Certara, Inc. cash flow to debt ratio of 844.88% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Certara, Inc.'s free cash flow has increased 19.94% from $78.84M last year to $94.56M, signaling increasing performance

Certara, Inc.'s debt to equity ratio is 0.30, which means that the company's assets are healthy financed, signaling financial stability.

Certara, Inc.'s debt has increased relative to shareholder equity from 0.29 last year to 0.30 today, signaling weakened financials

Certara, Inc. has a net cash position, so leverage is healthy.

Certara, Inc.'s interest coverage ratio is 0.19, which means that the company struggles to meet interest obligations, signaling financial risk.

Certara, Inc.'s profit margin has decreased (435.23%) in the last year from -3.13% to -16.75%, signaling decreasing performance

Certara, Inc.'s short-term assets of $315.12M exceed its short-term liabilities of $153.38M

Certara, Inc.'s return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

Certara, Inc.'s return on equity of -6.66%, is lower than 15.00%, indicating bad performance

Certara, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Certara, Inc. had positive net income in only 1 out of 5 years, indicating unstable earnings

Certara, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Certara, Inc. has a free cash flow yield of 7.53%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Certara, Inc.'s yearly earnings has increased -86.76% since last year from $-12.05M to $-1.59M, signaling increasing performance

Certara, Inc.'s yearly revenue has increased 8.75% since last year from $385.15M to $418.84M, signaling increasing performance

ROIC 0.59% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Certara, Inc.'s 3-year revenue CAGR of 7.66% is positive, indicating growing revenue over the past 3 years

Certara, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Certara, Inc. had positive ROE in only 1 out of 5 years, indicating inconsistent returns on equity

Certara, Inc. is undervalued relative to its fair value price of 11.67 based on Discounted Cash Flow model

Certara, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Certara, Inc. is overvalued relative to its fair value price of 4.81 based on EBITDA multiple model

Certara, Inc. has an EV/EBITDA ratio of 12.84x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Certara, Inc. has insufficient data to evaluate this check.

Certara, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Certara, Inc. has a price-to-book ratio of 1.29x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Certara, Inc. has a price-to-sales ratio of 3.05x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue