Taking everything into account, CERT scores 5 out of 10 in our fundamental rating. CERT was compared to 34 industry peers in the Health Care Technology industry. Both the profitability and the financial health of CERT get a neutral evaluation. Nothing too spectacular is happening here. CERT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make CERT suitable for growth investing!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CERT was profitable.
CERT had a positive operating cash flow in the past year.
CERT had negative earnings in 4 of the past 5 years.
Each year in the past 5 years CERT had a positive operating cash flow.

1.2 Ratios

With a decent Return On Assets value of 0.71%, CERT is doing good in the industry, outperforming 77.14% of the companies in the same industry.
CERT has a better Return On Equity (1.02%) than 77.14% of its industry peers.
CERT has a better Return On Invested Capital (1.48%) than 65.71% of its industry peers.

		Industry Rank	Sector Rank
ROA	0.71%
ROE	1.02%
ROIC	1.48%

ROA(3y)-1.12%

ROA(5y)-1.63%

ROE(3y)-1.69%

ROE(5y)-2.47%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 2.62%, CERT belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
Looking at the Operating Margin, with a value of 6.30%, CERT is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
The Gross Margin of CERT (61.44%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CERT has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	6.3%
PM (TTM)	2.62%
GM	61.44%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
CERT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CERT has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.36 indicates that CERT is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.36, CERT is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
The Debt to FCF ratio of CERT is 3.21, which is a good value as it means it would take CERT, 3.21 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.21, CERT is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that CERT is not too dependend on debt financing.
CERT has a worse Debt to Equity ratio (0.27) than 62.86% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.27
Debt/FCF	3.21
Altman-Z	2.36

ROIC/WACC0.15

WACC9.78%

2.3 Liquidity

A Current Ratio of 2.09 indicates that CERT has no problem at all paying its short term obligations.
CERT has a Current ratio (2.09) which is comparable to the rest of the industry.
A Quick Ratio of 2.09 indicates that CERT has no problem at all paying its short term obligations.
The Quick ratio of CERT (2.09) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	2.09
Quick Ratio	2.09

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 28.21% over the past year.
Measured over the past years, CERT shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.33% on average per year.
Looking at the last year, CERT shows a quite strong growth in Revenue. The Revenue has grown by 11.47% in the last year.
The Revenue has been growing by 13.06% on average over the past years. This is quite good.

EPS 1Y (TTM)28.21%

EPS 3Y38.33%

EPS 5YN/A

EPS Q2Q%7.69%

Revenue 1Y (TTM)11.47%

Revenue growth 3Y10.42%

Revenue growth 5Y13.06%

Sales Q2Q%10.33%

3.2 Future

The Earnings Per Share is expected to grow by 19.16% on average over the next years. This is quite good.
CERT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.01% yearly.

EPS Next Y1.53%

EPS Next 2Y11.09%

EPS Next 3Y11.8%

EPS Next 5Y19.16%

Revenue Next Year8.97%

Revenue Next 2Y7.64%

Revenue Next 3Y7.65%

Revenue Next 5Y9.01%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

CERT is valuated rather expensively with a Price/Earnings ratio of 20.00.
Based on the Price/Earnings ratio, CERT is valued cheaper than 85.71% of the companies in the same industry.
CERT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
CERT is valuated rather expensively with a Price/Forward Earnings ratio of 18.01.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CERT indicates a rather cheap valuation: CERT is cheaper than 82.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, CERT is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	20
Fwd PE	18.01

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CERT indicates a somewhat cheap valuation: CERT is cheaper than 74.29% of the companies listed in the same industry.
CERT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CERT is cheaper than 85.71% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	17.4
EV/EBITDA	17.06

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.