Verra Mobility Corporation (VRRM)
Valuation Overview•Is Verra Mobility Corporation Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
High-quality fundamentals with a strong composite quality score of 83/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: High-quality compounder, with profitability as the only relative weakness.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
VRRM demonstrates strong business quality with robust profitability and healthy margins (highlighted by a massive 23.5% ROIC). This is backed by a fortress balance sheet, holding significant net cash ($27M) and minimal debt risk.
The company demonstrates solid revenue growth (9.7% 3Y CAGR) paired with robust earnings compounding (13.6% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 23.8% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $223.6M | +11.4% | +9.7% | +20.0% | — | |
| EBITDA | $81.1M | — | +5.2% | — | — | |
| Net Income | $26.7M | +334.5% | +13.9% | — | — | |
| EPS (Diluted) | $0.17 | +347.4% | +13.6% | — | — | |
| Free Cash Flow | $9.1M | -10.5% | -7.0% | +43.3% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 97.5% | 96.5% | 95.3% | 750.3% |
| Operating Margin | 23.8% | 21.0% | 21.1% | 26.1% |
| Net Margin | 13.4% | 8.2% | 8.9% | -13.9% |
| FCF Margin | 10.6% | 16.5% | 20.6% | 302.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.25 | $0.25 | +0.0% | ||
| Q1'26 | $0.32 | $0.30 | -6.3% | ||
| Q4'25 | $0.34 | $0.37 | +8.8% | ||
| Q3'25 | $0.33 | $0.34 | +3.0% | ||
| Q2'25 | $0.29 | $0.30 | +3.4% | ||
| Q1'25 | $0.30 | $0.33 | +10.0% | ||
| Q4'24 | $0.31 | $0.32 | +3.2% | ||
| Q3'24 | $0.29 | $0.31 | +6.9% |
Total return is -81.5% (1Y), lagging the benchmark by -106.5%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -80.1% | -89.4% | — |
| 1Y | -81.5% | -106.5% | — |
| 3YCAGR | -38.4% | -56.7% | — |
| 5YCAGR | -21.9% | -33.5% | — |
| 10YCAGR | -7.8% | -20.9% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Verra Mobility Corporation (VRRM) valuation, health, and returns.
Based on peer relative multiples, Verra Mobility Corporation appears Cheap versus peers compared to industry peers.
Verra Mobility Corporation has multiple valuation anchors: Peer Relative Fair Value: $33.73 | Wall Street Analyst Target: $5.75 (implying +29.5% upside). A convergence of these signals offers higher conviction.
Verra Mobility Corporation displays excellent financial health with a composite quality score of 83/100, supported by a Altman Z-Score of 0.5 (distress zone), Piotroski F-Score of 8/9, Return on Invested Capital (ROIC) of 23.5%.
Verra Mobility Corporation does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Verra Mobility Corporation's current growth trajectory is Stable. The company achieved +11.4% 1Y revenue growth and +347.4% 1Y EPS growth, compared to its 3Y revenue CAGR of +9.7%.
Wall Street consensus is Hold based on 12 analysts, beating EPS expectations in 75% of recent quarters with a -2-quarter streak. The consensus price target represents a +29.5% change from current levels.
Investment risks for Verra Mobility Corporation include: -85.0% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 0.51x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.