Verra Mobility (VRRM) AI Stock Analysis

• Market Cap: $3.89B
• Dividend Yield: N/A
• Average Volume (3M): 940.10K
• Price to Earnings (P/E): 118.8
• Beta (1Y): 0.31
• Revenue Growth: 6.90%
• EPS Growth: -57.72%
• Country: US
• Employees: 1,754
• Sector: Industrials
• Sector Strength: 87
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.30
• Shares Outstanding: 159,428,680
• 10 Day Avg. Volume: 760,473
• 30 Day Avg. Volume: 940,102
• PEG Ratio: 0.17
• Price to Book (P/B): 9.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.42
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 3.92
• Enterprise Value/Ebitda: 2.70
• 1Y Price Target: $26.83
• Price Target Upside: 12.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 68 Neutral
• Price Target: $26.00 ▲(8.60%Upside)

Verra Mobility's overall score reflects strong revenue growth and operational efficiency, balanced by high leverage and valuation concerns. The stock benefits from positive corporate events and strategic contract wins, but faces risks from economic uncertainties and potential overvaluation.

Positive Factors

Financial Performance

Verra Mobility reported solid first-quarter financials above consensus and reiterated 2025 guidance, showcasing strong financial performance.

Legislative Support

Legislative momentum for school zone speed cameras is expected to drive growth for the government business, with more positive photo enforcement legislation enacted in recent years.

Market Share

Verra Mobility has a leading market share for photo enforcement and rental car tolling services, with a roughly 70% market share for speed and red-light photo enforcement operations in North America.

Negative 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 Industry Pressures

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

Valuation Concerns

Concerns about domestic travel weakness appear to be largely priced in with the stock down significantly.

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 primarily through three key segments: Government Solutions, Commercial Services, and Parking Solutions. The Government Solutions segment is a significant revenue driver, providing automated safety solutions such as red-light and speed enforcement systems for municipalities and other government entities. This segment earns income through service contracts and fines collected from violators. The Commercial Services segment offers toll and violation management services that cater to rental car companies and commercial fleets, generating revenue through service fees and transaction-based charges. Additionally, the Parking Solutions segment focuses on providing electronic toll collection and parking management solutions. Partnerships with technology providers and municipalities further enhance revenue generation by expanding the reach and effectiveness of Verra Mobility's services. Overall, the company's earnings are bolstered by its ability to deliver scalable and efficient mobility solutions that address the needs of both public and private sector clients.

Verra Mobility Financial Statement Overview

Summary

Verra Mobility shows strong revenue growth and efficient operational performance, as seen in its strong margins and cash flow metrics. However, high leverage and a low equity base pose financial risks that need to be managed for sustained long-term health.

Income Statement

Verra Mobility shows strong revenue growth, with a 20.3% increase from 2022 to 2023 and a further 7.6% increase in the TTM (Trailing-Twelve-Months). Gross Profit Margin is solid at 92.9% TTM, indicating efficient cost management. However, the Net Profit Margin is relatively low at 3.9% TTM, showing room for improvement in profitability. EBIT and EBITDA Margins are robust at 15.4% and 29.2% TTM, respectively, highlighting healthy operational performance.

Balance Sheet

The company's Debt-to-Equity Ratio is high at 3.56, indicating significant leverage, which poses a risk if earnings decline. Return on Equity (ROE) is moderate at 11.6% TTM, showing adequate return generation on equity. The Equity Ratio stands at 18.2% TTM, suggesting a low equity base relative to total assets, which may limit financial flexibility.

Cash Flow

Operating Cash Flow to Net Income Ratio is strong at 7.3 TTM, indicating effective cash generation relative to net income. Free Cash Flow increased by 14.1% from 2023 to TTM, reflecting positive cash flow management. The Free Cash Flow to Net Income Ratio is healthy at 5.0 TTM, showcasing the company's ability to convert profits into free cash flow.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
892.73M	879.21M	817.31M	741.60M	550.59M	393.59M
	Gross Profit
829.92M	860.22M	773.85M	694.34M	515.44M	360.05M
	EBIT
137.44M	136.02M	188.81M	164.71M	111.87M	37.82M
	EBITDA
260.46M	262.08M	287.52M	336.65M	229.64M	158.55M
	Net Income Common Stockholders
34.64M	31.45M	57.02M	92.47M	41.45M	-3.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
108.45M	77.56M	138.63M	105.20M	101.28M	120.26M
	Total Assets
1.64B	1.61B	1.79B	1.76B	1.84B	1.37B
	Total Debt
1.07B	1.07B	1.07B	1.25B	1.28B	870.03M
	Net Debt
957.13M	989.33M	938.08M	1.14B	1.18B	749.77M
	Total Liabilities
1.34B	1.35B	1.37B	1.53B	1.58B	1.02B
	Stockholders Equity
299.57M	265.13M	421.47M	231.07M	259.96M	346.44M
Cash Flow		Free Cash Flow
174.34M	152.79M	148.62M	170.15M	168.17M	22.65M
	Operating Cash Flow
251.94M	223.64M	206.10M	218.34M	193.17M	46.91M
	Investing Cash Flow
-77.00M	-69.72M	-58.29M	-48.59M	-475.97M	-24.15M
	Financing Cash Flow
-213.55M	-211.43M	-117.79M	-164.93M	268.72M	-34.00M

Verra Mobility Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Neutral. The current price of 23.94 is below the 20-day moving average (MA) of 24.04, above the 50-day MA of 23.02, and below the 200-day MA of 24.41, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 52.17 is Neutral, neither overbought nor oversold. The STOCH value of 60.79 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
ACA	72 Outperform	$4.19B	53.85	3.23%	0.23%	10.44%	-45.30%
HXL	69 Neutral	$4.40B	36.13	7.87%	1.24%	5.37%	29.15%
VRRM	68 Neutral	$3.89B	118.75	9.25%	―	6.90%	-57.72%
HRI	66 Neutral	$3.96B	25.39	9.60%	2.46%	8.34%	-63.02%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
SNDR	63 Neutral	$4.28B	34.01	4.20%	1.58%	-0.30%	-20.76%
HEES	56 Neutral	$3.47B	38.00	15.74%	1.16%	-3.52%	-46.60%

Verra Mobility Corporate Events

Verra Mobility Releases 2024 Corporate Responsibility Report

On May 28, 2025, Verra Mobility Corporation announced the release of its 2024 Corporate Responsibility Report. The report, which is accessible on the company’s website, outlines Verra Mobility’s commitment to corporate responsibility through its four foundational pillars: community, planet, people, and governance. The report highlights the company’s achievements and its impact on customers, employees, shareholders, and communities, emphasizing its role as a responsible corporate citizen and its vision for safer and easier transportation in the future.

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 Holds Annual Stockholders Meeting

On May 20, 2025, Verra Mobility Corporation held its annual meeting of stockholders where three proposals were voted on. Stockholders elected two Class I directors, approved executive compensation on a non-binding basis, and ratified Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

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 Announces $100 Million Stock Buyback

On May 17, 2025, Verra Mobility Corporation’s Board of Directors approved a stock repurchase program, allowing the company to buy back up to $100 million of its Class A common stock. This initiative, which will run until November 13, 2026, provides the company with flexibility in its share repurchase strategy, potentially impacting its market positioning and shareholder value.

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 Expands Credit Facility with Amendment

On May 15, 2025, Verra Mobility Corporation’s subsidiaries, including Greenlight Acquisition Corporation and VM Consolidated, entered into an amendment to their Revolving Credit Agreement with Bank of America. This Fourth ABL Amendment increases the credit facility from $75 million to $125 million, enhancing the company’s financial flexibility while maintaining the original terms of the agreement, which matures on December 20, 2026.

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 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.

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.

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.