Verra Mobility (VRRM) AI Stock Analysis

• Market Cap: $3.50B
• Dividend Yield: N/A
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 68.2
• Beta (1Y): 0.37
• Revenue Growth: 8.52%
• EPS Growth: -45.92%
• Country: US
• Employees: 1,754
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.37
• Shares Outstanding: 159,564,450
• 10 Day Avg. Volume: 1,456,196
• 30 Day Avg. Volume: 1,564,673
• PEG Ratio: -2.69
• Price to Book (P/B): 15.06
• Price to Sales (P/S): 4.54
• P/FCF Ratio: 26.13
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 5.16
• Enterprise Value/Gross Profit: 5.93
• Enterprise Value/Ebitda: 12.82
• 1Y Price Target: $29.33
• Price Target Upside: 34.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.33
• Revenue Forecast (FY): $962.81M

• Rating: 63 Neutral
• Price Target: $22.50 ▲(3.21% Upside)

Verra Mobility's overall stock score reflects strong financial performance and positive earnings call insights, particularly from new contracts and legislative wins. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. The company's financial health is solid, but the high debt-to-equity ratio and future margin pressures pose risks.

Positive Factors

Revenue Growth

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

New York City Contract Expansion

The significant contract with NYC enhances revenue visibility and strengthens the company's position in a key market, supporting future growth.

Legislative Wins in California

Legislative wins in California expand the market opportunity, potentially increasing revenue streams and reinforcing the company's market position.

Negative Factors

High Debt-to-Equity Ratio

While improving, the high debt-to-equity ratio poses financial risk, potentially limiting flexibility and increasing vulnerability to economic shifts.

Government Solutions Margin Pressure

Margin pressure from the NYC contract could reduce profitability, affecting overall financial performance and shareholder returns in the long term.

Fleet Management Revenue Decline

Ongoing revenue decline in Fleet Management due to customer churn could weaken the company's revenue base and hinder growth prospects.

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 various channels, primarily by offering tolling and violation management services, which involve processing tolls and fines for municipalities and private entities. The company earns fees from automated vehicle registration and toll collection services, providing a seamless experience for users. Additionally, Verra Mobility has a significant presence in the rental and fleet management sector, offering tracking and compliance solutions that generate recurring subscription revenues. Key partnerships with government agencies and transportation authorities play a crucial role in its earnings, as these collaborations enhance service offerings and expand the customer base. The company's revenue model is further supported by technology-driven solutions that optimize operational costs for clients, leading to long-term contracts and sustained revenue growth.

Verra Mobility Financial Statement Overview

Summary

Verra Mobility demonstrates solid financial health with strong profitability and improving leverage metrics. While revenue growth is moderate, the company maintains high margins and efficient cash flow management. The high debt-to-equity ratio remains a concern, but recent improvements indicate a positive trajectory.

Income Statement

Verra Mobility shows strong profitability with a high gross profit margin of 95.06% TTM, indicating efficient cost management. The net profit margin has improved to 4.30% TTM from 3.58% in the previous year, reflecting better bottom-line performance. Revenue growth is modest at 4.02% TTM, suggesting steady expansion. However, the EBIT margin has slightly decreased to 17.50% TTM, which could indicate rising operational costs.

Balance Sheet

The company's debt-to-equity ratio has improved to 2.99 TTM from 4.02, showing a reduction in leverage, yet it remains relatively high, posing potential financial risk. Return on equity is stable at 11.11% TTM, reflecting consistent shareholder returns. The equity ratio is not explicitly provided, but the improvement in debt metrics suggests a strengthening balance sheet.

Cash Flow

Operating cash flow to net income ratio is strong at 1.38 TTM, indicating healthy cash generation relative to earnings. However, free cash flow has decreased by 19.15% TTM, which could impact future investments. The free cash flow to net income ratio remains robust at 65.73%, suggesting efficient cash utilization despite recent declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	942.72M	879.21M	817.31M	741.60M	550.59M	393.59M
Gross Profit	819.75M	860.22M	773.85M	694.34M	515.44M	360.05M
EBITDA	379.51M	262.08M	287.52M	336.65M	229.64M	158.56M
Net Income	51.10M	31.45M	57.02M	92.47M	41.45M	-4.58M
Balance Sheet
Total Assets	1.78B	1.61B	1.79B	1.76B	1.84B	1.37B
Cash, Cash Equivalents and Short-Term Investments	196.10M	77.56M	138.63M	105.20M	101.28M	120.26M
Total Debt	1.07B	1.07B	1.07B	1.25B	1.28B	873.21M
Total Liabilities	1.38B	1.35B	1.37B	1.53B	1.58B	1.05B
Stockholders Equity	403.15M	265.13M	421.47M	231.07M	259.96M	315.57M
Cash Flow
Free Cash Flow	152.41M	152.79M	148.62M	170.15M	168.17M	22.65M
Operating Cash Flow	256.13M	223.64M	206.10M	218.34M	193.17M	46.91M
Investing Cash Flow	-103.34M	-69.72M	-58.29M	-48.59M	-475.97M	-24.15M
Financing Cash Flow	-164.99M	-211.43M	-117.79M	-164.93M	268.72M	-34.00M

Verra Mobility Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRRM, the sentiment is Neutral. The current price of 21.8 is above the 20-day moving average (MA) of 21.73, below the 50-day MA of 22.92, and below the 200-day MA of 23.43, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 46.13 is Neutral, neither overbought nor oversold. The STOCH value of 62.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	―	―	21.23%	―	1.94%	26.15%
PAY	74 Outperform	$4.35B	75.28	11.81%	―	44.34%	45.96%
SAIC	71 Outperform	$4.51B	12.75	23.75%	1.69%	-0.38%	31.38%
INGM	70 Outperform	$5.46B	18.85	7.51%	1.36%	7.06%	-8.83%
CNXC	69 Neutral	$2.46B	8.35	7.08%	3.43%	3.40%	53.13%
VRRM	63 Neutral	$3.50B	68.21	11.49%	―	8.52%	-45.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Verra Mobility Corporate Events

Verra Mobility Expands Share Repurchase Program by $150M

Verra Mobility Corporation reported strong financial results for the third quarter of 2025, with a total revenue of $261.9 million, marking a 16% increase from the previous year. This growth was primarily driven by the expansion of the New York City Department of Transportation’s red-light program. The company also announced an increase in its share repurchase program by $150 million, bringing the total authorization to $250 million, reflecting its confidence in future performance and commitment to returning value to shareholders.

Verra Mobility Secures $150 Million Credit Facility

On October 17, 2025, Verra Mobility Corporation’s subsidiaries entered into an Amended and Restated Revolving Credit Agreement with Bank of America, establishing a $150 million senior secured asset-based revolving credit facility. This agreement amends a previous credit agreement and includes a $35 million sublimit for letters of credit, maturing in 2030. The facility’s availability is based on valuations of certain assets, and it includes covenants limiting financial activities and requiring certain subsidiaries to act as guarantors. Additionally, Verra Mobility refinanced its existing senior secured term loans with a new term loan maturing in 2032, offering more favorable interest terms and mandatory prepayment provisions.

Verra Mobility Approves Equity Award for Executive

On September 25, 2025, Verra Mobility‘s Compensation Committee approved a one-time equity award for Jonathan Keyser, the Executive Vice President and Chief Legal Officer, in the form of time-based restricted stock units valued at $300,000. This award, part of a retention arrangement, includes an increase in Mr. Keyser’s annual base salary to $450,000, a target bonus of 75% of his salary, and a long-term incentive award of $1,000,000, aiming to align with market standards and retain key leadership.