Certara, Inc.

Technology
Computer Software: Prepackaged Software
www.certara.com

Moat Score
Safety Score

Market Cap $1.84B
PE -59
Debt $302.25M
Cash $233.02M
EV $1.91B
FCF $52.34M

Earnings

loading chart...

Sales & Net Margins

loading chart...

Earnings	-$31.08M
EBIT	-$16.20M
ROE	-3%
ROA	-1%
FCF	$52.34M
Equity	$1.05B
Growth Stability	1
PE	-59.23
PB	1.75
P/FCF	35.18
P/S	4.94
Price/Cash	0.13
Debt/Equity	0.29
Debt/FCF	5.78
Net Margins	-7%
Gross Margins	60%
Op. Margins	-4%
Sales Growth YoY	11%
Sales Growth QoQ	2%
Sales CAGR	12%
FCF CAGR	15%
Equity CAGR	18%
Earnings Growth YoY	-97%
Earnings Growth QoQ	-89%

Sales CAGR 5Y	12%
FCF CAGR 5Y	15%
Equity CAGR 5Y	18%
Earnings CAGR 3Y	9%
Sales CAGR 3Y	9%
FCF CAGR 3Y	-1%
Equity CAGR 3Y	0%
Market Cap	$1.84B
Revenue	$372.80M
Assets	$1.54B
Total Debt	$302.25M
Cash	$233.02M
Shares Outstanding	160.23M
EV	1.91B
Moat Score	10%
Safety Score	85%
Working Capital	227.9M
Current Ratio	2.86
Gross Profit	$222.48M
Shares Growth 3y	2%
Equity Growth QoQ	1%
Equity Growth YoY	0%

Assets & ROA

loading chart...

Stockholders Equity & ROE

loading chart...

Certara Inc accelerate medicines to patients using biosimulation software and technology to transform traditional drug discovery and development. It provides modeling and simulation, regulatory science, and assessment software and services to help clients reduce clinical trial, accelerate regulatory approval and increase patient access to medicines. The group has a business presence in the United States, EMEA and other regions, of which a majority of revenue is derived from the United States.

SEC Filings

Direct access to Certara, Inc. (CERT) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Certara, Inc. compare to its competitors?

Loading chart...

Peter Lynch's Chart

This chart shows the current pricing of Certara, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

loading chart...

Certara, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Certara, Inc..

Years

Calculation mode

= $1.5B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$52M	$60M	$69M	$79M	$91M	$105M	$121M	$139M	$160M	$183M	$211M	$2.1B
DCF		$55M	$57M	$60M	$62M	$65M	$68M	$71M	$74M	$78M	$81M	$813M
Value	$1.5B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-4%	-20%	-5%	4%	-16%	-7%
ROA	-	-2%	1%	2%	-3%	-1%
ROE	-	-6%	-1%	1%	-5%	-3%

Bad Net Margins (-6.54%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	6.91	5.12	3.3	3.67	5.78
Debt over Equity	-	0.37	0.29	0.28	0.28	0.29
Growth Stability	-	-	-	-	-	1

Bad Debt/FCF ratio (5.78)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.29)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	17%	17%	17%	6%	12%
Earnings YoY growth	-	453%	-73%	-211%	-476%	-
Equity YoY growth	-	67%	27%	4%	-3%	18%
FCF YoY growth	-	22%	35%	54%	-11%	15%