Vertex, Inc. (VERX) stock analysis

VERXNasdaqServices-Prepackaged SoftwareFiscal year ends December 31

Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 5, 2026Score 2/30120% above fair value

$17.83−0.01 (-0.06%)

Close on Nov 11, 2026Market cap $2.89BP/E –Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Weak2 of 30 checks passed

Vertex passes 2 of the 30 checks behind our score; 14 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: 0/6
Growth: 1/6
Past performance: 0/6
Financial health: 1/6
Dividend: 0/6

What stands out

Revenue growing 10%+ a year
Revenue grew 15.0% a year over the last three fiscal years.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 48.5% of total debt.

What to watch

Margin of safety under 20%
The price is 120% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $17.83 is above our fair value estimate of $8.09.
Return on equity under 15%
Return on equity was -21.2% over the last twelve months and averaged -6.5% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was -4.6%, below the 10% that usually covers the cost of capital.

Valuation0/6

P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B above the industry
Vertex's price-to-book of 16.05 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading above fair value
The share price of $17.83 is above our fair value estimate of $8.09.
Margin of safety under 20%
The price is 120% above fair value, so there is no margin of safety.

Growth1/6

Revenue growing 10%+ a year
Revenue grew 15.0% a year over the last three fiscal years.
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.
Growth against the industry
Needs revenue for this year and last.
Guidance lowered
Vertex lowered its full-year 2026 Cloud revenue growth outlook on Aug 3, 2026.
Gross margin trend
This company does not report gross profit.

Past performance0/6

Return on equity under 15%
Return on equity was -21.2% over the last twelve months and averaged -6.5% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was -4.6%, below the 10% that usually covers the cost of capital.
Return on equity below the industry
Vertex's return on equity of -21.2% is below the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
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 -5.8% over the last twelve months, against a 5-year average of -2.4%.
Net margin below the industry
Vertex's net margin of -5.8% is below the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.

Financial health1/6

High debt
Debt is 188% of shareholders' equity, above the 40% we consider low.
Debt rising against equity
Debt to equity rose from 0.5% five years ago to 188%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 48.5% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets don't cover short-term debts
Current assets are 0.75 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.14; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

No dividend
Vertex 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.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$8.09

The share price is 120% above this estimate.

20%+ below

Near fair value

20%+ above

$17.83Price$8.09Fair value

Method	Multiple used	Own 5Y median	Industry median	Value per share	Weight
EV/EBITDA	18.8×	–	18.8×	$10.39	58%
P/B	3.3×	–	3.3×	$3.69	17%
Earnings power	10.3% cost of equity	–	–	$5.66	25%
Fair value				$8.09	100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

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

Low risk

Average value traded per day: $22.94M
Value traded per 1% price move: $8.66M

Downside

High risk

Typical loss in a bad month: 33.7%
Volatility (annualized): 62%
Sharpe ratio, 1 year: -0.19
Beta to the S&P 500 (5Y): 1.08

Typical bad-month loss, week by week

Margins

Share of revenue, fiscal years 2017 to 2025

Gross margin

64.3%+8.5 pts over 5 years

Operating margin

0.3%+28.3 pts over 5 years

Net margin

1.0%+21.0 pts over 5 years

Per year	1 year	3 years	5 years	10 years	Five-year pace
Revenue	+12.2%	+15.0%	+14.8%	–
Gross profit	+13.0%	+17.3%	+18.1%	–

Returns and balance sheet

9 fiscal years. Hover a measure to see how it is calculated.

Measure	FY2017	FY2020	FY2025
Return on equity	–	-150.8%	3.3%
Return on assets	–	-18.2%	0.6%
Current ratio	–	1.38	0.98
Debt to equity	–	0.00	1.30
Net debt to EBITDA	–	4.29×	0.24×
Capex to revenue	–	5.6%	–

DuPont analysis

Return on equity split into margin, efficiency and leverage

Net margin1.0%

Asset turnover0.61×

Equity multiplier5.56×

Return on equity, FY20253.3%

Fiscal year	Net margin	Asset turnover	Equity multiplier	Return on equity
FY2025	1.0%	0.61×	5.56×	3.3%
FY2024	-7.9%	0.69×	4.46×	-24.4%
FY2023	-2.3%	0.77×	3.06×	-5.4%
FY2022	-2.5%	0.71×	3.02×	-5.4%
FY2021	-0.3%	0.69×	2.68×	-0.6%
FY2020	-20.0%	0.91×	8.27×	-150.8%