Verra Mobility Is Still A Quality Business Despite The Selloff
Verra Mobility (VRRM) is rated a buy, despite a 40% YTD decline and lower NYC contract margins, due to deep customer integration and industry tailwinds. Management guides for modest revenue and Adjusted EBITDA growth in 2026, with MOSAIC platform cost savings expected to boost operating margins by 150 bps by 2027. My DCF model yields a $16.48 intrinsic value, indicating Verra is 22% undervalued, with risks centered on major contract renewals and more competitive bidding.
VRRM - Verra Mobility Corporation