I3 VERTICALS INC-CLASS A (IIIV) Stock Fundamental Analysis
NASDAQ:IIIV - Nasdaq - US46571Y1073 - Common Stock - Currency: USD
Overall IIIV gets a fundamental rating of 4 out of 10. We evaluated IIIV against 282 industry peers in the Software industry. IIIV has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year IIIV had a positive cash flow from operations.
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 93.26% 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 90.78% of the companies in the same industry.
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
IIIV has a better Profit Margin (46.46%) than 97.87% of its industry peers.
With a decent Operating Margin value of 4.06%, IIIV is doing good in the industry, outperforming 69.86% of the companies in the same industry.
IIIV's Operating Margin has improved in the last couple of years.
IIIV has a better Gross Margin (78.08%) than 76.60% 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
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.
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
IIIV has an Altman-Z score of 2.84. 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 (2.84) is comparable to the rest of the industry.
IIIV has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
IIIV has a Debt to Equity ratio of 0.03. This is in the better half 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 | 2.84 |
ROIC/WACC0.11
WACC12.07%
2.3 Liquidity
A Current Ratio of 1.18 indicates that IIIV should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.18, IIIV is doing worse than 64.89% of the companies in the same industry.
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.
IIIV has a Quick ratio of 1.15. This is in the lower half of the industry: IIIV underperforms 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.
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
The Earnings Per Share is expected to grow by 13.15% on average over the next years. This is quite good.
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
A Price/Earnings ratio of 33.75 indicates a quite expensive valuation of IIIV.
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.
IIIV is valuated rather expensively when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.59, the valuation of IIIV can be described as rather expensive.
72.69% of the companies in the same industry are more expensive than IIIV, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 37.64. IIIV is valued slightly cheaper when compared to this.
| 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 cheaply inside the industry as 80.85% of the companies are valued more expensively.
| 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 IIIV does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of IIIV may justify a higher PE ratio.
A more expensive valuation may be justified as IIIV's earnings are expected to grow with 13.15% in the coming years.
PEG (NY)2.17
PEG (5Y)18.38
EPS Next 2Y14.98%
EPS Next 3Y13.15%
5. Dividend
5.1 Amount
IIIV does not give a dividend.
| 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
WACC12.07%
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%