CERTARA INC (CERT)
US15687V1098 - Common Stock
We assign a fundamental rating of 5 out of 10 to CERT. CERT was compared to 40 industry peers in the Health Care Technology industry. While CERT has a great health rating, its profitability is only average at the moment. While showing a medium growth rate, CERT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CERT was profitable.
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.
1.2 Ratios
CERT's Return On Assets of -3.54% is fine compared to the rest of the industry. CERT outperforms 79.49% of its industry peers.
CERT has a better Return On Equity (-5.29%) than 82.05% of its industry peers.
The Return On Invested Capital of CERT (0.34%) is better than 84.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CERT is below the industry average of 4.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.54% | ||
| ROE | -5.29% | ||
| ROIC | 0.34% |
ROA(3y)-1.16%
ROA(5y)-1.65%
ROE(3y)-1.73%
ROE(5y)-2.6%
ROIC(3y)0.96%
ROIC(5y)N/A
1.3 Margins
The Operating Margin of CERT (1.75%) is better than 84.62% of its industry peers.
CERT has a Gross Margin of 60.20%. This is comparable to the rest of the industry: CERT outperforms 51.28% of its industry peers.
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 | 1.75% | ||
| PM (TTM) | N/A | ||
| GM | 60.2% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.88%
GM growth 5Y1.23%
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
Compared to 5 years ago, CERT has more shares outstanding
Compared to 1 year ago, CERT has about the same debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.58 indicates that CERT is not in any danger for bankruptcy at the moment.
CERT has a Altman-Z score of 3.58. This is amongst the best in the industry. CERT outperforms 84.62% of its industry peers.
The Debt to FCF ratio of CERT is 4.32, which is a neutral value as it means it would take CERT, 4.32 years of fcf income to pay off all of its debts.
CERT's Debt to FCF ratio of 4.32 is amongst the best of the industry. CERT outperforms 82.05% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that CERT is not too dependend on debt financing.
CERT's Debt to Equity ratio of 0.28 is in line compared to the rest of the industry. CERT outperforms 48.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 4.32 | ||
| Altman-Z | 3.58 |
ROIC/WACC0.03
WACC10.47%
2.3 Liquidity
CERT has a Current Ratio of 2.62. This indicates that CERT is financially healthy and has no problem in meeting its short term obligations.
CERT has a better Current ratio (2.62) than 61.54% of its industry peers.
A Quick Ratio of 2.62 indicates that CERT has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.62, CERT is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.62 |
3. Growth
3.1 Past
The earnings per share for CERT have decreased by -4.35% in the last year.
The Revenue has been growing slightly by 5.57% in the past year.
Measured over the past years, CERT shows a quite strong growth in Revenue. The Revenue has been growing by 16.70% on average per year.
EPS 1Y (TTM)-4.35%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-43.75%
Revenue 1Y (TTM)5.57%
Revenue growth 3Y13.32%
Revenue growth 5Y16.7%
Revenue growth Q2Q1.59%
3.2 Future
Based on estimates for the next years, CERT will show a small growth in Earnings Per Share. The EPS will grow by 7.92% 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 10.24% on average per year.
EPS Next Y0.38%
EPS Next 2Y9.57%
EPS Next 3Y7.92%
EPS Next 5YN/A
Revenue Next Year10.05%
Revenue Next 2Y10.35%
Revenue Next 3Y10.24%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
CERT is valuated quite expensively with a Price/Earnings ratio of 39.89.
Compared to the rest of the industry, the Price/Earnings ratio of CERT indicates a rather cheap valuation: CERT is cheaper than 87.18% of the companies listed in the same industry.
CERT is valuated rather expensively when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 39.74 indicates a quite expensive valuation of CERT.
79.49% of the companies in the same industry are more expensive than CERT, based on the Price/Forward Earnings ratio.
CERT is valuated expensively when we compare the Price/Forward Earnings ratio to 20.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.89 | ||
| Fwd PE | 39.74 |
4.2 Price Multiples
CERT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CERT is cheaper than 71.79% 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 71.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.69 | ||
| EV/EBITDA | 46.2 |
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.
PEG (NY)105.72
PEG (5Y)N/A
EPS Next 2Y9.57%
EPS Next 3Y7.92%
5. Dividend
5.1 Amount
CERT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CERTARA INC
NASDAQ:CERT (5/3/2024, 2:34:46 PM)
17.55
-0.06 (-0.34%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.89 | ||
| Fwd PE | 39.74 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)105.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.54% | ||
| ROE | -5.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.75% | ||
| PM (TTM) | N/A | ||
| GM | 60.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.62 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-4.35%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y0.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.57%
Revenue growth 3Y13.32%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y