VERRA MOBILITY CORP (VRRM) Stock Fundamental Analysis
USA - NASDAQ:VRRM - US92511U1025 - Common Stock
23.19 USD
+0.52 (+2.29%)
23.19 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to VRRM. VRRM was compared to 85 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
VRRM had positive earnings in the past year.
In the past year VRRM had a positive cash flow from operations.
Of the past 5 years VRRM 4 years were profitable.
Each year in the past 5 years VRRM had a positive operating cash flow.
1.2 Ratios
VRRM has a Return On Assets (2.87%) which is comparable to the rest of the industry.
VRRM has a Return On Equity of 12.66%. This is in the better half of the industry: VRRM outperforms 73.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.64%, VRRM belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
VRRM had an Average Return On Invested Capital over the past 3 years of 10.26%. This is significantly below the industry average of 29.74%.
The 3 year average ROIC (10.26%) for VRRM is below the current ROIC(12.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 12.66% | ||
| ROIC | 12.64% |
ROA(3y)3.46%
ROA(5y)2.46%
ROE(3y)21.75%
ROE(5y)15.95%
ROIC(3y)10.26%
ROIC(5y)7.68%
1.3 Margins
VRRM has a Profit Margin of 5.41%. This is in the better half of the industry: VRRM outperforms 63.10% of its industry peers.
In the last couple of years the Profit Margin of VRRM has declined.
VRRM has a Operating Margin of 26.31%. This is amongst the best in the industry. VRRM outperforms 97.62% of its industry peers.
VRRM's Operating Margin has improved in the last couple of years.
VRRM has a better Gross Margin (93.48%) than 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 | 26.31% | ||
| PM (TTM) | 5.41% | ||
| GM | 93.48% |
OM growth 3Y9.28%
OM growth 5Y3.03%
PM growth 3Y-22.31%
PM growth 5Y-1.54%
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.
VRRM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VRRM has more shares outstanding
Compared to 1 year ago, VRRM has a worse debt to assets ratio.
2.2 Solvency
VRRM has an Altman-Z score of 2.71. 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.
The Altman-Z score of VRRM (2.71) is comparable to the rest of the industry.
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.
With a Debt to FCF ratio value of 6.73, VRRM perfoms like the industry average, outperforming 48.81% of the companies in the same industry.
A Debt/Equity ratio of 2.56 is on the high side and indicates that VRRM has dependencies on debt financing.
VRRM's Debt to Equity ratio of 2.56 is on the low side compared to the rest of the industry. VRRM is outperformed by 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 6.73 | ||
| Altman-Z | 2.71 |
ROIC/WACC1.41
WACC8.96%
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.
Looking at the Current ratio, with a value of 2.45, VRRM is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
VRRM has a Quick Ratio of 2.35. This indicates that VRRM is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.35, VRRM is doing good in the industry, outperforming 72.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
VRRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.54%, 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.
The Revenue has grown by 8.52% in the past year. This is quite good.
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 9.88% on average per year.
VRRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.61% yearly.
EPS Next Y10.65%
EPS Next 2Y7.42%
EPS Next 3Y9.88%
EPS Next 5YN/A
Revenue Next Year9.02%
Revenue Next 2Y8.02%
Revenue Next 3Y7.61%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 17.31, 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 69.05% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.89. VRRM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.34, VRRM is valued correctly.
Based on the Price/Forward Earnings ratio, VRRM is valued a bit cheaper than the industry average as 72.62% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VRRM to the average of the S&P500 Index (34.59), we can say VRRM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.31 | ||
| Fwd PE | 16.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRRM is valued a bit cheaper than 67.86% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as VRRM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.18 | ||
| EV/EBITDA | 12.56 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of VRRM may justify a higher PE ratio.
PEG (NY)1.63
PEG (5Y)0.41
EPS Next 2Y7.42%
EPS Next 3Y9.88%
5. Dividend
5.1 Amount
VRRM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.19
+0.52 (+2.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners101.94%
Inst Owner Change-0.31%
Ins Owners0.9%
Ins Owner Change0.45%
Market Cap3.70B
Revenue(TTM)942.72M
Net Income(TTM)51.00M
Analysts84.62
Price Target29.75 (28.29%)
Short Float %1.56%
Short Ratio2.73
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)3.19%
Min EPS beat(2)1.01%
Max EPS beat(2)5.36%
EPS beat(4)4
Avg EPS beat(4)4.42%
Min EPS beat(4)1.01%
Max EPS beat(4)8.88%
EPS beat(8)6
Avg EPS beat(8)1.47%
EPS beat(12)10
Avg EPS beat(12)3.94%
EPS beat(16)12
Avg EPS beat(16)4.24%
Revenue beat(2)1
Avg Revenue beat(2)3.72%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)8.05%
Revenue beat(4)2
Avg Revenue beat(4)1.7%
Min Revenue beat(4)-1.5%
Max Revenue beat(4)8.05%
Revenue beat(8)4
Avg Revenue beat(8)0.83%
Revenue beat(12)6
Avg Revenue beat(12)0.69%
Revenue beat(16)9
Avg Revenue beat(16)0.89%
PT rev (1m)0%
PT rev (3m)0.86%
EPS NQ rev (1m)-7.59%
EPS NQ rev (3m)-7.59%
EPS NY rev (1m)0.97%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)3.15%
Revenue NQ rev (3m)3.15%
Revenue NY rev (1m)2.88%
Revenue NY rev (3m)3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.31 | ||
| Fwd PE | 16.34 | ||
| P/S | 3.92 | ||
| P/FCF | 24.18 | ||
| P/OCF | 14.4 | ||
| P/B | 9.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.56 |
EPS(TTM)1.34
EY5.78%
EPS(NY)1.42
Fwd EY6.12%
FCF(TTM)0.96
FCFY4.14%
OCF(TTM)1.61
OCFY6.95%
SpS5.91
BVpS2.53
TBVpS-3.28
PEG (NY)1.63
PEG (5Y)0.41
Graham Number8.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 12.66% | ||
| ROCE | 16% | ||
| ROIC | 12.64% | ||
| ROICexc | 14.47% | ||
| ROICexgc | 45.8% | ||
| OM | 26.31% | ||
| PM (TTM) | 5.41% | ||
| GM | 93.48% | ||
| FCFM | 16.23% |
ROA(3y)3.46%
ROA(5y)2.46%
ROE(3y)21.75%
ROE(5y)15.95%
ROIC(3y)10.26%
ROIC(5y)7.68%
ROICexc(3y)11.01%
ROICexc(5y)8.24%
ROICexgc(3y)50.26%
ROICexgc(5y)40.04%
ROCE(3y)12.99%
ROCE(5y)9.72%
ROICexgc growth 3Y9.86%
ROICexgc growth 5Y-1.21%
ROICexc growth 3Y34.51%
ROICexc growth 5Y14.8%
OM growth 3Y9.28%
OM growth 5Y3.03%
PM growth 3Y-22.31%
PM growth 5Y-1.54%
GM growth 3Y0.41%
GM growth 5Y-0.19%
F-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.56 | ||
| Debt/FCF | 6.73 | ||
| Debt/EBITDA | 2.85 | ||
| Cap/Depr | 92.04% | ||
| Cap/Sales | 11.03% | ||
| Interest Coverage | 3.7 | ||
| Cash Conversion | 71.18% | ||
| Profit Quality | 300% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.35 | ||
| Altman-Z | 2.71 |
F-Score5
WACC8.96%
ROIC/WACC1.41
Cap/Depr(3y)50.11%
Cap/Depr(5y)38.52%
Cap/Sales(3y)7.18%
Cap/Sales(5y)6.45%
Profit Quality(3y)312.95%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.54%
EPS 3Y27.03%
EPS 5Y42.41%
EPS Q2Q%15.62%
EPS Next Y10.65%
EPS Next 2Y7.42%
EPS Next 3Y9.88%
EPS Next 5YN/A
Revenue 1Y (TTM)8.52%
Revenue growth 3Y16.88%
Revenue growth 5Y14.4%
Sales Q2Q%16.13%
Revenue Next Year9.02%
Revenue Next 2Y8.02%
Revenue Next 3Y7.61%
Revenue Next 5YN/A
EBIT growth 1Y22.27%
EBIT growth 3Y27.73%
EBIT growth 5Y17.87%
EBIT Next Year30.54%
EBIT Next 3Y15.19%
EBIT Next 5YN/A
FCF growth 1Y-18.23%
FCF growth 3Y-3.11%
FCF growth 5Y8.01%
OCF growth 1Y7.13%
OCF growth 3Y5.05%
OCF growth 5Y10.86%
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.
What is the valuation status of VERRA MOBILITY CORP (VRRM) stock?
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.
What are the PE and PB ratios of VERRA MOBILITY CORP (VRRM) stock?
The Price/Earnings (PE) ratio for VERRA MOBILITY CORP (VRRM) is 17.31 and the Price/Book (PB) ratio is 9.18.
How financially healthy is VERRA MOBILITY CORP?
The financial health rating of VERRA MOBILITY CORP (VRRM) is 5 / 10.