16)3.12%
Revenue beat(2)2
Avg Revenue beat(2)6.43%
Min Revenue beat(2)4.82%
Max Revenue beat(2)8.05%
Revenue beat(4)3
Avg Revenue beat(4)3.29%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)8.05%
Revenue beat(8)4
Avg Revenue beat(8)1.18%
Revenue beat(12)7
Avg Revenue beat(12)1.18%
Revenue beat(16)9
Avg Revenue beat(16)0.93%
PT rev (1m)-11.93%
PT rev (3m)-11.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.66%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 10.76 | ||
| P/S | 2.3 | ||
| P/FCF | 16.48 | ||
| P/OCF | 8.81 | ||
| P/B | 7.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.12 |
EPS(TTM)1.31
EY8.83%
EPS(NY)1.38
Fwd EY9.29%
FCF(TTM)0.9
FCFY6.07%
OCF(TTM)1.68
OCFY11.35%
SpS6.45
BVpS1.93
TBVpS-4.06
PEG (NY)2.17
PEG (5Y)N/A
Graham Number7.53942 (-49.16%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.3% | ||
| ROE | 46.64% | ||
| ROCE | 16.61% | ||
| ROIC | 13.12% | ||
| ROICexc | 13.75% | ||
| ROICexgc | 40.97% | ||
| OM | 24.35% | ||
| PM (TTM) | 13.96% | ||
| GM | 92.25% | ||
| FCFM | 13.96% |
ROA(3y)4.48%
ROA(5y)4.19%
ROE(3y)24.01%
ROE(5y)25.6%
ROIC(3y)11.88%
ROIC(5y)9.85%
ROICexc(3y)12.64%
ROICexc(5y)10.49%
ROICexgc(3y)46.78%
ROICexgc(5y)45.87%
ROCE(3y)15.03%
ROCE(5y)12.46%
ROICexgc growth 3Y-7.25%
ROICexgc growth 5Y28.41%
ROICexc growth 3Y15.66%
ROICexc growth 5Y40.35%
OM growth 3Y3.12%
OM growth 5Y20.45%
PM growth 3Y3.81%
PM growth 5YN/A
GM growth 3Y-0.49%
GM growth 5Y0.17%
F-Score8
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | 7.52 | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | 104.4% | ||
| Cap/Sales | 12.16% | ||
| Interest Coverage | 3.67 | ||
| Cash Conversion | 72.57% | ||
| Profit Quality | 100.06% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 2.03 |
F-Score8
WACC10.39%
ROIC/WACC1.26
Cap/Depr(3y)73.51%
Cap/Depr(5y)55.34%
Cap/Sales(3y)9.09%
Cap/Sales(5y)7.66%
Profit Quality(3y)282.18%
Profit Quality(5y)287.35%
High Growth Momentum
Growth
EPS 1Y (TTM)6.5%
EPS 3Y9.06%
EPS 5YN/A
EPS Q2Q%-9.09%
EPS Next Y5.21%
EPS Next 2Y9.99%
EPS Next 3Y9.08%
EPS Next 5Y5.64%
Revenue 1Y (TTM)11.36%
Revenue growth 3Y9.7%
Revenue growth 5Y19.99%
Sales Q2Q%16.42%
Revenue Next Year6.53%
Revenue Next 2Y6.7%
Revenue Next 3Y5.41%
Revenue Next 5Y4.71%
EBIT growth 1Y2.52%
EBIT growth 3Y13.12%
EBIT growth 5Y44.53%
EBIT Next Year24.3%
EBIT Next 3Y14.42%
EBIT Next 5Y10.11%
FCF growth 1Y-10.52%
FCF growth 3Y-7.03%
FCF growth 5Y43.33%
OCF growth 1Y14.38%
OCF growth 3Y5.43%
OCF growth 5Y40.39%
VERRA MOBILITY CORP / VRRM Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for VERRA MOBILITY CORP?
ChartMill assigns a fundamental rating of 6 / 10 to VRRM.
Can you provide the valuation status for VERRA MOBILITY CORP?
ChartMill assigns a valuation rating of 6 / 10 to VERRA MOBILITY CORP (VRRM). This can be considered as Fairly Valued.
How profitable is VERRA MOBILITY CORP (VRRM) stock?
VERRA MOBILITY CORP (VRRM) has a profitability rating of 9 / 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 11.32 and the Price/Book (PB) ratio is 7.69.
What is the expected EPS growth for VERRA MOBILITY CORP (VRRM) stock?
The Earnings per Share (EPS) of VERRA MOBILITY CORP (VRRM) is expected to grow by 5.21% in the next year.