Latest Ratios: P/E Ratio -883.0x · EV/EBITDA 15.4x · ROE -0.2%. (2018–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.4B | $1.4B | $1.7B | $2.8B | $2.6B | $4.3B | $5.2B | — | — |
| Enterprise Value | $1.2B | $1.2B | $1.8B | $2.9B | $2.6B | $4.4B | $5.2B | — | — |
| P/E Ratio → | -883.00 | — | — | — | 173.92 | — | — | — | — |
| P/S Ratio | 3.28 | 3.37 | 4.44 | 7.89 | 7.63 | 14.88 | 21.18 | — | — |
| P/B Ratio | 1.33 | 1.33 | 1.61 | 2.67 | 2.37 | 4.09 | 6.27 | — | — |
| P/FCF | 19.69 | 20.25 | 28.75 | 41.46 | 32.00 | 82.71 | 139.90 | — | — |
| P/OCF | 14.26 | 14.67 | 21.23 | 33.78 | 27.67 | 70.52 | 115.12 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.95 | 4.78 | 8.08 | 7.84 | 15.31 | 21.30 | — | — |
| EV / EBITDA | 15.41 | 15.92 | 27.77 | 187.18 | 30.97 | 74.64 | 282.90 | — | — |
| EV / EBIT | 56.89 | 45.15 | 424.56 | — | 72.06 | 325.44 | — | — | — |
| EV / FCF | — | 17.70 | 30.98 | 42.46 | 32.90 | 85.09 | 140.66 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 61.5% | 61.5% | 59.9% | 60.2% | 60.5% | 61.0% | 58.6% | 61.7% | 56.6% |
| Operating Margin | 5.0% | 5.0% | -0.4% | -11.5% | 9.7% | 4.7% | -10.0% | 9.4% | -2.8% |
| Net Profit Margin | -0.4% | -0.4% | -3.1% | -15.6% | 4.4% | -4.6% | -20.3% | -4.3% | -20.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | -0.2% | -0.2% | -1.1% | -5.2% | 1.4% | -1.4% | -7.5% | -1.8% | -6.7% |
| ROA | -0.1% | -0.1% | -0.8% | -3.5% | 1.0% | -1.0% | -4.3% | -0.9% | -3.2% |
| ROIC | 1.5% | 1.5% | -0.1% | -2.7% | 2.1% | 1.0% | -2.1% | 1.7% | -0.4% |
| ROCE | 1.5% | 1.5% | -0.1% | -2.8% | 2.3% | 1.0% | -2.3% | 2.0% | -0.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.29 | 0.29 | 0.29 | 0.30 | 0.36 | 0.82 | 0.83 |
| Debt / EBITDA | 0.15 | 0.15 | 4.70 | 19.78 | 3.63 | 5.25 | 16.33 | 6.56 | 12.62 |
| Net Debt / Equity | — | -0.17 | 0.13 | 0.06 | 0.07 | 0.12 | 0.03 | 0.76 | 0.80 |
| Net Debt / EBITDA | -2.29 | -2.29 | 2.00 | 4.42 | 0.84 | 2.09 | 1.53 | 6.08 | 12.26 |
| Debt / FCF | — | -2.55 | 2.23 | 1.00 | 0.89 | 2.38 | 0.76 | 13.05 | 3706.50 |
| Interest Coverage | 1.39 | 1.39 | 0.20 | -1.41 | 2.06 | 0.80 | -0.98 | 0.67 | -0.17 |
Net cash position: cash ($189M) exceeds total debt ($11M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.05 | 2.05 | 2.13 | 2.62 | 3.32 | 2.98 | 4.60 | 1.39 | 1.05 |
| Quick Ratio | 2.05 | 2.05 | 2.13 | 2.62 | 3.32 | 2.98 | 4.60 | 1.39 | 0.97 |
| Cash Ratio | 1.23 | 1.23 | 1.23 | 1.81 | 2.29 | 2.01 | 3.60 | 0.46 | 0.18 |
| Asset Turnover | — | 0.27 | 0.24 | 0.23 | 0.21 | 0.19 | 0.19 | 0.20 | 0.16 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 12.84 |
| Days Sales Outstanding | — | 101.32 | 112.85 | 96.06 | 96.57 | 99.90 | 97.12 | 91.65 | 111.21 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | 0.6% | — | — | — | — |
| FCF Yield | 5.1% | 4.9% | 3.5% | 2.4% | 3.1% | 1.2% | 0.7% | — | — |
| Buyback Yield | 3.1% | 3.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 3.1% | 3.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $160M | $160M | $159M | $159M | $150M | $153M | $157M | $132M |
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying CERT stock.
Certara, Inc.'s current P/E ratio is -883.0x. The historical average is 173.9x.
Certara, Inc.'s current EV/EBITDA is 15.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 37.3x.
Certara, Inc.'s return on equity (ROE) is -0.2%. The historical average is -2.8%.
Based on historical data, Certara, Inc. is trading at a P/E of -883.0x. Compare with industry peers and growth rates for a complete picture.
Certara, Inc. has 61.5% gross margin and 5.0% operating margin.
Certara, Inc.'s Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
EPS miss and margin compression
Metrics are mathematically derived from official filings.
Margin Compression Masks Cash Generation
Gross margin averaged 61.5% over the last ten quarters, but operating margin fell to -0.2% in 2026Q2, per reported financials, indicating that high fixed costs and SG&A escalation are eroding profitability.
The 2026Q2 operating margin of -0.2% represents a sharp deterioration from the 9.1% reported in 2025Q2, suggesting that the company's cost structure is expanding faster than its top line. Despite the negative GAAP net margin of -59.3% in 2026Q2, the FCF margin of 10.1% indicates that non-cash charges such as amortization and stock-based compensation are distorting reported earnings. Investors should monitor whether the gross margin volatility, which dipped to 47.4% in 2026Q1, reflects a permanent mix shift toward lower-margin services or a one-time event.
Returns on Capital Remain Subdued
ROIC has hovered near zero over the past ten quarters, with 2026Q2 at -0.0%, per reported data, indicating that the company is not yet generating meaningful returns on its invested capital.
The consistently low ROIC, despite a high gross margin, suggests that the company's heavy investment in acquisitions and internal R&D has not yet translated into profitable capital deployment. The negative ROE of -5.6% in 2026Q2 further underscores the earnings drag from non-cash charges and the retained deficit. This pattern may indicate that the company is in a reinvestment phase, but investors should monitor whether the expected 'sustainable double-digit growth' materializes to justify the current capital base.
Working Capital Efficiency Shows Strain
DSO rose to 108 days in 2026Q2 from 86 days in 2024Q1, per reported figures, indicating slower collections, while DPO remained low at 8 days, suggesting limited supplier leverage.
The elongation of DSO by over 20 days over the past ten quarters may indicate that customers are taking longer to pay, possibly due to budget constraints or contract renegotiations. The low DPO relative to DSO creates a negative cash conversion cycle, but the missing DIO data prevents a full assessment of inventory dynamics. This trend, combined with the working capital swings noted in the cash flow analysis, suggests that the company's cash flow generation is increasingly dependent on efficient receivables management.
Debt Levels Rise but Coverage Remains Thin
Debt-to-equity jumped to 0.30 in 2026Q2 from 0.01 in 2025Q4, per balance sheet data, while interest coverage turned negative at -0.27, indicating that operating income is insufficient to cover interest expenses.
The increase in debt appears tied to refinancing or acquisition activity, but the negative interest coverage in 2026Q2 suggests that the company's operating earnings are not yet covering its interest obligations. The D/EBITDA ratio of 22.35 in 2026Q2 is elevated, though this is partly due to depressed EBITDA from the recent margin compression. Investors should monitor whether the company can restore operating profitability to comfortable levels, as the current leverage, while not extreme, could become strained if the EPS miss signals a structural downturn.
Liquidity Buffer Remains Adequate
Current ratio stood at 2.55 in 2026Q2, per reported data, with cash at $184.1M, providing a cushion against near-term obligations despite the recent operational headwinds.
The current ratio has remained above 2.0 for the past ten quarters, indicating that the company has sufficient short-term assets to cover its liabilities. However, the decline in cash from $184.1M in 2026Q2, combined with the $100M in buybacks over the last three quarters, suggests that management is prioritizing shareholder returns over cash retention. While the liquidity position appears adequate, the negative net margin and rising debt levels warrant monitoring to ensure the buffer does not erode further.
Misapplied P/E Obscures Cash Generation
The trailing P/E of -801.0 is meaningless given the negative GAAP earnings, per reported data, and investors should instead focus on EV/EBITDA and P/FCF to assess valuation.
The negative net margin and significant non-cash charges make the P/E ratio misleading for Certara. The EV/EBITDA of 13.77 and P/FCF of 17.86 provide a more accurate picture of the company's valuation relative to its cash-generating ability. However, the low ROIC and margin compression suggest that the market may be pricing in a recovery that has not yet materialized. Investors should use EV/EBITDA and P/FCF in conjunction with a thorough analysis of the company's ability to convert revenue into free cash flow, as the reported earnings do not reflect the underlying economics.