21.32 USD
-0.58 (-2.65%)
21.32 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to VRRM. VRRM was compared to 88 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 decent growth rate and is not valued too expensively.
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.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.85%, VRRM is in line with its industry, outperforming 57.95% of the companies in the same industry.
- With a decent Return On Equity value of 12.59%, VRRM is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- VRRM has a better Return On Invested Capital (12.66%) than 84.09% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for VRRM is significantly below the industry average of 29.06%.
- The last Return On Invested Capital (12.66%) for VRRM is above the 3 year average (10.27%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 5.38%, VRRM is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
- In the last couple of years the Profit Margin of VRRM has remained more or less at the same level.
- The Operating Margin of VRRM (26.35%) is better than 97.73% of its industry peers.
- VRRM's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 93.48%, 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 | 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.
- VRRM has less shares outstanding than it did 1 year ago.
- 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 2.58 indicates that VRRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.58, VRRM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- The Debt to FCF ratio of VRRM is 6.73, which is on the high side as it means it would take VRRM, 6.73 years of fcf income to pay off all of its debts.
- VRRM has a Debt to FCF ratio (6.73) which is comparable to the rest of the industry.
- VRRM has a Debt/Equity ratio of 2.55. This is a high value indicating a heavy dependency on external financing.
- VRRM has a worse Debt to Equity ratio (2.55) than 76.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 6.73 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.35
WACC9.4%
2.3 Liquidity
- A Current Ratio of 2.45 indicates that VRRM has no problem at all paying its short term obligations.
- VRRM has a Current ratio of 2.45. This is in the better half of the industry: VRRM outperforms 70.45% of its industry peers.
- VRRM has a Quick Ratio of 2.35. This indicates that VRRM is financially healthy and has no problem in meeting 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 69.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
- VRRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.54%, which is quite good.
- 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.
- VRRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.52%.
- VRRM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.40% yearly.
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
- Based on estimates for the next years, VRRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.50% on average per year.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 15.91, VRRM is valued correctly.
- VRRM's Price/Earnings ratio is a bit cheaper when compared to the industry. VRRM is cheaper than 72.73% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, VRRM is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 15.40, VRRM is valued correctly.
- 72.73% 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 valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 15.4 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VRRM is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
- VRRM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VRRM is cheaper than 61.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.24 | ||
| EV/EBITDA | 11.71 |
4.3 Compensation for Growth
- VRRM's 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.
PEG (NY)1.53
PEG (5Y)0.38
EPS Next 2Y6.09%
EPS Next 3Y9.5%
5. Dividend
5.1 Amount
- VRRM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.
Can you provide the valuation status for VERRA MOBILITY CORP?
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.
Can you provide the financial health for VRRM stock?
The financial health rating of VERRA MOBILITY CORP (VRRM) is 5 / 10.
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 10.41% in the next year.