I3 VERTICALS INC-CLASS A (IIIV) Stock Fundamental Analysis
NASDAQ:IIIV - Nasdaq - US46571Y1073 - Common Stock - Currency: USD
IIIV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 is valued expensive and it does not seem to be growing.
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 has a Return On Assets of 17.37%. This is amongst the best in the industry. IIIV outperforms 93.26% of its industry peers.
With an excellent Return On Equity value of 29.15%, IIIV belongs to the best of the industry, outperforming 90.78% of the companies in the same industry.
IIIV's Return On Invested Capital of 1.34% is fine compared to the rest of the industry. IIIV outperforms 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
The Profit Margin of IIIV (46.46%) is better than 97.87% of its industry peers.
IIIV has a Operating Margin of 4.06%. This is in the better half of the industry: IIIV outperforms 69.86% of its industry peers.
IIIV's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 78.08%, IIIV is doing good in the industry, outperforming 76.60% of the companies in the same industry.
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.
Compared to 5 years ago, IIIV has more shares outstanding
IIIV has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.88 indicates that IIIV is not a great score, but indicates only limited risk for bankruptcy at the moment.
IIIV has a Altman-Z score (2.88) 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.
IIIV's Debt to Equity ratio of 0.03 is fine compared to the rest of the industry. IIIV outperforms 60.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.88 |
ROIC/WACC0.11
WACC11.99%
2.3 Liquidity
A Current Ratio of 1.18 indicates that IIIV should not have too much problems paying its short term obligations.
IIIV has a worse Current ratio (1.18) than 64.89% of its industry peers.
IIIV has a Quick Ratio of 1.15. This is a normal value and indicates that IIIV is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of IIIV (1.15) is worse than 66.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
IIIV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.57%.
IIIV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.84% yearly.
The Revenue for IIIV has decreased by -38.87% in the past year. This is quite bad
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
Based on estimates for the next years, IIIV will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.15% on average per year.
Based on estimates for the next years, IIIV will show a small growth in Revenue. The Revenue will grow by 1.61% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 33.53, IIIV can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of IIIV indicates a somewhat cheap valuation: IIIV is cheaper than 68.09% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.69, IIIV is valued a bit more expensive.
IIIV is valuated rather expensively with a Price/Forward Earnings ratio of 23.43.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IIIV indicates a somewhat cheap valuation: IIIV is cheaper than 72.34% of the companies listed in the same industry.
IIIV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.53 | ||
| Fwd PE | 23.43 |
4.2 Price Multiples
IIIV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IIIV is cheaper than 80.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IIIV does not grow enough to justify the current Price/Earnings ratio.
IIIV has a very decent profitability rating, which 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)2.15
PEG (5Y)18.26
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 |
28.5
-0.5 (-1.72%)
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 Cap946.77M
Analysts81.54
Price Target32.64 (14.53%)
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 | 33.53 | ||
| Fwd PE | 23.43 | ||
| P/S | 3.92 | ||
| P/FCF | N/A | ||
| P/OCF | 124 | ||
| P/B | 2.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.52 |
EPS(TTM)0.85
EY2.98%
EPS(NY)1.22
Fwd EY4.27%
FCF(TTM)-0.15
FCFYN/A
OCF(TTM)0.23
OCFY0.81%
SpS7.27
BVpS11.59
TBVpS-3.22
PEG (NY)2.15
PEG (5Y)18.26
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 | 2.88 |
F-Score6
WACC11.99%
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%