Vertex, Inc.

Technology
Computer Software: Prepackaged Software
www.vertexinc.com

Earnings Score
Moat Score

Market Cap -
PE -
Debt $345.00M
Cash $305.39M
EV -
FCF -

Earnings

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Sales & Net Margins

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Earnings	$30.40M
EBIT	$10.86M
ROE	12%
ROA	1%
Equity	$259.03M
Growth Stability	-633%
Debt/Equity	1.33
Net Margins	3%
Gross Margins	63%
Op. Margins	2%
Earnings CAGR	-1%
Sales Growth YoY	18%
Sales Growth QoQ	6%
Sales CAGR	39%
FCF CAGR	-8%
Equity CAGR	2%
Earnings Stability	-0.59
Earnings Growth YoY	-312%
Earnings Growth QoQ	40%

Sales CAGR 5Y	60%
FCF CAGR 5Y	-7%
Equity CAGR 5Y	2%
Earnings CAGR 3Y	16%
Sales CAGR 3Y	16%
FCF CAGR 3Y	3%
Equity CAGR 3Y	4%
Revenue	$643.23M
Assets	$1.19B
Total Debt	$345.00M
Cash	$305.39M
Earnings Score	6%
Moat Score	59%
Working Capital	18.7M
Current Ratio	1.04
Gross Profit	$402.61M
Equity Growth QoQ	11%
Equity Growth YoY	18%

Assets & ROA

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Stockholders Equity & ROE

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Vertex Inc is a provider of tax technology and services. It enables companies to realize the full strategic potential of the tax function by automating and integrating tax processes while leveraging advanced and predictive analytics of tax data. Vertex provides cloud-based and on-premise solutions to specific industries for every line of tax, including income, sales, consumer use, value-added, and payroll. The company offers solutions such as tax determination, data management, document management, and compliance and reporting among others.

SEC Filings

Direct access to Vertex, Inc. (VERX) 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 Vertex, Inc. compare to its competitors?

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Peter Lynch's Chart

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

CAGR -1%

Stability -59%

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Vertex, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Vertex, Inc..

Years

Calculation mode

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
DCF		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Value	$0

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	12/2018	12/2019	05/2020	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-2%	10%	-	-21%	-0%	-3%	-2%	3%
ROA	-	12%	-	-19%	-0%	-1%	-2%	1%
ROE	-	-24%	-	-35%	-1%	-5%	-5%	12%

Bad Net Margins (3.09%)

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	12/2018	12/2019	05/2020	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	0.71	-	0.03	-	2.68K	1.97	-
Debt over Equity	-	-0.4	-	0	-	213.58	0.2	1.33
Growth Stability	-	-	-	-633%	-	-	-	-633%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (1.33)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (-633%)

The company has a bad stability in its earnings, which is a sign of a bad 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	12/2018	12/2019	05/2020	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	18%	-	-	14%	16%	16%	60%
Earnings YoY growth	-	-609%	-	-	-98%	732%	6%	-
Equity YoY growth	-	3%	-	-	2%	-0%	10%	2%
FCF YoY growth	-	21%	-	-	52%	-69%	37%	-7%