VERTEX INC - CLASS A (VERX)
US92538J1060 - Common Stock
Taking everything into account, VERX scores 4 out of 10 in our fundamental rating. VERX was compared to 277 industry peers in the Software industry. While VERX seems to be doing ok healthwise, there are quite some concerns on its profitability. VERX is quite expensive at the moment. It does show a decent growth rate.
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 reported 4 times negative net income.
In the past 5 years VERX always reported a positive cash flow from operatings.
1.2 Ratios
VERX has a Return On Assets of 1.02%. This is in the better half of the industry: VERX outperforms 67.75% of its industry peers.
The Return On Equity of VERX (3.09%) is better than 71.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.02% | ||
| ROE | 3.09% | ||
| ROIC | N/A |
ROA(3y)-1.22%
ROA(5y)-1.07%
ROE(3y)-3.73%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
VERX has a Profit Margin of 1.29%. This is in the better half of the industry: VERX outperforms 67.03% of its industry peers.
VERX has a Gross Margin (60.93%) which is in line with its industry peers.
VERX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 1.29% | ||
| GM | 60.93% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.92%
GM growth 5Y-1.25%
2. Health
2.1 Basic Checks
VERX does not have a ROIC to compare to the WACC, probably because it is not profitable.
VERX has more shares outstanding than it did 1 year ago.
VERX has more shares outstanding than it did 5 years ago.
VERX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.44 indicates that VERX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.44, VERX is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of VERX is 2.18, which is a good value as it means it would take VERX, 2.18 years of fcf income to pay off all of its debts.
VERX has a Debt to FCF ratio of 2.18. This is in the better half of the industry: VERX outperforms 68.12% of its industry peers.
VERX has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of VERX (0.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 6.44 |
ROIC/WACCN/A
WACC9.91%
2.3 Liquidity
A Current Ratio of 0.60 indicates that VERX may have some problems paying its short term obligations.
With a Current ratio value of 0.60, VERX is not doing good in the industry: 92.03% of the companies in the same industry are doing better.
VERX has a Quick Ratio of 0.60. 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 Quick ratio of 0.60 is on the low side compared to the rest of the industry. VERX is outperformed by 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
VERX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.33%, which is quite impressive.
VERX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.08%.
VERX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.01% yearly.
EPS 1Y (TTM)53.33%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q87.5%
Revenue 1Y (TTM)17.08%
Revenue growth 3Y15.17%
Revenue growth 5Y16.01%
Revenue growth Q2Q18.1%
3.2 Future
VERX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.52% yearly.
VERX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.03% yearly.
EPS Next Y37.76%
EPS Next 2Y34.02%
EPS Next 3Y40.52%
EPS Next 5YN/A
Revenue Next Year16.34%
Revenue Next 2Y15.35%
Revenue Next 3Y16.65%
Revenue Next 5Y12.03%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 70.93, VERX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of VERX is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.60. VERX is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 46.58, VERX can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as VERX.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, VERX is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.93 | ||
| Fwd PE | 46.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VERX is valued a bit cheaper than the industry average as 63.04% of the companies are valued more expensively.
VERX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 237.98 | ||
| EV/EBITDA | 76.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as VERX's earnings are expected to grow with 40.52% in the coming years.
PEG (NY)1.88
PEG (5Y)N/A
EPS Next 2Y34.02%
EPS Next 3Y40.52%
5. Dividend
5.1 Amount
No dividends for VERX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERTEX INC - CLASS A
NASDAQ:VERX (5/17/2024, 7:00:02 PM)
After market: 32.63 0 (0%)32.63
+0.33 (+1.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.93 | ||
| Fwd PE | 46.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.02% | ||
| ROE | 3.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 1.29% | ||
| GM | 60.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)53.33%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y37.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.08%
Revenue growth 3Y15.17%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y