NASDAQ:VRNT appears to be flying under the radar despite its strong fundamentals.

Last update: Aug 16, 2024

Consider VERINT SYSTEMS INC (NASDAQ:VRNT) as a top value stock, identified by our stock screening tool. NASDAQ:VRNT shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

What does the Valuation looks like for NASDAQ:VRNT

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:VRNT scores a 8 out of 10:

A Price/Earnings ratio of 11.86 indicates a reasonable valuation of VRNT.
Compared to the rest of the industry, the Price/Earnings ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 91.20% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.34, VRNT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.28, the valuation of VRNT can be described as reasonable.
Based on the Price/Forward Earnings ratio, VRNT is valued cheaply inside the industry as 91.55% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.80. VRNT is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, VRNT is valued cheaply inside the industry as 87.32% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VRNT is valued cheaper than 89.44% of the companies in the same industry.
The decent profitability rating of VRNT may justify a higher PE ratio.

Evaluating Profitability: NASDAQ:VRNT

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:VRNT scores a 6 out of 10:

VRNT has a Return On Assets of 1.36%. This is in the better half of the industry: VRNT outperforms 67.25% of its industry peers.
With a decent Return On Equity value of 2.38%, VRNT is doing good in the industry, outperforming 68.66% of the companies in the same industry.
VRNT's Return On Invested Capital of 3.94% is fine compared to the rest of the industry. VRNT outperforms 74.65% of its industry peers.
The 3 year average ROIC (2.85%) for VRNT is below the current ROIC(3.94%), indicating increased profibility in the last year.
VRNT has a better Profit Margin (3.25%) than 68.66% of its industry peers.
VRNT has a better Operating Margin (9.80%) than 79.93% of its industry peers.
In the last couple of years the Gross Margin of VRNT has grown nicely.

How do we evaluate the Health for NASDAQ:VRNT?

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:VRNT, the assigned 5 for health provides valuable insights:

VRNT has a debt to FCF ratio of 3.26. This is a good value and a sign of high solvency as VRNT would need 3.26 years to pay back of 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 63.73% 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.

What does the Growth looks like for 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:

VRNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.28%, which is quite good.
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.
VRNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.17% 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.
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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.