I3 VERTICALS INC-CLASS A (IIIV) Stock Fundamental Analysis
NASDAQ:IIIV - Nasdaq - US46571Y1073 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to IIIV. IIIV was compared to 282 industry peers in the Software industry. There are concerns on the financial health of IIIV while its profitability can be described as average. IIIV has a expensive valuation and it also 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.
In the past 5 years IIIV reported 4 times negative net income.
IIIV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IIIV has a better Return On Assets (17.37%) than 93.26% of its industry peers.
The Return On Equity of IIIV (29.15%) is better than 90.78% of its industry peers.
The Return On Invested Capital of IIIV (1.34%) is better than 67.38% of its industry peers.
| 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
With an excellent Profit Margin value of 46.46%, IIIV belongs to the best of the industry, outperforming 97.87% of the companies in the same industry.
Looking at the Operating Margin, with a value of 4.06%, IIIV is in the better half of the industry, outperforming 69.86% of the companies in the same industry.
IIIV's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 78.08%, IIIV is in the better half of the industry, outperforming 76.60% of the companies in the same industry.
In the last couple of years the Gross Margin of IIIV has grown nicely.
| 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.
Compared to 5 years ago, IIIV has more shares outstanding
Compared to 1 year ago, IIIV has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.84 indicates that IIIV is not a great score, but indicates only limited risk for bankruptcy at the moment.
IIIV has a Altman-Z score (2.84) which is in line with its industry peers.
A Debt/Equity ratio of 0.03 indicates that IIIV is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.03, IIIV is doing good in the industry, outperforming 60.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.84 |
ROIC/WACC0.11
WACC12.04%
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.
With a Current ratio value of 1.18, IIIV is not doing good in the industry: 64.89% of the companies in the same industry are doing better.
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 66.31% 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.
Measured over the past 5 years, IIIV shows a small growth in Earnings Per Share. The EPS has been growing by 1.84% on average per year.
Looking at the last year, IIIV shows a very negative growth in Revenue. The Revenue has decreased by -38.87% in the last year.
The Revenue has been decreasing by -9.38% on average over the past years.
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 13.15% yearly.
The Revenue is expected to grow by 1.61% on average over the next years.
EPS Next Y15.58%
EPS Next 2Y14.98%
EPS Next 3Y13.15%
EPS Next 5YN/A
Revenue Next Year-15.35%
Revenue Next 2Y-5.7%
Revenue Next 3Y-1.59%
Revenue Next 5Y1.61%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
IIIV is valuated quite expensively with a Price/Earnings ratio of 33.75.
IIIV's Price/Earnings ratio is a bit cheaper when compared to the industry. IIIV is cheaper than 68.79% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.04, IIIV is valued a bit more expensive.
The Price/Forward Earnings ratio is 23.59, which indicates a rather expensive current valuation of IIIV.
72.69% of the companies in the same industry are more expensive than IIIV, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of IIIV to the average of the S&P500 Index (37.64), we can say IIIV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.75 | ||
| Fwd PE | 23.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IIIV is valued cheaper than 80.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of IIIV may justify a higher PE ratio.
IIIV's earnings are expected to grow with 13.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.17
PEG (5Y)18.38
EPS Next 2Y14.98%
EPS Next 3Y13.15%
5. Dividend
5.1 Amount
No dividends for IIIV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.69
+0.19 (+0.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners94.86%
Inst Owner Change0.75%
Ins Owners2.55%
Ins Owner Change0.63%
Market Cap953.08M
Analysts81.54
Price Target32.64 (13.77%)
Short Float %10.75%
Short Ratio6.34
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)3.23%
PT rev (3m)0.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.54%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-11.4%
Revenue NQ rev (1m)-4.01%
Revenue NQ rev (3m)-22.01%
Revenue NY rev (1m)-1.43%
Revenue NY rev (3m)-14.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.75 | ||
| Fwd PE | 23.59 | ||
| P/S | 3.94 | ||
| P/FCF | N/A | ||
| P/OCF | 124.83 | ||
| P/B | 2.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.13 |
EPS(TTM)0.85
EY2.96%
EPS(NY)1.22
Fwd EY4.24%
FCF(TTM)-0.15
FCFYN/A
OCF(TTM)0.23
OCFY0.8%
SpS7.27
BVpS11.59
TBVpS-3.22
PEG (NY)2.17
PEG (5Y)18.38
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 | 2.84 |
F-Score6
WACC12.04%
ROIC/WACC0.11
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 Y15.58%
EPS Next 2Y14.98%
EPS Next 3Y13.15%
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-15.35%
Revenue Next 2Y-5.7%
Revenue Next 3Y-1.59%
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%