Vertex Inc's Meteoric Rise: Unpacking the 28% Surge in Just 3 Months
Vertex Inc (NASDAQ:VERX), a leading provider of tax technology and services, has seen a significant surge in its stock price over the past three months. The company's market cap currently stands at $3.65 billion, with its stock price at $24.03. Over the past week, the stock price has seen a gain of 0.30%, and over the past three months, it has seen a substantial gain of 28.01%. The GF Value of the stock is currently at $22.71, compared to its past GF Value of $23.18 three months ago. According to the GF Valuation, the stock is fairly valued currently, whereas it was modestly undervalued three months ago.
Company Overview
Vertex Inc operates in the software industry, providing tax technology and services. The company's solutions automate and integrate tax processes while leveraging advanced and predictive analytics of tax data. Vertex offers both 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's revenue is primarily derived from software subscriptions.
Profitability Analysis
Vertex Inc's Profitability Rank stands at 2/10. The company's Operating Margin is -3.26%, which is better than 38.53% of the 2759 companies in the same industry. The ROE is -14.13%, better than 29.8% of the 2651 companies in the same industry. The ROA is -4.45%, better than 37.98% of the 2817 companies in the same industry. The ROIC is -3.72%, better than 38.58% of the 2815 companies in the same industry. Over the past 10 years, the company has had 1 year of profitability, which is better than 9.78% of the 2228 companies in the same industry.
Growth Prospects
The company's 3-Year Revenue Growth Rate per Share is 9.80%, which is better than 54% of the 2400 companies in the same industry. This indicates that the company has been growing at a steady pace over the past three years.
Major Stockholders
Jim Simons (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) are the top two holders of Vertex Inc's stock. Jim Simons (Trades, Portfolio) holds 228,600 shares, accounting for 0.15% of the total shares, while Chuck Royce (Trades, Portfolio) holds 71,000 shares, accounting for 0.05% of the total shares.
Competitive Landscape
Vertex Inc operates in a competitive industry with major competitors including Olo Inc (NYSE:OLO) with a market cap of $942.854 million, Everbridge Inc (NASDAQ:EVBG) with a market cap of $893.882 million, and Expensify Inc (NASDAQ:EXFY) with a market cap of $244.460 million.
Conclusion
In conclusion, Vertex Inc has shown impressive growth over the past three months, with its stock price surging by 28.01%. The company's profitability and growth prospects, along with its competitive position in the industry, make it a stock to watch for investors. However, investors should also consider the company's current valuation and profitability metrics before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
