VERINT SYSTEMS INC (VRNT)
US92343X1000 - Common Stock
Taking everything into account, VRNT scores 5 out of 10 in our fundamental rating. VRNT was compared to 277 industry peers in the Software industry. VRNT has only an average score on both its financial health and profitability. VRNT is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make VRNT a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year VRNT was profitable.
In the past year VRNT had a positive cash flow from operations.
In multiple years VRNT reported negative net income over the last 5 years.
In the past 5 years VRNT always reported a positive cash flow from operatings.
1.2 Ratios
VRNT's Return On Assets of 0.80% is fine compared to the rest of the industry. VRNT outperforms 67.03% of its industry peers.
With a decent Return On Equity value of 1.41%, VRNT is doing good in the industry, outperforming 68.84% of the companies in the same industry.
VRNT has a better Return On Invested Capital (3.26%) than 72.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VRNT is significantly below the industry average of 10.18%.
The 3 year average ROIC (2.85%) for VRNT is below the current ROIC(3.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 1.41% | ||
| ROIC | 3.26% |
ROA(3y)0.12%
ROA(5y)0.17%
ROE(3y)0.21%
ROE(5y)0.39%
ROIC(3y)2.85%
ROIC(5y)2.18%
1.3 Margins
VRNT has a better Profit Margin (1.96%) than 68.84% of its industry peers.
VRNT's Profit Margin has declined in the last couple of years.
VRNT has a better Operating Margin (8.20%) than 78.62% of its industry peers.
In the last couple of years the Operating Margin of VRNT has declined.
VRNT's Gross Margin of 69.56% is in line compared to the rest of the industry. VRNT outperforms 55.07% of its industry peers.
In the last couple of years the Gross Margin of VRNT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.2% | ||
| PM (TTM) | 1.96% | ||
| GM | 69.56% |
OM growth 3Y5.03%
OM growth 5Y-2.9%
PM growth 3YN/A
PM growth 5Y-18.28%
GM growth 3Y2.09%
GM growth 5Y1.85%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VRNT is destroying value.
Compared to 1 year ago, VRNT has less shares outstanding
The number of shares outstanding for VRNT has been reduced compared to 5 years ago.
The debt/assets ratio for VRNT is higher compared to a year ago.
2.2 Solvency
VRNT has an Altman-Z score of 1.85. This is not the best score and indicates that VRNT is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.85, VRNT perfoms like the industry average, outperforming 47.46% of the companies in the same industry.
VRNT has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as VRNT would need 3.29 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.29, VRNT is in the better half of the industry, outperforming 63.77% of the companies in the same industry.
VRNT has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.32, VRNT is doing worse than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.35
WACC9.23%
2.3 Liquidity
VRNT has a Current Ratio of 1.37. This is a normal value and indicates that VRNT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.37, VRNT is in line with its industry, outperforming 42.75% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that VRNT should not have too much problems paying its short term obligations.
VRNT has a Quick ratio (1.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.33% over the past year.
VRNT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.25% yearly.
VRNT shows a small growth in Revenue. In the last year, the Revenue has grown by 0.92%.
The Revenue has been decreasing by -5.84% on average over the past years.
EPS 1Y (TTM)8.33%
EPS 3Y-8.64%
EPS 5Y-3.25%
EPS growth Q2Q42.67%
Revenue 1Y (TTM)0.92%
Revenue growth 3Y3.12%
Revenue growth 5Y-5.84%
Revenue growth Q2Q12.24%
3.2 Future
Based on estimates for the next years, VRNT will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.30% on average per year.
The Revenue is expected to grow by 7.76% on average over the next years.
EPS Next Y7.64%
EPS Next 2Y7.55%
EPS Next 3Y8.75%
EPS Next 5Y13.3%
Revenue Next Year2.35%
Revenue Next 2Y3.94%
Revenue Next 3Y4.77%
Revenue Next 5Y7.76%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.75, the valuation of VRNT can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 92.39% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VRNT to the average of the S&P500 Index (28.60), we can say VRNT is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.92, the valuation of VRNT can be described as very reasonable.
92.39% of the companies in the same industry are more expensive than VRNT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.15. VRNT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 10.92 |
4.2 Price Multiples
89.49% of the companies in the same industry are more expensive than VRNT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VRNT is valued cheaply inside the industry as 89.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.03 | ||
| EV/EBITDA | 14.85 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VRNT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.54
PEG (5Y)N/A
EPS Next 2Y7.55%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
No dividends for VRNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERINT SYSTEMS INC
NASDAQ:VRNT (5/17/2024, 7:00:02 PM)
After market: 32.09 0 (0%)32.09
+0.17 (+0.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.00B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 10.92 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
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SpS
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TBVpS
PEG (NY)1.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 1.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.2% | ||
| PM (TTM) | 1.96% | ||
| GM | 69.56% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.33%
EPS 3Y-8.64%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.92%
Revenue growth 3Y3.12%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
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