Verra Mobility (VRRM) AI Stock Analysis

• Market Cap: $3.89B
• Dividend Yield: N/A
• Average Volume (3M): 872.85K
• Price to Earnings (P/E): 102.8
• Beta (1Y): 0.32
• Revenue Growth: 6.24%
• EPS Growth: -57.35%
• Country: US
• Employees: 1,754
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.34
• Shares Outstanding: 159,540,820
• 10 Day Avg. Volume: 703,792
• 30 Day Avg. Volume: 872,852
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 5.52
• Enterprise Value/Gross Profit: 5.80
• Enterprise Value/Ebitda: 18.49
• 1Y Price Target: $28.00
• Price Target Upside: 16.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: $26.00 ▲(8.02% Upside)

Verra Mobility's overall score reflects strong financial performance and positive earnings call highlights, tempered by high leverage and valuation concerns. The technical indicators suggest neutral momentum, while the high P/E ratio indicates potential overvaluation.

Positive Factors

Revenue Growth

Consistent revenue growth across all business segments indicates strong market demand and effective execution of business strategies, supporting long-term expansion.

Government Solutions Expansion

Growth in Government Solutions suggests a solid foothold in public sector markets, enhancing the company's competitive position and revenue stability.

Cash Flow Generation

Strong free cash flow generation provides financial flexibility, enabling strategic investments and debt reduction, which are crucial for sustainable growth.

Negative Factors

High Leverage

Significant leverage can constrain financial flexibility and increase vulnerability to economic downturns, potentially impacting long-term financial health.

Decline in T2 Systems Revenue

A decline in T2 Systems revenue highlights challenges in this segment, potentially affecting overall revenue growth and necessitating strategic adjustments.

Travel Demand Concerns

Reduced travel demand could pressure revenue from related services, impacting the company's ability to meet financial guidance and affecting future performance.

Verra Mobility Business Overview & Revenue Model

Company Description

Verra Mobility Corporation provides smart mobility technology solutions and services in the United States, Australia, Canada, and Europe. It operates through three segments: Commercial Services; Government Solutions; and Parking Solutions. The Government Solutions segment offers automated safety solutions, including services and technologies that enable photo enforcement through road safety camera programs, which detects and process traffic violations related to red light, speed, school bus, and city bus lanes. This segment serves municipalities, counties, school districts, and law enforcement agencies. The Commercial Services segment provides automated toll and violations management, and title and registration services to rental car companies, fleet management companies, and other large fleet owners. The Parking Solutions segment provides an integrated suite of parking software and hardware solutions to universities, municipalities, parking operators, healthcare facilities, and transportation hubs. The company was incorporated in 2016 and is headquartered in Mesa, Arizona.

How the Company Makes Money

Verra Mobility generates revenue through multiple key channels. The company primarily earns money from its automated tolling and violation processing services, where it charges fees for processing tolls and managing traffic violations on behalf of government entities and municipalities. Additionally, it derives income from parking management services, which includes the deployment of parking enforcement technologies and solutions. Fleet management solutions contribute to revenue as well, as businesses pay for software and services that improve vehicle tracking and operational efficiency. Significant partnerships with local and state governments, as well as collaboration with transportation agencies, enhance its revenue potential by expanding its service offerings and client base.

Verra Mobility Financial Statement Overview

Summary

Verra Mobility shows strong revenue growth and operational efficiency with robust margins and cash flow generation. However, high leverage and declining net profit margin pose risks.

Income Statement

Verra Mobility has demonstrated strong revenue growth with a TTM increase of 1.52% and consistent profitability, as evidenced by a gross profit margin of 95.06% and a net profit margin of 4.30%. However, the net profit margin has decreased from previous years, indicating some pressure on net income. The EBIT and EBITDA margins remain healthy at 17.50% and 29.84%, respectively, showcasing operational efficiency.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 2.99, which is a concern as it indicates significant leverage. Return on equity is moderate at 11.11%, reflecting decent profitability relative to shareholder equity. The equity ratio stands at 20.77%, suggesting a relatively low proportion of equity financing compared to total assets.

Cash Flow

Verra Mobility's cash flow performance is solid, with a free cash flow growth rate of 8.26% in the TTM period. The operating cash flow to net income ratio is strong at 1.38, indicating good cash generation relative to net income. The free cash flow to net income ratio of 0.66 suggests that a significant portion of net income is converted into free cash flow, supporting financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	906.33M	879.21M	817.31M	741.60M	550.59M	393.59M
Gross Profit	861.60M	860.22M	773.85M	694.34M	515.44M	360.05M
EBITDA	270.47M	262.08M	287.52M	336.65M	229.64M	158.55M
Net Income	38.99M	31.45M	57.02M	92.47M	41.45M	-3.44M
Balance Sheet
Total Assets	1.70B	1.61B	1.79B	1.76B	1.84B	1.37B
Cash, Cash Equivalents and Short-Term Investments	147.65M	77.56M	138.63M	105.20M	101.28M	120.26M
Total Debt	1.05B	1.07B	1.07B	1.25B	1.28B	870.03M
Total Liabilities	1.34B	1.35B	1.37B	1.53B	1.58B	1.02B
Stockholders Equity	352.10M	265.13M	421.47M	231.07M	259.96M	346.44M
Cash Flow
Free Cash Flow	188.75M	152.79M	148.62M	170.15M	168.17M	22.65M
Operating Cash Flow	287.17M	223.64M	206.10M	218.34M	193.17M	46.91M
Investing Cash Flow	-98.06M	-69.72M	-58.29M	-48.59M	-475.97M	-24.15M
Financing Cash Flow	-161.21M	-211.43M	-117.79M	-164.93M	268.72M	-34.00M

Verra Mobility Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRRM, the sentiment is Negative. The current price of 24.07 is below the 20-day moving average (MA) of 24.72, below the 50-day MA of 24.71, and above the 200-day MA of 23.99, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 43.39 is Neutral, neither overbought nor oversold. The STOCH value of 33.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRRM.

Verra Mobility Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WNS	77 Outperform	3.25B	20.19	20.43%	―	1.94%	26.15%
CNXC	71 Outperform	3.38B	14.73	5.72%	2.48%	11.31%	-16.02%
PAY	71 Outperform	4.03B	73.70	10.86%	―	49.35%	72.05%
INGM	63 Neutral	4.98B	18.66	6.60%	1.07%	4.94%	-18.43%
VRRM	61 Neutral	$3.89B	102.78	9.86%	―	6.24%	-57.35%
SAIC	60 Neutral	4.78B	12.56	26.30%	1.42%	2.23%	48.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Verra Mobility Corporate Events

Verra Mobility Reports Strong Q2 2025 Financial Results

Verra Mobility reported strong financial results for the second quarter of 2025, with total revenue reaching $236.0 million, a 6% increase from the previous year. The company experienced growth across its Government and Commercial Services segments, while Parking Solutions saw a slight decline. Net income rose to $38.6 million, supported by increased income from operations and reduced interest expenses. The company reaffirmed its full-year guidance for 2025, despite caution over potential declines in travel volume. Additionally, Verra Mobility announced a new share repurchase program and a lease agreement for a new corporate headquarters in Mesa, Arizona.

The most recent analyst rating on (VRRM) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Verra Mobility stock, see the VRRM Stock Forecast page.

Verra Mobility Appoints New Executive VP Stacey Moser

On July 2, 2025, Verra Mobility Corporation announced the departure of Steven Lalla, Executive Vice President of Commercial Services, effective July 30, 2025, with severance benefits aligned with his employment agreement. Concurrently, Stacey Moser was appointed as the new Executive Vice President and General Manager of Commercial Services, effective July 21, 2025. Moser, with over 25 years of experience in commercial, product management, and engineering leadership, is expected to enhance the company’s operations and strengthen its position in the mobility industry, benefiting fleet customers in the U.S. and Europe.

The most recent analyst rating on (VRRM) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Verra Mobility stock, see the VRRM Stock Forecast page.