VERRA MOBILITY CORP (VRRM) Stock Fundamental Analysis
USA - NASDAQ:VRRM - US92511U1025 - Common Stock
24.48 USD
-0.16 (-0.65%)
24.48 USD
0 (0%)
Taking everything into account, VRRM scores 5 out of 10 in our fundamental rating. VRRM was compared to 87 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 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.
In the past year VRRM had a positive cash flow from operations.
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
With a Return On Assets value of 2.30%, VRRM perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
VRRM has a Return On Equity of 11.07%. This is in the better half of the industry: VRRM outperforms 68.97% of its industry peers.
The Return On Invested Capital of VRRM (12.65%) is better than 81.61% of its industry peers.
VRRM had an Average Return On Invested Capital over the past 3 years of 10.27%. This is significantly below the industry average of 21.81%.
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
Looking at the Profit Margin, with a value of 4.30%, VRRM is in line with its industry, outperforming 59.77% of the companies in the same industry.
VRRM's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 26.28%, VRRM belongs to the best of the industry, outperforming 97.70% of the companies in the same industry.
In the last couple of years the Operating Margin of VRRM has grown nicely.
VRRM has a better Gross Margin (94.44%) than 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
The number of shares outstanding for VRRM has been increased compared to 5 years ago.
VRRM has a worse debt/assets ratio than last year.
2.2 Solvency
VRRM has an Altman-Z score of 2.78. 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 2.78. This is comparable to the rest of the industry: VRRM outperforms 51.72% 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.
With a Debt to FCF ratio value of 5.46, VRRM perfoms like the industry average, outperforming 54.02% 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 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.93 | ||
| Debt/FCF | 5.46 | ||
| Altman-Z | 2.78 |
ROIC/WACC1.34
WACC9.41%
2.3 Liquidity
A Current Ratio of 2.28 indicates that VRRM has no problem at all paying its short term obligations.
The Current ratio of VRRM (2.28) is better than 68.97% 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 66.67% 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.
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 small growth in Revenue. The Revenue has grown by 6.24% 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)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.
Based on estimates for the next years, VRRM will show a small growth in Revenue. The Revenue will grow by 7.06% on average per year.
EPS Next Y9.58%
EPS Next 2Y11.37%
EPS Next 3Y10.94%
EPS Next 5YN/A
Revenue Next Year5.96%
Revenue Next 2Y6.72%
Revenue Next 3Y7.06%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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.
4. Valuation
4.1 Price/Earnings Ratio
VRRM is valuated rather expensively with a Price/Earnings ratio of 18.98.
Based on the Price/Earnings ratio, VRRM is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
VRRM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.06.
VRRM is valuated correctly with a Price/Forward Earnings ratio of 16.05.
VRRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VRRM is cheaper than 71.26% of the companies in the same industry.
VRRM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 16.05 |
4.2 Price Multiples
65.52% of the companies in the same industry are more expensive than VRRM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRRM indicates a somewhat cheap valuation: VRRM is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.69 | ||
| EV/EBITDA | 13.8 |
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.
The decent profitability rating of VRRM may justify a higher PE ratio.
PEG (NY)1.98
PEG (5Y)0.45
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 |
24.48
-0.16 (-0.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners104.48%
Inst Owner Change-2.05%
Ins Owners0.9%
Ins Owner Change0.28%
Market Cap3.91B
Analysts84.62
Price Target29.75 (21.53%)
Short Float %1.78%
Short Ratio3.35
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)0.86%
PT rev (3m)0.86%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)-1.23%
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 | 18.98 | ||
| Fwd PE | 16.05 | ||
| P/S | 4.31 | ||
| P/FCF | 20.69 | ||
| P/OCF | 13.59 | ||
| P/B | 11.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.8 |
EPS(TTM)1.29
EY5.27%
EPS(NY)1.53
Fwd EY6.23%
FCF(TTM)1.18
FCFY4.83%
OCF(TTM)1.8
OCFY7.36%
SpS5.68
BVpS2.21
TBVpS-3.71
PEG (NY)1.98
PEG (5Y)0.45
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 | 2.78 |
F-Score5
WACC9.41%
ROIC/WACC1.34
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 2Y6.72%
Revenue Next 3Y7.06%
Revenue Next 5YN/A
EBIT growth 1Y20.25%
EBIT growth 3Y27.75%
EBIT growth 5Y17.88%
EBIT Next Year30.2%
EBIT Next 3Y15.29%
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%