i3 Verticals, Inc. (IIIV) stock analysis
Close on Nov 13, 2026Market cap $497.75MP/E 48.5Yield –
StockData Score
Prices as of Nov 13, 2026How the score works
Mixed9 of 30 checks passed
i3 Verticals passes 9 of the 30 checks behind our score; 10 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 3/6
- Growth
- 1/6
- Past performance
- 2/6
- Financial health
- 3/6
- Dividend
- 0/6
What stands out
Trading below fair value
The share price of $18.91 is below our fair value estimate of $20.33.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 45.8% of total debt.
Guidance raised
i3 Verticals raised its Fiscal year ending September 30, 2026 Revenue outlook on Feb 5, 2026.
EV/EBITDA below its 5-year median
i3 Verticals's EV/EBITDA of 20.9 is below its 5-year median of 38.1.
What to watch
Margin of safety under 20%
The price is 7.0% below fair value, less than the 20% cushion we look for.
Return on equity under 15%
Return on equity was 2.6% over the last twelve months and averaged 6.1% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 1.2%, below the 10% that usually covers the cost of capital.
High debt
Debt is 40.7% of shareholders' equity, above the 40% we consider low.
Valuation3/6
P/E above its 5-year median
i3 Verticals's P/E of 48.5 is above its own 5-year median of 24.6.
P/E above the industry
i3 Verticals's P/E of 48.5 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.3.
EV/EBITDA below its 5-year median
i3 Verticals's EV/EBITDA of 20.9 is below its 5-year median of 38.1.
P/B below the industry
i3 Verticals's price-to-book of 1.77 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 3.05.
Trading below fair value
The share price of $18.91 is below our fair value estimate of $20.33.
Margin of safety under 20%
The price is 7.0% below fair value, less than the 20% cushion we look for.
Growth1/6
Revenue growing under 10% a year
Revenue grew 4.3% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew 4.1% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance raised
i3 Verticals raised its Fiscal year ending September 30, 2026 Revenue outlook on Feb 5, 2026.
Gross margin trend
This company does not report gross profit.
Past performance2/6
Return on equity under 15%
Return on equity was 2.6% over the last twelve months and averaged 6.1% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 1.2%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
i3 Verticals's return on equity of 2.6% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.1%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin below its 5-year average
Net margin was 3.9% over the last twelve months, against a 5-year average of 11.2%.
Net margin above the industry
i3 Verticals's net margin of 3.9% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.7%.
Financial health3/6
High debt
Debt is 40.7% of shareholders' equity, above the 40% we consider low.
Debt falling against equity
Debt to equity fell from 58.3% five years ago to 40.7%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 45.8% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 1.21 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 1.99; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
i3 Verticals has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$20.33
The share price is 7% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 26.0× | 24.6× | 27.3× | $10.13 | 40% |
| EV/EBITDA | 28.2× | 38.1× | 18.2× | $33.15 | 35% |
| P/B | 2.8× | 2.5× | 3.1× | $29.58 | 10% |
| Earnings power | 9.1% cost of equity | – | – | $11.48 | 15% |
| Fair value | $20.33 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 24.6
- Computer Programming, Data Processing, and Other Computer Related Services median 27.3
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $5.13M
- Value traded per 1% price move
- $3.28M
Downside
Medium risk
- Typical loss in a bad month
- 24.1%
- Volatility (annualized)
- 45%
- Sharpe ratio, 1 year
- -0.89
- Beta to the S&P 500 (5Y)
- 0.79
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2015 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +11.5% | +4.3% | +7.3% | – | |
| Operating income | -13.3% | – | -13.4% | – | |
| Net income | -84.2% | – | – | – | |
| EPS, diluted | -84.8% | – | – | – | |
| Free cash flow | -91.7% | -55.1% | -29.0% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | -0.4% | 4.6% | |
| Return on assets | – | -0.1% | 2.6% | |
| Current ratio | – | 0.98 | 1.95 | |
| Debt to equity | – | 0.58 | 0.00 | |
| Net debt to EBITDA | – | 2.89× | -2.10× | |
| Inventory turnover | – | 20.6× | – | |
| Capex to revenue | 0.4% | 1.9% | 0.9% | |
| Diluted shares | – | 27M | 34M |
Where the cash went
Fiscal 2021 to 2025, five years combined
i3 Verticals generated $179.57M from operations and spent $50.92M on capital expenditure, dividends and share buybacks. 26% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 8.4% | 0.31× | 1.78× | 4.6% |
| FY2024 | 59.3% | 0.24× | 2.62× | 36.8% |
| FY2023 | -0.4% | 0.23× | 3.64× | -0.4% |
| FY2022 | -9.1% | 0.26× | 3.36× | -8.1% |
| FY2021 | -2.0% | 0.42× | 2.93× | -2.5% |
| FY2020 | -0.3% | 0.40× | 3.19× | -0.4% |
| FY2019 | -0.8% | 1.44× | 4.39× | -5.1% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$17.87M
- Cash generatingOperating cash flow above zero$5.69M
- Return on assets improvedROA up on the prior year12.8% → 2.4%
- Earnings backed by cashOperating cash flow above net income$5.69M vs $17.87M
- Less leverageLong-term debt to assets fell0.0% → 0.0%
- Better liquidityCurrent ratio rose0.93 → 1.95
- No dilutionShare count did not rise34M → 34M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.22 → 0.29
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