NASDAQ:VRNT, an undervalued stock with good fundamentals.

Last update: Jul 2, 2024

VERINT SYSTEMS INC (NASDAQ:VRNT) was identified as a decent value stock by our stock screener. NASDAQ:VRNT scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Exploring NASDAQ:VRNT's Valuation

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 8 out of 10:

VRNT is valuated reasonably with a Price/Earnings ratio of 11.69.
VRNT's Price/Earnings ratio is rather cheap when compared to the industry. VRNT is cheaper than 91.30% 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 28.16.
VRNT is valuated reasonably with a Price/Forward Earnings ratio of 10.13.
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 20.02. VRNT is valued slightly cheaper when compared to this.
VRNT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VRNT is cheaper than 86.59% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VRNT is valued cheaper than 86.96% of the companies in the same industry.
The decent profitability rating of VRNT may justify a higher PE ratio.

What does the Profitability looks like for NASDAQ:VRNT

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:VRNT has earned a 6 out of 10:

VRNT has a better Return On Assets (1.36%) than 68.12% of its industry peers.
The Return On Equity of VRNT (2.38%) is better than 69.57% of its industry peers.
With a decent Return On Invested Capital value of 3.94%, VRNT is doing good in the industry, outperforming 73.55% of the companies in the same industry.
The 3 year average ROIC (2.85%) for VRNT is below the current ROIC(3.94%), indicating increased profibility in the last year.
With a decent Profit Margin value of 3.25%, VRNT is doing good in the industry, outperforming 70.29% of the companies in the same industry.
VRNT has a better Operating Margin (9.80%) than 81.52% of its industry peers.
VRNT's Gross Margin has improved in the last couple of years.

Understanding NASDAQ:VRNT's Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:VRNT, the assigned 5 reflects its health status:

The Debt to FCF ratio of VRNT is 3.26, which is a good value as it means it would take VRNT, 3.26 years of fcf income to pay off all of its debts.
VRNT has a Debt to FCF ratio of 3.26. This is in the better half of the industry: VRNT outperforms 62.68% of its industry peers.
VRNT has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.

Evaluating Growth: NASDAQ:VRNT

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:VRNT scores a 5 out of 10:

The Earnings Per Share has grown by an nice 10.28% over the past year.
VRNT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.19% yearly.
Based on estimates for the next years, VRNT will show a quite strong growth in Revenue. The Revenue will grow by 8.17% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.

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

Our latest full fundamental report of VRNT contains the most current fundamental analsysis.

Keep in mind

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.