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VERTEX INC - CLASS A (VERX) Stock Fundamental Analysis

NASDAQ:VERX - Nasdaq - US92538J1060 - Common Stock - Currency: USD

36.92  +0.15 (+0.41%)

After market: 37.92 +1 (+2.71%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to VERX. VERX was compared to 284 industry peers in the Software industry. VERX has a bad profitability rating. Also its financial health evaluation is rather negative. VERX is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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3

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.
VERX had negative earnings in each of the past 5 years.
Each year in the past 5 years VERX had a positive operating cash flow.
VERX Yearly Net Income VS EBIT VS OCF VS FCFVERX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M 150M

1.2 Ratios

VERX has a Return On Assets (-3.84%) which is comparable to the rest of the industry.
With a Return On Equity value of -22.09%, VERX perfoms like the industry average, outperforming 42.25% of the companies in the same industry.
VERX has a better Return On Invested Capital (0.53%) than 64.44% of its industry peers.
Industry RankSector Rank
ROA -3.84%
ROE -22.09%
ROIC 0.53%
ROA(3y)-2.65%
ROA(5y)-4.32%
ROE(3y)-13.31%
ROE(5y)-14.67%
ROIC(3y)N/A
ROIC(5y)N/A
VERX Yearly ROA, ROE, ROICVERX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 -20 -40 -60 -80

1.3 Margins

VERX has a Operating Margin of 0.62%. This is in the better half of the industry: VERX outperforms 63.73% of its industry peers.
With a Gross Margin value of 64.53%, VERX perfoms like the industry average, outperforming 45.07% of the companies in the same industry.
VERX's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 0.62%
PM (TTM) N/A
GM 64.53%
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%
VERX Yearly Profit, Operating, Gross MarginsVERX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VERX is destroying value.
Compared to 1 year ago, VERX has more shares outstanding
Compared to 5 years ago, VERX has more shares outstanding
Compared to 1 year ago, VERX has a worse debt to assets ratio.
VERX Yearly Shares OutstandingVERX Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
VERX Yearly Total Debt VS Total AssetsVERX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

An Altman-Z score of 4.23 indicates that VERX is not in any danger for bankruptcy at the moment.
VERX has a better Altman-Z score (4.23) than 67.61% of its industry peers.
VERX has a Debt/Equity ratio of 1.67. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of VERX (1.67) is worse than 78.52% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.67
Debt/FCF N/A
Altman-Z 4.23
ROIC/WACC0.06
WACC8.89%
VERX Yearly LT Debt VS Equity VS FCFVERX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M 300M

2.3 Liquidity

VERX has a Current Ratio of 0.98. 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 Current ratio of 0.98. This is in the lower half of the industry: VERX underperforms 75.70% of its industry peers.
A Quick Ratio of 0.98 indicates that VERX may have some problems paying its short term obligations.
VERX has a Quick ratio of 0.98. This is in the lower half of the industry: VERX underperforms 74.65% of its industry peers.
Industry RankSector Rank
Current Ratio 0.98
Quick Ratio 0.98
VERX Yearly Current Assets VS Current LiabilitesVERX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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8

3. Growth

3.1 Past

VERX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.61%, which is quite impressive.
VERX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.31% yearly.
Looking at the last year, VERX shows a quite strong growth in Revenue. The Revenue has grown by 15.20% in the last year.
The Revenue has been growing by 15.71% on average over the past years. This is quite good.
EPS 1Y (TTM)32.61%
EPS 3Y25.31%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)15.2%
Revenue growth 3Y16.15%
Revenue growth 5Y15.71%
Sales Q2Q%12.94%

3.2 Future

Based on estimates for the next years, VERX will show a very strong growth in Earnings Per Share. The EPS will grow by 23.03% on average per year.
VERX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.87% yearly.
EPS Next Y5.5%
EPS Next 2Y14.58%
EPS Next 3Y24.11%
EPS Next 5Y23.03%
Revenue Next Year14.74%
Revenue Next 2Y14.64%
Revenue Next 3Y15.56%
Revenue Next 5Y15.87%

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.
VERX Yearly Revenue VS EstimatesVERX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
VERX Yearly EPS VS EstimatesVERX Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6 0.8 1

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 60.52, VERX can be considered very expensive at the moment.
VERX's Price/Earnings ratio is in line with the industry average.
VERX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.31.
A Price/Forward Earnings ratio of 46.10 indicates a quite expensive valuation of VERX.
VERX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.13. VERX is valued rather expensively when compared to this.
Industry RankSector Rank
PE 60.52
Fwd PE 46.1
VERX Price Earnings VS Forward Price EarningsVERX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

61.27% of the companies in the same industry are more expensive than VERX, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 66.99
VERX Per share dataVERX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 2 3 4

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 24.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)11.01
PEG (5Y)N/A
EPS Next 2Y14.58%
EPS Next 3Y24.11%

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0

5. Dividend

5.1 Amount

VERX does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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VERTEX INC - CLASS A

NASDAQ:VERX (6/13/2025, 8:00:02 PM)

After market: 37.92 +1 (+2.71%)

36.92

+0.15 (+0.41%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-07 2025-05-07/bmo
Earnings (Next)08-05 2025-08-05/bmo
Inst Owners109.63%
Inst Owner Change4%
Ins Owners6.35%
Ins Owner Change31.22%
Market Cap5.85B
Analysts79.05
Price Target47.3 (28.11%)
Short Float %8.44%
Short Ratio5.07
Dividend
Industry RankSector 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)8.16%
Min EPS beat(2)7.01%
Max EPS beat(2)9.3%
EPS beat(4)4
Avg EPS beat(4)11.4%
Min EPS beat(4)7.01%
Max EPS beat(4)15.34%
EPS beat(8)7
Avg EPS beat(8)9.6%
EPS beat(12)11
Avg EPS beat(12)12.37%
EPS beat(16)15
Avg EPS beat(16)21.26%
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-1.91%
Max Revenue beat(2)-1.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-1.91%
Max Revenue beat(4)0.84%
Revenue beat(8)3
Avg Revenue beat(8)-0.04%
Revenue beat(12)6
Avg Revenue beat(12)0.1%
Revenue beat(16)9
Avg Revenue beat(16)0.49%
PT rev (1m)-0.18%
PT rev (3m)-11.95%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)-3.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.1%
Valuation
Industry RankSector Rank
PE 60.52
Fwd PE 46.1
P/S 8.52
P/FCF N/A
P/OCF 37.74
P/B 29.19
P/tB N/A
EV/EBITDA 66.99
EPS(TTM)0.61
EY1.65%
EPS(NY)0.8
Fwd EY2.17%
FCF(TTM)-0.07
FCFYN/A
OCF(TTM)0.98
OCFY2.65%
SpS4.34
BVpS1.27
TBVpS-1.33
PEG (NY)11.01
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.84%
ROE -22.09%
ROCE 0.67%
ROIC 0.53%
ROICexc 0.91%
ROICexgc N/A
OM 0.62%
PM (TTM) N/A
GM 64.53%
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 Turnover0.6
Health
Industry RankSector Rank
Debt/Equity 1.67
Debt/FCF N/A
Debt/EBITDA 3.8
Cap/Depr 197.33%
Cap/Sales 24.14%
Interest Coverage 250
Cash Conversion 175.54%
Profit Quality N/A
Current Ratio 0.98
Quick Ratio 0.98
Altman-Z 4.23
F-Score4
WACC8.89%
ROIC/WACC0.06
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)32.61%
EPS 3Y25.31%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y5.5%
EPS Next 2Y14.58%
EPS Next 3Y24.11%
EPS Next 5Y23.03%
Revenue 1Y (TTM)15.2%
Revenue growth 3Y16.15%
Revenue growth 5Y15.71%
Sales Q2Q%12.94%
Revenue Next Year14.74%
Revenue Next 2Y14.64%
Revenue Next 3Y15.56%
Revenue Next 5Y15.87%
EBIT growth 1Y142.14%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year27.81%
EBIT Next 3Y28.57%
EBIT Next 5Y28.3%
FCF growth 1Y-252.96%
FCF growth 3Y-49.75%
FCF growth 5Y-35.88%
OCF growth 1Y91.41%
OCF growth 3Y21.47%
OCF growth 5Y12.25%