One-glance verdict
Undervalued
$37.12 our estimate vs market $15.17
Wall Street consensus: $17.08 (-54.0% lower than our fair-value estimate)
59% below our estimate, below the bear case
Fundamentals snapshot
Vertex, Inc.
VERX · NGM · Technology · Software - Application
Current price
$15.17
52-week range
$10.21 - $25.84
Market cap
$2.46B
Balance sheet
Distressed
-3.52x Concerning
Net debt $119.43M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 5.2% last year.
- Reward Free cash flow was positive in 7/10 years.
- Risk Stock trades 203.9% above its 5-year average P/E.
What this company does
Vertex, Inc.
Vertex, Inc. helps businesses manage their taxes, like sales tax and other complex tax rules, by providing software and services. The money they make mainly comes from selling software licenses and offering their services on a subscription basis, which is a consistent way for them to earn revenue. This focus on recurring revenue (money earned repeatedly over time) means they have a predictable income stream from customers who continue to use their tax solutions.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-24.28M
FY2024 Q4
$41.13M
FY2026 Q1
$16.01M
FY2026 Q2
$30.90M
Revenue
$203.97M
Net income
$9.04M
Diluted EPS
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Operating cash flow
$30.90M
Free cash flow
$30.90M
Fetching…
Sources
Revenue
$196.65M
Net income
$-2.51M
Diluted EPS
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Operating cash flow
$37.98M
Free cash flow
$16.01M
Fetching…
Sources
Revenue
$194.71M
Net income
$-7.00M
Diluted EPS
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Operating cash flow
$42.27M
Free cash flow
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Sources
Revenue
$192.11M
Net income
$4.04M
Diluted EPS
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Operating cash flow
$62.47M
Free cash flow
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Sources
Revenue
$184.56M
Net income
$-961.00K
Diluted EPS
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Operating cash flow
$46.00M
Free cash flow
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Sources
Revenue
$177.06M
Net income
$11.13M
Diluted EPS
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Operating cash flow
$14.80M
Free cash flow
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Sources
Revenue
$178.46M
Net income
$-67.80M
Diluted EPS
—
Operating cash flow
$41.13M
Free cash flow
$41.13M
Fetching…
Sources
Revenue
$170.44M
Net income
$7.22M
Diluted EPS
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Operating cash flow
$41.40M
Free cash flow
$-24.28M
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Sources
Is it cheap or expensive?
Fair value $37.12 vs current price $15.17
Wall Street consensus is the average analyst price target: $17.08 (-54.0% lower than our fair-value estimate).
Our most-likely fair value is $37.12 a share — about 144.7% above today's price of $15.17, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $119.4M. Interest coverage -3.5x.
Net debt
$119.43M
Interest coverage
-3.52x
Vertex, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
VERX
BASELINE
Vertex, Inc.
Total debt $349.92M Interest coverage -3.52x This is the baseline the peer rows are being compared against.
Total debt $8.42B Interest coverage 24.13x This peer still has a real interest-payment cushion, while VERX does not.
Total debt $1.46B Interest coverage 71.61x This peer still has a real interest-payment cushion, while VERX does not.
Total debt $26.84M Interest coverage 825.88x This peer still has a real interest-payment cushion, while VERX does not.
Total debt $863.59M Interest coverage 5.70x This peer still has a real interest-payment cushion, while VERX does not.
Total debt $792.68M Interest coverage -3.32x Neither company has much profit cushion over interest right now.
What you should know
The case for and against VERX
2 Rewards
1 Risk
Rewards
-
Revenue grew 5.2% last year.
-
Free cash flow was positive in 7/10 years.
Risks
-
Stock trades 203.9% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
1,517.00x
Forward P/E
14.85x
P/B
9.92x
P/S
3.13x
EV/EBITDA
133.10x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
64.0%
Operating margin
3.4%
Net margin
0.5%
ROE
1.5%
ROA
0.6%
Health
Liquidity and balance-sheet strength
Debt / equity
1.45x
Current ratio
0.87x
Quick ratio
0.68x
Total debt
$349.92M
Total cash
$230.49M
Growth
How the business has been compounding
Revenue TTM
$787.44M
Revenue 5Y CAGR
15.2%
EPS TTM
0.01
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$173.61M
Free CF TTM
$93.79M
FCF margin
11.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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