NasdaqCM:VRRM

Stock Analysis Report

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Executive Summary

Verra Mobility Corporation provides smart mobility technology solutions and services in the United States, Canada, and Europe.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Verra Mobility's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VRRM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.1%

VRRM

-0.9%

US IT

1.5%

US Market


1 Year Return

-28.6%

VRRM

11.8%

US IT

6.9%

US Market

Return vs Industry: VRRM underperformed the US IT industry which returned 9.3% over the past year.

Return vs Market: VRRM underperformed the US Market which returned 5.3% over the past year.


Shareholder returns

VRRMIndustryMarket
7 Day-1.1%-0.9%1.5%
30 Day-13.2%4.4%5.9%
90 Day28.0%25.0%17.9%
1 Year-28.6%-28.6%12.9%11.8%9.2%6.9%
3 Yearn/a92.5%84.7%36.4%27.5%
5 Yearn/a139.5%119.6%64.9%47.0%

Price Volatility Vs. Market

How volatile is Verra Mobility's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Verra Mobility undervalued compared to its fair value and its price relative to the market?

47.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VRRM ($9.83) is trading below our estimate of fair value ($18.62)

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


Price To Earnings Ratio

PE vs Industry: VRRM is poor value based on its PE Ratio (42x) compared to the US IT industry average (26.9x).

PE vs Market: VRRM is poor value based on its PE Ratio (42x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: VRRM is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: VRRM is overvalued based on its PB Ratio (4.6x) compared to the US IT industry average (3.4x).


Next Steps

Future Growth

How is Verra Mobility forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

70.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRRM's forecast earnings growth (70.7% per year) is above the savings rate (2.2%).

Earnings vs Market: VRRM's earnings (70.7% per year) are forecast to grow faster than the US market (22.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VRRM's revenue (11.7% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: VRRM's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VRRM's Return on Equity is forecast to be low in 3 years time (17.9%).


Next Steps

Past Performance

How has Verra Mobility performed over the past 5 years?

-13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRRM has high quality earnings.

Growing Profit Margin: VRRM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: VRRM has become profitable over the past 5 years, growing earnings by -13.9% per year.

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

Earnings vs Industry: VRRM has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (14.2%).


Return on Equity

High ROE: VRRM's Return on Equity (10.8%) is considered low.


Next Steps

Financial Health

How is Verra Mobility's financial position?


Financial Position Analysis

Short Term Liabilities: VRRM's short term assets ($265.9M) exceed its short term liabilities ($72.0M).

Long Term Liabilities: VRRM's short term assets ($265.9M) do not cover its long term liabilities ($957.7M).


Debt to Equity History and Analysis

Debt Level: VRRM's debt to equity ratio (245.2%) is considered high.

Reducing Debt: Insufficient data to determine if VRRM's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VRRM's debt is not well covered by operating cash flow (13.2%).

Interest Coverage: VRRM's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Verra Mobility current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate VRRM'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 VRRM's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VRRM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

David Roberts (49yo)

5.92yrs

Tenure

US$873,434

Compensation

Mr. David M. Roberts is President and Chief Executive Officer of Verra Mobility Corporation since August 2014 and has been its Director since October 2018. He serves as the Chief Executive Officer of Ameri ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD873.43K) is below average for companies of similar size in the US market ($USD4.72M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Roberts
President5.92yrsUS$873.43k0.25% $4.0m
Patricia Chiodo
Chief Financial Officer5.08yrsUS$683.60k0.058% $926.5k
Rebecca Collins
General Counsel4.17yrsUS$517.49k0.0071% $113.0k
Vincent Brigidi
Executive Vice President of Commercial Services2.17yrsUS$532.94k0.028% $444.1k
Garrett Miller
Executive Vice President of Government Solutions1.17yrsUS$784.85k0.010% $158.5k
Jason Rivera
Chief Technology Officer2.08yrsno datano data
Mike McMillin
Vice President of Corporate Development and Strategy1.25yrsno datano data
Anat Eden
Chief People Officer2.25yrsno datano data

2.2yrs

Average Tenure

49yo

Average Age

Experienced Management: VRRM's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Roberts
President5.92yrsUS$873.43k0.25% $4.0m
Bryan Kelln
Director1.75yrsUS$150.00k0.0095% $151.0k
Cynthia Russo
Independent Director1.08yrsUS$128.75k0.0040% $63.6k
John Rexford
Independent Director1.75yrsUS$174.00k0.016% $249.7k
Douglas Davis
Independent Director1.08yrsUS$128.75k0.0040% $63.6k
Jacob Kotzubei
Chairman of the Board1.75yrsUS$150.00k0.30% $4.7m
Jay Geldmacher
Independent Director1.75yrsUS$172.50k0.0095% $151.0k

1.8yrs

Average Tenure

54yo

Average Age

Experienced Board: VRRM's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Verra Mobility Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Verra Mobility Corporation
  • Ticker: VRRM
  • Exchange: NasdaqCM
  • Founded:
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$1.589b
  • Shares outstanding: 161.69m
  • Website: https://www.verramobility.com

Number of Employees


Location

  • Verra Mobility Corporation
  • 1150 North Alma School Road
  • Mesa
  • Arizona
  • 85201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRRMNasdaqCM (Nasdaq Capital Market)YesClass A Common StockUSUSDOct 2018

Biography

Verra Mobility Corporation provides smart mobility technology solutions and services in the United States, Canada, and Europe. It operates through two segments, Government Solutions and Commercial Services. The Government Solutions segment offers automated safety solutions, including services and technologies that enable photo enforcement through road safety camera programs, which detects and process traffic violations related to red light, speed, school bus, and city bus lanes. This segment serves municipalities, counties, school districts, and law enforcement agencies. The Commercial Services segment provides automated toll and violations management, and title and registration solutions to rental car companies, fleet management companies, and other large fleet owners. The company is headquartered in Mesa, Arizona. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 23:57
End of Day Share Price2020/07/14 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.