Verra Mobility (VRRM) AI Stock Analysis

• Market Cap: $3.88B
• Dividend Yield: N/A
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 116.8
• Beta (1Y): 0.36
• Revenue Growth: 6.90%
• EPS Growth: -57.72%
• Country: US
• Employees: 1,754
• Sector: Industrials
• Sector Strength: 90
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.30
• Shares Outstanding: 159,428,680
• 10 Day Avg. Volume: 1,212,488
• 30 Day Avg. Volume: 1,435,766
• PEG Ratio: -1.81
• Price to Book (P/B): 14.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.28
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 6.11
• Enterprise Value/Ebitda: 3.78
• 1Y Price Target: $27.63
• Price Target Upside: 17.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Verra Mobility's stock score reflects strong financial performance in terms of revenue growth and operational efficiency, but is moderated by challenges in profitability and high liabilities. Technical analysis shows a neutral trend, while the high P/E ratio raises valuation concerns. Positive earnings call highlights and corporate events, such as the NYC contract, bolster the outlook, though risks remain.

Positive Factors

Contract Expansion

The NYC contract renewal, which accounts for about 16% of total revenue, could be expanded with 450 additional cameras, potentially increasing the contract value by 5-10%.

Market Position

Verra Mobility has a strong market position and is considered a high-quality company, which makes it less pressured by investors during uncertain times.

Revenue Growth

Commercial Services revenue grew by 6%, beating estimates and nicely exceeding TSA's growth.

Negative Factors

Domestic Travel Weakness

US airlines have reported broad domestic leisure weakness due to economic uncertainty and other factors.

Economic Uncertainty

Management cautioned that financials may trend to the low end of the guidance range depending on the magnitude of a potential economic downturn.

Travel Trends

Recent airline commentary indicates pressure in domestic travel trends, impacting the company's revenue.

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 makes money through a diversified revenue model based on multiple key streams. The company generates income from its Government Solutions segment by providing automated safety enforcement products and services to municipalities and other governmental entities, earning revenue from both equipment sales and ongoing service agreements. Additionally, Verra Mobility's Commercial Services segment brings in revenue by offering toll and violations management services to commercial fleets, enabling them to optimize toll expenses and manage violations efficiently. The company also partners with rental car agencies to facilitate tolling for their customers, earning revenue through transaction fees and service charges. Strategic partnerships with technology providers and municipalities further bolster Verra Mobility's revenue potential by expanding the reach and adoption of its mobility solutions.

Verra Mobility Financial Statement Overview

Summary

Verra Mobility demonstrates robust revenue growth and operational efficiency, with high gross profit margins. However, challenges include low net profit margins and high liabilities, suggesting caution in profitability and debt management. Cash flow is strong, yet variability in free cash flow growth indicates some financial instability.

Income Statement

Verra Mobility has demonstrated solid revenue growth, with a consistent upward trend over the past years. The company's gross profit margin is high, indicating effective cost management. However, the net profit margin is relatively low, which suggests high operating expenses or other costs affecting the bottom line. EBIT and EBITDA margins are healthy, showing strong operational efficiency.

Balance Sheet

The company has a moderate debt-to-equity ratio, reflecting a balanced approach to financing. Return on equity has room for improvement, indicating potential inefficiencies or high costs. The equity ratio suggests that a significant portion of assets is financed by equity, which provides some stability. However, the high level of liabilities is a concern, requiring careful management.

Cash Flow

Cash flow from operations is strong and has been increasing, supporting business sustainability. The free cash flow to net income ratio is robust, indicating good cash generation relative to net income. However, fluctuations in free cash flow growth suggest some volatility in capital expenditures or investment activities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
879.21M	817.31M	741.60M	550.59M	393.59M
	Gross Profit
860.22M	773.85M	694.34M	515.44M	360.05M
	EBIT
136.02M	188.81M	164.71M	111.87M	37.82M
	EBITDA
262.08M	287.52M	336.65M	229.64M	158.55M
	Net Income Common Stockholders
31.45M	57.02M	92.47M	41.45M	-3.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
77.56M	138.63M	105.20M	101.28M	120.26M
	Total Assets
1.61B	1.79B	1.76B	1.84B	1.37B
	Total Debt
1.07B	1.07B	1.25B	1.28B	870.03M
	Net Debt
989.33M	938.08M	1.14B	1.18B	749.77M
	Total Liabilities
1.35B	1.37B	1.53B	1.58B	1.02B
	Stockholders Equity
265.13M	421.47M	231.07M	259.96M	346.44M
Cash Flow		Free Cash Flow
152.79M	148.62M	170.15M	168.17M	22.65M
	Operating Cash Flow
223.64M	206.10M	218.34M	193.17M	46.91M
	Investing Cash Flow
-69.72M	-58.29M	-48.59M	-475.97M	-24.15M
	Financing Cash Flow
-211.43M	-117.79M	-164.93M	268.72M	-34.00M

Verra Mobility Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.55
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 23.55 is above the 20-day moving average (MA) of 22.34, above the 50-day MA of 21.75, and below the 200-day MA of 24.87, indicating a neutral trend. The MACD of 0.48 indicates Negative momentum. The RSI at 57.98 is Neutral, neither overbought nor oversold. The STOCH value of 76.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VRRM.

Verra Mobility Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACA	70 Outperform	$4.42B	56.79	3.23%	0.22%	10.44%	-45.30%
HRI	68 Neutral	$3.80B	29.70	9.60%	2.02%	8.34%	-63.02%
HXL	65 Neutral	$4.34B	35.65	7.87%	1.15%	5.37%	29.15%
Sector *	64 Neutral	$4.38B	12.03	5.25%	249.91%	4.11%	-11.02%
SNDR	63 Neutral	$4.34B	34.95	4.20%	1.53%	-0.30%	-20.76%
VRRM	63 Neutral	$3.88B	116.82	9.25%	―	6.90%	-57.72%
HEES	56 Neutral	$3.48B	38.09	15.74%	1.16%	-3.52%	-46.60%

Verra Mobility Corporate Events

Verra Mobility Reports Q1 2025 Financial Results

Verra Mobility announced its financial results for the first quarter of 2025, reporting a total revenue of $223.3 million, a 6% increase from the previous year. The company achieved a net income of $32.3 million and reaffirmed its full-year 2025 guidance, despite acknowledging potential risks due to economic uncertainties. The company also highlighted its continued partnership with New York City for its transportation safety program and ongoing contract negotiations. Additionally, Verra Mobility completed a share repurchase program, retiring all repurchased shares, and maintained strong liquidity with $108.5 million in cash and cash equivalents as of March 31, 2025.

Spark’s Take on VRRM Stock

According to Spark, TipRanks’ AI Analyst, VRRM is a Neutral.

Verra Mobility’s stock is supported by strong revenue growth and strategic contracts, particularly the major NYC enforcement contract. However, high liabilities and a high P/E ratio pose risks, making the stock potentially overvalued. The recent earnings call provided a balanced outlook, with solid performance offset by some challenges. Technical indicators suggest a neutral trend, and corporate events offer positive growth prospects.

To see Spark’s full report on VRRM stock, click here.

Verra Mobility Approves New Annual Incentive Plan

On April 23, 2025, Verra Mobility Corporation’s Board of Directors approved a new Annual Incentive Plan (AIP) effective from January 1, 2025. This plan, replacing previous incentive plans, aims to motivate employees, including executive officers, by offering cash incentives based on performance goals. The AIP is designed to drive company growth and employee retention by aligning individual and company-wide performance metrics. Participants must meet specific performance thresholds, such as the EBITDA Threshold, to qualify for incentives, and the plan’s administration involves oversight by the company’s CEO and Compensation Committee.

Spark’s Take on VRRM Stock

According to Spark, TipRanks’ AI Analyst, VRRM is a Neutral.

Verra Mobility’s stock score is 61, driven by strong financial performance and a major new contract win, balanced by challenges in profitability and valuation concerns. The technical indicators suggest a bearish trend, while the high P/E ratio signals potential overvaluation.

To see Spark’s full report on VRRM stock, click here.

Verra Mobility Secures Major NYC Enforcement Contract

On March 31, 2025, the New York City Department of Transportation announced that Verra Mobility has been identified as the vendor to manage the city’s automated enforcement camera safety programs for a five-year period starting after the current contract expires in December 2025. This contract, which is the largest of its kind in the nation, will involve managing red-light, speed, bus lane enforcement cameras, and cameras for enforcing weight limits on the Brooklyn-Queens Expressway. The announcement highlights Verra Mobility’s continued role as a trusted technology provider in enhancing New York City’s safety programs, with contract negotiations set to commence.

Verra Mobility Reports 2024 Financial Results and Outlook

Verra Mobility announced its financial results for the fourth quarter and full year of 2024, reporting a full-year revenue of $879.2 million and net income of $31.4 million. The company experienced growth in its Commercial Services and Government Solutions segments, driven by increased travel demand and the expansion of automated traffic enforcement programs. However, the Parking Solutions segment faced challenges, with a decrease in revenue and profit due to an impairment loss. Despite these challenges, Verra Mobility maintains a positive outlook for 2025, expecting continued revenue growth and strong performance in its Government Solutions and Parking Solutions segments.