Why is Verra Mobility Corp. ?
1
Healthy long term growth as Net Sales has grown by an annual rate of 15.70% and Operating profit at 27.00%
2
The company has declared Positive results for the last 4 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 286.63 MM
- INTEREST COVERAGE RATIO(Q) Highest at 559.18
- RAW MATERIAL COST(Y) Fallen by 0.17% (YoY)
3
With ROCE of 19.66%, it has a very expensive valuation with a 3.93 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -10.05%, its profits have risen by 49.3% ; the PEG ratio of the company is 0.6
4
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Below par performance in long term as well as near term
- Along with generating -10.05% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Verra Mobility Corp. should be less than 10%
- Overall Portfolio exposure to Transport Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Verra Mobility Corp. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Verra Mobility Corp.
-8.6%
-0.54
31.49%
S&P 500
13.22%
0.61
20.17%
Quality key factors
Factor
Value
Sales Growth (5y)
15.70%
EBIT Growth (5y)
27.00%
EBIT to Interest (avg)
2.36
Debt to EBITDA (avg)
3.64
Net Debt to Equity (avg)
3.09
Sales to Capital Employed (avg)
0.58
Tax Ratio
59.23%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
12.30%
ROE (avg)
24.62%
Valuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
Price to Book Value
12.97
EV to EBIT
19.98
EV to EBITDA
13.75
EV to Capital Employed
3.93
EV to Sales
5.39
PEG Ratio
0.57
Dividend Yield
NA
ROCE (Latest)
19.66%
ROE (Latest)
45.29%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
12What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 286.63 MM
INTEREST COVERAGE RATIO(Q)
Highest at 559.18
RAW MATERIAL COST(Y)
Fallen by 0.17% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 9.69 times
NET SALES(Q)
Highest at USD 236.03 MM
PRE-TAX PROFIT(Q)
Highest at USD 52.62 MM
NET PROFIT(Q)
Highest at USD 38.59 MM
EPS(Q)
Highest at USD 0.24
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.38 times
Here's what is working for Verra Mobility Corp.
Interest Coverage Ratio
Highest at 559.18
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at USD 286.63 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 236.03 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
Highest at USD 52.62 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 38.59 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.24
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Highest at 9.69 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 0.17% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 29.16 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Verra Mobility Corp.
Debtors Turnover Ratio
Lowest at 3.38 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






