Verra Mobility Corporation Class A Common Stock (VRRM)

FairStock Score: 76/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At $3.01 on 2026-10-13, Verra Mobility is a $457.5M market-cap tolling, violations, registration, and parking technology company. The Graham-style numbers are mixed. FairStock reports P/E 11.15 on EPS $0.27, P/B 2.05, ROE 15.38%, ROCE 9.16%, and a Graham Number of $2.99, leaving a margin of safety of -0.67%. The cash-flow picture is striking: trailing free cash flow is $96.9M, a 21.2% FCF yield, and EV/EBITDA is 5.43. That is the kind of cheapness that can attract a value investor. But the filed results demand caution. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $263.6M but net income was a loss of $48.2M, or EPS -$0.32. A year earlier, in fiscal Q2 2025, net income was $38.6M on revenue $236.0M. Fiscal Q1 2026 was positive at $26.7M, so the latest loss is abrupt. FY2025 revenue was $979.1M with net income $136.6M and EPS $0.85, after FY2024 net income of $31.4M and FY2023 net income of $57.0M. The Lynch category is FAST GROWER based on 34.7% profit growth and 15.5% revenue growth over four years, yet current revenue growth is 0.14% and profit growth is -17.30%. Debt is a major worry: D/E 4.86, Altman Z 0.43, Piotroski 4/9. A low beta 0.38 and high FCF yield do not offset a leveraged balance sheet and a fresh loss. The moat may come from contracts and switching costs, but I need evidence of normalized earnings before calling this a bargain.

In plain English: Verra Mobility helps rental car companies, fleets, and governments handle tolls, violations, registrations, and parking technology. The business generates a lot of cash for its size, but it just posted a big quarterly loss and carries a lot of debt, so it looks financially stretched rather than clearly strong. At $3.01, the price looks low compared with its cash flow but risky given the latest loss and falling profit.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer