CERTARA INC (CERT) Stock Fundamental Analysis
NASDAQ:CERT - Nasdaq - US15687V1098 - Common Stock - Currency: USD
Taking everything into account, CERT scores 4 out of 10 in our fundamental rating. CERT was compared to 36 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CERT was profitable.
CERT had a positive operating cash flow in the past year.
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 -0.17% is amongst the best of the industry. CERT outperforms 83.33% of its industry peers.
Looking at the Return On Equity, with a value of -0.24%, CERT belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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
CERT has a better Operating Margin (1.82%) than 75.00% of its industry peers.
The Gross Margin of CERT (60.26%) 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CERT is destroying value.
The number of shares outstanding for CERT has been increased compared to 1 year ago.
Compared to 5 years ago, CERT has more shares outstanding
CERT has a worse debt/assets ratio than last year.
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.
CERT's Altman-Z score of 2.62 is fine compared to the rest of the industry. CERT outperforms 66.67% of its industry peers.
The Debt to FCF ratio of CERT is 4.19, which is a neutral value as it means it would take CERT, 4.19 years of fcf income to pay off all of its debts.
CERT has a better Debt to FCF ratio (4.19) than 72.22% 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.
CERT has a Debt to Equity ratio (0.27) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.04
WACC9.84%
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.
The Current ratio of CERT (2.78) is better than 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.
The Quick ratio of CERT (2.78) is better than 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.78 |
3. Growth
3.1 Past
CERT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.67%, which is quite good.
The Earnings Per Share has been growing by 38.33% on average over the past years. This is a very strong growth
CERT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.37%.
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)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
The Earnings Per Share is expected to grow by 16.82% on average over the next years. This is quite good.
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 Y5.46%
EPS Next 2Y11.46%
EPS Next 3Y11.42%
EPS Next 5Y16.82%
Revenue Next Year9.77%
Revenue Next 2Y9.35%
Revenue Next 3Y9.57%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.12 indicates a rather expensive valuation of CERT.
Based on the Price/Earnings ratio, CERT is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.45. CERT is around the same levels.
CERT is valuated rather expensively with a Price/Forward Earnings ratio of 20.26.
80.56% of the companies in the same industry are more expensive than CERT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CERT to the average of the S&P500 Index (21.90), we can say CERT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.12 | ||
| Fwd PE | 20.26 |
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 75.00% 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 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.15 | ||
| EV/EBITDA | 25.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.24
PEG (5Y)N/A
EPS Next 2Y11.46%
EPS Next 3Y11.42%
5. Dividend
5.1 Amount
CERT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.33
-0.16 (-1.39%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners78.35%
Inst Owner Change6.17%
Ins Owners2.43%
Ins Owner Change3.31%
Market Cap1.84B
Analysts75.29
Price Target16.09 (42.01%)
Short Float %7.36%
Short Ratio4.7
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)2.16%
PT rev (3m)7.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.39%
EPS NY rev (1m)2.53%
EPS NY rev (3m)-6.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.12 | ||
| Fwd PE | 20.26 | ||
| P/S | 4.66 | ||
| P/FCF | 26.15 | ||
| P/OCF | 19.65 | ||
| P/B | 1.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.24 |
EPS(TTM)0.49
EY4.32%
EPS(NY)0.56
Fwd EY4.93%
FCF(TTM)0.43
FCFY3.82%
OCF(TTM)0.58
OCFY5.09%
SpS2.43
BVpS6.68
TBVpS-0.96
PEG (NY)4.24
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 | 2.62 |
F-Score5
WACC9.84%
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 Y5.46%
EPS Next 2Y11.46%
EPS Next 3Y11.42%
EPS Next 5Y16.82%
Revenue 1Y (TTM)9.37%
Revenue growth 3Y10.42%
Revenue growth 5Y13.06%
Sales Q2Q%9.67%
Revenue Next Year9.77%
Revenue Next 2Y9.35%
Revenue Next 3Y9.57%
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%