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ZYBERNO

Stock Report

Updated Aug 31, 2026

Vertex, Inc. (VERX)

Technology • NASDAQ

$14.23

Vertex Inc. is an American tax technology company headquartered in King of Prussia, Pennsylvania, that provides cloud-based tax solutions for global enterprises. The company's software automates sales tax, use tax, value-added tax (VAT), and excise tax calculations, compliance reporting, and returns for businesses processing millions of transactions, integrating with ERP systems including SAP and Oracle.

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

34.0/100

WEAK BUSINESS

Vertex, Inc. (VERX) scores 34/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full VERX quality analysis & detailed breakdown

VALUATION SIGNAL

N/A (Requires more data)

Requires fair value calculation and current price data

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full VERX valuation analysis · → View full VERX Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):POOR (5.4%)

Debt-to-Equity (Solvency Risk):POOR (1.45x)

Operating Margin (Operational Efficiency):CRITICAL (-1.6%)

Return on Capital (Capital Efficiency):CRITICAL (-2.7%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

Vertex, Inc. (VERX) stock report — Zyberno Score 34/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:14.23

Market Cap:$2.03B

Valuation Multiples (3)

P/B Ratio:8.44x

P/S Ratio:2.58x

Peg Ratio:-999.00x

Enterprise Metrics (3)

Enterprise Value:$2.15B

Ev Ebitda Ratio:29.71x

Pfcf Ratio:21.70x

Price Action & Momentum (3)

12-1 Momentum:

-60.6% (4th pctile)

📈 Click to view full VERX Momentum analysis →

Momentum Percentile:4 / 100

% of 52-Week High:53.6%

B. Profitability Assessment

Return Metrics (5)

ROE:

5.4%

📊 Click to view full VERX ROE analysis →

ROA:1.1%

Roic:

-2.7%

📊 Click to view full VERX ROIC analysis →

Reinvestment Rate:263.9%

Fundamental Growth Rate (g):-7.1%

Margin Analysis (3)

Operating Margin Ttm:-1.6%

Net Margin Ttm:1.7%

Ebitda Margin:9.2%

TTM Performance (3)

Gross Margin Ttm:64.0%

Operating Margin Ttm:-1.6%

Net Margin Ttm:1.7%

Yield Metrics (2)

Earnings Yield:-$999.00

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):14.1%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):17.8%

Cash Flow Growth (Linear) (1)

Operating Cash Flow Growth Rate (Linear):42.8%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):-31.3%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:0.87x

Quick Ratio:0.87x

Cash Ratio:0.41x

Leverage Analysis (3)

Debt To Equity Ttm:1.45x

Debt-to-Equity Ratio:1.45x

Debt To Ebitda:4.75x

Coverage Ratios (2)

Interest Coverage Ratio:1.62x

Times Interest Earned:1.62

Capital Structure (4)

Working Capital:-72,474,000.00

Cash And Cash Equivalents:230,489,000.00

Long Term Debt:$338.61M

Net Debt:$112.59M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $787.44M

Linear Growth: 14.1%

📊 Click to view full VERX Revenue analysis & methodology →

Cost Of Revenue Ttm:$283.86M

Profitability Breakdown (2)

Gross profit TTM: $503.58M

Linear Growth: 16.3%

📊 Click to view full VERX Gross Profit analysis & methodology →

Operating income TTM: -$12.72M

Linear Growth: -31.3%

📊 Click to view full VERX Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: $13.74M

Linear Growth: 17.8%

📊 Click to view full VERX Net Income analysis & methodology →

Income Before Tax:-$6.17M

Ebitda Ttm:72,292,000.00

Operating Expenses (5)

Operating Expenses:516,916,000.00

R And D Expense:91,602,000.00

Sga Expense:195,746,000.00

Income Tax Expense:-$13.13M

Interest Expense:4,666,000.00

Expense Ratios (3)

R And D To Revenue Percentage:44.9%

Sga To Revenue Percentage:96.0%

Ebitda Margin:9.2%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$1.21B

Current Assets:$491.95M

Ppe Net:168,475,000.00

Goodwill:400,344,000.00

Intangible Assets:$0.00

Liability Structure (4)

Total Liabilities:969,040,000.00

Current Liabilities:564,419,000.00

Long Term Debt:$338.61M

Short Term Debt:$4.47M

Equity & Capital (3)

Equity:$241.11M

Retained Earnings:-$39.57M

Common Stock:450,000,000.00

Working Capital Items (3)

Accounts Receivable:153,432,000.00

Inventory:0.00

Accounts Payable:37,313,000.00

Special Items (2)

Contract Liabilities:386,901,000.00

Stock Based Compensation:13,762,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $188.71M

Linear Growth: 42.8%

$93.79M

Investment Activities (1)

Investing Cash Flow:-$52.28M

Financing Activities (3)

Financing Cash Flow:-$53.33M

Dividends Paid Ttm:0.00

Stock Repurchase:20,041,000.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$46.88M

Non-Cash Items (1)

Depreciation Amortization Ttm:85,010,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (1)

Earnings Per Share Ttm:$0.10

Revenue & Cash Per Share (2)

Sales Per Share Ttm:5.50

Operating Cash Flow Per Share:$1.16

Book Value & Capital (2)

Book Value Per Share:$1.69

Cash Per Share:1.61

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.64x

Working Capital Turnover Ttm:-999.00x

Receivables Management (2)

Receivables Turnover Ttm:5.13x

Days Sales Outstanding Ttm:71.12

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:47.98

Cash Conversion Cycle:-975.86

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:20.00

Quality Score:75.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Damodaran Growth Analysis (2)

Reinvestment Rate:263.9%

Fundamental Growth Rate (g):-7.1%

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):14.1%

Net Income Growth Rate (Linear):17.8%

Operating Income Growth Rate (Linear):-31.3%

Cash Flow Growth Rates (1)

Operating Cash Flow Growth Rate (Linear):42.8%

Other Growth Rates (2)

Gross Profit Growth Rate (Linear):16.3%

Book Value Growth Rate (Linear):2.9%

C. Company Profile & Context

Corporate Information (6)

Symbol:VERX

Company Name:Vertex, Inc.

Sector:Technology

Industry:Software

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:medium

Volume Category:N/A

Share Structure (3)

Shares Outstanding:143.05M

Shares Outstanding Basic:0

Shares Outstanding Diluted:0

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-31 06:27:06 UTC

Data Timestamp:2026-08-31T06:27:06.869255