VERX Stock Overview
Vertex, Inc. provides tax technology solutions for corporations in retail, communication, leasing, and manufacturing industries in the United States and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$11.05|
|52 Week High||US$22.88|
|52 Week Low||US$9.44|
|1 Month Change||3.56%|
|3 Month Change||-24.16%|
|1 Year Change||-49.86%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-53.82%|
Recent News & Updates
|VERX||US Software||US Market|
Return vs Industry: VERX underperformed the US Software industry which returned -23% over the past year.
Return vs Market: VERX underperformed the US Market which returned -20.8% over the past year.
|VERX Average Weekly Movement||9.4%|
|Software Industry Average Movement||10.9%|
|Market Average Movement||7.9%|
|10% most volatile stocks in US Market||16.5%|
|10% least volatile stocks in US Market||3.1%|
Stable Share Price: VERX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: VERX's weekly volatility (9%) has been stable over the past year.
About the Company
Vertex, Inc. provides tax technology solutions for corporations in retail, communication, leasing, and manufacturing industries in the United States and internationally. It offers tax determination, compliance and reporting, tax data management, document management, pre-built integration, and industry-specific solutions. The company sells its software products through software license and software as a service subscriptions.
Vertex Fundamentals Summary
|VERX fundamental statistics|
Is VERX overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|VERX income statement (TTM)|
|Cost of Revenue||US$169.83m|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||-0.027|
|Net Profit Margin||-0.93%|
How did VERX perform over the long term?See historical performance and comparison
Is VERX undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for VERX?
Other financial metrics that can be useful for relative valuation.
|What is VERX's n/a Ratio?|
Price to Sales Ratio vs Peers
How does VERX's PS Ratio compare to its peers?
|VERX PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
Price-To-Sales vs Peers: VERX is good value based on its Price-To-Sales Ratio (3.7x) compared to the peer average (4.7x).
Price to Earnings Ratio vs Industry
How does VERX's PE Ratio compare vs other companies in the U.S. Software Industry?
Price-To-Sales vs Industry: VERX is good value based on its Price-To-Sales Ratio (3.7x) compared to the US Software industry average (4.3x)
Price to Sales Ratio vs Fair Ratio
What is VERX's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||3.7x|
|Fair PS Ratio||4.3x|
Price-To-Sales vs Fair Ratio: VERX is good value based on its Price-To-Sales Ratio (3.7x) compared to the estimated Fair Price-To-Sales Ratio (4.3x).
Share Price vs Fair Value
What is the Fair Price of VERX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: VERX ($11.05) is trading below our estimate of fair value ($20.77)
Significantly Below Fair Value: VERX is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate VERX's PEG Ratio to determine if it is good value.
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How is Vertex forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VERX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: VERX is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: VERX is expected to become profitable in the next 3 years.
Revenue vs Market: VERX's revenue (13.7% per year) is forecast to grow faster than the US market (8.3% per year).
High Growth Revenue: VERX's revenue (13.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VERX's Return on Equity is forecast to be low in 3 years time (2.3%).
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How has Vertex performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VERX is currently unprofitable.
Growing Profit Margin: VERX is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: VERX is unprofitable, and losses have increased over the past 5 years at a rate of 5.3% per year.
Accelerating Growth: Unable to compare VERX's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: VERX is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (27.1%).
Return on Equity
High ROE: VERX has a negative Return on Equity (-1.76%), as it is currently unprofitable.
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How is Vertex's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: VERX's short term assets ($220.6M) do not cover its short term liabilities ($356.6M).
Long Term Liabilities: VERX's short term assets ($220.6M) exceed its long term liabilities ($108.1M).
Debt to Equity History and Analysis
Debt Level: VERX has more cash than its total debt.
Reducing Debt: Insufficient data to determine if VERX's debt to equity ratio has reduced over the past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable VERX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: VERX is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 3.3% per year.
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What is Vertex current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate VERX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate VERX'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 VERX's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if VERX'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 VERX has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David DeStefano (58 yo)
Mr. David DeStefano is the Chief Executive Officer of Vertex Inc. since November 2, 2016 and also serves as its President since January 1, 2016 and has been Director since 2019. He serves as the Chairman o...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD6.87M) is about average for companies of similar size in the US market ($USD5.57M).
Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.
Experienced Management: VERX's management team is considered experienced (2.4 years average tenure).
Experienced Board: VERX's board of directors are considered experienced (5.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: VERX insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Vertex, Inc.'s employee growth, exchange listings and data sources
- Name: Vertex, Inc.
- Ticker: VERX
- Exchange: NasdaqGM
- Founded: 1978
- Industry: Application Software
- Sector: Software
- Implied Market Cap: US$1.651b
- Shares outstanding: 149.39m
- Website: https://www.vertexinc.com
Number of Employees
- Vertex, Inc.
- 2301 Renaissance Boulevard
- King of Prussia
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/23 00:00|
|End of Day Share Price||2022/06/23 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.