NASDAQ:VRNT, an undervalued stock with good fundamentals.

VERINT SYSTEMS INC (NASDAQ:VRNT) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:VRNT showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Valuation Assessment of NASDAQ:VRNT

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:

• Compared to the rest of the industry, the Price/Earnings ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 90.46% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 24.29. VRNT is valued slightly cheaper when compared to this.
• With a Price/Forward Earnings ratio of 11.02, the valuation of VRNT can be described as very reasonable.
• VRNT's Price/Forward Earnings ratio is rather cheap when compared to the industry. VRNT is cheaper than 91.52% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of VRNT to the average of the S&P500 Index (20.35), we can say VRNT is valued slightly cheaper.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 87.63% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 87.28% of the companies listed in the same industry.
• VRNT has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Assessment of NASDAQ:VRNT

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:VRNT, the assigned 6 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 1.36%, VRNT is in the better half of the industry, outperforming 68.55% of the companies in the same industry.
• The Return On Equity of VRNT (2.38%) is better than 69.96% of its industry peers.
• VRNT has a better Return On Invested Capital (3.94%) than 74.56% of its industry peers.
• The last Return On Invested Capital (3.94%) for VRNT is above the 3 year average (2.85%), which is a sign of increasing profitability.
• VRNT has a Profit Margin of 3.25%. This is in the better half of the industry: VRNT outperforms 70.67% of its industry peers.
• The Operating Margin of VRNT (9.80%) is better than 81.98% of its industry peers.
• VRNT's Gross Margin has improved in the last couple of years.

Evaluating Health: NASDAQ:VRNT

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:VRNT was assigned a score of 5 for health:

• 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.
• With a decent Debt to FCF ratio value of 3.26, VRNT is doing good in the industry, outperforming 63.96% of the companies in the same industry.
• VRNT has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.

Growth Assessment of NASDAQ:VRNT

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:VRNT boasts 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.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.