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CERTARA INC (CERT) Stock Fundamental Analysis

NASDAQ:CERT - Nasdaq - US15687V1098 - Common Stock - Currency: USD

10.69  -0.33 (-2.99%)

After market: 10.75 +0.06 (+0.56%)

Fundamental Rating

5

Overall CERT gets a fundamental rating of 5 out of 10. We evaluated CERT against 35 industry peers in the Health Care Technology industry. CERT has an average financial health and profitability rating. CERT is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make CERT suitable for growth investing!


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

CERT had positive earnings in the past year.
In the past year CERT had a positive cash flow from operations.
In the past 5 years CERT reported 4 times negative net income.
CERT had a positive operating cash flow in each of the past 5 years.
CERT Yearly Net Income VS EBIT VS OCF VS FCFCERT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 50M -50M

1.2 Ratios

CERT's Return On Assets of 0.52% is amongst the best of the industry. CERT outperforms 85.71% of its industry peers.
The Return On Equity of CERT (0.75%) is better than 85.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.44%, CERT is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
Industry RankSector Rank
ROA 0.52%
ROE 0.75%
ROIC 1.44%
ROA(3y)-1.12%
ROA(5y)-1.63%
ROE(3y)-1.69%
ROE(5y)-2.47%
ROIC(3y)N/A
ROIC(5y)N/A
CERT Yearly ROA, ROE, ROICCERT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 -2 -4 -6

1.3 Margins

The Profit Margin of CERT (1.97%) is better than 85.71% of its industry peers.
The Operating Margin of CERT (6.35%) is better than 74.29% of its industry peers.
With a Gross Margin value of 61.14%, CERT perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Gross Margin of CERT has remained more or less at the same level.
Industry RankSector Rank
OM 6.35%
PM (TTM) 1.97%
GM 61.14%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.61%
GM growth 5Y-0.61%
CERT Yearly Profit, Operating, Gross MarginsCERT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CERT is destroying value.
CERT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CERT has more shares outstanding
Compared to 1 year ago, CERT has a worse debt to assets ratio.
CERT Yearly Shares OutstandingCERT Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
CERT Yearly Total Debt VS Total AssetsCERT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

CERT has an Altman-Z score of 2.57. This is not the best score and indicates that CERT is in the grey zone with still only limited risk for bankruptcy at the moment.
CERT's Altman-Z score of 2.57 is fine compared to the rest of the industry. CERT outperforms 65.71% of its industry peers.
The Debt to FCF ratio of CERT is 3.80, which is a good value as it means it would take CERT, 3.80 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CERT (3.80) is better than 68.57% of its industry peers.
CERT has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.27, CERT is doing worse than 60.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 3.8
Altman-Z 2.57
ROIC/WACC0.14
WACC10.31%
CERT Yearly LT Debt VS Equity VS FCFCERT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.3 Liquidity

CERT has a Current Ratio of 2.16. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
CERT's Current ratio of 2.16 is in line compared to the rest of the industry. CERT outperforms 57.14% of its industry peers.
CERT has a Quick Ratio of 2.16. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
CERT's Quick ratio of 2.16 is in line compared to the rest of the industry. CERT outperforms 57.14% of its industry peers.
Industry RankSector Rank
Current Ratio 2.16
Quick Ratio 2.16
CERT Yearly Current Assets VS Current LiabilitesCERT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

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7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 32.43% over the past year.
CERT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.33% yearly.
The Revenue has grown by 11.61% in the past year. This is quite good.
CERT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.06% yearly.
EPS 1Y (TTM)32.43%
EPS 3Y38.33%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)11.61%
Revenue growth 3Y10.42%
Revenue growth 5Y13.06%
Sales Q2Q%12.06%

3.2 Future

CERT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.82% yearly.
Based on estimates for the next years, CERT will show a quite strong growth in Revenue. The Revenue will grow by 8.25% on average per year.
EPS Next Y5.27%
EPS Next 2Y12.43%
EPS Next 3Y12.5%
EPS Next 5Y16.82%
Revenue Next Year9.73%
Revenue Next 2Y9.23%
Revenue Next 3Y9.2%
Revenue Next 5Y8.25%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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.
CERT Yearly Revenue VS EstimatesCERT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 200M 400M 600M
CERT Yearly EPS VS EstimatesCERT Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.2 0.4 0.6 0.8 1

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 21.82, the valuation of CERT can be described as rather expensive.
Based on the Price/Earnings ratio, CERT is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CERT to the average of the S&P500 Index (26.84), we can say CERT is valued inline with the index average.
With a Price/Forward Earnings ratio of 18.79, CERT is valued on the expensive side.
CERT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CERT is cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CERT to the average of the S&P500 Index (34.94), we can say CERT is valued slightly cheaper.
Industry RankSector Rank
PE 21.82
Fwd PE 18.79
CERT Price Earnings VS Forward Price EarningsCERT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

CERT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CERT is cheaper than 71.43% of the companies in the same industry.
CERT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CERT is cheaper than 80.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 22.16
EV/EBITDA 19.37
CERT Per share dataCERT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CERT does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as CERT's earnings are expected to grow with 12.50% in the coming years.
PEG (NY)4.14
PEG (5Y)N/A
EPS Next 2Y12.43%
EPS Next 3Y12.5%

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0

5. Dividend

5.1 Amount

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

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CERTARA INC

NASDAQ:CERT (8/20/2025, 5:20:00 PM)

After market: 10.75 +0.06 (+0.56%)

10.69

-0.33 (-2.99%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)08-06 2025-08-06/amc
Earnings (Next)11-04 2025-11-04/amc
Inst Owners77.41%
Inst Owner Change8.21%
Ins Owners2.43%
Ins Owner Change3.31%
Market Cap1.72B
Analysts75.29
Price Target15.75 (47.33%)
Short Float %9.33%
Short Ratio6.38
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)-4.71%
Min EPS beat(2)-33.18%
Max EPS beat(2)23.76%
EPS beat(4)3
Avg EPS beat(4)5.56%
Min EPS beat(4)-33.18%
Max EPS beat(4)23.76%
EPS beat(8)3
Avg EPS beat(8)-4.05%
EPS beat(12)4
Avg EPS beat(12)-2.02%
EPS beat(16)6
Avg EPS beat(16)-6.22%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-2.39%
Max Revenue beat(2)-0.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-2.66%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-1.57%
Revenue beat(12)4
Avg Revenue beat(12)-1.19%
Revenue beat(16)5
Avg Revenue beat(16)-1.94%
PT rev (1m)-2.11%
PT rev (3m)0%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-16.45%
EPS NY rev (1m)0%
EPS NY rev (3m)3.62%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
Industry RankSector Rank
PE 21.82
Fwd PE 18.79
P/S 4.23
P/FCF 22.16
P/OCF 16.91
P/B 1.6
P/tB N/A
EV/EBITDA 19.37
EPS(TTM)0.49
EY4.58%
EPS(NY)0.57
Fwd EY5.32%
FCF(TTM)0.48
FCFY4.51%
OCF(TTM)0.63
OCFY5.91%
SpS2.53
BVpS6.67
TBVpS-1.06
PEG (NY)4.14
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.52%
ROE 0.75%
ROCE 1.82%
ROIC 1.44%
ROICexc 1.63%
ROICexgc 222.71%
OM 6.35%
PM (TTM) 1.97%
GM 61.14%
FCFM 19.09%
ROA(3y)-1.12%
ROA(5y)-1.63%
ROE(3y)-1.69%
ROE(5y)-2.47%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.61%
GM growth 5Y-0.61%
F-Score7
Asset Turnover0.26
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 3.8
Debt/EBITDA 2.96
Cap/Depr 33.24%
Cap/Sales 5.93%
Interest Coverage 1.33
Cash Conversion 103.4%
Profit Quality 970.69%
Current Ratio 2.16
Quick Ratio 2.16
Altman-Z 2.57
F-Score7
WACC10.31%
ROIC/WACC0.14
Cap/Depr(3y)27.38%
Cap/Depr(5y)24.09%
Cap/Sales(3y)4.51%
Cap/Sales(5y)3.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.43%
EPS 3Y38.33%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y5.27%
EPS Next 2Y12.43%
EPS Next 3Y12.5%
EPS Next 5Y16.82%
Revenue 1Y (TTM)11.61%
Revenue growth 3Y10.42%
Revenue growth 5Y13.06%
Sales Q2Q%12.06%
Revenue Next Year9.73%
Revenue Next 2Y9.23%
Revenue Next 3Y9.2%
Revenue Next 5Y8.25%
EBIT growth 1Y204.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year18.37%
EBIT Next 3Y12.66%
EBIT Next 5Y14.24%
FCF growth 1Y4.56%
FCF growth 3Y4.89%
FCF growth 5Y15.82%
OCF growth 1Y16.06%
OCF growth 3Y10.04%
OCF growth 5Y16.17%