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VERRA MOBILITY CORP (VRRM) Stock Fundamental Analysis

NASDAQ:VRRM - Nasdaq - US92511U1025 - Common Stock - Currency: USD

24.9865  -0.2 (-0.81%)

Fundamental Rating

5

Taking everything into account, VRRM scores 5 out of 10 in our fundamental rating. VRRM was compared to 82 industry peers in the IT Services industry. While VRRM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VRRM is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year VRRM was profitable.
VRRM had a positive operating cash flow in the past year.
Of the past 5 years VRRM 4 years were profitable.
Each year in the past 5 years VRRM had a positive operating cash flow.
VRRM Yearly Net Income VS EBIT VS OCF VS FCFVRRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M 150M 200M

1.2 Ratios

VRRM has a Return On Assets (2.11%) which is in line with its industry peers.
VRRM has a better Return On Equity (11.56%) than 67.07% of its industry peers.
VRRM has a better Return On Invested Capital (12.88%) than 81.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VRRM is significantly below the industry average of 21.64%.
The 3 year average ROIC (10.27%) for VRRM is below the current ROIC(12.88%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.11%
ROE 11.56%
ROIC 12.88%
ROA(3y)3.47%
ROA(5y)2.46%
ROE(3y)21.81%
ROE(5y)15.98%
ROIC(3y)10.27%
ROIC(5y)7.68%
VRRM Yearly ROA, ROE, ROICVRRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30 40

1.3 Margins

VRRM has a Profit Margin (3.88%) which is in line with its industry peers.
In the last couple of years the Profit Margin of VRRM has remained more or less at the same level.
VRRM has a better Operating Margin (26.45%) than 97.56% of its industry peers.
In the last couple of years the Operating Margin of VRRM has grown nicely.
VRRM has a Gross Margin of 94.48%. This is amongst the best in the industry. VRRM outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of VRRM has remained more or less at the same level.
Industry RankSector Rank
OM 26.45%
PM (TTM) 3.88%
GM 94.48%
OM growth 3Y9.3%
OM growth 5Y3.04%
PM growth 3Y-21.94%
PM growth 5Y-1.26%
GM growth 3Y0.41%
GM growth 5Y-0.19%
VRRM Yearly Profit, Operating, Gross MarginsVRRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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5

2. Health

2.1 Basic Checks

VRRM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
VRRM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VRRM has been increased compared to 5 years ago.
VRRM has a worse debt/assets ratio than last year.
VRRM Yearly Shares OutstandingVRRM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
VRRM Yearly Total Debt VS Total AssetsVRRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 2.78 indicates that VRRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
VRRM has a Altman-Z score (2.78) which is in line with its industry peers.
VRRM has a debt to FCF ratio of 5.92. This is a neutral value as VRRM would need 5.92 years to pay back of all of its debts.
VRRM has a Debt to FCF ratio (5.92) which is comparable to the rest of the industry.
VRRM has a Debt/Equity ratio of 3.45. This is a high value indicating a heavy dependency on external financing.
VRRM has a worse Debt to Equity ratio (3.45) than 84.15% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.45
Debt/FCF 5.92
Altman-Z 2.78
ROIC/WACC1.38
WACC9.34%
VRRM Yearly LT Debt VS Equity VS FCFVRRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 2.19 indicates that VRRM has no problem at all paying its short term obligations.
The Current ratio of VRRM (2.19) is better than 65.85% of its industry peers.
VRRM has a Quick Ratio of 2.10. This indicates that VRRM is financially healthy and has no problem in meeting its short term obligations.
VRRM has a better Quick ratio (2.10) than 65.85% of its industry peers.
Industry RankSector Rank
Current Ratio 2.19
Quick Ratio 2.1
VRRM Yearly Current Assets VS Current LiabilitesVRRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 15.60% over the past year.
Measured over the past years, VRRM shows a very strong growth in Earnings Per Share. The EPS has been growing by 42.41% on average per year.
VRRM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.90%.
Measured over the past years, VRRM shows a quite strong growth in Revenue. The Revenue has been growing by 14.40% on average per year.
EPS 1Y (TTM)15.6%
EPS 3Y27.03%
EPS 5Y42.41%
EPS Q2Q%11.11%
Revenue 1Y (TTM)6.9%
Revenue growth 3Y16.88%
Revenue growth 5Y14.4%
Sales Q2Q%6.45%

3.2 Future

Based on estimates for the next years, VRRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.27% on average per year.
The Revenue is expected to grow by 7.16% on average over the next years.
EPS Next Y9.23%
EPS Next 2Y11.58%
EPS Next 3Y12.27%
EPS Next 5YN/A
Revenue Next Year5.8%
Revenue Next 2Y6.62%
Revenue Next 3Y7.16%
Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
VRRM Yearly Revenue VS EstimatesVRRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M 1B
VRRM Yearly EPS VS EstimatesVRRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 1 1.5

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 19.83, which indicates a rather expensive current valuation of VRRM.
Based on the Price/Earnings ratio, VRRM is valued a bit cheaper than the industry average as 67.07% of the companies are valued more expensively.
VRRM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.91.
With a Price/Forward Earnings ratio of 16.32, VRRM is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRRM indicates a somewhat cheap valuation: VRRM is cheaper than 69.51% of the companies listed in the same industry.
VRRM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.46, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.83
Fwd PE 16.32
VRRM Price Earnings VS Forward Price EarningsVRRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

VRRM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VRRM is cheaper than 64.63% of the companies in the same industry.
VRRM's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 22.83
EV/EBITDA 14.31
VRRM Per share dataVRRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 -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.
The decent profitability rating of VRRM may justify a higher PE ratio.
A more expensive valuation may be justified as VRRM's earnings are expected to grow with 12.27% in the coming years.
PEG (NY)2.15
PEG (5Y)0.47
EPS Next 2Y11.58%
EPS Next 3Y12.27%

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0

5. Dividend

5.1 Amount

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

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VERRA MOBILITY CORP

NASDAQ:VRRM (6/25/2025, 12:01:55 PM)

24.9865

-0.2 (-0.81%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners103.92%
Inst Owner Change-0.32%
Ins Owners0.9%
Ins Owner Change1.71%
Market Cap3.98B
Analysts84.62
Price Target29.5 (18.06%)
Short Float %1.33%
Short Ratio1.93
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.66%
Min EPS beat(2)2.43%
Max EPS beat(2)8.88%
EPS beat(4)3
Avg EPS beat(4)3.24%
Min EPS beat(4)-0.63%
Max EPS beat(4)8.88%
EPS beat(8)6
Avg EPS beat(8)1.65%
EPS beat(12)9
Avg EPS beat(12)4.47%
EPS beat(16)11
Avg EPS beat(16)3.76%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-1.5%
Max Revenue beat(2)0.89%
Revenue beat(4)1
Avg Revenue beat(4)-1.03%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)0.89%
Revenue beat(8)4
Avg Revenue beat(8)-0.13%
Revenue beat(12)6
Avg Revenue beat(12)0.1%
Revenue beat(16)10
Avg Revenue beat(16)1.4%
PT rev (1m)-0.57%
PT rev (3m)-0.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
Industry RankSector Rank
PE 19.83
Fwd PE 16.32
P/S 4.46
P/FCF 22.83
P/OCF 15.79
P/B 13.3
P/tB N/A
EV/EBITDA 14.31
EPS(TTM)1.26
EY5.04%
EPS(NY)1.53
Fwd EY6.13%
FCF(TTM)1.09
FCFY4.38%
OCF(TTM)1.58
OCFY6.33%
SpS5.6
BVpS1.88
TBVpS-4.1
PEG (NY)2.15
PEG (5Y)0.47
Profitability
Industry RankSector Rank
ROA 2.11%
ROE 11.56%
ROCE 16.3%
ROIC 12.88%
ROICexc 13.92%
ROICexgc 48.3%
OM 26.45%
PM (TTM) 3.88%
GM 94.48%
FCFM 19.54%
ROA(3y)3.47%
ROA(5y)2.46%
ROE(3y)21.81%
ROE(5y)15.98%
ROIC(3y)10.27%
ROIC(5y)7.68%
ROICexc(3y)11.02%
ROICexc(5y)8.25%
ROICexgc(3y)50.23%
ROICexgc(5y)40.02%
ROCE(3y)12.99%
ROCE(5y)9.72%
ROICexcg growth 3Y9.79%
ROICexcg growth 5Y-1.24%
ROICexc growth 3Y34.5%
ROICexc growth 5Y14.79%
OM growth 3Y9.3%
OM growth 5Y3.04%
PM growth 3Y-21.94%
PM growth 5Y-1.26%
GM growth 3Y0.41%
GM growth 5Y-0.19%
F-Score5
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 3.45
Debt/FCF 5.92
Debt/EBITDA 2.99
Cap/Depr 71.31%
Cap/Sales 8.72%
Interest Coverage 3.25
Cash Conversion 73.07%
Profit Quality 503.65%
Current Ratio 2.19
Quick Ratio 2.1
Altman-Z 2.78
F-Score5
WACC9.34%
ROIC/WACC1.38
Cap/Depr(3y)50.29%
Cap/Depr(5y)38.63%
Cap/Sales(3y)7.2%
Cap/Sales(5y)6.46%
Profit Quality(3y)310.13%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.6%
EPS 3Y27.03%
EPS 5Y42.41%
EPS Q2Q%11.11%
EPS Next Y9.23%
EPS Next 2Y11.58%
EPS Next 3Y12.27%
EPS Next 5YN/A
Revenue 1Y (TTM)6.9%
Revenue growth 3Y16.88%
Revenue growth 5Y14.4%
Sales Q2Q%6.45%
Revenue Next Year5.8%
Revenue Next 2Y6.62%
Revenue Next 3Y7.16%
Revenue Next 5YN/A
EBIT growth 1Y22.3%
EBIT growth 3Y27.75%
EBIT growth 5Y17.88%
EBIT Next Year30.2%
EBIT Next 3Y15.29%
EBIT Next 5YN/A
FCF growth 1Y-1.55%
FCF growth 3Y-3.15%
FCF growth 5Y7.98%
OCF growth 1Y8.6%
OCF growth 3Y5%
OCF growth 5Y10.82%