21.38 USD
-0.08 (-0.37%)
21.61 USD
+0.23 (+1.08%)
VRRM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. While VRRM belongs to the best of the industry regarding profitability, 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.
In the past 5 years VRRM always reported a positive cash flow from operatings.
1.2 Ratios
VRRM's Return On Assets of 2.85% is in line compared to the rest of the industry. VRRM outperforms 56.47% of its industry peers.
The Return On Equity of VRRM (12.59%) is better than 74.12% of its industry peers.
VRRM has a better Return On Invested Capital (12.66%) than 83.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRRM is significantly below the industry average of 29.59%.
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
The Profit Margin of VRRM (5.38%) is better than 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.
Looking at the Operating Margin, with a value of 26.35%, VRRM belongs to the top of the industry, outperforming 97.65% of the companies in the same industry.
VRRM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 93.48%, VRRM belongs to the top 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
VRRM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for VRRM has been reduced compared to 1 year ago.
Compared to 5 years ago, VRRM has more shares outstanding
Compared to 1 year ago, VRRM has a worse debt to assets ratio.
2.2 Solvency
VRRM has an Altman-Z score of 2.58. 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 2.58. This is comparable to the rest of the industry: VRRM outperforms 50.59% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 6.73, VRRM is in line with its industry, outperforming 49.41% of the companies in the same industry.
VRRM has a Debt/Equity ratio of 2.55. This is a high value indicating a heavy dependency on external financing.
VRRM's Debt to Equity ratio of 2.55 is on the low side compared to the rest of the industry. VRRM is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 6.73 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.44
WACC8.77%
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.
Looking at the Current ratio, with a value of 2.45, VRRM is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
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.
With a decent Quick ratio value of 2.35, VRRM is doing good in the industry, outperforming 70.59% 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%.
Measured over the past years, VRRM shows a quite strong growth in Revenue. The Revenue has been growing by 14.40% on average per year.
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.
The Revenue is expected to grow by 7.80% on average over the next years.
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
A Price/Earnings ratio of 15.96 indicates a correct valuation of VRRM.
Based on the Price/Earnings ratio, VRRM is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
VRRM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
VRRM is valuated correctly with a Price/Forward Earnings ratio of 15.44.
Based on the Price/Forward Earnings ratio, VRRM is valued a bit cheaper than 72.94% of the companies in the same industry.
VRRM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 15.44 |
4.2 Price Multiples
VRRM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VRRM is cheaper than 72.94% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRRM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.3 | ||
| EV/EBITDA | 11.74 |
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 | N/A |
21.38
-0.08 (-0.37%)
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 Cap3.41B
Revenue(TTM)942.72M
Net Income(TTM)50.75M
Analysts84.62
Price Target29.92 (39.94%)
Short Float %2.14%
Short Ratio2.62
Dividend
| Industry Rank | Sector 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)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)-8.02%
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 | 15.96 | ||
| Fwd PE | 15.44 | ||
| P/S | 3.62 | ||
| P/FCF | 22.3 | ||
| P/OCF | 13.28 | ||
| P/B | 8.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.74 |
EPS(TTM)1.34
EY6.27%
EPS(NY)1.38
Fwd EY6.47%
FCF(TTM)0.96
FCFY4.48%
OCF(TTM)1.61
OCFY7.53%
SpS5.91
BVpS2.53
TBVpS-3.28
PEG (NY)1.53
PEG (5Y)0.38
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 | 2.58 |
F-Score5
WACC8.77%
ROIC/WACC1.44
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 15.96 and the Price/Book (PB) ratio is 8.46.
How financially healthy is VERRA MOBILITY CORP?
The financial health rating of VERRA MOBILITY CORP (VRRM) is 5 / 10.