CERTARA INC (CERT) Stock Fundamental Analysis
NASDAQ:CERT - Nasdaq - US15687V1098 - Common Stock - Currency: USD
CERT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 35 industry peers in the Health Care Technology industry. CERT has only an average score on both its financial health and profitability. CERT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CERT had positive earnings in the past year.
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
CERT's Return On Assets of -0.17% is amongst the best of the industry. CERT outperforms 86.11% of its industry peers.
CERT has a Return On Equity of -0.24%. This is amongst the best in the industry. CERT outperforms 86.11% of its industry peers.
CERT has a Return On Invested Capital of 0.39%. This is in the better half of the industry: CERT outperforms 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.17% | ||
| ROE | -0.24% | ||
| ROIC | 0.39% |
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
With a decent Operating Margin value of 1.82%, CERT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
With a Gross Margin value of 60.26%, CERT perfoms like the industry average, outperforming 52.78% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.82% | ||
| PM (TTM) | N/A | ||
| GM | 60.26% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CERT is destroying value.
Compared to 1 year ago, CERT has more shares outstanding
The number of shares outstanding for CERT has been increased compared to 5 years ago.
Compared to 1 year ago, CERT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.57 indicates that CERT is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CERT (2.57) is better than 69.44% of its industry peers.
CERT has a debt to FCF ratio of 4.19. This is a neutral value as CERT would need 4.19 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.19, CERT is doing good in the industry, outperforming 72.22% 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 Debt to Equity ratio (0.27) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.04
WACC10.66%
2.3 Liquidity
CERT has a Current Ratio of 2.78. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
CERT has a Current ratio of 2.78. This is in the better half of the industry: CERT outperforms 63.89% of its industry peers.
A Quick Ratio of 2.78 indicates that CERT has no problem at all paying its short term obligations.
CERT has a Quick ratio of 2.78. This is in the better half of the industry: CERT outperforms 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.67% 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 9.37% in the last year.
Measured over the past years, CERT shows a quite strong growth in Revenue. The Revenue has been growing by 13.06% on average per year.
EPS 1Y (TTM)16.67%
EPS 3Y38.33%
EPS 5YN/A
EPS Q2Q%40%
Revenue 1Y (TTM)9.37%
Revenue growth 3Y10.42%
Revenue growth 5Y13.06%
Sales Q2Q%9.67%
3.2 Future
Based on estimates for the next years, CERT will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.82% on average per year.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
CERT is valuated rather expensively with a Price/Earnings ratio of 22.63.
Compared to the rest of the industry, the Price/Earnings ratio of CERT indicates a rather cheap valuation: CERT is cheaper than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.05, CERT is valued at the same level.
The Price/Forward Earnings ratio is 19.50, which indicates a rather expensive current valuation of CERT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CERT indicates a rather cheap valuation: CERT is cheaper than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.67. CERT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 19.5 |
4.2 Price Multiples
CERT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CERT is cheaper than 72.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CERT is valued cheaper than 80.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.6 | ||
| EV/EBITDA | 24.74 |
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)4.29
PEG (5Y)N/A
EPS Next 2Y12.43%
EPS Next 3Y12.5%
5. Dividend
5.1 Amount
No dividends for CERT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.09
+0.11 (+1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners78.35%
Inst Owner Change-0.21%
Ins Owners2.43%
Ins Owner Change3.31%
Market Cap1.80B
Analysts75.29
Price Target15.75 (42.02%)
Short Float %7.79%
Short Ratio5.14
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)19.78%
Min EPS beat(2)15.79%
Max EPS beat(2)23.76%
EPS beat(4)3
Avg EPS beat(4)5.46%
Min EPS beat(4)-33.58%
Max EPS beat(4)23.76%
EPS beat(8)3
Avg EPS beat(8)-0.71%
EPS beat(12)4
Avg EPS beat(12)-0.91%
EPS beat(16)6
Avg EPS beat(16)-6.67%
Revenue beat(2)1
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-2.08%
Min Revenue beat(4)-4.75%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-1.75%
Revenue beat(12)4
Avg Revenue beat(12)-1.41%
Revenue beat(16)5
Avg Revenue beat(16)-1.85%
PT rev (1m)-2.11%
PT rev (3m)0%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-4.53%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)3.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 19.5 | ||
| P/S | 4.56 | ||
| P/FCF | 25.6 | ||
| P/OCF | 19.24 | ||
| P/B | 1.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.74 |
EPS(TTM)0.49
EY4.42%
EPS(NY)0.57
Fwd EY5.13%
FCF(TTM)0.43
FCFY3.91%
OCF(TTM)0.58
OCFY5.2%
SpS2.43
BVpS6.68
TBVpS-0.96
PEG (NY)4.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.17% | ||
| ROE | -0.24% | ||
| ROCE | 0.49% | ||
| ROIC | 0.39% | ||
| ROICexc | 0.45% | ||
| ROICexgc | 16.63% | ||
| OM | 1.82% | ||
| PM (TTM) | N/A | ||
| GM | 60.26% | ||
| FCFM | 17.82% |
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-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.19 | ||
| Debt/EBITDA | 3.77 | ||
| Cap/Depr | 33.09% | ||
| Cap/Sales | 5.89% | ||
| Interest Coverage | 0.33 | ||
| Cash Conversion | 120.83% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.78 | ||
| Altman-Z | 2.57 |
F-Score5
WACC10.66%
ROIC/WACC0.04
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)16.67%
EPS 3Y38.33%
EPS 5YN/A
EPS Q2Q%40%
EPS Next Y5.27%
EPS Next 2Y12.43%
EPS Next 3Y12.5%
EPS Next 5Y16.82%
Revenue 1Y (TTM)9.37%
Revenue growth 3Y10.42%
Revenue growth 5Y13.06%
Sales Q2Q%9.67%
Revenue Next Year9.73%
Revenue Next 2Y9.23%
Revenue Next 3Y9.2%
Revenue Next 5Y8.25%
EBIT growth 1Y385.56%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year16.49%
EBIT Next 3Y12.31%
EBIT Next 5Y14.24%
FCF growth 1Y-12.29%
FCF growth 3Y4.89%
FCF growth 5Y15.82%
OCF growth 1Y0.89%
OCF growth 3Y10.04%
OCF growth 5Y16.17%