19.31 USD
-0.28 (-1.43%)
Last: Jan 30, 2026, 01:15 PM
Taking everything into account, VRRM scores 5 out of 10 in our fundamental rating. VRRM was compared to 88 industry peers in the IT Services industry. While VRRM has a great profitability rating, there are some minor concerns on its financial health. VRRM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year VRRM was profitable.
- VRRM had a positive operating cash flow in the past year.
- VRRM had positive earnings in 4 of the past 5 years.
- VRRM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- VRRM has a Return On Assets (2.85%) which is comparable to the rest of the industry.
- VRRM's Return On Equity of 12.59% is fine compared to the rest of the industry. VRRM outperforms 75.00% of its industry peers.
- VRRM has a Return On Invested Capital of 12.66%. This is amongst the best in the industry. VRRM outperforms 84.09% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for VRRM is significantly below the industry average of 29.06%.
- The last Return On Invested Capital (12.66%) for VRRM is above the 3 year average (10.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 12.59% | ||
| ROIC | 12.66% |
ROA(3y)3.47%
ROA(5y)2.46%
ROE(3y)21.81%
ROE(5y)15.98%
ROIC(3y)10.27%
ROIC(5y)7.68%
1.3 Margins
- The Profit Margin of VRRM (5.38%) is better than 63.64% of its industry peers.
- VRRM's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 26.35%, VRRM belongs to the top of the industry, outperforming 97.73% of the companies in the same industry.
- In the last couple of years the Operating Margin of VRRM has grown nicely.
- VRRM has a Gross Margin of 93.48%. This is amongst the best in the industry. VRRM outperforms 100.00% of its industry peers.
- VRRM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.35% | ||
| PM (TTM) | 5.38% | ||
| GM | 93.48% |
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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VRRM is creating some value.
- The number of shares outstanding for VRRM has been reduced compared to 1 year ago.
- The number of shares outstanding for VRRM has been increased compared to 5 years ago.
- The debt/assets ratio for VRRM is higher compared to a year ago.
2.2 Solvency
- VRRM has an Altman-Z score of 2.46. This is not the best score and indicates that VRRM is in the grey zone with still only limited risk for bankruptcy at the moment.
- VRRM has a Altman-Z score of 2.46. This is comparable to the rest of the industry: VRRM outperforms 47.73% of its industry peers.
- The Debt to FCF ratio of VRRM is 6.73, which is on the high side as it means it would take VRRM, 6.73 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of VRRM (6.73) is comparable to the rest of the industry.
- A Debt/Equity ratio of 2.55 is on the high side and indicates that VRRM has dependencies on debt financing.
- The Debt to Equity ratio of VRRM (2.55) is worse than 76.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 6.73 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.35
WACC9.38%
2.3 Liquidity
- VRRM has a Current Ratio of 2.45. This indicates that VRRM is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.45, VRRM is doing good in the industry, outperforming 70.45% of the companies in the same industry.
- A Quick Ratio of 2.35 indicates that VRRM has no problem at all paying its short term obligations.
- VRRM's Quick ratio of 2.35 is fine compared to the rest of the industry. VRRM outperforms 69.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.54% 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.
- Looking at the last year, VRRM shows a quite strong growth in Revenue. The Revenue has grown by 8.52% in the last year.
- 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)17.54%
EPS 3Y27.03%
EPS 5Y42.41%
EPS Q2Q%15.62%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y16.88%
Revenue growth 5Y14.4%
Sales Q2Q%16.13%
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 9.50% on average per year.
- VRRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.80% yearly.
EPS Next Y10.41%
EPS Next 2Y6.09%
EPS Next 3Y9.5%
EPS Next 5YN/A
Revenue Next Year9.53%
Revenue Next 2Y7.87%
Revenue Next 3Y7.8%
Revenue Next 5YN/A
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 decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 14.41 indicates a correct valuation of VRRM.
- Compared to the rest of the industry, the Price/Earnings ratio of VRRM indicates a somewhat cheap valuation: VRRM is cheaper than 73.86% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, VRRM is valued a bit cheaper.
- VRRM is valuated correctly with a Price/Forward Earnings ratio of 13.95.
- 75.00% of the companies in the same industry are more expensive than VRRM, based on the Price/Forward Earnings ratio.
- VRRM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 13.95 |
4.2 Price Multiples
- VRRM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VRRM is cheaper than 77.27% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, VRRM is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.14 | ||
| EV/EBITDA | 10.95 |
4.3 Compensation for Growth
- VRRM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- VRRM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.38
PEG (5Y)0.34
EPS Next 2Y6.09%
EPS Next 3Y9.5%
5. Dividend
5.1 Amount
- VRRM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
VERRA MOBILITY CORP / VRRM FAQ
Can you provide the ChartMill fundamental rating for VERRA MOBILITY CORP?
ChartMill assigns a fundamental rating of 5 / 10 to VRRM.
Can you provide the valuation status for VERRA MOBILITY CORP?
ChartMill assigns a valuation rating of 5 / 10 to VERRA MOBILITY CORP (VRRM). This can be considered as Fairly Valued.
What is the profitability of VRRM stock?
VERRA MOBILITY CORP (VRRM) has a profitability rating of 7 / 10.
Can you provide the financial health for VRRM stock?
The financial health rating of VERRA MOBILITY CORP (VRRM) is 5 / 10.
What is the expected EPS growth for VERRA MOBILITY CORP (VRRM) stock?
The Earnings per Share (EPS) of VERRA MOBILITY CORP (VRRM) is expected to grow by 10.41% in the next year.