I3 VERTICALS INC-CLASS A (IIIV) Stock Fundamental Analysis
NASDAQ:IIIV - Nasdaq - US46571Y1073 - Common Stock - Currency: USD
Taking everything into account, IIIV scores 4 out of 10 in our fundamental rating. IIIV was compared to 284 industry peers in the Software industry. While IIIV is still in line with the averages on profitability rating, there are concerns on its financial health. IIIV has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year IIIV was profitable.
IIIV had a positive operating cash flow in the past year.
IIIV had negative earnings in 4 of the past 5 years.
In the past 5 years IIIV always reported a positive cash flow from operatings.
1.2 Ratios
IIIV's Return On Assets of 17.37% is amongst the best of the industry. IIIV outperforms 93.31% of its industry peers.
Looking at the Return On Equity, with a value of 29.15%, IIIV belongs to the top of the industry, outperforming 90.49% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.34%, IIIV is in the better half of the industry, outperforming 67.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.37% | ||
| ROE | 29.15% | ||
| ROIC | 1.34% |
ROA(3y)4.4%
ROA(5y)2.48%
ROE(3y)7.23%
ROE(5y)3.84%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 46.46%, IIIV belongs to the top of the industry, outperforming 97.89% of the companies in the same industry.
The Operating Margin of IIIV (4.06%) is better than 70.42% of its industry peers.
In the last couple of years the Operating Margin of IIIV has grown nicely.
The Gross Margin of IIIV (78.08%) is better than 76.76% of its industry peers.
IIIV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.06% | ||
| PM (TTM) | 46.46% | ||
| GM | 78.08% |
OM growth 3Y53.95%
OM growth 5Y12.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.37%
GM growth 5Y31.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IIIV is destroying value.
The number of shares outstanding for IIIV has been increased compared to 1 year ago.
The number of shares outstanding for IIIV has been increased compared to 5 years ago.
The debt/assets ratio for IIIV has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.50 indicates that IIIV is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.50, IIIV is in line with its industry, outperforming 55.28% of the companies in the same industry.
IIIV has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
IIIV's Debt to Equity ratio of 0.03 is fine compared to the rest of the industry. IIIV outperforms 60.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.5 |
ROIC/WACC0.14
WACC9.86%
2.3 Liquidity
IIIV has a Current Ratio of 1.18. This is a normal value and indicates that IIIV is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of IIIV (1.18) is worse than 65.14% of its industry peers.
A Quick Ratio of 1.15 indicates that IIIV should not have too much problems paying its short term obligations.
IIIV has a worse Quick ratio (1.15) than 66.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The earnings per share for IIIV have decreased strongly by -42.57% in the last year.
The Earnings Per Share has been growing slightly by 1.84% on average over the past years.
IIIV shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -38.87%.
IIIV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.38% yearly.
EPS 1Y (TTM)-42.57%
EPS 3Y-4%
EPS 5Y1.84%
EPS Q2Q%-5.88%
Revenue 1Y (TTM)-38.87%
Revenue growth 3Y0.86%
Revenue growth 5Y-9.38%
Sales Q2Q%-33.3%
3.2 Future
IIIV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.03% yearly.
The Revenue is expected to grow by 1.61% on average over the next years.
EPS Next Y22.4%
EPS Next 2Y16.49%
EPS Next 3Y13.03%
EPS Next 5YN/A
Revenue Next Year-13.82%
Revenue Next 2Y-4.71%
Revenue Next 3Y-0.6%
Revenue Next 5Y1.61%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.99 indicates a quite expensive valuation of IIIV.
71.83% of the companies in the same industry are more expensive than IIIV, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.32. IIIV is around the same levels.
Based on the Price/Forward Earnings ratio of 19.74, the valuation of IIIV can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IIIV indicates a somewhat cheap valuation: IIIV is cheaper than 75.35% of the companies listed in the same industry.
IIIV is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.99 | ||
| Fwd PE | 19.74 |
4.2 Price Multiples
82.04% of the companies in the same industry are more expensive than IIIV, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.64 |
4.3 Compensation for Growth
IIIV's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of IIIV may justify a higher PE ratio.
IIIV's earnings are expected to grow with 13.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.29
PEG (5Y)15.79
EPS Next 2Y16.49%
EPS Next 3Y13.03%
5. Dividend
5.1 Amount
No dividends for IIIV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.64
+0.66 (+2.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners94.86%
Inst Owner Change3.97%
Ins Owners2.55%
Ins Owner Change0.63%
Market Cap818.54M
Analysts81.54
Price Target31.62 (28.33%)
Short Float %6.89%
Short Ratio4.69
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)12.95%
Min EPS beat(2)6.71%
Max EPS beat(2)19.18%
EPS beat(4)2
Avg EPS beat(4)-17.29%
Min EPS beat(4)-80.71%
Max EPS beat(4)19.18%
EPS beat(8)3
Avg EPS beat(8)-10.65%
EPS beat(12)6
Avg EPS beat(12)-6.59%
EPS beat(16)9
Avg EPS beat(16)-4.25%
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-3.02%
Max Revenue beat(2)2.88%
Revenue beat(4)1
Avg Revenue beat(4)-11.44%
Min Revenue beat(4)-43.03%
Max Revenue beat(4)2.88%
Revenue beat(8)1
Avg Revenue beat(8)-7.58%
Revenue beat(12)4
Avg Revenue beat(12)-4.68%
Revenue beat(16)8
Avg Revenue beat(16)-2.13%
PT rev (1m)-2.25%
PT rev (3m)-2.69%
EPS NQ rev (1m)-10.43%
EPS NQ rev (3m)-25.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.18%
Revenue NQ rev (1m)-10.07%
Revenue NQ rev (3m)-18.75%
Revenue NY rev (1m)-7.29%
Revenue NY rev (3m)-13.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.99 | ||
| Fwd PE | 19.74 | ||
| P/S | 3.39 | ||
| P/FCF | N/A | ||
| P/OCF | 107.21 | ||
| P/B | 2.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.64 |
EPS(TTM)0.85
EY3.45%
EPS(NY)1.25
Fwd EY5.07%
FCF(TTM)-0.15
FCFYN/A
OCF(TTM)0.23
OCFY0.93%
SpS7.27
BVpS11.59
TBVpS-3.22
PEG (NY)1.29
PEG (5Y)15.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.37% | ||
| ROE | 29.15% | ||
| ROCE | 1.69% | ||
| ROIC | 1.34% | ||
| ROICexc | 1.36% | ||
| ROICexgc | 9.84% | ||
| OM | 4.06% | ||
| PM (TTM) | 46.46% | ||
| GM | 78.08% | ||
| FCFM | N/A |
ROA(3y)4.4%
ROA(5y)2.48%
ROE(3y)7.23%
ROE(5y)3.84%
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 3Y62.71%
ROICexc growth 5Y-6.22%
OM growth 3Y53.95%
OM growth 5Y12.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.37%
GM growth 5Y31.13%
F-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.28 | ||
| Cap/Depr | 37.85% | ||
| Cap/Sales | 5.19% | ||
| Interest Coverage | 0.62 | ||
| Cash Conversion | 17.77% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.5 |
F-Score6
WACC9.86%
ROIC/WACC0.14
Cap/Depr(3y)43.62%
Cap/Depr(5y)39.42%
Cap/Sales(3y)6.08%
Cap/Sales(5y)5.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-42.57%
EPS 3Y-4%
EPS 5Y1.84%
EPS Q2Q%-5.88%
EPS Next Y22.4%
EPS Next 2Y16.49%
EPS Next 3Y13.03%
EPS Next 5YN/A
Revenue 1Y (TTM)-38.87%
Revenue growth 3Y0.86%
Revenue growth 5Y-9.38%
Sales Q2Q%-33.3%
Revenue Next Year-13.82%
Revenue Next 2Y-4.71%
Revenue Next 3Y-0.6%
Revenue Next 5Y1.61%
EBIT growth 1Y-58.98%
EBIT growth 3Y55.27%
EBIT growth 5Y2.13%
EBIT Next Year31.28%
EBIT Next 3Y17.01%
EBIT Next 5Y13.07%
FCF growth 1Y-120.43%
FCF growth 3Y-2.81%
FCF growth 5Y7.26%
OCF growth 1Y-80.99%
OCF growth 3Y2.82%
OCF growth 5Y12.72%