Latest Ratios: P/E Ratio 5.0x · EV/EBITDA 1.7x · 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 | $641M | $3.6B | $4.1B | $3.7B | $2.2B | $2.5B | $2.2B | $2.2B | $852M | $479M | — |
| Enterprise Value | $614M | $3.6B | $5.0B | $4.6B | $3.3B | $3.7B | $2.9B | $3.0B | $1.7B | $906M | — |
| P/E Ratio → | 4.96 | 26.36 | 127.26 | 63.97 | 23.84 | 61.72 | — | 66.62 | — | 335.81 | — |
| P/S Ratio | 0.65 | 3.69 | 4.61 | 4.51 | 2.97 | 4.59 | 5.51 | 4.99 | 2.30 | — | — |
| P/B Ratio | 2.32 | 12.34 | 15.30 | 8.74 | 9.52 | 9.72 | 6.87 | 7.23 | 2.82 | 95.72 | — |
| P/FCF | 4.69 | 26.44 | 26.54 | 24.80 | 12.93 | 15.03 | 95.77 | 21.51 | 43.84 | — | — |
| P/OCF | 2.51 | 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 | 1.73 | 10.11 | 20.58 | 15.31 | 10.97 | 16.23 | 18.93 | 14.44 | 14.29 | 20.17 | — |
| EV / EBIT | 2.58 | 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 | — | 124.54 | 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 | 20.1% | 3.8% | 0.8% | 1.6% | 4.2% | 1.6% | — | 1.5% | — | 0.3% | — |
| FCF Yield | 21.3% | 3.8% | 3.8% | 4.0% | 7.7% | 6.7% | 1.0% | 4.6% | 2.3% | — | — |
| Buyback Yield | 0.0% | 0.0% | 4.9% | 2.7% | 5.7% | 4.0% | 0.2% | 0.2% | 91.4% | 0.0% | — |
| Total Shareholder Yield | 0.0% | 0.0% | 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 |
Regulatory and legislative volatility
According to current market data, VRRM trades at a forward P/E of 3.67, which appears significantly compressed compared to broader GovTech peers, suggesting that investors are heavily discounting the company's future earnings potential due to concerns regarding the durability of its high-margin clearinghouse revenue streams.
The low valuation multiples, including an EV/EBITDA of 1.85, imply that the market views the company's growth as potentially terminal rather than compounding. This pricing suggests a lack of confidence in the long-term sustainability of the current margin profile, warranting further investigation into whether the market is over-penalizing the company for its regulatory exposure.
Based on reported financial figures, VRRM's ROIC has fluctuated between -2.5% and 13.8% over the last ten quarters, indicating that the company struggles to consistently compound returns on invested capital despite its dominant market position in the rental car tolling and government enforcement infrastructure segments.
The volatility in ROIC appears driven by the lumpy nature of capital expenditures required to maintain camera hardware and the integration costs of recent acquisitions. Investors should monitor whether the company can stabilize these returns as it shifts toward a more software-centric model, as current levels remain below the threshold typically required for long-term value creation.
As indicated by quarterly filings, the company's cash conversion cycle has exhibited extreme volatility, swinging from -1168 days to 1689 days, which suggests that the timing of municipal contract payments and inventory management for enforcement hardware creates significant noise in the underlying operational efficiency metrics.
The high DSO, which reached 137 days in 2026Q1, implies that the company may be facing extended collection cycles with government entities, which could pressure liquidity. This inefficiency warrants further investigation into whether the company's leverage over its customers is as strong as the 'toll-on-a-toll' model would suggest.
According to recent balance sheet data, the current ratio has tightened from 2.72 in 2024Q1 to 1.89 in 2026Q1, suggesting that while the firm maintains a sufficient buffer to cover short-term obligations, its liquidity position remains sensitive to the timing of project-based cash inflows and outflows.
The reduction in the current ratio appears to coincide with the company's aggressive capital allocation and debt repayment strategies. While the current position appears adequate, the reliance on recurring revenue from municipal contracts means that any disruption in government payment cycles could rapidly impact the company's short-term financial flexibility.
Based on an analysis of the company's financial structure, the most commonly misapplied metric is the headline gross margin, which frequently exceeds 95% and obscures the significant underlying capital intensity and depreciation costs associated with the company's physical camera and tolling infrastructure assets.
Analysts often mistake VRRM for a pure-play SaaS company due to these high margins, failing to account for the substantial maintenance and hardware replacement costs that are buried in operating expenses. A more accurate assessment of the business would involve focusing on FCF margins and return on invested capital to better capture the true cash-generative nature of the firm.
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Quick answers to the most common questions about buying VRRM stock.
Verra Mobility Corporation's current P/E ratio is 5.0x. The historical average is 61.6x.
Verra Mobility Corporation's current EV/EBITDA is 1.7x. 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 5.0x. 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.