Verra Mobility Intrinsic Value Calculation – Oregon Pension Fund Reduces Stake in Verra Mobility Co. by 9.6% in Q2
September 11, 2024
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Verra Mobility ($NASDAQ:VRRM) Co. is a leading provider of technology and solutions for the transportation industry. The company offers a range of services, including tolling and violations management, photo enforcement, and data analytics. With a focus on improving efficiency and safety on the roads, Verra Mobility has established itself as a key player in the transportation sector.
However, recent reports have shown that the Oregon Public Employees Retirement Fund has reduced its stake in Verra Mobility by 9.6% during the second quarter. This move has raised questions about the pension fund’s confidence in the company’s performance and future prospects. Its decision to reduce its stake by 9.6% is significant and may have an impact on the overall sentiment towards Verra Mobility’s stock. This reduction in investment could be due to various reasons, such as concerns about the company’s financial performance or changes in the market. However, the company’s recent earnings report showed signs of recovery, with an increase in revenue and adjusted earnings per share compared to the same period last year. Despite this improvement, it appears that the Oregon Pension Fund has decided to decrease its exposure to Verra Mobility. It is worth noting that the Oregon Pension Fund’s decision to reduce its stake in Verra Mobility does not necessarily reflect a lack of confidence in the company’s long-term prospects. As with any investment, it is important for pension funds to regularly review and adjust their portfolio to manage risk and optimize returns. Therefore, this move may simply be a strategic decision by the fund and not a reflection of Verra Mobility’s performance. In conclusion, while the Oregon Pension Fund’s reduction in stake in Verra Mobility may raise some concerns, it is important not to jump to conclusions without considering all factors. Verra Mobility remains a strong player in the transportation industry and its recent financial performance suggests positive growth potential. As the economy continues to recover from the pandemic, it will be interesting to see how Verra Mobility fares in the market and whether the Oregon Pension Fund decides to increase its stake once again.
Analysis – Verra Mobility Intrinsic Value Calculation
As an analyst at GoodWhale, I have conducted an in-depth analysis of the financials of VERRA MOBILITY. After examining the company’s financial statements, including its income statement, balance sheet, and cash flow statement, I have determined that the company’s financial health is strong. One key metric that we look at when evaluating a company’s financials is its profitability. In the case of VERRA MOBILITY, the company has consistently reported positive net income and earnings per share over the past few years. This is a good indication that the company is generating strong profits and is able to sustain its operations. Another important factor we consider is the company’s liquidity, or its ability to meet its short-term financial obligations. VERRA MOBILITY has a healthy balance sheet, with a strong cash position and manageable levels of debt. This suggests that the company is able to meet its short-term financial needs without difficulty. After carefully analyzing VERRA MOBILITY’s financials, we have calculated a fair value for the company’s shares using our proprietary Valuation Line. Our analysis suggests that the fair value of VERRA MOBILITY stock is around $20.0. However, at its current trading price of $26.62, the stock appears to be overvalued by 33.3%. While VERRA MOBILITY’s financials are strong and the company appears to be in a healthy position, it is important for investors to note that the stock may be trading at a premium. This means that the current market price may not accurately reflect the true value of the company. Investors should exercise caution and carefully consider all factors before making any investment decisions. In conclusion, based on our analysis, VERRA MOBILITY appears to be a financially sound company with strong profits and a healthy balance sheet. However, we believe that the current market price of the stock is overvalued and may not be a good entry point for investors looking to invest in the company. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Verra Mobility. More…
| Total Revenues | Net Income | Net Margin |
| 817.31 | 57.02 | 9.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Verra Mobility. More…
| Operations | Investing | Financing |
| 206.1 | -58.29 | -117.79 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Verra Mobility. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.79k | 1.37k | 2.53 |
Key Ratios Snapshot
Some of the financial key ratios for Verra Mobility are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 27.6% | 70.9% | 21.3% |
| FCF Margin | ROE | ROA |
| 18.2% | 26.3% | 6.1% |
Peers
The competition between Verra Mobility Corp and its competitors is fierce. Each company is striving to be the best in the industry and to provide the best products and services to their customers. Fluor Corp, Shenzhen Genvict Technologies Co Ltd, and ComfortDelGro Corp Ltd are all major players in the transportation industry and are constantly innovating to provide the best possible products and services to their customers.
– Fluor Corp ($NYSE:FLR)
Fluor Corp is a engineering and construction company with a market cap of 4.51B as of 2022. The company has a ROE of 11.56%. Fluor Corp provides engineering, procurement, construction, and project management services to government and commercial clients worldwide.
– Shenzhen Genvict Technologies Co Ltd ($SZSE:002869)
Shenzhen Genvict Technologies Co Ltd is a leading provider of Internet of Things (IoT) solutions. The company has a market cap of 4.06B as of 2022 and a ROE of -3.9%. The company provides IoT solutions for a wide range of industries, including smart cities, transportation, energy, and healthcare. The company’s products and solutions are used by government agencies, enterprises, and consumers in over 100 countries.
– ComfortDelGro Corp Ltd ($SGX:C52)
ComfortDelGro Corp Ltd is a Singapore-based land transport company. The Company’s segments include Buses, Taxi, Rail, Automotive Engineering Services, and Others. It offers a range of services, including bus chartering, bus advertising, bus assembly, and spare parts trading. The Company’s businesses include bus operations in Singapore, taxi operations in Singapore, UK, China and Vietnam, railway operations in Singapore and Australia, automotive engineering services and car rental and leasing operations. ComfortDelGro Corp Ltd has a market cap of 2.86B as of 2022, a Return on Equity of 5.96%. The company’s market capitalization is 2.86B, and its ROE is 5.96%.
Summary
Oregon Public Employees Retirement Fund reduced its ownership of Verra Mobility Co. by 9.6% in the second quarter of this year. This reflects a decrease in the fund’s confidence in the company’s potential for growth and profitability. Investing in Verra Mobility may carry a higher risk, as the fund is scaling back its holdings.
This action could also suggest that other investors may follow suit, further impacting the company’s stock performance. It is important for potential investors to closely monitor the company’s financial performance and consider all available information before making any investment decisions in Verra Mobility.
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