VRRM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. VRRM scores excellent on profitability, but there are some minor concerns on its financial health. VRRM has a correct valuation and a medium growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year VRRM was profitable.
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

Looking at the Return On Assets, with a value of 2.85%, VRRM is in line with its industry, outperforming 57.95% of the companies in the same industry.
The Return On Equity of VRRM (12.59%) is better than 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 29.07%.
The 3 year average ROIC (10.27%) for VRRM is below the current ROIC(12.66%), indicating increased profibility in the last year.

		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

VRRM's Profit Margin of 5.38% is fine compared to the rest of the industry. VRRM outperforms 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.
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	26.35%
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
VRRM has more shares outstanding than it did 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 2.46. 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.
With a Altman-Z score value of 2.46, VRRM perfoms like the industry average, outperforming 47.73% of the companies in the same industry.
VRRM has a debt to FCF ratio of 6.73. This is a slightly negative value and a sign of low solvency as VRRM would need 6.73 years to pay back of all of its debts.
The Debt to FCF ratio of VRRM (6.73) is comparable to the rest of the industry.
VRRM has a Debt/Equity ratio of 2.55. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.55, VRRM is not doing good in the industry: 76.14% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	2.55
Debt/FCF	6.73
Altman-Z	2.46

ROIC/WACC1.35

WACC9.35%

2.3 Liquidity

A Current Ratio of 2.45 indicates that VRRM has no problem at all paying 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.
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.
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

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 17.54% over the past year.
The Earnings Per Share has been growing by 42.41% on average over the past years. This is a very strong growth
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.
Based on estimates for the next years, VRRM will show a small growth in Revenue. The Revenue will grow by 7.80% on average per year.

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

The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 14.40 indicates a correct valuation of VRRM.
73.86% of the companies in the same industry are more expensive than VRRM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.30. VRRM is valued slightly cheaper when compared to this.
VRRM is valuated correctly with a Price/Forward Earnings ratio of 13.94.
Based on the Price/Forward Earnings ratio, VRRM is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VRRM to the average of the S&P500 Index (25.57), we can say VRRM is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	14.4
Fwd PE	13.94

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VRRM is valued a bit cheaper than 77.27% of the companies in the same industry.
63.64% 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	20.13
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.