CERTARA INC (CERT) Stock Fundamental Analysis
USA - NASDAQ:CERT - US15687V1098 - Common Stock
12.51 USD
-0.15 (-1.18%)
12.55 USD
+0.04 (+0.32%)
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 growing strongly while it is still valued neutral. This is a good combination! These ratings could make CERT a good candidate for growth investing.
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.
CERT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CERT has a Return On Assets of 0.52%. This is amongst the best in the industry. CERT outperforms 85.71% of its industry peers.
With an excellent Return On Equity value of 0.75%, CERT belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Invested Capital of CERT (1.44%) is better 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 better Profit Margin (1.97%) than 85.71% of its industry peers.
The Operating Margin of CERT (6.35%) is better than 74.29% of its industry peers.
CERT's Gross Margin of 61.14% is in line compared to the rest of the industry. CERT outperforms 54.29% 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.
CERT has more shares outstanding than it did 5 years ago.
CERT has a worse debt/assets ratio than last year.
2.2 Solvency
CERT has an Altman-Z score of 2.90. 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 has a better Altman-Z score (2.90) than 68.57% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 3.80, CERT is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that CERT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.27, CERT is in line with its industry, outperforming 45.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.9 |
ROIC/WACC0.14
WACC9.97%
2.3 Liquidity
A Current Ratio of 2.16 indicates that CERT has no problem at all paying its short term obligations.
CERT has a Current ratio of 2.16. This is comparable to the rest of the industry: CERT outperforms 48.57% of its industry peers.
A Quick Ratio of 2.16 indicates that CERT has no problem at all paying its short term obligations.
CERT has a Quick ratio (2.16) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.43% 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.
The Revenue has grown by 11.61% in the past year. This is quite good.
The Revenue has been growing by 13.06% on average over the past years. This is quite good.
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
CERT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.82% yearly.
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 Y-0.92%
EPS Next 2Y11.01%
EPS Next 3Y12.25%
EPS Next 5Y16.82%
Revenue Next Year9.9%
Revenue Next 2Y8.96%
Revenue Next 3Y9.05%
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.
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 quite expensively with a Price/Earnings ratio of 25.53.
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.
When comparing the Price/Earnings ratio of CERT to the average of the S&P500 Index (26.89), we can say CERT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.56, the valuation of CERT can be described as rather expensive.
82.86% of the companies in the same industry are more expensive than CERT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, CERT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.53 | ||
| Fwd PE | 22.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CERT is valued a bit cheaper than 77.14% of the companies in the same industry.
80.00% 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 | 25.94 | ||
| EV/EBITDA | 22.05 |
4.3 Compensation for Growth
A more expensive valuation may be justified as CERT's earnings are expected to grow with 12.25% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.01%
EPS Next 3Y12.25%
5. Dividend
5.1 Amount
No dividends for CERT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.51
-0.15 (-1.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners81.56%
Inst Owner Change0.78%
Ins Owners2.42%
Ins Owner Change0.24%
Market Cap2.01B
Revenue(TTM)405.75M
Net Income(TTM)7.98M
Analysts75.56
Price Target14.73 (17.75%)
Short Float %13.21%
Short Ratio9.57
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)0%
PT rev (3m)-6.47%
EPS NQ rev (1m)1.22%
EPS NQ rev (3m)0.39%
EPS NY rev (1m)0.45%
EPS NY rev (3m)-5.89%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.53 | ||
| Fwd PE | 22.56 | ||
| P/S | 4.95 | ||
| P/FCF | 25.94 | ||
| P/OCF | 19.79 | ||
| P/B | 1.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.05 |
EPS(TTM)0.49
EY3.92%
EPS(NY)0.55
Fwd EY4.43%
FCF(TTM)0.48
FCFY3.86%
OCF(TTM)0.63
OCFY5.05%
SpS2.53
BVpS6.67
TBVpS-1.06
PEG (NY)N/A
PEG (5Y)N/A
Graham Number8.57
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
ROICexgc growth 3YN/A
ROICexgc 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 | 2.9 |
F-Score7
WACC9.97%
ROIC/WACC0.14
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 Y-0.92%
EPS Next 2Y11.01%
EPS Next 3Y12.25%
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 2Y8.96%
Revenue Next 3Y9.05%
Revenue Next 5Y8.25%
EBIT growth 1Y204.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year16.77%
EBIT Next 3Y12.28%
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%
CERTARA INC / CERT FAQ
What is the fundamental rating for CERT stock?
ChartMill assigns a fundamental rating of 5 / 10 to CERT.
Can you provide the valuation status for CERTARA INC?
ChartMill assigns a valuation rating of 4 / 10 to CERTARA INC (CERT). This can be considered as Fairly Valued.
Can you provide the profitability details for CERTARA INC?
CERTARA INC (CERT) has a profitability rating of 5 / 10.
What are the PE and PB ratios of CERTARA INC (CERT) stock?
The Price/Earnings (PE) ratio for CERTARA INC (CERT) is 25.53 and the Price/Book (PB) ratio is 1.88.