VERTEX INC - CLASS A (VERX) Stock Fundamental Analysis
NASDAQ:VERX - Nasdaq - US92538J1060 - Common Stock - Currency: USD
Taking everything into account, VERX scores 3 out of 10 in our fundamental rating. VERX was compared to 283 industry peers in the Software industry. Both the profitability and financial health of VERX have multiple concerns. VERX is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
VERX had positive earnings in the past year.
In the past year VERX had a positive cash flow from operations.
In the past 5 years VERX always reported negative net income.
VERX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VERX's Return On Assets of -4.21% is in line compared to the rest of the industry. VERX outperforms 47.35% of its industry peers.
With a Return On Equity value of -20.32%, VERX perfoms like the industry average, outperforming 42.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.21% | ||
| ROE | -20.32% | ||
| ROIC | N/A |
ROA(3y)-2.65%
ROA(5y)-4.32%
ROE(3y)-13.31%
ROE(5y)-14.67%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
VERX has a Gross Margin (65.00%) which is comparable to the rest of the industry.
VERX's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for VERX so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 65% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.03%
GM growth 5Y-0.54%
2. Health
2.1 Basic Checks
VERX does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for VERX has been increased compared to 1 year ago.
VERX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VERX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.10 indicates that VERX is not in any danger for bankruptcy at the moment.
VERX has a better Altman-Z score (3.10) than 60.42% of its industry peers.
VERX has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external financing.
VERX has a Debt to Equity ratio of 1.36. This is in the lower half of the industry: VERX underperforms 78.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.1 |
ROIC/WACCN/A
WACC11.23%
2.3 Liquidity
VERX has a Current Ratio of 0.99. This is a bad value and indicates that VERX is not financially healthy enough and could expect problems in meeting its short term obligations.
VERX's Current ratio of 0.99 is on the low side compared to the rest of the industry. VERX is outperformed by 74.20% of its industry peers.
VERX has a Quick Ratio of 0.99. This is a bad value and indicates that VERX is not financially healthy enough and could expect problems in meeting its short term obligations.
VERX has a Quick ratio of 0.99. This is in the lower half of the industry: VERX underperforms 73.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.09% over the past year.
VERX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.31% yearly.
VERX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.01%.
Measured over the past years, VERX shows a quite strong growth in Revenue. The Revenue has been growing by 15.71% on average per year.
EPS 1Y (TTM)15.09%
EPS 3Y25.31%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)15.01%
Revenue growth 3Y16.15%
Revenue growth 5Y15.71%
Sales Q2Q%14.56%
3.2 Future
VERX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.95% yearly.
Based on estimates for the next years, VERX will show a quite strong growth in Revenue. The Revenue will grow by 14.73% on average per year.
EPS Next Y5.87%
EPS Next 2Y14.97%
EPS Next 3Y24.47%
EPS Next 5Y20.95%
Revenue Next Year14.77%
Revenue Next 2Y14.7%
Revenue Next 3Y15.59%
Revenue Next 5Y14.73%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 41.33, which means the current valuation is very expensive for VERX.
VERX's Price/Earnings ratio is in line with the industry average.
VERX is valuated expensively when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
VERX is valuated quite expensively with a Price/Forward Earnings ratio of 31.27.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VERX indicates a somewhat cheap valuation: VERX is cheaper than 61.48% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VERX to the average of the S&P500 Index (34.94), we can say VERX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.33 | ||
| Fwd PE | 31.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VERX is valued a bit cheaper than the industry average as 61.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 51.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VERX's earnings are expected to grow with 24.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.04
PEG (5Y)N/A
EPS Next 2Y14.97%
EPS Next 3Y24.47%
5. Dividend
5.1 Amount
No dividends for VERX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.21
-0.52 (-2.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.05%
Inst Owner Change16.43%
Ins Owners6.4%
Ins Owner Change28.08%
Market Cap4.00B
Analysts78.18
Price Target48.3 (91.59%)
Short Float %10.47%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.43%
Min EPS beat(2)3.56%
Max EPS beat(2)9.3%
EPS beat(4)4
Avg EPS beat(4)8.81%
Min EPS beat(4)3.56%
Max EPS beat(4)15.34%
EPS beat(8)8
Avg EPS beat(8)10.53%
EPS beat(12)11
Avg EPS beat(12)12.06%
EPS beat(16)15
Avg EPS beat(16)17.85%
Revenue beat(2)0
Avg Revenue beat(2)-1.95%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)-1.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)0.84%
Revenue beat(8)2
Avg Revenue beat(8)-0.37%
Revenue beat(12)5
Avg Revenue beat(12)-0.07%
Revenue beat(16)8
Avg Revenue beat(16)0.16%
PT rev (1m)0.68%
PT rev (3m)1.93%
EPS NQ rev (1m)-5.7%
EPS NQ rev (3m)-14.87%
EPS NY rev (1m)0%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)-1.83%
Revenue NQ rev (3m)-1.2%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.33 | ||
| Fwd PE | 31.27 | ||
| P/S | 5.62 | ||
| P/FCF | N/A | ||
| P/OCF | 27.88 | ||
| P/B | 16.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 51.44 |
EPS(TTM)0.61
EY2.42%
EPS(NY)0.81
Fwd EY3.2%
FCF(TTM)-0.14
FCFYN/A
OCF(TTM)0.9
OCFY3.59%
SpS4.48
BVpS1.57
TBVpS-1.17
PEG (NY)7.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.21% | ||
| ROE | -20.32% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 65% | ||
| FCFM | N/A |
ROA(3y)-2.65%
ROA(5y)-4.32%
ROE(3y)-13.31%
ROE(5y)-14.67%
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 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.03%
GM growth 5Y-0.54%
F-Score4
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.19 | ||
| Cap/Depr | 189.92% | ||
| Cap/Sales | 23.28% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 178.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 3.1 |
F-Score4
WACC11.23%
ROIC/WACCN/A
Cap/Depr(3y)135.67%
Cap/Depr(5y)121.89%
Cap/Sales(3y)16.89%
Cap/Sales(5y)14.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.09%
EPS 3Y25.31%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y5.87%
EPS Next 2Y14.97%
EPS Next 3Y24.47%
EPS Next 5Y20.95%
Revenue 1Y (TTM)15.01%
Revenue growth 3Y16.15%
Revenue growth 5Y15.71%
Sales Q2Q%14.56%
Revenue Next Year14.77%
Revenue Next 2Y14.7%
Revenue Next 3Y15.59%
Revenue Next 5Y14.73%
EBIT growth 1Y-557.49%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year31.41%
EBIT Next 3Y28.57%
EBIT Next 5Y26.7%
FCF growth 1Y-140.27%
FCF growth 3Y-49.75%
FCF growth 5Y-35.88%
OCF growth 1Y112.79%
OCF growth 3Y21.47%
OCF growth 5Y12.25%