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VERX

Vertex NasdaqGM:VERX Stock Report

Last Price

US$11.05

Market Cap

US$1.7b

7D

12.6%

1Y

-49.9%

Updated

23 Jun, 2022

Data

Company Financials +
VERX fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health4/6
Dividends0/6

VERX Stock Overview

Vertex, Inc. provides tax technology solutions for corporations in retail, communication, leasing, and manufacturing industries in the United States and internationally.

Vertex Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Vertex
Historical stock prices
Current Share PriceUS$11.05
52 Week HighUS$22.88
52 Week LowUS$9.44
Beta0
1 Month Change3.56%
3 Month Change-24.16%
1 Year Change-49.86%
3 Year Changen/a
5 Year Changen/a
Change since IPO-53.82%

Recent News & Updates

Shareholder Returns

VERXUS SoftwareUS Market
7D12.6%7.7%4.0%
1Y-49.9%-21.3%-20.5%

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.

Price Volatility

Is VERX's price volatile compared to industry and market?
VERX volatility
VERX Average Weekly Movement9.4%
Software Industry Average Movement10.9%
Market Average Movement7.9%
10% most volatile stocks in US Market16.5%
10% least volatile stocks in US Market3.1%

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

FoundedEmployeesCEOWebsite
19781,300David DeStefanohttps://www.vertexinc.com

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

How do Vertex's earnings and revenue compare to its market cap?
VERX fundamental statistics
Market CapUS$1.65b
Earnings (TTM)-US$4.10m
Revenue (TTM)US$442.30m

3.7x

P/S Ratio

-402.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VERX income statement (TTM)
RevenueUS$442.30m
Cost of RevenueUS$169.83m
Gross ProfitUS$272.47m
Other ExpensesUS$276.57m
Earnings-US$4.10m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.027
Gross Margin61.60%
Net Profit Margin-0.93%
Debt/Equity Ratio21.4%

How did VERX perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is VERX 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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 VERX?

Other financial metrics that can be useful for relative valuation.

VERX 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/Revenue3.7x
Enterprise Value/EBITDA104.9x
PEG Ration/a

Price to Sales Ratio vs Peers

How does VERX's PS Ratio compare to its peers?

VERX PS Ratio vs Peers
The above table shows the PS ratio for VERX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average4.7x

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.

VERX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.7x
Fair PS Ratio4.3x

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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Future Growth

How is Vertex forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


123.2%

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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Past Performance

How has Vertex performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-5.3%

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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Financial Health

How is Vertex's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • 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.


Balance Sheet


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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Dividend

What is Vertex 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 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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Management

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

2.4yrs

Average management tenure


CEO

David DeStefano (58 yo)

6.42yrs

Tenure

US$6,870,858

Compensation

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.


Leadership Team

Experienced Management: VERX's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: VERX's board of directors are considered experienced (5.4 years average tenure).


Ownership

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

Ownership Breakdown

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


Top Shareholders

Company Information

Vertex, Inc.'s employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Vertex, Inc.
  • 2301 Renaissance Boulevard
  • King of Prussia
  • Pennsylvania
  • 19406
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/23 00:00
End of Day Share Price2022/06/23 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.