Vercom SA (VRC) AI Stock Analysis

• Market Cap: zł2.95B
• Dividend Yield: 1.52%
• Average Volume (3M): 2.78K
• Price to Earnings (P/E): 33.7
• Beta (1Y): 0.47
• Revenue Growth: 24.56%
• EPS Growth: 11.43%
• Country: PL
• Employees: 163
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.91
• Shares Outstanding: 22,223,785
• 10 Day Avg. Volume: 2,107
• 30 Day Avg. Volume: 2,782
• PEG Ratio: 4.19
• Price to Book (P/B): 6.72
• Price to Sales (P/S): 5.69
• P/FCF Ratio: 28.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 17.39
• Revenue Forecast (FY): zł1.79B

• Rating: 69 Neutral
• Price Target: zł137.00 ▲(2.70% Upside)

Vercom SA's strong financial performance, characterized by profitability and efficient cash flow management, is the primary driver of its stock score. Technical analysis shows a positive trend, but valuation concerns due to a high P/E ratio and modest dividend yield weigh on the overall score.

Vercom SA Business Overview & Revenue Model

Company Description

Vercom SA (VRC) is a leading provider of cloud-based communication solutions, specializing in messaging and voice services for businesses across various sectors. The company operates primarily in the telecommunications and technology industries, offering a suite of products that includes SMS messaging, voice broadcasting, and multi-channel communication platforms. With a strong focus on enabling seamless connectivity and enhancing customer engagement, Vercom SA caters to a diverse clientele, including enterprises, marketing agencies, and e-commerce companies.

How the Company Makes Money

Vercom SA generates revenue primarily through its subscription-based model and pay-as-you-go services. Key revenue streams include fees from SMS and voice services, which are charged based on usage, as well as monthly subscriptions for access to its communication platforms. Additionally, the company benefits from partnerships with mobile network operators and technology providers that enhance its service offerings and expand its market reach. These collaborations allow Vercom to leverage existing infrastructures and provide competitive pricing, ultimately contributing to its profitability.

Vercom SA Financial Statement Overview

Summary

Vercom SA demonstrates strong profitability with healthy margins and efficient cash flow management. The balance sheet is solid with low leverage. However, the recent decline in revenue growth is a concern that could impact long-term growth.

Income Statement

Vercom SA's income statement shows strong profitability with a consistent gross profit margin around 45-53% and a net profit margin improving to 17.37% in TTM. However, the recent revenue growth rate is negative at -36.5%, indicating a significant decline in sales. Despite this, the company maintains healthy EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.23 in TTM, indicating conservative leverage. The return on equity is strong at 21.72%, showcasing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals robust free cash flow growth of 2.78% in TTM, and a strong free cash flow to net income ratio of 0.87, indicating efficient cash generation relative to profits. The operating cash flow to net income ratio of 1.17 suggests good cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	472.00M	496.23M	337.38M	260.32M	178.92M	143.62M
Gross Profit	245.03M	220.95M	181.00M	115.73M	54.03M	41.80M
EBITDA	125.97M	112.48M	105.95M	52.31M	33.13M	25.93M
Net Income	87.46M	76.58M	70.40M	31.42M	22.71M	19.42M
Balance Sheet
Total Assets	552.62M	626.38M	559.05M	586.94M	295.95M	104.45M
Cash, Cash Equivalents and Short-Term Investments	72.98M	106.23M	63.26M	-3.23M	116.80M	11.68M
Total Debt	85.12M	95.73M	114.21M	137.99M	46.94M	50.69M
Total Liabilities	172.76M	204.70M	191.41M	152.55M	89.07M	78.71M
Stockholders Equity	377.29M	419.89M	365.91M	327.68M	206.05M	25.74M
Cash Flow
Free Cash Flow	95.63M	100.51M	76.38M	24.30M	25.52M	23.45M
Operating Cash Flow	111.13M	112.36M	85.30M	31.45M	30.56M	25.32M
Investing Cash Flow	-13.98M	-6.54M	14.86M	-221.79M	-71.61M	-22.57M
Financing Cash Flow	-98.15M	-63.17M	-83.76M	106.70M	146.17M	6.27M

Vercom SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 133.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:VRC, the sentiment is Positive. The current price of 133.4 is above the 20-day moving average (MA) of 123.89, above the 50-day MA of 123.62, and above the 200-day MA of 119.67, indicating a bullish trend. The MACD of 2.38 indicates Negative momentum. The RSI at 68.98 is Neutral, neither overbought nor oversold. The STOCH value of 86.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PL:VRC.

Vercom SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TXT	78 Outperform	zł1.01B	7.37	144.88%	15.74%	4.10%	-7.82%
ASE	73 Outperform	zł3.27B	17.07	17.83%	2.80%	7.18%	-2.62%
VRC	69 Neutral	zł2.95B	33.72	23.32%	1.52%	24.56%	11.43%
WPL	64 Neutral	€1.78B	12.56	14.56%	3.69%	16.90%	-16.02%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CBF	―	zł3.00B	47.34	―	―	―	―