VERRA MOBILITY CORP (VRRM) Stock Fundamental Analysis
USA - NASDAQ:VRRM - US92511U1025 - Common Stock
24.26 USD
-0.08 (-0.33%)
24.26 USD
0 (0%)
VRRM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 86 industry peers in the IT Services industry. While VRRM has a great profitability rating, there are some minor concerns on its financial health. VRRM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
VRRM had positive earnings in the past year.
VRRM had a positive operating cash flow in the past year.
Of the past 5 years VRRM 4 years were profitable.
In the past 5 years VRRM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.30%, VRRM is in line with its industry, outperforming 53.49% of the companies in the same industry.
VRRM has a better Return On Equity (11.07%) than 68.60% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.65%, VRRM belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VRRM is significantly below the industry average of 21.42%.
The 3 year average ROIC (10.27%) for VRRM is below the current ROIC(12.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 11.07% | ||
| ROIC | 12.65% |
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
VRRM has a Profit Margin (4.30%) which is comparable to the rest of the industry.
VRRM's Profit Margin has been stable in the last couple of years.
VRRM has a better Operating Margin (26.28%) than 97.67% of its industry peers.
VRRM's Operating Margin has improved in the last couple of years.
VRRM has a Gross Margin of 94.44%. 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.28% | ||
| PM (TTM) | 4.3% | ||
| GM | 94.44% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VRRM is still 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.
Compared to 1 year ago, VRRM has a worse debt to assets ratio.
2.2 Solvency
VRRM has an Altman-Z score of 2.75. 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's Altman-Z score of 2.75 is in line compared to the rest of the industry. VRRM outperforms 50.00% of its industry peers.
The Debt to FCF ratio of VRRM is 5.46, which is a neutral value as it means it would take VRRM, 5.46 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VRRM (5.46) is comparable to the rest of the industry.
VRRM has a Debt/Equity ratio of 2.93. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.93, VRRM is doing worse than 83.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.93 | ||
| Debt/FCF | 5.46 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.45
WACC8.7%
2.3 Liquidity
A Current Ratio of 2.28 indicates that VRRM has no problem at all paying its short term obligations.
VRRM has a better Current ratio (2.28) than 68.60% of its industry peers.
A Quick Ratio of 2.21 indicates that VRRM has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.21, VRRM is doing good in the industry, outperforming 66.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
VRRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.22%, which is quite good.
VRRM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 42.41% yearly.
VRRM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.24%.
The Revenue has been growing by 14.40% on average over the past years. This is quite good.
EPS 1Y (TTM)16.22%
EPS 3Y27.03%
EPS 5Y42.41%
EPS Q2Q%9.68%
Revenue 1Y (TTM)6.24%
Revenue growth 3Y16.88%
Revenue growth 5Y14.4%
Sales Q2Q%6.11%
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 10.94% on average per year.
VRRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.06% yearly.
EPS Next Y9.58%
EPS Next 2Y11.37%
EPS Next 3Y10.94%
EPS Next 5YN/A
Revenue Next Year5.96%
Revenue Next 2Y6.62%
Revenue Next 3Y7.06%
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.
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
The Price/Earnings ratio is 18.81, 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 66.28% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.42, VRRM is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.90, the valuation of VRRM can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRRM indicates a somewhat cheap valuation: VRRM is cheaper than 70.93% of the companies listed in the same industry.
VRRM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 15.9 |
4.2 Price Multiples
63.95% of the companies in the same industry are more expensive than VRRM, based on the Enterprise Value to EBITDA ratio.
VRRM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VRRM is cheaper than 63.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.51 | ||
| EV/EBITDA | 13.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VRRM does not grow enough to justify the current Price/Earnings ratio.
VRRM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.96
PEG (5Y)0.44
EPS Next 2Y11.37%
EPS Next 3Y10.94%
5. Dividend
5.1 Amount
No dividends for VRRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.26
-0.08 (-0.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners101.94%
Inst Owner Change-0.37%
Ins Owners0.9%
Ins Owner Change0.28%
Market Cap3.87B
Analysts84.62
Price Target29.75 (22.63%)
Short Float %1.9%
Short Ratio3.26
Dividend
| Industry Rank | Sector 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)1.72%
Min EPS beat(2)1.01%
Max EPS beat(2)2.43%
EPS beat(4)3
Avg EPS beat(4)2.92%
Min EPS beat(4)-0.63%
Max EPS beat(4)8.88%
EPS beat(8)6
Avg EPS beat(8)1.33%
EPS beat(12)9
Avg EPS beat(12)3.31%
EPS beat(16)12
Avg EPS beat(16)5.46%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)0.89%
Revenue beat(4)1
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)0.89%
Revenue beat(8)3
Avg Revenue beat(8)-0.36%
Revenue beat(12)5
Avg Revenue beat(12)-0.14%
Revenue beat(16)9
Avg Revenue beat(16)0.58%
PT rev (1m)0%
PT rev (3m)0.86%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)0%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 15.9 | ||
| P/S | 4.27 | ||
| P/FCF | 20.51 | ||
| P/OCF | 13.47 | ||
| P/B | 10.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.62 |
EPS(TTM)1.29
EY5.32%
EPS(NY)1.53
Fwd EY6.29%
FCF(TTM)1.18
FCFY4.88%
OCF(TTM)1.8
OCFY7.43%
SpS5.68
BVpS2.21
TBVpS-3.71
PEG (NY)1.96
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 11.07% | ||
| ROCE | 16.01% | ||
| ROIC | 12.65% | ||
| ROICexc | 14.04% | ||
| ROICexgc | 47.45% | ||
| OM | 26.28% | ||
| PM (TTM) | 4.3% | ||
| GM | 94.44% | ||
| FCFM | 20.83% |
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 Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.93 | ||
| Debt/FCF | 5.46 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 89.01% | ||
| Cap/Sales | 10.88% | ||
| Interest Coverage | 3.4 | ||
| Cash Conversion | 82.35% | ||
| Profit Quality | 484.09% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z | 2.75 |
F-Score5
WACC8.7%
ROIC/WACC1.45
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)16.22%
EPS 3Y27.03%
EPS 5Y42.41%
EPS Q2Q%9.68%
EPS Next Y9.58%
EPS Next 2Y11.37%
EPS Next 3Y10.94%
EPS Next 5YN/A
Revenue 1Y (TTM)6.24%
Revenue growth 3Y16.88%
Revenue growth 5Y14.4%
Sales Q2Q%6.11%
Revenue Next Year5.96%
Revenue Next 2Y6.62%
Revenue Next 3Y7.06%
Revenue Next 5YN/A
EBIT growth 1Y20.25%
EBIT growth 3Y27.75%
EBIT growth 5Y17.88%
EBIT Next Year30.54%
EBIT Next 3Y15.19%
EBIT Next 5YN/A
FCF growth 1Y8.35%
FCF growth 3Y-3.15%
FCF growth 5Y7.98%
OCF growth 1Y25.06%
OCF growth 3Y5%
OCF growth 5Y10.82%