22.12 USD
+0.18 (+0.82%)
22.12 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to VRRM. VRRM was compared to 85 industry peers in the IT Services industry. VRRM has an excellent profitability rating, but 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.
Each year in the past 5 years VRRM had a positive operating cash flow.
1.2 Ratios
VRRM has a Return On Assets (2.85%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 12.59%, VRRM is doing good in the industry, outperforming 74.12% of the companies in the same industry.
VRRM has a better Return On Invested Capital (12.66%) than 83.53% of its industry peers.
VRRM had an Average Return On Invested Capital over the past 3 years of 10.27%. This is significantly below the industry average of 29.59%.
The 3 year average ROIC (10.27%) for VRRM is below the current ROIC(12.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 12.59% | ||
| ROIC | 12.66% |
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 Profit Margin of 5.38%. This is in the better half of the industry: VRRM outperforms 62.35% of its industry peers.
In the last couple of years the Profit Margin of VRRM has remained more or less at the same level.
With an excellent Operating Margin value of 26.35%, VRRM belongs to the best of the industry, outperforming 97.65% of the companies in the same industry.
In the last couple of years the Operating Margin of VRRM has grown nicely.
VRRM has a better Gross Margin (93.48%) than 100.00% of its industry peers.
VRRM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.35% | ||
| PM (TTM) | 5.38% | ||
| 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.
Compared to 1 year ago, VRRM has less shares outstanding
VRRM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VRRM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.62 indicates that VRRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
VRRM has a Altman-Z score (2.62) which is in line with its industry peers.
VRRM has a debt to FCF ratio of 6.73. This is a slightly negative value and a sign of low solvency as VRRM would need 6.73 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.73, VRRM perfoms like the industry average, outperforming 49.41% 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.
VRRM has a worse Debt to Equity ratio (2.55) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 6.73 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.43
WACC8.85%
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.
VRRM's Current ratio of 2.45 is fine compared to the rest of the industry. VRRM outperforms 70.59% of its industry peers.
A Quick Ratio of 2.35 indicates that VRRM has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.35, VRRM is in the better half of the industry, outperforming 69.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.54% over the past year.
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.
The Revenue has grown by 8.52% in the past year. This is quite good.
The Revenue has been growing by 14.40% on average over the past years. This is quite good.
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
VRRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.50% yearly.
VRRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.80% yearly.
EPS Next Y10.41%
EPS Next 2Y6.09%
EPS Next 3Y9.5%
EPS Next 5YN/A
Revenue Next Year9.53%
Revenue Next 2Y7.87%
Revenue Next 3Y7.8%
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.
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 16.51, which indicates a correct valuation of VRRM.
Based on the Price/Earnings ratio, VRRM is valued a bit cheaper than the industry average as 71.76% of the companies are valued more expensively.
VRRM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.38.
Based on the Price/Forward Earnings ratio of 15.98, the valuation of VRRM can be described as correct.
Based on the Price/Forward Earnings ratio, VRRM is valued a bit cheaper than the industry average as 71.76% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.83. VRRM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.51 | ||
| Fwd PE | 15.98 |
4.2 Price Multiples
72.94% of the companies in the same industry are more expensive than VRRM, based on the Enterprise Value to EBITDA ratio.
VRRM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.07 | ||
| EV/EBITDA | 11.99 |
4.3 Compensation for Growth
VRRM's 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.
PEG (NY)1.59
PEG (5Y)0.39
EPS Next 2Y6.09%
EPS Next 3Y9.5%
5. Dividend
5.1 Amount
No dividends for VRRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
22.12
+0.18 (+0.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners102.26%
Inst Owner Change-0.25%
Ins Owners0.87%
Ins Owner Change0.06%
Market Cap3.53B
Revenue(TTM)942.72M
Net Income(TTM)50.75M
Analysts84.62
Price Target29.92 (35.26%)
Short Float %2.32%
Short Ratio2.59
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)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)0.57%
PT rev (3m)0.57%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-7.63%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)3.04%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.51 | ||
| Fwd PE | 15.98 | ||
| P/S | 3.74 | ||
| P/FCF | 23.07 | ||
| P/OCF | 13.74 | ||
| P/B | 8.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.99 |
EPS(TTM)1.34
EY6.06%
EPS(NY)1.38
Fwd EY6.26%
FCF(TTM)0.96
FCFY4.33%
OCF(TTM)1.61
OCFY7.28%
SpS5.91
BVpS2.53
TBVpS-3.28
PEG (NY)1.59
PEG (5Y)0.39
Graham Number8.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 12.59% | ||
| ROCE | 16.02% | ||
| ROIC | 12.66% | ||
| ROICexc | 14.49% | ||
| ROICexgc | 45.88% | ||
| OM | 26.35% | ||
| PM (TTM) | 5.38% | ||
| GM | 93.48% | ||
| FCFM | 16.23% |
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 | 6.73 | ||
| Debt/EBITDA | 2.85 | ||
| Cap/Depr | 91.77% | ||
| Cap/Sales | 11.02% | ||
| Interest Coverage | 3.73 | ||
| Cash Conversion | 71.03% | ||
| Profit Quality | 301.38% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.35 | ||
| Altman-Z | 2.62 |
F-Score5
WACC8.85%
ROIC/WACC1.43
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 Y10.41%
EPS Next 2Y6.09%
EPS Next 3Y9.5%
EPS Next 5YN/A
Revenue 1Y (TTM)8.52%
Revenue growth 3Y16.88%
Revenue growth 5Y14.4%
Sales Q2Q%16.13%
Revenue Next Year9.53%
Revenue Next 2Y7.87%
Revenue Next 3Y7.8%
Revenue Next 5YN/A
EBIT growth 1Y22.43%
EBIT growth 3Y27.75%
EBIT growth 5Y17.88%
EBIT Next Year31.18%
EBIT Next 3Y13.44%
EBIT Next 5YN/A
FCF growth 1Y-18.25%
FCF growth 3Y-3.15%
FCF growth 5Y7.98%
OCF growth 1Y7.06%
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 5 / 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 16.51 and the Price/Book (PB) ratio is 8.75.
How financially healthy is VERRA MOBILITY CORP?
The financial health rating of VERRA MOBILITY CORP (VRRM) is 5 / 10.