Vertex, Inc.
$13.85
-15%Vertex, Inc. provides tax technology solutions for corporations in retail, communication, leasing, and manufacturing industries in the United States and internationally. It offers tax determination, compliance and reporting, tax data management, document management, pre-built integration, and industry-specific solutions. The company sells its software products through software license and software as a service subscriptions. It also provides implementation and training services in connection with its software license and cloud subscriptions, transaction tax returns outsourcing, and other tax-related services. Vertex, Inc. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 399.4).
Valuation inputs: P/E 399.4, earnings yield +0.3%, momentum -14.5%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +2.8%, ROIC -1.1%).
Profitability stack: net margin +1.0%, ROE +2.8%, ROIC -1.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +79.6%, momentum -14.5%, net margin +1.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Vertex, Inc. Market vs Earnings Trajectory
Performance Analysis
EPS Growth
Strong earnings growth indicates robust business expansion and improving profitability.
Price-EPS Relationship
Earnings are growing but price is falling—potential undervaluation opportunity if growth continues.
Stock Price Change
Over the 1Y period, stock price has decreased by 66.1%.
P/E Ratio (TTM)
Very high P/E suggests premium valuation or high growth expectations.
Key Insight
Strong earnings growth (+87.3%) is outpacing price appreciation (+-66.1%), potentially indicating an attractive entry point as the market may not have fully recognized the improving fundamentals.
Vertex, Inc. Fair Value Envelope
Vertex, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Vertex, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Capital-intensive operations require significant reinvestment. Monitor whether CapEx is maintenance or growth-oriented.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Solid cash generation: Positive free cash flow with reasonable earnings quality provides financial flexibility for growth investments, debt reduction, or shareholder returns.
Vertex, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Balanced asset mix between current and non-current assets, typical of many stable businesses.
Financial Health Insight
Financial stress indicators: Both liquidity and leverage metrics raise concerns. The company may face challenges meeting obligations and should focus on strengthening its balance sheet.
Vertex, Inc. Street Expectations Map
Wall Street analysts project that VERX stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 18.44, with estimates ranging from a low of 14.00 to a high of 25.00.
The consensus 1-year price target stands at 18.44, with estimates ranging from a low of 14.00 to a high of 25.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.
Analyst Conviction
Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.
Market Sentiment Insight
High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.
Vertex, Inc. Insider Positioning
During the last 12 months, insiders have purchased $6.37M and sold $27.79M worth of VERX shares, resulting in $21.43M of net selling activity.
3 Months
0
0.00
16.5K
232.84K
-233K
-$233K
3-6 Months
497.7K
6.37M
0
0.00
+6.4M
+$6.37M
6-9 Months
0
0.00
0
0.00
+0
+$0
9-12 Months
0
0.00
737.2K
27.56M
-27.6M
-$27.56M
Top Buyers
Westphal Jeffrey
Other: See Remarks
$5.12M
Young Christopher David
Director, Officer: President And Ceo
$731K
Andersen Eric C.
Director
$516K
Top Sellers
Item Second Irr. Trust Fbo Anne Marie Westphal U/A Of Jeffrey R. Westphal Dated October 5, 2001
10 Percent Owner, Other: 13(D) Group Member
$14.79M
Westphal Jeffrey
Other: See Remarks
$12.77M
Item Second Irr. Trust Fbo Kyle R. Westphal U/A Of Jeffrey R. Westphal Dated October 5, 2001
10 Percent Owner
$150K
Destefano David
Director
$82K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $21.43M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buying—monitor for potential fundamental concerns.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
4 insider sellers vs. 3 buyers. More insiders selling than buying suggests cautious or negative sentiment.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
verx Dividend History
Learning Layer
Related Guides
Build conviction on VERX by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.