I3 VERTICALS INC-CLASS A (IIIV) Stock Fundamental Analysis
NASDAQ:IIIV - Nasdaq - US46571Y1073 - Common Stock - Currency: USD
Overall IIIV gets a fundamental rating of 5 out of 10. We evaluated IIIV against 283 industry peers in the Software industry. IIIV has an excellent profitability rating, but there are some minor 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
IIIV had positive earnings in the past year.
IIIV had a positive operating cash flow in the past year.
IIIV had negative earnings in 4 of the past 5 years.
IIIV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 15.89%, IIIV belongs to the best of the industry, outperforming 91.52% of the companies in the same industry.
IIIV's Return On Equity of 30.77% is amongst the best of the industry. IIIV outperforms 90.11% of its industry peers.
IIIV has a Return On Invested Capital of 1.38%. This is in the better half of the industry: IIIV outperforms 68.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.89% | ||
| ROE | 30.77% | ||
| ROIC | 1.38% |
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
IIIV's Profit Margin of 39.57% is amongst the best of the industry. IIIV outperforms 96.82% of its industry peers.
The Operating Margin of IIIV (3.37%) is better than 70.67% of its industry peers.
IIIV's Operating Margin has improved in the last couple of years.
IIIV's Gross Margin of 86.42% is amongst the best of the industry. IIIV outperforms 94.70% of its industry peers.
In the last couple of years the Gross Margin of IIIV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.37% | ||
| PM (TTM) | 39.57% | ||
| GM | 86.42% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IIIV is destroying value.
The number of shares outstanding for IIIV has been increased compared to 1 year ago.
IIIV has more shares outstanding than it did 5 years ago.
The debt/assets ratio for IIIV has been reduced compared to a year ago.
2.2 Solvency
IIIV has an Altman-Z score of 2.07. This is not the best score and indicates that IIIV is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of IIIV (2.07) is comparable to the rest of the industry.
There is no outstanding debt for IIIV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.12
WACC11.85%
2.3 Liquidity
IIIV has a Current Ratio of 0.94. This is a bad value and indicates that IIIV is not financially healthy enough and could expect problems in meeting its short term obligations.
IIIV has a worse Current ratio (0.94) than 78.45% of its industry peers.
IIIV has a Quick Ratio of 0.94. This is a bad value and indicates that IIIV is not financially healthy enough and could expect problems in meeting its short term obligations.
IIIV has a worse Quick ratio (0.92) than 78.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for IIIV have decreased strongly by -42.76% in the last year.
IIIV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.84% yearly.
Looking at the last year, IIIV shows a very negative growth in Revenue. The Revenue has decreased by -22.48% in the last year.
IIIV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.38% yearly.
EPS 1Y (TTM)-42.76%
EPS 3Y-4%
EPS 5Y1.84%
EPS Q2Q%-13.89%
Revenue 1Y (TTM)-22.48%
Revenue growth 3Y0.86%
Revenue growth 5Y-9.38%
Sales Q2Q%-32.94%
3.2 Future
Based on estimates for the next years, IIIV will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.21% on average per year.
IIIV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.24% yearly.
EPS Next Y30.46%
EPS Next 2Y22.16%
EPS Next 3Y17.21%
EPS Next 5YN/A
Revenue Next Year-0.64%
Revenue Next 2Y5.2%
Revenue Next 3Y7.24%
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 30.24, IIIV can be considered very expensive at the moment.
67.84% of the companies in the same industry are more expensive than IIIV, based on the Price/Earnings ratio.
IIIV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.16, which indicates a rather expensive current valuation of IIIV.
Based on the Price/Forward Earnings ratio, IIIV is valued a bit cheaper than 79.15% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, IIIV is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.24 | ||
| Fwd PE | 19.16 |
4.2 Price Multiples
IIIV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IIIV is cheaper than 83.04% of the companies in the same industry.
76.33% of the companies in the same industry are more expensive than IIIV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.58 | ||
| EV/EBITDA | 17.35 |
4.3 Compensation for Growth
IIIV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IIIV has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as IIIV's earnings are expected to grow with 17.21% in the coming years.
PEG (NY)0.99
PEG (5Y)16.47
EPS Next 2Y22.16%
EPS Next 3Y17.21%
5. Dividend
5.1 Amount
No dividends for IIIV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.31
+0.8 (+3.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners94.57%
Inst Owner Change1.57%
Ins Owners2.69%
Ins Owner Change2.3%
Market Cap870.07M
Analysts81.54
Price Target32.35 (22.96%)
Short Float %5.34%
Short Ratio5.69
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)1
Avg EPS beat(2)2.42%
Min EPS beat(2)-14.34%
Max EPS beat(2)19.18%
EPS beat(4)1
Avg EPS beat(4)-21.87%
Min EPS beat(4)-80.71%
Max EPS beat(4)19.18%
EPS beat(8)2
Avg EPS beat(8)-11.74%
EPS beat(12)6
Avg EPS beat(12)-6.95%
EPS beat(16)9
Avg EPS beat(16)-4.32%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)2.88%
Revenue beat(4)1
Avg Revenue beat(4)-12.15%
Min Revenue beat(4)-43.03%
Max Revenue beat(4)2.88%
Revenue beat(8)2
Avg Revenue beat(8)-7.01%
Revenue beat(12)5
Avg Revenue beat(12)-3.94%
Revenue beat(16)9
Avg Revenue beat(16)-1.92%
PT rev (1m)-0.45%
PT rev (3m)13.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.24 | ||
| Fwd PE | 19.16 | ||
| P/S | 2.98 | ||
| P/FCF | 26.58 | ||
| P/OCF | 18.57 | ||
| P/B | 2.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.35 |
EPS(TTM)0.87
EY3.31%
EPS(NY)1.37
Fwd EY5.22%
FCF(TTM)0.99
FCFY3.76%
OCF(TTM)1.42
OCFY5.39%
SpS8.82
BVpS11.34
TBVpS-3.7
PEG (NY)0.99
PEG (5Y)16.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.89% | ||
| ROE | 30.77% | ||
| ROCE | 1.74% | ||
| ROIC | 1.38% | ||
| ROICexc | 1.63% | ||
| ROICexgc | N/A | ||
| OM | 3.37% | ||
| PM (TTM) | 39.57% | ||
| GM | 86.42% | ||
| FCFM | 11.22% |
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-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.8 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 39.91% | ||
| Cap/Sales | 4.84% | ||
| Interest Coverage | 0.42 | ||
| Cash Conversion | 103.64% | ||
| Profit Quality | 28.36% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 2.07 |
F-Score7
WACC11.85%
ROIC/WACC0.12
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)-42.76%
EPS 3Y-4%
EPS 5Y1.84%
EPS Q2Q%-13.89%
EPS Next Y30.46%
EPS Next 2Y22.16%
EPS Next 3Y17.21%
EPS Next 5YN/A
Revenue 1Y (TTM)-22.48%
Revenue growth 3Y0.86%
Revenue growth 5Y-9.38%
Sales Q2Q%-32.94%
Revenue Next Year-0.64%
Revenue Next 2Y5.2%
Revenue Next 3Y7.24%
Revenue Next 5YN/A
EBIT growth 1Y-61.54%
EBIT growth 3Y55.27%
EBIT growth 5Y2.13%
EBIT Next Year52.22%
EBIT Next 3Y22.12%
EBIT Next 5YN/A
FCF growth 1Y20.95%
FCF growth 3Y-2.81%
FCF growth 5Y7.26%
OCF growth 1Y11.24%
OCF growth 3Y2.82%
OCF growth 5Y12.72%