Latest Ratios: P/E Ratio 4.0x · EV/EBITDA 1.4x · ROE 49.0%. (2016–2025 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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $513M | $3.6B | $4.1B | $3.7B | $2.2B | $2.5B | $2.2B | $2.2B | $852M | $479M | — |
| Enterprise Value | $486M | $3.6B | $5.0B | $4.6B | $3.3B | $3.7B | $2.9B | $3.0B | $1.7B | $906M | — |
| P/E Ratio → | 3.98 | 26.36 | 127.26 | 63.97 | 23.84 | 61.72 | — | 66.62 | — | 335.81 | — |
| P/S Ratio | 0.52 | 3.69 | 4.61 | 4.51 | 2.97 | 4.59 | 5.51 | 4.99 | 2.30 | — | — |
| P/B Ratio | 1.86 | 12.34 | 15.30 | 8.74 | 9.52 | 9.72 | 6.87 | 7.23 | 2.82 | 95.72 | — |
| P/FCF | 3.76 | 26.44 | 26.54 | 24.80 | 12.93 | 15.03 | 95.77 | 21.51 | 43.84 | — | — |
| P/OCF | 2.01 | 14.13 | 18.13 | 17.88 | 10.07 | 13.08 | 46.24 | 16.74 | 18.52 | 197.05 | — |
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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.66 | 5.74 | 5.66 | 4.51 | 6.74 | 7.42 | 6.70 | 4.48 | — | — |
| EV / EBITDA | 1.37 | 10.11 | 20.58 | 15.31 | 10.97 | 16.23 | 18.93 | 14.44 | 14.29 | 20.17 | — |
| EV / EBIT | 2.04 | 13.82 | 32.97 | 26.62 | 17.03 | 32.88 | 70.04 | 29.38 | 908.20 | 76.91 | — |
| EV / FCF | — | 26.24 | 33.02 | 31.11 | 19.66 | 22.06 | 129.01 | 28.89 | 85.21 | — | — |
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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 96.9% | 96.9% | 97.8% | 94.7% | 93.6% | 93.6% | 91.5% | 67.7% | 97.5% | 6711.0% | 58.4% |
| Operating Margin | 24.4% | 24.4% | 15.5% | 23.1% | 22.2% | 20.3% | 9.6% | 21.5% | 3.4% | 100.0% | 20.8% |
| Net Profit Margin | 14.0% | 14.0% | 3.6% | 7.0% | 12.5% | 7.5% | -1.2% | 3.8% | -15.8% | -182.6% | 12.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 49.0% | 49.0% | 9.2% | 17.5% | 37.7% | 14.4% | -1.5% | 5.6% | -38.0% | 57.2% | — |
| ROA | 8.4% | 8.4% | 1.8% | 3.2% | 5.1% | 2.6% | -0.3% | 1.2% | -6.7% | 0.7% | 6933.1% |
| ROIC | 23.5% | 23.5% | 7.8% | 10.3% | 8.8% | 6.7% | 2.6% | 6.6% | 1.2% | -0.3% | 27449.7% |
| ROCE | 16.7% | 16.7% | 9.1% | 12.0% | 10.2% | 7.5% | 2.9% | 7.5% | 1.5% | -0.4% | — |
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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.13 | 0.13 | 4.02 | 2.55 | 5.42 | 4.94 | 2.77 | 2.91 | 2.88 | 85.74 | — |
| Debt / EBITDA | 0.11 | 0.11 | 4.35 | 3.56 | 4.11 | 5.62 | 5.66 | 4.32 | 7.50 | 9.54 | 0.00 |
| Net Debt / Equity | — | -0.09 | 3.73 | 2.23 | 4.96 | 4.55 | 2.39 | 2.48 | 2.66 | 85.57 | — |
| Net Debt / EBITDA | -0.08 | -0.08 | 4.04 | 3.11 | 3.76 | 5.17 | 4.88 | 3.69 | 6.94 | 9.52 | 0.00 |
| Debt / FCF | — | -0.20 | 6.48 | 6.31 | 6.74 | 7.04 | 33.24 | 7.38 | 41.37 | — | 0.01 |
| Interest Coverage | 4.02 | 4.02 | 2.07 | 2.00 | 2.83 | 2.51 | 1.02 | 1.69 | 0.03 | 3.91 | 18.61 |
Net cash position: cash ($65M) exceeds total debt ($38M)
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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.09 | 2.09 | 1.97 | 2.05 | 1.94 | 1.99 | 5.12 | 2.60 | 2.69 | 4.85 | 0.96 |
| Quick Ratio | 2.00 | 2.00 | 1.89 | 1.96 | 1.84 | 1.92 | 5.12 | 2.60 | 2.66 | 4.85 | 0.96 |
| Cash Ratio | 0.31 | 0.31 | 0.39 | 0.65 | 0.56 | 0.58 | 1.88 | 1.25 | 0.95 | 4.17 | 0.01 |
| Asset Turnover | — | 0.59 | 0.54 | 0.46 | 0.42 | 0.30 | 0.29 | 0.32 | 0.28 | -0.00 | 551.73 |
| Inventory Turnover | 1.47 | 1.47 | 1.22 | 2.42 | 2.45 | 2.91 | 296.81 | — | 4.54 | — | — |
| Days Sales Outstanding | — | 113.84 | 108.55 | 104.90 | 97.33 | 128.24 | 169.55 | 92.33 | 99.07 | -30397.62 | 0.00 |
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 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | 91.4% | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | 162.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 25.1% | 3.8% | 0.8% | 1.6% | 4.2% | 1.6% | — | 1.5% | — | 0.3% | — |
| FCF Yield | 26.6% | 3.8% | 3.8% | 4.0% | 7.7% | 6.7% | 1.0% | 4.6% | 2.3% | — | — |
| Buyback Yield | 26.0% | 3.7% | 4.9% | 2.7% | 5.7% | 4.0% | 0.2% | 0.2% | 91.4% | 0.0% | — |
| Total Shareholder Yield | 26.0% | 3.7% | 4.9% | 2.7% | 5.7% | 4.0% | 0.2% | 0.2% | 100.0% | 0.0% | — |
| Shares Outstanding | — | $161M | $168M | $160M | $159M | $164M | $162M | $160M | $87M | $48M | $40M |
Includes 30+ ratios · 10 years · Updated daily
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Quick answers to the most common questions about buying VRRM stock.
Verra Mobility Corporation's current P/E ratio is 4.0x. The historical average is 61.6x.
Verra Mobility Corporation's current EV/EBITDA is 1.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.7x.
Verra Mobility Corporation's return on equity (ROE) is 49.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 16.8%.
Based on historical data, Verra Mobility Corporation is trading at a P/E of 4.0x. Compare with industry peers and growth rates for a complete picture.
Verra Mobility Corporation has 96.9% gross margin and 24.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Verra Mobility Corporation's Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Extreme leverage and goodwill concentration
Metrics are mathematically derived from official filings.
Deep Value Pricing Amidst Structural Shift
Verra Mobility trades at a profound discount with a P/E of 5.16 and EV/EBITDA of 1.80, suggesting the market is pricing in significant risk to its recently achieved high-margin profitability and ignoring its accelerating revenue growth.
The valuation multiples are exceptionally low relative to the company's recent operational performance, including gross margins above 94% and double-digit revenue growth. This disconnect implies the market is either skeptical of the sustainability of the new margin structure or is heavily discounting the balance sheet risks, particularly the extreme leverage and goodwill concentration. The forward P/E of 3.85 indicates the market expects earnings to grow, but not enough to warrant a higher multiple, reflecting deep-seated concerns about earnings quality and capital structure.
Margin Transformation and Earnings Quality
Gross margins have surged to a sustained level above 94% since 2025, a dramatic structural shift from the 60.6% seen in 2024Q4, indicating a fundamental change in the company's cost structure and pricing power.
The profitability profile has undergone a radical transformation, with operating margins consistently in the 23-29% range in profitable quarters, a stark reversal from the negative margins of late 2024. However, the significant volatility in net margins, including a -18.3% reading in 2026Q2 despite strong gross profit, suggests that non-operating items like taxes, interest, or one-time charges are heavily distorting the bottom line. This makes operating margin a more reliable indicator of true earning power than net margin for this company.
Capital Returns Volatile and Equity-Depleted
Return on Equity has been highly volatile, swinging from -17.7% in 2024Q4 to 12.4% in 2025Q3, but the recent plunge to -19.4% in 2026Q2 indicates that the company's capital base is being severely eroded by losses and leverage.
The ROE trend is not indicative of stable compounding but rather reflects the impact of a volatile earnings stream and a deteriorating equity base. The negative retained earnings balance of $308.1 million confirms that historical losses and capital returns have consumed all prior profits. While ROIC showed improvement to 13.8% in 2026Q1, its collapse to -3.2% in the following quarter underscores the instability of returns, making it difficult to assess sustainable value creation.
Leverage Spike Constrains Financial Flexibility
The debt-to-equity ratio has exploded from 0.13 in 2025Q4 to 4.86 in 2026Q2, indicating a massive capital structure reconfiguration that has consumed equity and dramatically increased financial risk.
This extreme leverage, with a D/E of 4.86, appears to be driven by strategic financing rather than operational necessity, as evidenced by the concurrent cash build. The interest coverage ratio turned negative at -1.73 in 2026Q2, suggesting that operating earnings are currently insufficient to cover interest expenses, a significant deterioration from the comfortable coverage of 3-5x seen in prior quarters. This level of leverage severely limits financial flexibility and heightens refinancing risk.
Adequate Buffer Masked by Tight Cash Management
A current ratio of 2.06 in 2026Q2 provides a solid short-term liquidity buffer, but the cash position of $49.6 million is modest relative to the $1.1 billion debt load, indicating liquidity is managed tightly.
The quick ratio of 1.96 is nearly identical to the current ratio, suggesting minimal inventory dependence and a liquid asset base. However, the company's liquidity position is highly sensitive to cash flow timing, as the large negative cash conversion cycle of -206 days indicates it relies heavily on collecting from customers before paying suppliers. Under severe stress, the ability to service the massive debt load would become the primary liquidity concern, not the short-term working capital metrics.
The Misleading Signal of the Current Ratio
The current ratio of 2.06 is the most commonly misapplied metric for Verra Mobility, as it obscures the true liquidity risk posed by the massive $1.1 billion debt load and the company's reliance on future cash flows to service it.
Investors often use the current ratio as a simple proxy for financial health, but for Verra Mobility, it is misleading. The ratio is inflated by a large accounts payable balance (DPO of 411 days), which is a source of short-term financing, not a sign of excess liquidity. The more critical metric is the net debt to EBITDA ratio, which is not provided but would be extremely high given the D/E of 4.86. This alternative metric better captures the true leverage and refinancing risk that the current ratio completely ignores.