VERRA MOBILITY CORP (VRRM) Stock Fundamental Analysis
USA - NASDAQ:VRRM - US92511U1025 - Common Stock
23.95 USD
-0.71 (-2.88%)
23.95 USD
0 (0%)
Overall VRRM gets a fundamental rating of 5 out of 10. We evaluated VRRM against 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 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.
Of the past 5 years VRRM 4 years were profitable.
VRRM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VRRM has a Return On Assets (2.30%) which is in line with its industry peers.
The Return On Equity of VRRM (11.07%) is better than 69.41% of its industry peers.
With an excellent Return On Invested Capital value of 12.65%, VRRM belongs to the best of the industry, outperforming 81.18% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VRRM is significantly below the industry average of 21.61%.
The last Return On Invested Capital (12.65%) for VRRM is above the 3 year average (10.27%), which is a sign of increasing profitability.
| 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's Profit Margin of 4.30% is in line compared to the rest of the industry. VRRM outperforms 60.00% of its industry peers.
In the last couple of years the Profit Margin of VRRM has remained more or less at the same level.
Looking at the Operating Margin, with a value of 26.28%, VRRM belongs to the top of the industry, outperforming 97.65% 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 94.44%. 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 | 26.28% | ||
| 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.
Compared to 1 year ago, VRRM has less shares outstanding
VRRM has more shares outstanding than it did 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 2.73. 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.
With a Altman-Z score value of 2.73, VRRM perfoms like the industry average, outperforming 51.76% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 5.46, VRRM is in line with its industry, outperforming 54.12% of the companies in the same industry.
A Debt/Equity ratio of 2.93 is on the high side and indicates that VRRM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.93, VRRM is doing worse than 83.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.93 | ||
| Debt/FCF | 5.46 | ||
| Altman-Z | 2.73 |
ROIC/WACC1.37
WACC9.25%
2.3 Liquidity
VRRM has a Current Ratio of 2.28. This indicates that VRRM is financially healthy and has no problem in meeting its short term obligations.
VRRM has a Current ratio of 2.28. This is in the better half of the industry: VRRM outperforms 69.41% of its industry peers.
VRRM has a Quick Ratio of 2.21. This indicates that VRRM is financially healthy and has no problem in meeting its short term obligations.
VRRM has a Quick ratio of 2.21. This is in the better half of the industry: VRRM outperforms 64.71% of its industry peers.
| 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.
The Earnings Per Share has been growing by 42.41% on average over the past years. This is a very strong growth
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 11.24% on average per year.
The Revenue is expected to grow by 6.96% on average over the next years.
EPS Next Y9.58%
EPS Next 2Y11.37%
EPS Next 3Y11.24%
EPS Next 5YN/A
Revenue Next Year5.95%
Revenue Next 2Y6.72%
Revenue Next 3Y6.96%
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
A Price/Earnings ratio of 18.57 indicates a rather expensive valuation of VRRM.
Based on the Price/Earnings ratio, VRRM is valued a bit cheaper than 70.59% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.89, VRRM is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.70, 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 74.12% of the companies listed in the same industry.
VRRM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.57 | ||
| Fwd PE | 15.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRRM indicates a somewhat cheap valuation: VRRM is cheaper than 64.71% of the companies listed in the same industry.
65.88% of the companies in the same industry are more expensive than VRRM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.24 | ||
| EV/EBITDA | 13.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VRRM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.94
PEG (5Y)0.44
EPS Next 2Y11.37%
EPS Next 3Y11.24%
5. Dividend
5.1 Amount
No dividends for VRRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.95
-0.71 (-2.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners101.94%
Inst Owner Change-0.25%
Ins Owners0.9%
Ins Owner Change0.28%
Market Cap3.82B
Revenue(TTM)906.33M
Net Income(TTM)38.99M
Analysts84.62
Price Target29.75 (24.22%)
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)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)-0.01%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.57 | ||
| Fwd PE | 15.7 | ||
| P/S | 4.22 | ||
| P/FCF | 20.24 | ||
| P/OCF | 13.3 | ||
| P/B | 10.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.48 |
EPS(TTM)1.29
EY5.39%
EPS(NY)1.53
Fwd EY6.37%
FCF(TTM)1.18
FCFY4.94%
OCF(TTM)1.8
OCFY7.52%
SpS5.68
BVpS2.21
TBVpS-3.71
PEG (NY)1.94
PEG (5Y)0.44
Graham Number8
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%
ROICexgc growth 3Y9.79%
ROICexgc 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 | 2.73 |
F-Score5
WACC9.25%
ROIC/WACC1.37
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 3Y11.24%
EPS Next 5YN/A
Revenue 1Y (TTM)6.24%
Revenue growth 3Y16.88%
Revenue growth 5Y14.4%
Sales Q2Q%6.11%
Revenue Next Year5.95%
Revenue Next 2Y6.72%
Revenue Next 3Y6.96%
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%
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 18.57 and the Price/Book (PB) ratio is 10.85.
How financially healthy is VERRA MOBILITY CORP?
The financial health rating of VERRA MOBILITY CORP (VRRM) is 5 / 10.