Verimatrix Société anonyme (ENXTPA:VMX) - Share price, News & Analysis

VMX fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	3/6
Financial Health	5/6
Dividends	0/6

VMX Stock Overview

Verimatrix Société anonyme provides security solutions that protect digital content, applications, and devices worldwide.

Rewards

Trading at 76.3% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of 4.5% per year for the next 3 years

Volatile share price over the past 3 months

Does not have a meaningful market cap (€61M)

Verimatrix Société anonyme Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Verimatrix Société anonyme
Historical stock prices
Current Share Price	€0.71
52 Week High	€2.18
52 Week Low	€0.64
Beta	1.65
1 Month Change	-6.21%
3 Month Change	-34.62%
1 Year Change	-64.07%
3 Year Change	-57.07%
5 Year Change	-76.33%
Change since IPO	-92.28%

Shareholder Returns

	VMX	FR Software	FR Market
7D	10.6%	4.7%	0.9%
1Y	-64.1%	-15.2%	-14.0%

Return vs Industry: VMX underperformed the French Software industry which returned -15.2% over the past year.

Return vs Market: VMX underperformed the French Market which returned -12.8% over the past year.

Price Volatility

Is VMX's price volatile compared to industry and market?
VMX volatility
VMX Average Weekly Movement	6.5%
Software Industry Average Movement	5.4%
Market Average Movement	5.0%
10% most volatile stocks in FR Market	9.1%
10% least volatile stocks in FR Market	2.9%

Stable Share Price: VMX is more volatile than 75% of French stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: VMX's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of French stocks.

About the Company

Founded	Employees	CEO	Website
1995	246	Amedeo D'Angelo	https://www.verimatrix.com

Verimatrix Société anonyme provides security solutions that protect digital content, applications, and devices worldwide. The company offers security solutions for various markets, including automotive, sports, financial services, healthcare, internet of things, live sports, media and entertainment, and TV, as well as for content owners. The company was formerly known as Inside Secure S.A. and changed its name to Verimatrix Société anonyme in July 2017.

Verimatrix Société anonyme Fundamentals Summary

How do Verimatrix Société anonyme's earnings and revenue compare to its market cap?
VMX fundamental statistics
Market Cap	US$63.75m
Earnings (TTM)	US$3.67m
Revenue (TTM)	US$88.47m

17.4x

P/E Ratio

0.7x

P/S Ratio

Is VMX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
VMX income statement (TTM)
Revenue	US$88.47m
Cost of Revenue	US$23.47m
Gross Profit	US$64.99m
Other Expenses	US$61.32m
Earnings	US$3.67m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)	0.043
Gross Margin	73.47%
Net Profit Margin	4.15%
Debt/Equity Ratio	30.3%

How did VMX perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is VMX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VMX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for VMX. This is calculated by dividing VMX's market cap by their current preferred multiple.
What is VMX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$63.75m

VMX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	5.6x
PEG Ratio	-3.8x

Price to Earnings Ratio vs Peers

How does VMX's PE Ratio compare to its peers?

VMX PE Ratio vs Peers

The above table shows the PE ratio for VMX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	21.2x

Forward PE

Price-To-Earnings vs Peers: VMX is good value based on its Price-To-Earnings Ratio (17.4x) compared to the peer average (21.2x).

Price to Earnings Ratio vs Industry

How does VMX's PE Ratio compare vs other companies in the Software Industry?

Price-To-Earnings vs Industry: VMX is good value based on its Price-To-Earnings Ratio (17.4x) compared to the French Software industry average (36.1x)

Price to Earnings Ratio vs Fair Ratio

What is VMX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VMX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17.4x
Fair PE Ratio	18.5x

Price-To-Earnings vs Fair Ratio: VMX is good value based on its Price-To-Earnings Ratio (17.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.5x).

Share Price vs Fair Value

What is the Fair Price of VMX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VMX (€0.71) is trading below our estimate of fair value (€2.99)

Significantly Below Fair Value: VMX is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: VMX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Discover undervalued companies

Future Growth

How is Verimatrix Société anonyme forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-4.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: VMX's earnings are forecast to decline over the next 3 years (-4.5% per year).

Earnings vs Market: VMX's earnings are forecast to decline over the next 3 years (-4.5% per year).

High Growth Earnings: VMX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: VMX's revenue is expected to decline over the next 3 years (-5.8% per year).

High Growth Revenue: VMX's revenue is forecast to decline over the next 3 years (-5.8% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: VMX's Return on Equity is forecast to be low in 3 years time (2.2%).

Discover growth companies

Past Performance

How has Verimatrix Société anonyme performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

27.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VMX has high quality earnings.

Growing Profit Margin: VMX became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: VMX has become profitable over the past 5 years, growing earnings by 27% per year.

Accelerating Growth: VMX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VMX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (32.5%).

Return on Equity

High ROE: VMX's Return on Equity (2.4%) is considered low.

Discover strong past performing companies

Financial Health

How is Verimatrix Société anonyme's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: VMX's short term assets ($90.6M) exceed its short term liabilities ($47.4M).

Long Term Liabilities: VMX's short term assets ($90.6M) exceed its long term liabilities ($40.3M).

Debt to Equity History and Analysis

Debt Level: VMX's net debt to equity ratio (0.4%) is considered satisfactory.

Reducing Debt: VMX had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: VMX's debt is well covered by operating cash flow (27.6%).

Interest Coverage: VMX's interest payments on its debt are not well covered by EBIT (1.4x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Verimatrix Société anonyme current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate VMX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VMX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VMX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VMX's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as VMX has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure

CEO

Amedeo D'Angelo (67 yo)

4.08yrs

Tenure

US$901,187

Compensation

Mr. Amedeo D'Angelo has been Chief Executive Officer at Verimatrix Société anonyme (formerly known as Inside Secure S.A.) May 16, 2018 and served as its President since September 29, 2015 until 2019 and ha...

CEO Compensation Analysis

Compensation vs Market: Amedeo's total compensation ($USD901.19K) is above average for companies of similar size in the French market ($USD307.96K).

Compensation vs Earnings: Amedeo's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: VMX's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: VMX's board of directors are considered experienced (3.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/23 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31