Vertex Inc (VERX, Financial), a leading provider of tax technology and services, has seen a significant shift in its stock performance over the past quarter. With a current market cap of $3.5 billion, the company's stock price stands at $22.99. Despite experiencing a loss of 7.97% over the past week, the stock has gained an impressive 19.02% over the past three months. This article aims to provide a comprehensive analysis of Vertex Inc's stock performance, profitability, growth, and competition.
Stock Performance Analysis
Vertex Inc's stock performance has been a roller coaster ride over the past quarter. The company's stock price has seen a significant gain of 19.02% over the past three months, despite a recent loss of 7.97% over the past week. The GF Value of the stock currently stands at $22.9, slightly lower than the past GF Value of $23.37. This indicates that the stock is currently Fairly Valued, compared to its past GF Valuation as Modestly Undervalued. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates.
Company Introduction
Vertex Inc operates in the software industry, providing tax technology and services. The company's solutions automate and integrate tax processes while leveraging advanced and predictive analytics of tax data. Vertex offers both cloud-based and on-premise solutions for every line of tax, including income, sales, consumer use, value-added, and payroll. The company's revenue is primarily derived from software subscriptions. 
Profitability Analysis
Vertex Inc's Profitability Rank stands at 2/10, indicating a relatively low level of profitability. The company's operating margin is -3.26%, which is better than 38.43% of the companies in the industry. The ROE and ROA stand at -14.13% and -4.45% respectively, while the ROIC is -3.72%. These figures suggest that the company has struggled to generate profits and returns on its investments. Over the past 10 years, the company has only had 1 year of profitability. 
Growth Analysis
Despite the challenges in profitability, Vertex Inc has demonstrated a solid growth rate. The company's 3-Year Revenue Growth Rate per Share stands at 9.80%, which is better than 53.73% of the companies in the industry. This suggests that the company has been successful in expanding its revenue base over the past three years. 
Major Stock Holders
Jim Simons (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) are the top two holders of Vertex Inc's stock. Jim Simons (Trades, Portfolio) holds 228,600 shares, accounting for 0.15% of the total shares, while Chuck Royce (Trades, Portfolio) holds 71,000 shares, accounting for 0.05% of the total shares.
Competitor Analysis
Vertex Inc faces stiff competition from Instructure Holdings Inc (INST, Financial), Pegasystems Inc (PEGA, Financial), and Blackbaud Inc (BLKB, Financial), with respective market caps of $3.58 billion, $3.82 billion, and $3.98 billion.
Conclusion
In conclusion, Vertex Inc's stock has shown a significant gain over the past quarter, despite recent losses. The company's profitability has been a challenge, but its solid growth rate suggests potential for future improvement. The competition in the industry is intense, and the company's performance in the coming quarters will be crucial for its stock performance. This information is vital for value investors and website members to make informed decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
