NASDAQ:VRNT: good value for what you're paying.

Last update: Apr 8, 2024

Our stock screener has singled out VERINT SYSTEMS INC (NASDAQ:VRNT) as a stellar value proposition. NASDAQ:VRNT not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Analyzing Valuation Metrics

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:VRNT has received a 7 out of 10:

VRNT is valuated reasonably with a Price/Earnings ratio of 11.19.
VRNT's Price/Earnings ratio is rather cheap when compared to the industry. VRNT is cheaper than 93.50% of the companies in the same industry.
VRNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.07.
VRNT is valuated reasonably with a Price/Forward Earnings ratio of 10.56.
Based on the Price/Forward Earnings ratio, VRNT is valued cheaper than 93.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.35. VRNT is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, VRNT is valued cheaper than 89.17% of the companies in the same industry.
90.97% of the companies in the same industry are more expensive than VRNT, based on the Price/Free Cash Flow ratio.
VRNT has a very decent profitability rating, which may justify a higher PE ratio.

Assessing Profitability for NASDAQ:VRNT

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:VRNT has achieved a 6:

Looking at the Return On Assets, with a value of 0.80%, VRNT is in the better half of the industry, outperforming 71.12% of the companies in the same industry.
VRNT's Return On Equity of 1.41% is fine compared to the rest of the industry. VRNT outperforms 72.56% of its industry peers.
With a decent Return On Invested Capital value of 3.26%, VRNT is doing good in the industry, outperforming 75.09% of the companies in the same industry.
The 3 year average ROIC (2.85%) for VRNT is below the current ROIC(3.26%), indicating increased profibility in the last year.
The Profit Margin of VRNT (1.96%) is better than 71.84% of its industry peers.
VRNT has a better Operating Margin (8.20%) than 79.42% of its industry peers.
In the last couple of years the Gross Margin of VRNT has grown nicely.

Health Analysis for NASDAQ:VRNT

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:VRNT has earned a 5 out of 10:

The Debt to FCF ratio of VRNT is 3.29, which is a good value as it means it would take VRNT, 3.29 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VRNT (3.29) is better than 67.87% of its industry peers.
VRNT has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.

Growth Analysis for NASDAQ:VRNT

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:VRNT has received a 4 out of 10:

VRNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.33%, which is quite good.
VRNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.87% yearly.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of VRNT for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.