CERT

Certara, Inc.

Fundamental data last updated:October 2, 2026

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company profile

SECTOR

Healthcare

industry

Medical - Healthcare Information Services

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Certara, Inc. provides software products and technology-enabled services to customers for biosimulation in drug discovery, preclinical and clinical research, regulatory submissions, and market access. It offers medicines to patients using biosimulation software, technology, and services to transform drug discovery and development. The company also provides related technology-enabled services to guide its customers' new drugs through the regulatory submission process and into the market. Its technology-enabled services include mechanistic biosimulation, empirical biosimulation, drug development and regulatory strategy, clinical pharmacology, model-based meta-analysis, regulatory writing and medical communications, regulatory operations, and market access. Further, company offers software, comprising mechanistic biosimulation platform, empirical PK/PD biosimulation platform, data standardization and compliance software, scientific informatics platform, clinical outcomes databases for biosimulation, authoring and management of regulatory submissions platform, and market access communication platform. The company serves biopharmaceutical companies, and academic and government institutions. It has operations in the United States, Canada, Spain, Luxembourg, Portugal, the United Kingdom, Germany, France, the Netherlands, Denmark, Switzerland, Italy, Poland, Japan, the Philippines, India, Australia, and China. Certara Inc. was founded in 2008 and is headquartered in Princeton, New Jersey.

 


VALUATION

P/E

-59.23

Market Cap ($M USD)

$882.05M

Forward P/E

10.24

PEG

0.02

PRICE TO SALES

2.10

PRICE TO BOOK

0.88

EV / EBITDA

6.87

5-Year Average P/E

Free Cash Flow Yield

10.08%

DCF Value

$6.25

Graham Number

N/A

Price to FCF

9.92

EV to FCF

8.36

Earnings Yield

-1.69%

FCF Yield

10.08%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.10

Next Year EPS Growth Estimate

$0.55

Next Year Revenue Growth Estimate

$456.78M

Return on Equity (ROE)

-1.43%

FREE CASH FLOW

Operating Margin

4.13%

Debt-to-Equity

0.01

Piotroski F-Score

5

Altman Z-Score

1.40

Return on Invested Capital (ROIC)

1.28%

Current Ratio

1.88

Quick Ratio

1.88

Net Debt to EBITDA

-1.28

Interest Coverage

0.35

Gross Profit margin

58.12%

FCF PER SHARE

$0.56

REVENUE PER SHARE

$2.66

Gainseekers Quantitative Analysis

Summary

Certara, Inc. appears to be a perplexing case of valuation misalignment. Despite a DCF value slightly above its snapshot price, the market seems to be pricing in significant skepticism, likely due to its negative earnings yield and a precarious Altman Z-score of 1.57, hinting at potential financial distress. The Forward P/E of 10.88 suggests optimism for future earnings, yet the current P/E is deeply negative, reflecting past struggles. This juxtaposition raises questions about management’s ability to execute on growth expectations. Overall, the stock’s valuation paints a picture of a company at a crossroads, with the market waiting for proof of turnaround.

AI Exposure / Tech Reliance

Operating within the Medical - Healthcare Information Services industry, Certara is well-positioned to leverage AI advancements. The sector's reliance on data analytics and simulation technologies aligns with AI's strengths, offering potential for enhanced service offerings. As AI continues to evolve, Certara's ability to integrate these technologies could bolster its competitive edge.

The Bull Case

For the discerning GARP investor, Certara offers intriguing potential. The company's ROIC of 1.50% and a robust FCF yield of 9.24% suggest efficient capital use and cash generation. A Piotroski F-Score of 6 indicates moderate financial health, while a gross profit margin of 61.53% underscores strong pricing power. These metrics collectively suggest that, despite current challenges, Certara has the foundational strengths to capitalize on future growth opportunities.

The Bear Case

However, the bear case is equally compelling. Certara's negative EPS and earnings yield highlight ongoing profitability issues, while its Altman Z-score signals financial vulnerability. The stock's price is extended above its 50-Day SMA, indicating potential overvaluation. Furthermore, the company's operating margin of 5.02% is modest, suggesting limited operational efficiency. These factors raise concerns about the sustainability of its business model in a competitive landscape.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$9.00

Institutional Ownership %

1-Year Beta

1.54

Insider Buying % (6 Mo)

Distance to 52-Week High

144.80%

Distance to 52-Week Low

21.52%

EARNINGS SURPRISE %

-18.18%

50-DAY SMA

$5.74

200-DAY SMA

$8.70

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.