VERTEX INC - CLASS A (VERX) Stock Fundamental Analysis
NASDAQ:VERX - US92538J1060 - Common Stock
24.22 USD
+0.35 (+1.47%)
Overall VERX gets a fundamental rating of 3 out of 10. We evaluated VERX against 280 industry peers in the Software industry. VERX has a bad profitability rating. Also its financial health evaluation is rather negative. VERX is valued quite expensively, but it does show have an excellent growth rating.
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.
1.2 Ratios
VERX has a Return On Assets of -4.21%. This is comparable to the rest of the industry: VERX outperforms 45.36% of its industry peers.
The Return On Equity of VERX (-20.32%) is comparable to the rest of the 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 of 65.00%. This is comparable to the rest of the industry: VERX outperforms 44.64% of its industry peers.
In the last couple of years the Gross Margin of VERX has remained more or less at the same level.
VERX does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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.
VERX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for VERX has been increased compared to 5 years ago.
The debt/assets ratio for VERX is higher compared to a year ago.
2.2 Solvency
VERX has an Altman-Z score of 2.92. This is not the best score and indicates that VERX is in the grey zone with still only limited risk for bankruptcy at the moment.
VERX has a Altman-Z score (2.92) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.36 is on the high side and indicates that VERX has dependencies on debt financing.
VERX's Debt to Equity ratio of 1.36 is on the low side compared to the rest of the industry. VERX is outperformed by 78.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.92 |
ROIC/WACCN/A
WACC11.14%
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.
The Current ratio of VERX (0.99) is worse than 72.86% 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.
Looking at the Quick ratio, with a value of 0.99, VERX is doing worse than 71.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
VERX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.09%, which is quite good.
Measured over the past years, VERX shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.31% on average per year.
VERX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.01%.
VERX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.71% yearly.
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
The Earnings Per Share is expected to grow by 20.95% on average over the next years. This is a very strong growth
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 Y4.44%
EPS Next 2Y13.41%
EPS Next 3Y20.3%
EPS Next 5Y20.95%
Revenue Next Year13.2%
Revenue Next 2Y13.2%
Revenue Next 3Y14.03%
Revenue Next 5Y14.73%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 39.70, the valuation of VERX can be described as expensive.
VERX's Price/Earnings ratio is a bit cheaper when compared to the industry. VERX is cheaper than 61.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.03. VERX is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 30.87, VERX can be considered very expensive at the moment.
62.86% of the companies in the same industry are more expensive than VERX, based on the Price/Forward Earnings ratio.
VERX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.54.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.7 | ||
| Fwd PE | 30.87 |
4.2 Price Multiples
63.93% of the companies in the same industry are more expensive than VERX, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 48.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VERX does not grow enough to justify the current Price/Earnings ratio.
VERX's earnings are expected to grow with 20.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)8.95
PEG (5Y)N/A
EPS Next 2Y13.41%
EPS Next 3Y20.3%
5. Dividend
5.1 Amount
VERX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:VERX (9/11/2025, 1:20:04 PM)
24.22
+0.35 (+1.47%)
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 Change23.73%
Market Cap3.86B
Analysts77.27
Price Target38.48 (58.88%)
Short Float %9.84%
Short Ratio4.46
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)-20.33%
PT rev (3m)-18.65%
EPS NQ rev (1m)-6.2%
EPS NQ rev (3m)-15.43%
EPS NY rev (1m)-1.36%
EPS NY rev (3m)-1%
Revenue NQ rev (1m)-2.11%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)-1.37%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.7 | ||
| Fwd PE | 30.87 | ||
| P/S | 5.44 | ||
| P/FCF | N/A | ||
| P/OCF | 26.95 | ||
| P/B | 15.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 48.06 |
EPS(TTM)0.61
EY2.52%
EPS(NY)0.78
Fwd EY3.24%
FCF(TTM)-0.14
FCFYN/A
OCF(TTM)0.9
OCFY3.71%
SpS4.46
BVpS1.56
TBVpS-1.16
PEG (NY)8.95
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 | 2.92 |
F-Score4
WACC11.14%
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 Y4.44%
EPS Next 2Y13.41%
EPS Next 3Y20.3%
EPS Next 5Y20.95%
Revenue 1Y (TTM)15.01%
Revenue growth 3Y16.15%
Revenue growth 5Y15.71%
Sales Q2Q%14.56%
Revenue Next Year13.2%
Revenue Next 2Y13.2%
Revenue Next 3Y14.03%
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%