Verra Mobility Corporation Fundamental Analysis (NASDAQ: VRRM)
Verra Mobility Corporation Fundamental Analysis (NASDAQ: VRRM)
Verra Mobility Corporation (NASDAQ: VRRM) shows moderate financial fundamentals with a PE ratio of 18.13, profit margin of 4.40%, and ROE of 14.86%. The company generates $1.0B in annual revenue with strong year-over-year growth of 11.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VRRM's fundamental strength across five key dimensions:
Efficiency Score
WeakVRRM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVRRM trades at attractive valuation levels.
Growth Score
ModerateVRRM shows steady but slowing expansion.
Financial Health Score
ModerateVRRM shows balanced financial health with some risks.
Profitability Score
WeakVRRM struggles to sustain strong margins.
Key Financial Metrics
Is VRRM Expensive or Cheap?
P/E Ratio
VRRM trades at 18.13 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VRRM's PEG of 1.45 indicates fair valuation.
Price to Book
The market values Verra Mobility Corporation at 3.33 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -1.07 times EBITDA. This is generally considered low.
How Well Does VRRM Make Money?
Net Profit Margin
For every $100 in sales, Verra Mobility Corporation keeps $4.40 as profit after all expenses.
Operating Margin
Core operations generate 13.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.86 in profit for every $100 of shareholder equity.
ROA
Verra Mobility Corporation generates $2.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Verra Mobility Corporation generates strong operating cash flow of $254.95M, reflecting robust business health.
Free Cash Flow
Verra Mobility Corporation generates strong free cash flow of $105.76M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.70 in free cash annually.
FCF Yield
VRRM converts 14.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How VRRM Stacks Against Its Sector Peers
| Metric | VRRM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.13 | 35.21 | Better (Cheaper) |
| ROE | 14.86% | 727.00% | Weak |
| Net Margin | 4.40% | -130589.00% (disorted) | Weak |
| Debt/Equity | 4.86 | 0.40 | Weak (High Leverage) |
| Current Ratio | 2.06 | 5.88 | Strong Liquidity |
| ROA | 2.74% | 253.00% | Weak |
VRRM outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Verra Mobility Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
152.87%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
3133.96%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
454.34%
Industry Style: Growth, Innovation, High Beta
High Growth