VRRMVerra Mobility Corporation
Is the business good?
The checks split: earnings fully cash-backed (2.0×), but margins compressing and returns that lean on debt.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 32% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is VRRM?
Verra Mobility Corporation earns 9.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.02 points below what the capital costs: growth destroys value
- Operating margin
- 14%
Operating margin · Information Technology Services median 8.0% · 12 months to Q2 2026
- Cash conversion
- 1.99×
Cash conversion · 2.58× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −5.9%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 9.6% |
| FY2021 | 20% |
| FY2022 | 22% |
| FY2023 | 23% |
| FY2024 | 15% |
| FY2025 | 24% |
Details›
- Operating margin12 months to Q2 2026
- 14%
- Net margin12 months to Q2 2026
- 4.4%
- Free cash flow margin
- 9.6%
- Revenue, trailing twelve months
- $1.01B
- Free cash flow, trailing twelve months
- $97M
- Net income, trailing twelve months
- $44M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Information Technology Services
Ranks #8 of 31 by RyuScore