VERTEX INC - CLASS A (VERX) Stock Fundamental Analysis
USA - NASDAQ:VERX - US92538J1060 - Common Stock
24.75 USD
+0.21 (+0.86%)
24.75 USD
0 (0%)
Overall VERX gets a fundamental rating of 3 out of 10. We evaluated VERX against 281 industry peers in the Software industry. Both the profitability and financial health of VERX have multiple concerns. 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 (-4.21%) which is in line with its industry peers.
With a Return On Equity value of -20.32%, VERX perfoms like the industry average, outperforming 41.28% 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's Gross Margin of 65.00% is in line compared to the rest of the industry. VERX outperforms 44.48% of its industry peers.
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.
The number of shares outstanding for VERX has been increased compared to 5 years ago.
VERX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.01 indicates that VERX is not in any danger for bankruptcy at the moment.
The Altman-Z score of VERX (3.01) is comparable to the rest of the industry.
VERX has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.36, VERX is not doing good in the industry: 77.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.01 |
ROIC/WACCN/A
WACC11.25%
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 has a worse Current ratio (0.99) than 72.95% 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 71.89% 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.
The Earnings Per Share has been growing by 25.31% on average over the past years. This is a very strong growth
Looking at the last year, VERX shows a quite strong growth in Revenue. The Revenue has grown by 15.01% in the last year.
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
The Revenue is expected to grow by 14.73% on average over the next years. This is quite good.
EPS Next Y4.3%
EPS Next 2Y13.07%
EPS Next 3Y20.3%
EPS Next 5Y20.95%
Revenue Next Year13.08%
Revenue Next 2Y13.08%
Revenue Next 3Y13.88%
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.
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
With a Price/Earnings ratio of 40.57, VERX can be considered very expensive at the moment.
Based on the Price/Earnings ratio, VERX is valued a bit cheaper than the industry average as 60.14% of the companies are valued more expensively.
VERX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.86.
VERX is valuated quite expensively with a Price/Forward Earnings ratio of 31.73.
61.57% of the companies in the same industry are more expensive than VERX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VERX to the average of the S&P500 Index (23.29), we can say VERX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.57 | ||
| Fwd PE | 31.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VERX is valued a bit cheaper than 63.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 49.81 |
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 20.30% in the coming years.
PEG (NY)9.44
PEG (5Y)N/A
EPS Next 2Y13.07%
EPS Next 3Y20.3%
5. Dividend
5.1 Amount
VERX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.75
+0.21 (+0.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.12%
Inst Owner Change16.43%
Ins Owners4.73%
Ins Owner Change23.95%
Market Cap3.95B
Analysts77.27
Price Target38.48 (55.47%)
Short Float %9.34%
Short Ratio4.12
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%
PT rev (3m)-19.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.32%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.14%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.57 | ||
| Fwd PE | 31.73 | ||
| P/S | 5.55 | ||
| P/FCF | N/A | ||
| P/OCF | 27.54 | ||
| P/B | 15.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 49.81 |
EPS(TTM)0.61
EY2.46%
EPS(NY)0.78
Fwd EY3.15%
FCF(TTM)-0.14
FCFYN/A
OCF(TTM)0.9
OCFY3.63%
SpS4.46
BVpS1.56
TBVpS-1.16
PEG (NY)9.44
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 | 3.01 |
F-Score4
WACC11.25%
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 Y4.3%
EPS Next 2Y13.07%
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 Year13.08%
Revenue Next 2Y13.08%
Revenue Next 3Y13.88%
Revenue Next 5Y14.73%
EBIT growth 1Y-557.49%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year23.99%
EBIT Next 3Y24.84%
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%