Verra Mobility Corporation (VRRM): A Bull Case Theory

We came crossed a bullish thesis connected Verra Mobility Corporation connected Valueinvestorsclub.com by zbeex. In this article, we volition summarize the bulls’ thesis connected VRRM. Verra Mobility Corporation's stock was trading astatine $21.84 arsenic of November 26th. VRRM’s trailing and guardant P/E were 64.24 and 15.50 respectively according to Yahoo Finance.

Photo by Denys Nevozhai connected Unsplash

Verra Mobility Corporation provides astute mobility exertion solutions successful the United States, Australia, Europe, and Canada. VRRM is a specialty payments company operating through 2 halfway segments: Commercial Services (CS) and Government Solutions (GS). CS is the starring supplier of toll absorption services for rental car and fleet absorption companies successful North America, integrated with each large RACs and 54 tolling authorities. GS dominates automated postulation enforcement (ATE) successful North America, including red-light, speed, and schoolhouse autobus stop-arm cameras, offering backend processing and billing.

The company benefits from beardown competitory positions, with 90%+ marketplace stock successful CS and 70% successful GS, some segments demonstrating resilience and secular maturation drivers. CS is experiencing high-single-digit maturation supported by expanding cashless tolling and accrued toll-road prevalence, portion GS maturation is accelerating owed to authorities and the impending enlargement of New York City’s ATE program. The company’s largest customer, NYC, represents $139 cardinal successful yearly work revenue, and the recently finalized five-year contract, valued astatine $963 million, includes enlargement to 600 intersections and 300 caller bus-lane cameras, representing a 25% summation successful recurring work gross versus 2024.

This expansion, coupled with beardown GS bookings extracurricular NYC, points to FY26 and FY27 GS gross importantly supra statement estimates. CS gross is besides trending supra guidance, supported by stronger-than-expected TSA throughput and question demand. Verra’s consolidated business is highly cash-generative, with projected 2028 escaped currency travel of $266 million, and the banal is presently trading astatine a ~5% guardant FCF yield, undervalued fixed 8-10% sustainable net maturation and optionality from caller authorities contracts. Near-term catalysts see the authoritative NYC declaration announcement and imaginable expert upgrades. Overall, Verra represents a compelling concern with aggregate levers for upside, driven by some the underappreciated NYC declaration and ongoing maturation successful CS and GS.

Previously we covered a bullish thesis on Samsara Inc. (IOT) by Compounding Your Wealth successful April 2025, which highlighted beardown ARR growth, AI-driven operational improvements, and expanding plus tracking solutions. The company's banal terms has depreciated approximately by 2.55% since our coverage. The thesis inactive stands arsenic IOT’s maturation trajectory remains robust. Verra Mobility (VRRM) shares a akin but emphasizes its underappreciated NYC declaration and dominance successful toll absorption and automated postulation enforcement.