VERTEX INC - CLASS A (VERX) Stock Fundamental Analysis
NASDAQ:VERX - Nasdaq - US92538J1060 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to VERX. VERX was compared to 283 industry peers in the Software industry. VERX has a bad profitability rating. Also its financial health evaluation is rather negative. VERX shows excellent growth, but is valued quite expensive already.
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's Return On Assets of -4.52% is in line compared to the rest of the industry. VERX outperforms 49.82% of its industry peers.
Looking at the Return On Equity, with a value of -29.40%, VERX is doing worse than 60.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.52% | ||
| ROE | -29.4% | ||
| 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 63.91%. This is comparable to the rest of the industry: VERX outperforms 44.88% of its industry peers.
In the last couple of years the Gross Margin of VERX has remained more or less at the same level.
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 | 63.91% |
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.
Compared to 5 years ago, VERX has more shares outstanding
VERX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.21 indicates that VERX is not in any danger for bankruptcy at the moment.
VERX has a Altman-Z score of 4.21. This is in the better half of the industry: VERX outperforms 66.08% of its industry peers.
The Debt to FCF ratio of VERX is 56.33, which is on the high side as it means it would take VERX, 56.33 years of fcf income to pay off all of its debts.
VERX has a Debt to FCF ratio (56.33) which is comparable to the rest of the industry.
VERX has a Debt/Equity ratio of 1.87. This is a high value indicating a heavy dependency on external financing.
VERX's Debt to Equity ratio of 1.87 is on the low side compared to the rest of the industry. VERX is outperformed by 79.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 56.33 | ||
| Altman-Z | 4.21 |
ROIC/WACCN/A
WACC11%
2.3 Liquidity
VERX has a Current Ratio of 1.00. 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 (1.00) is worse than 75.27% of its industry peers.
A Quick Ratio of 1.00 indicates that VERX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, VERX is doing worse than 74.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.61% 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 16.49%.
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)32.61%
EPS 3Y25.31%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)16.49%
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 21.66% on average per year.
The Revenue is expected to grow by 15.87% on average over the next years. This is quite good.
EPS Next Y5.5%
EPS Next 2Y14.58%
EPS Next 3Y24.11%
EPS Next 5Y21.66%
Revenue Next Year14.71%
Revenue Next 2Y14.55%
Revenue Next 3Y15.41%
Revenue Next 5Y15.87%
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 64.02, the valuation of VERX can be described as expensive.
VERX's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.91. VERX is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 48.76, the valuation of VERX can be described as expensive.
VERX's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.85, VERX is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.02 | ||
| Fwd PE | 48.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VERX is valued a bit cheaper than the industry average as 60.78% 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 | 1039.58 | ||
| EV/EBITDA | 76.19 |
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.
A more expensive valuation may be justified as VERX's earnings are expected to grow with 24.11% in the coming years.
PEG (NY)11.65
PEG (5Y)N/A
EPS Next 2Y14.58%
EPS Next 3Y24.11%
5. Dividend
5.1 Amount
VERX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
39.05
+0.48 (+1.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners113.34%
Inst Owner Change4.04%
Ins Owners4.91%
Ins Owner Change13.06%
Market Cap6.19B
Analysts79
Price Target47.38 (21.33%)
Short Float %7.47%
Short Ratio3.57
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)11.18%
Min EPS beat(2)7.01%
Max EPS beat(2)15.34%
EPS beat(4)4
Avg EPS beat(4)12.63%
Min EPS beat(4)7.01%
Max EPS beat(4)15.34%
EPS beat(8)7
Avg EPS beat(8)8.7%
EPS beat(12)11
Avg EPS beat(12)13.66%
EPS beat(16)15
Avg EPS beat(16)22.8%
Revenue beat(2)1
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-1.09%
Max Revenue beat(2)0.84%
Revenue beat(4)1
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)0.84%
Revenue beat(8)3
Avg Revenue beat(8)0.03%
Revenue beat(12)6
Avg Revenue beat(12)0.25%
Revenue beat(16)10
Avg Revenue beat(16)0.66%
PT rev (1m)-3.95%
PT rev (3m)-20.25%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-15.34%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-9.15%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.02 | ||
| Fwd PE | 48.76 | ||
| P/S | 9.28 | ||
| P/FCF | 1039.58 | ||
| P/OCF | 37.55 | ||
| P/B | 34.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 76.19 |
EPS(TTM)0.61
EY1.56%
EPS(NY)0.8
Fwd EY2.05%
FCF(TTM)0.04
FCFY0.1%
OCF(TTM)1.04
OCFY2.66%
SpS4.21
BVpS1.13
TBVpS-1.39
PEG (NY)11.65
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.52% | ||
| ROE | -29.4% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 63.91% | ||
| FCFM | 0.89% |
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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 56.33 | ||
| Debt/EBITDA | 4.16 | ||
| Cap/Depr | 192.03% | ||
| Cap/Sales | 23.83% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 204.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 4.21 |
F-Score4
WACC11%
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)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 5Y21.66%
Revenue 1Y (TTM)16.49%
Revenue growth 3Y16.15%
Revenue growth 5Y15.71%
Sales Q2Q%12.94%
Revenue Next Year14.71%
Revenue Next 2Y14.55%
Revenue Next 3Y15.41%
Revenue Next 5Y15.87%
EBIT growth 1Y87.26%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year27.69%
EBIT Next 3Y28.25%
EBIT Next 5Y27.84%
FCF growth 1Y-2.39%
FCF growth 3Y-49.75%
FCF growth 5Y-35.88%
OCF growth 1Y121.74%
OCF growth 3Y21.47%
OCF growth 5Y12.25%