Company Overview
Verra Mobility Corporation provides smart mobility technology solutions across the United States, Australia, Europe, and Canada, operating through three distinct segments: Commercial Services, Government Solutions, and Parking Solutions. The company is classified within the Technology sector and specifically operates in the Information Technology Services industry, positioning it as a provider of critical digital infrastructure for transportation and public sector entities. This entity employs 1,888 individuals to support its global operations, reflecting a significant organizational footprint in the specialized tech landscape. With a market capitalization of $2.29B and annual revenue of $979.08M, Verra Mobility Corporation holds a substantial position in its sector, indicating that it commands a significant share of the market for automated toll and violation management systems alongside its other solutions.
Financial Health
The company reported a trailing twelve-month revenue of $979.08M and generated a net income of $136.63M, resulting in an EBITDA of $361.85M. The substantial gap between the $979.08M revenue and the $136.63M net income reveals a cost structure where operating expenses, including taxes, interest, and other deductions, consume a significant portion of top-line earnings, leaving a profit margin of 14.0%. Free cash flow stands at $82.94M, which indicates that the company generates positive cash after capital expenditures, providing the financial flexibility to fund operations, reduce debt, or pursue strategic initiatives without immediate reliance on external financing. The gross margin is 58.4%, suggesting a highly efficient production or service delivery model typical of technology and service-based businesses before overhead costs are applied. The operating margin of 20.3% further demonstrates effective management of overhead expenses relative to sales, while the 14.0% profit margin reflects the final bottom-line profitability after all obligations. On the balance sheet, the company holds $68.39M in cash against $1.07B in debt, creating a situation where liabilities significantly exceed liquid assets. This disparity is quantified by a debt-to-equity ratio of 363.92, indicating a highly leveraged balance sheet where the company relies heavily on borrowed capital to finance its growth or operations. Despite the high debt load, the current ratio of 2.10 suggests strong short-term liquidity, as current assets are more than twice the value of current liabilities, ensuring the firm can meet its immediate obligations. Return on Equity is 49.0%, which is exceptionally high for a leveraged firm, implying that management is generating substantial returns for shareholders, while the Return on Assets of 9.5% indicates moderate efficiency in utilizing the total asset base to generate profits.
Valuation Assessment
The stock trades with a P/E Ratio (TTM) of 16.87 and a Forward P/E of 9.23, implying that the market expects earnings to grow significantly in the future to justify the lower forward multiple compared to the trailing multiple. The price-to-book ratio is 7.52, indicating that the market values the company at a significant premium over its net asset book value, likely reflecting the intangible value of its technology solutions and market position. Alternative valuation metrics show a Price to Sales ratio of 2.34 and an EV/EBITDA of 8.76, suggesting that investors are willing to pay a moderate multiple relative to sales and earnings before interest, taxes, depreciation, and amortization. Regarding price history, the 52-week high is $25.83 and the 52-week low is $14.31; without a specific current price provided in the facts, the valuation context is framed by this $11.52 range of volatility over the past year. The Beta is 0.62, which indicates that the stock's price volatility is substantially lower than the broader market, suggesting it may be less sensitive to general market swings compared to larger technology peers.
Growth & Income
Revenue growth for the trailing twelve months is 16.4%, while earnings growth is listed as N/A in the available data, preventing a direct comparison of the two rates in this specific instance. In the absence of reported earnings growth figures, the 16.4% revenue expansion serves as the primary indicator of top-line trajectory, suggesting robust demand for its smart mobility solutions. The company does not pay a dividend, evidenced by a Dividend Yield of N/A and a Payout Ratio of 0.0%, meaning the company reinvests all its earnings into business growth rather than distributing income to shareholders. This non-dividend profile aligns with the company's focus on expansion and capital investment within the Information Technology Services industry. Overall, the growth and income profile is characterized by strong revenue expansion in a high-margin environment without the reliance on dividend income for total return.