A Business at a Glance
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Vertex is a leading provider of enterprise compliance technology for global commerce. Our software, data, and services help businesses operate with confidence by automating and governing transaction-based compliance obligations that arise wherever they buy, sell, and move goods and services around the world. At the core of global commerce are transaction-based regulatory requirements that must be calculated, documented, reported, and, in many cases, digitally transmitted to tax authorities in real time. Indirect taxes—such as sales tax, use tax, and value-added tax (“VAT”)—represent a significant portion of these obligations. Unlike direct taxes, which are paid directly by the entity being taxed, indirect taxes are collected from a purchaser and remitted to taxing authorities by the seller or service provider as part of each transaction. These obligations are inherently complex and pervasive.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 748M | 748M | 667M | 572M | 492M | 426M |
| Net Income | 7.2M | 7.2M | -53M | -13M | -12M | -1.5M |
| EPS | $0.04 | $0.04 | $-0.34 | $-0.09 | $-0.08 | $-0.01 |
| Free Cash Flow | 94M | 94M | 93M | 25M | 18M | 59M |
| ROIC | 0.0% | - | - | -4.4% | -4.5% | -0.6% |
| Gross Margin | 64.3% | 64.3% | 63.9% | 60.9% | 60.7% | 62.0% |
| Debt/Equity | 1.35 | 1.35 | 1.98 | 0.27 | 0.33 | 0.13 |
| Dividends/Share | $0.00 | - | - | - | $1.10 | $0.05 |
| Operating Income | 0 | - | - | -18M | -8.1M | -2.9M |
| Operating Margin | 0.0% | - | - | -3.1% | -1.6% | -0.7% |
| ROE | 2.8% | 3.3% | -29.4% | -5.2% | -5.4% | -0.6% |
| Shares Outstanding | 180M | 180M | 155M | 145M | 154M | 148M |
| Metric | 2019 | 2020 | 2021 | 2022 | 2023 | |||
|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||
| Revenue | 322M | 375M | 426M | 492M | 572M | 667M | 748M | 748M |
| Gross Margin | 65.7% | 55.9% | 62.0% | 60.7% | 60.9% | 63.9% | 64.3% | 64.3% |
| R&D | 31M | 54M | 44M | 42M | 58M | 67M | 84M | 84M |
| SG&A | 71M | 149M | 107M | 122M | 146M | 153M | 179M | 179M |
| EBIT | 32M | -105M | -2.9M | -8.1M | -18M | N/A | N/A | 0 |
| Op. Margin | 9.9% | -28.0% | -0.7% | -1.6% | -3.1% | N/A | N/A | 0.0% |
| Net Income | 31M | -75M | -1.5M | -12M | -13M | -53M | 7.2M | 7.2M |
| Net Margin | 9.7% | -20.0% | -0.3% | -2.5% | -2.3% | -7.9% | 1.0% | 1.0% |
| Non-Recurring | 0 | 33M | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | ||||||||
| ROIC | 12.0% | -32.7% | -0.6% | -4.5% | -4.4% | N/A | N/A | 0.0% |
| ROE | N/A | -32.7% | -0.6% | -5.4% | -5.2% | -29.4% | 3.3% | 2.8% |
| ROA | 11.7% | -13.4% | -0.2% | -1.7% | -1.7% | -4.5% | 0.6% | 0.6% |
| Cash Flow | ||||||||
| Op. Cash Flow | 92M | 60M | 92M | 64M | 74M | 165M | 166M | 166M |
| Free Cash Flow | 72M | 39M | 59M | 18M | 25M | 93M | 94M | 94M |
| Owner Earnings | 58M | -121M | 21M | -17M | -31M | 35M | 11M | 11M |
| CapEx | 20M | 21M | 33M | 46M | 49M | 72M | 72M | 72M |
| Maint. CapEx | 25M | 32M | 45M | 61M | 72M | 83M | 97M | 97M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 25M | 32M | 45M | 61M | 72M | 83M | 97M | 97M |
| CapEx/OCF | N/A | 35.2% | 36.3% | 71.3% | N/A | 43.5% | N/A | 43.3% |
| Capital Allocation | ||||||||
| Dividends Paid | 29M | 146M | 146M | 146M | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | 4.3% | 4.4% | 6.9% | N/A | N/A | N/A | N/A |
| Share Buybacks | 841K | 841K | 841K | 0 | 0 | 0 | 10M | 10M |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | 0.3% | 0.5% |
| Stock-Based Comp | 9.5M | 148M | 26M | 20M | 34M | 47M | 58M | 58M |
| Debt Repayment | 5.6M | 226M | 226M | 938K | 2.2M | 47M | 47M | 47M |
| Balance Sheet | ||||||||
| Net Debt | -50M | -604M | -118M | -108M | -67M | -238M | -277M | 37M |
| Cash & Equiv. | 76M | 303M | 73M | 92M | 68M | 296M | 314M | 314M |
| Long-Term Debt | 682K | 225K | 68K | 47M | 44M | 335M | 337M | 337M |
| Debt/Equity | -0.79 | 0.01 | 0.13 | 0.33 | 0.27 | 1.98 | 1.35 | 1.35 |
| Interest Coverage | N/A | N/A | -3.0 | -3.9 | -4.2 | N/A | N/A | N/A |
| Equity | -130M | 229M | 230M | 230M | 253M | 179M | 259M | 259M |
| Total Assets | 265M | 559M | 670M | 719M | 760M | 1.2B | 1.3B | 1.3B |
| Total Liabilities | 394M | 329M | 440M | 489M | 507M | 987M | 1.0B | 1.0B |
| Intangibles | N/A | N/A | N/A | N/A | 0 | 0 | 0 | 0 |
| Retained Earnings | -91M | 26M | 25M | 13M | -586K | -53M | -46M | -46M |
| Working Capital | -169M | 111M | -173M | -160M | -174M | -1.0M | -14M | -14M |
| Current Assets | 166M | 403M | 196M | 243M | 267M | 536M | 561M | 561M |
| Current Liabilities | 335M | 292M | 369M | 403M | 441M | 537M | 575M | 575M |
| Per Share Data | ||||||||
| EPS | 0.25 | -0.57 | -0.01 | -0.08 | -0.09 | -0.34 | 0.04 | 0.04 |
| Owner EPS | 0.47 | -0.92 | 0.14 | -0.11 | -0.22 | 0.22 | 0.06 | 0.06 |
| Book Value | -1.04 | 1.74 | 1.56 | 1.49 | 1.74 | 1.16 | 1.44 | 1.44 |
| Cash Flow/Share | 0.74 | 0.45 | 0.62 | 0.42 | 0.51 | 1.06 | 0.92 | 0.58 |
| Dividends/Share | 0.23 | 0.11 | 0.05 | 1.10 | N/A | N/A | N/A | 0.00 |
| Shares Out. | 124.2M | 131.7M | 147.9M | 153.8M | 145.5M | 155.1M | 180.3M | 180.3M |
| Valuation | ||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | 507.7 | 286.2 |
| P/FCF | N/A | 113.3 | 41.7 | 117.6 | 157.2 | 87.8 | 39.0 | 22.0 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Book | N/A | 19.1 | 10.6 | 9.4 | 15.6 | 45.6 | 14.1 | 8.0 |
| Price/Sales | N/A | 9.1 | 7.9 | 4.3 | 5.2 | 8.4 | 8.1 | 2.8 |
| FCF Yield | N/A | 0.9% | 2.4% | 0.9% | 0.6% | 1.1% | 2.6% | 4.5% |
| Market Cap | N/A | 4.4B | 2.4B | 2.2B | 3.9B | 8.2B | 3.7B | 2.1B |
| Avg. Price | N/A | 25.81 | 22.62 | 13.85 | 20.60 | 36.08 | 33.67 | 11.45 |
| Year-End Price | N/A | 33.18 | 16.52 | 14.00 | 27.09 | 52.71 | 20.31 | 11.45 |
Vertex, Inc. passes 3 of 9 quality checks, indicating weak fundamentals.
Vertex, Inc. trades at 286.2x trailing earnings, compared to its 15-year median P/E of 15.0x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 12.5x vs a median of 41.7x. The company's 5-year average gross margin is 62.4%. Total shareholder yield (buybacks) is 0.5%. At current prices, the estimated annualized return to fair value is +11.0%.
Vertex, Inc. (VERX) has a current P/E ratio of 286.2, compared to its historical median P/E of 15.0. The stock is currently considered Expensive based on its historical valuation range.
Vertex, Inc. (VERX) has a 5-year average return on invested capital (ROIC) of -3.2%. This is below average and may indicate limited pricing power.
Vertex, Inc. (VERX) has a market capitalization of $2.1B. It is classified as a mid-cap stock.
Vertex, Inc. (VERX) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 0.49%.
Based on historical P/E analysis, Vertex, Inc. (VERX) appears expensive. The current P/E of 286.2 is 1808% above its historical median of 15.0.
Vertex, Inc. (VERX) operates in the Services-Prepackaged Software industry, within the Technology sector.
Vertex, Inc. (VERX) reported annual revenue of $748 million in its most recent fiscal year, based on SEC EDGAR filings.
Vertex, Inc. (VERX) has a net profit margin of 1.0%. This is a modest margin.
Vertex, Inc. (VERX) generated $94 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Vertex, Inc. (VERX) has a debt-to-equity ratio of 1.35. This indicates moderate leverage.
Vertex, Inc. (VERX) reported earnings per share (EPS) of $0.04 in its most recent fiscal year.
Vertex, Inc. (VERX) has a return on equity (ROE) of 3.3%. This indicates moderate shareholder returns.
Vertex, Inc. (VERX) has a 5-year average gross margin of 62.4%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 7 years of financial data for Vertex, Inc. (VERX), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Vertex, Inc. (VERX) has a book value per share of $1.44, based on its most recent annual SEC filing.