CERTARA INC (CERT) Stock Fundamental Analysis
USA - NASDAQ:CERT - US15687V1098 - Common Stock
11.22 USD
-0.06 (-0.53%)
11.2208 USD
+0 (+0.01%)
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. This makes CERT very considerable for growth investing!
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.
CERT had negative earnings in 4 of the past 5 years.
In the past 5 years CERT always reported a positive cash flow from operatings.
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.
CERT's Return On Equity of 0.75% is amongst the best of the industry. CERT outperforms 85.71% of its industry peers.
CERT has a better Return On Invested Capital (1.44%) than 71.43% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
CERT has a Profit Margin of 1.97%. This is amongst the best in the industry. CERT outperforms 85.71% of its industry peers.
CERT's Operating Margin of 6.35% is fine compared to the rest of the industry. CERT outperforms 74.29% of its industry peers.
CERT has a Gross Margin of 61.14%. This is comparable to the rest of the industry: CERT outperforms 60.00% 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 | 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%
2. Health
2.1 Basic Checks
CERT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CERT has more shares outstanding than it did 1 year ago.
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
CERT has an Altman-Z score of 2.62. 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.
With a decent Altman-Z score value of 2.62, CERT is doing good in the industry, outperforming 68.57% of the companies in the same industry.
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.
CERT's Debt to FCF ratio of 3.80 is fine compared to the rest of the industry. CERT outperforms 65.71% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that CERT is not too dependend on debt financing.
CERT's Debt to Equity ratio of 0.27 is in line compared to the rest of the industry. CERT outperforms 45.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.15
WACC9.6%
2.3 Liquidity
A Current Ratio of 2.16 indicates that CERT has no problem at all paying its short term obligations.
The Current ratio of CERT (2.16) is comparable to the rest of the industry.
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.
Looking at the Quick ratio, with a value of 2.16, CERT is in line with its industry, outperforming 51.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
CERT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.43%, which is quite impressive.
The Earnings Per Share has been growing by 38.33% on average over the past years. This is a very strong growth
Looking at the last year, CERT shows a quite strong growth in Revenue. The Revenue has grown by 11.61% 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)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
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 Y0.51%
EPS Next 2Y10.41%
EPS Next 3Y10.02%
EPS Next 5Y16.82%
Revenue Next Year9.9%
Revenue Next 2Y9.02%
Revenue Next 3Y9.15%
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
With a Price/Earnings ratio of 22.90, CERT is valued on the expensive side.
CERT's Price/Earnings ratio is rather cheap when compared to the industry. CERT is cheaper than 91.43% of the companies in the same industry.
CERT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 20.45, CERT is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CERT indicates a rather cheap valuation: CERT is cheaper than 85.71% of the companies listed in the same industry.
CERT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 20.45 |
4.2 Price Multiples
CERT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CERT is cheaper than 74.29% of the companies in the same industry.
82.86% of the companies in the same industry are more expensive than CERT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.26 | ||
| EV/EBITDA | 19.79 |
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)44.63
PEG (5Y)N/A
EPS Next 2Y10.41%
EPS Next 3Y10.02%
5. Dividend
5.1 Amount
CERT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.22
-0.06 (-0.53%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners77.41%
Inst Owner Change8.2%
Ins Owners2.43%
Ins Owner Change2.58%
Market Cap1.80B
Analysts75.29
Price Target14.73 (31.28%)
Short Float %10.5%
Short Ratio8.26
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)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)-6.47%
PT rev (3m)-8.45%
EPS NQ rev (1m)-0.39%
EPS NQ rev (3m)-16.77%
EPS NY rev (1m)-4.52%
EPS NY rev (3m)-2.27%
Revenue NQ rev (1m)-0.86%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 20.45 | ||
| P/S | 4.44 | ||
| P/FCF | 23.26 | ||
| P/OCF | 17.75 | ||
| P/B | 1.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.79 |
EPS(TTM)0.49
EY4.37%
EPS(NY)0.55
Fwd EY4.89%
FCF(TTM)0.48
FCFY4.3%
OCF(TTM)0.63
OCFY5.63%
SpS2.53
BVpS6.67
TBVpS-1.06
PEG (NY)44.63
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.62 |
F-Score7
WACC9.6%
ROIC/WACC0.15
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 Y0.51%
EPS Next 2Y10.41%
EPS Next 3Y10.02%
EPS Next 5Y16.82%
Revenue 1Y (TTM)11.61%
Revenue growth 3Y10.42%
Revenue growth 5Y13.06%
Sales Q2Q%12.06%
Revenue Next Year9.9%
Revenue Next 2Y9.02%
Revenue Next 3Y9.15%
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%