Verra Mobility Corp (VRRM) Stock Analysis
Verdict: AVOID
Contract resets with Hertz and Avis stabilize top-line revenue but severely compress margins under $1.09B debt — equity remains high risk.
Investment score: 34/100
Analysis as of
Is Verra Mobility Corp stock worth reviewing? AI model thesis
Verra Mobility Corp faces structural margin erosion and high debt leverage ($1.09B) following materially less favorable contract renewals with key rental partners Avis and Hertz.
7-factor investment score
- Valuation: 52/100 (weight 20%)
- Financial Health: 30/100 (weight 15%)
- Technical Momentum: 15/100 (weight 15%)
- Earnings Quality: 40/100 (weight 15%)
- Insider Sentiment: 35/100 (weight 10%)
- Analyst Consensus: 30/100 (weight 10%)
- Risk-Adjusted Return: 30/100 (weight 15%)
Verra Mobility Corp opportunities and risks
What speaks for VRRM
- Long-Term Contract Security with Key Rental Fleet Customers
What speaks against VRRM
- Severe Margin Degradation from Contract Pricing Resets
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| VRRM | 12.0x | 0.5x | 5.6x | 96.1% | 4.4% | 19.7% |
| SSNC | 22.0x | 2.8x | 11.6x | 48.1% | 13.2% | 9.6% |
| EXLS | 21.9x | 2.4x | 12.8x | 38.5% | 11.2% | 5.2% |
| MMS | 7.7x | 0.5x | 6.1x | 24.4% | 7.1% | 15.7% |
| CNXC | n/a | 0.2x | n/a | 32.4% | -13.1% | 31.1% |
| TASK | 6.9x | 0.6x | 5.0x | 34.0% | 8.8% | 16.3% |
| Peer median | 7.7x | 0.6x | 6.1x | 34.0% | 8.8% | 15.7% |
Frequently asked questions about Verra Mobility Corp (VRRM)
Is VRRM stock a good investment?
The cached TradeMates AI model rates Verra Mobility Corp as AVOID with an investment score of 34/100. Verra Mobility Corp faces structural margin erosion and high debt leverage ($1.09B) following materially less favorable contract renewals with key rental partners Avis and Hertz. This is algorithmic model output, not personal investment advice.
Is VRRM stock a buy?
The TradeMates model verdict for VRRM is AVOID with an investment score of 34/100. Treat this as a model signal to review, not a personal buy recommendation.