Vertex, Inc. is a tax technology software company trading below its 52-week low with a confirmed price downtrend and a death cross, yet its forward price-to-earnings of 11.5x and PEG of 0.01 reflect extreme cheapness, and the company is free cash flow positive with a 13% FCF margin despite reporting GAAP losses.
Thesis pillars
- Extreme Value Peg Discount↓Deteriorating
- Fcf Positive Despite Gaap Loss→Stable
- Death Cross Confirmed Downtrend↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 24, 2026· older than 90 days
Vertex, Inc. (VERX) Stock Analysis
Technology · Software - Application
Sell if holding. Analyst target reached at $15.92 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.2).
Vertex automates transaction-based indirect tax compliance—sales tax, VAT, e-invoicing, and returns—across more than 20,000 taxing jurisdictions in over 195 countries for enterprise and mid-market companies. As of December 31, 2025, the company served 4,867 direct customers... Read more
Sell if holding. Analyst target reached at $15.92 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.2). Chart setup: No clear chart pattern; technical signals are mixed. Score 5.6/10, high confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news boost earnings 0.70, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About Vertex, Inc.
About Vertex, Inc.
Vertex's compliance automation platform serves 4,867 direct customers—including the majority of the Fortune 500 and 9 of the top 10 U.S. e-commerce sites—with ARR per customer of $137,867 as of December 31, 2025. The platform governs indirect tax obligations across more than 20,000 taxing jurisdictions in over 195 countries, applying a proprietary content database of more than one billion effective tax rules. Approximately 10% of 2025 revenue came from outside the U.S., up from 8% in 2024, as the company expands in Latin America and Europe.
Vertex earns substantially all revenue from software subscriptions to its indirect tax determination, compliance and returns, and e-invoicing platforms, with pricing tiered and volume-based so that customer spend grows as transaction volumes and jurisdictions expand. The platform integrates with major ERP, CRM, and eCommerce systems from Oracle, SAP, Microsoft, Salesforce, and Shopify through pre-built connectors maintained under a rigorous partner certification program. The company's monthly-updated tax content—over one billion effective rules—is the proprietary asset that differentiates the platform from competitors including other tax-specific software vendors and the tax compliance services of large accounting firms such as Deloitte, PwC, Ernst & Young, and KPMG. In 2025, Vertex partnered with Kintsugi AI and Brinta (NITIS SAS) to extend capabilities for small and medium businesses and Latin America e-invoicing, respectively. No single customer represented more than 10% of total revenue in either 2025 or 2024.
Show full overview
Vertex acknowledged in its 10-K that a new Chief Executive Officer was recently appointed amid ongoing organizational change, and that failure to recruit specialists in AI and e-invoicing or to adapt to an AI-enabled operating model could weaken competitive position. In April 2026, the company disclosed via Form 8-K a Value Creation Plan reducing its global workforce by approximately 170 employees (9% of the total), with estimated pre-tax charges of $6 million to $8 million for severance; the restructuring was characterized as an effort to refocus investment on AI capabilities and key growth areas. These transitions, if poorly managed, may impact customer retention and product development timelines.
See also: Technology · Software - Application
From Vertex, Inc.'s most recent 10-K filing, extracted June 16, 2026.
Recent developments
updated Nov 4, 2026Recent Developments — Vertex, Inc.
Latest news
- NEWS Vertex, Inc. Reports Third Quarter 2026 Financial Results — fiscal.ai Nov 4, 2026
- NEWS Vertex Sees Q4 Sales $215.000M-$217.000M vs $215.374M Est — benzinga Nov 4, 2026 neutral
- NEWS Vertex Raises FY2026 Sales Guidance from $825.000M-$830.000M to $828.900M-$830.900M vs $827.231M Est — benzinga Nov 4, 2026 positive
- NEWS AI Tax Platform Launch Might Change The Case For Investing In Vertex (VERX) - Simply Wall St — Simply Wall St Nov 1, 2026 positive
- NEWS Vertex (VERX) Rolls Out Vertex Sol As Investors Weigh An Undervalued AI Tax Story - Simply Wall St — Simply Wall St Oct 31, 2026 positive
Latest item Nov 4, 2026 · Generated 2026-11-05T11:49:11Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
2 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $15.92 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.2). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $14.81. Score 5.6/10, high confidence.
Analyst target $14.86 reached (−6.7% from $15.92); no take-profit level is published. Prior stop was $14.81. Stop-loss: $14.81.
Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.2); Sector modifier (Technology): -0.8.
Vertex, Inc. trades at a P/E of 1592.0 (forward 15.6). TrendMatrix value score: 6.8/10. Verdict: Sell.
22 analysts rate VERX, with a consensus score of 3.8/5. 13 analysts publish price targets averaging $17.
What does Vertex, Inc. do?Vertex automates transaction-based indirect tax compliance—sales tax, VAT, e-invoicing, and returns—across more than...
Vertex automates transaction-based indirect tax compliance—sales tax, VAT, e-invoicing, and returns—across more than 20,000 taxing jurisdictions in over 195 countries for enterprise and mid-market companies. As of December 31, 2025, the company served 4,867 direct customers including the majority of the Fortune 500, with ARR per customer of $137,867 and approximately 90% of revenue generated in the U.S.