Verra Mobility Corporation
Verra Mobility Corporation Fundamental Analysis
Verra Mobility Corporation (VRRMW) shows moderate financial fundamentals with a PE ratio of 17.38, profit margin of 13.96%, and ROE of 40.55%. The company generates $0.4B in annual revenue with moderate year-over-year growth of 7.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze VRRMW's fundamental strength across five key dimensions:
Efficiency Score
WeakVRRMW struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVRRMW trades at attractive valuation levels.
Growth Score
ModerateVRRMW shows steady but slowing expansion.
Financial Health Score
ExcellentVRRMW maintains a strong and stable balance sheet.
Profitability Score
ModerateVRRMW maintains healthy but balanced margins.
Key Financial Metrics
Is VRRMW Expensive or Cheap?
P/E Ratio
VRRMW trades at 17.38 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VRRMW's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Verra Mobility Corporation at 8.11 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.17 times EBITDA. This is generally considered low.
How Well Does VRRMW Make Money?
Net Profit Margin
For every $100 in sales, Verra Mobility Corporation keeps $13.96 as profit after all expenses.
Operating Margin
Core operations generate 24.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $40.55 in profit for every $100 of shareholder equity.
ROA
Verra Mobility Corporation generates $8.30 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 $98.20M, reflecting robust business health.
Free Cash Flow
Verra Mobility Corporation generates strong free cash flow of $52.45M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.87 in free cash annually.
FCF Yield
VRRMW converts 5.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.41
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How VRRMW Stacks Against Its Sector Peers
| Metric | VRRMW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.38 | 26.35 | Better (Cheaper) |
| ROE | 40.55% | 1297.00% | Weak |
| Net Margin | 13.96% | -41747.00% (disorted) | Strong |
| Debt/Equity | 0.13 | 0.71 | Strong (Low Leverage) |
| Current Ratio | 2.09 | 10.13 | Strong Liquidity |
| ROA | 8.30% | -1514519.00% (disorted) | Weak |
VRRMW outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, 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
87.38%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-9.80%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
59.85%
Industry Style: Cyclical, Value, Infrastructure
High Growth