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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3842
Positioning
Market Dominance
Services
Computer Software
$4.0B
David DeSteffano
Vertex, Inc. provides tax technology solutions for corporations in retail, communication, leasing, and manufacturing industries. The company sells its software products through software license and software as a service subscriptions. Vertex also provides implementation and training services.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = VERX ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 17.1% | 10.3% | 35.5% | 14.6% | 10.1% | 105.2% | 0.0% | 41.0x | $244M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.1% | 8.3% | 45.7% | 8.5% | 6.2% | 28.1% | 0.0% | 0.0x | $736M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 0.0% | - | 97.4% | 58.0% | 37.4% | - | 8.8% | 264.0x | $2.5B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 15.3% | 5.8% | 100.0% | 6.9% | 5.2% | 15.1% | 0.0% | 24.0x | $1.8B | VS | |
$VERX Vertex, Inc. | 38 | 47 | 46 | 14 | 94.6x | 23.5x | 8.1% | 1.8% | 64.4% | 1.4% | 3.0% | 19.3% | 0.0% | 127.0x | $4.0B | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.7% | 2.4% | 64.6% | 4.5% | 2.8% | 8.6% | 0.0% | 0.3x | - | REF |
Vertex, Inc. (VERX) receives a "Avoid" rating with a composite score of 37.5/100. It ranks #3842 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
Average quality profile
Average volatility — neutral timing signal
Moderate investment profile
Below-average composite — caution warranted
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for VERX.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 47 | 49 | -2NEUTRAL |
| MOMENTUM | 14 | 9 | +5NEUTRAL |
| VALUATION | 46 | 46 | 0NEUTRAL |
| INVESTMENT | 43 | 75 | -32DRAG |
| STABILITY | 50 | 52 | -2NEUTRAL |
| SHORT INT | 35 | 26 | +9ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 13.4% vs WACC 8.9% (spread +4.5%)
GM 64% vs sector 65%, OM 1% vs sector 5%
Capital turnover 8.21x, R&D intensity 11.1%
Rev growth 19%, 6yr history
Interest coverage N/A, Net debt/EBITDA 0.8x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Vertex, Inc. (VERX) as Avoid with a composite score of 37.5/100 at a current price of $13.24. The stock falls in the bottom quintile, and the multi-factor weakness suggests a high probability of continued underperformance.
Vertex, Inc. holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 37.5/100 places it at rank #3842 in our full universe.
Narrow
Medium
Poor
Fair Value
Gross margins of 64% signal strong pricing power.
Stable competitive position in a defensive sector.
Elevated P/E ratio of 94.6x leaves little room for execution misses.
Leverage of 127% D/E amplifies downside risk.
Weak momentum suggests persistent institutional selling pressure.
Vertex, Inc. represents a avoid based on multi-factor quantitative performance.
Our quantitative model flags Vertex, Inc. with an Avoid rating, assigning a composite score of 37.5/100 and 1 out of 5 stars. Ranked #3842 of 7,333 stocks, VERX falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
With a quality score of 47/100, VERX shows adequate but unremarkable business quality. The company reports a return on equity of 8.1% (sector avg: 5.7%), gross margins of 64.4% (sector avg: 64.6%), net margins of 3.0% (sector avg: 2.8%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
With a value score of 46/100, VERX appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 94.64x, an EV/EBITDA of 23.48x, a P/B ratio of 7.67x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
With an investment score of 43/100, VERX exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of 19.3% vs. a sector average of 8.6% and a return on assets of 1.8% (sector: 2.4%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
Vertex, Inc. is experiencing notably weak momentum with a score of just 14/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at 19.3% year-over-year, while a beta of 0.79 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
With a stability score of 50/100, VERX exhibits average financial resilience. Key stability metrics include a beta of 0.79 and a debt-to-equity ratio of 127.00x (sector avg: 0.3x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
Vertex, Inc.'s short interest score of 35/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 127.00x). At $4.0B (mid-cap), VERX carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
Vertex, Inc. is a mid-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #3842 of 7,333 overall (48th percentile). Key comparisons include ROE of 8.1% exceeding the 5.7% sector median and operating margins of 1.4% below the 4.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While VERX currently exhibits a AVOID profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Services Alpha →Quant Factor Profile
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Improvement in Momentum (14) would have the largest impact on the composite score.
EV/EBITDA 100% ABOVE SECTOR MEDIAN
ROE 41% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin IN LINE WITH SECTOR BENCHMARKS
Hyperion Capital Advisors acquired 540,000 shares of Vertex (VERX) worth $13.39 million in Q3, making it the fund's third-largest holding. Despite a 63% stock decline over the past year, the investment signals confidence in Vertex's underlying business fundamentals, including 12.7% revenue growth, 30% cloud revenue growth, and strong cash generation with a $150 million share buyback authorization.
Despite announcing strong earnings, Vertex, Inc.'s ( NASDAQ:VERX ) stock was sluggish. Our analysis uncovered some...
Last week's profit announcement from Vertex, Inc. ( NASDAQ:VERX ) was underwhelming for investors, despite headline...
In February 2026, Vertex, Inc. reported fourth-quarter 2025 revenue of US$194.71 million and a net loss of US$7 million, while full-year revenue reached US$748.44 million with net income of US$7.21 million, and it issued 2026 revenue guidance of US$193.5 million–US$196.5 million for Q1 and US$823.5 million–US$831.5 million for the year. The company also installed a new President and CEO, Christopher Young, who is emphasizing AI-powered offerings like smart categorization and Vertex Copilot,...
Operator: Good day, and welcome to the Vertex Fourth Quarter 2025 Earnings Conference Call. All participants are in listen-only mode.
Above 50MA
37.18%
Net New Highs
+51081