In a market where value is scarce, NASDAQ:VRNT offers a refreshing opportunity with its solid fundamentals.

Last update: Sep 6, 2024

Uncover the hidden value in VERINT SYSTEMS INC (NASDAQ:VRNT) as our stock screening tool recommends it as an undervalued choice. NASDAQ:VRNT maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Assessment of NASDAQ:VRNT

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:VRNT has earned a 8 for valuation:

The Price/Earnings ratio is 9.48, which indicates a very decent valuation of VRNT.
VRNT's Price/Earnings ratio is rather cheap when compared to the industry. VRNT is cheaper than 92.58% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.93. VRNT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.25, which indicates a very decent valuation of VRNT.
93.64% of the companies in the same industry are more expensive than VRNT, based on the Price/Forward Earnings ratio.
VRNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.46, which is the current average of the S&P500 Index.
VRNT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VRNT is cheaper than 90.11% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VRNT is valued cheaply inside the industry as 89.75% of the companies are valued more expensively.
VRNT has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Analysis for NASDAQ:VRNT

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:VRNT was assigned a score of 6 for profitability:

VRNT's Return On Assets of 1.36% is fine compared to the rest of the industry. VRNT outperforms 66.43% of its industry peers.
VRNT has a better Return On Equity (2.38%) than 68.20% of its industry peers.
The Return On Invested Capital of VRNT (3.94%) is better than 74.20% 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's Profit Margin of 3.25% is fine compared to the rest of the industry. VRNT outperforms 68.55% of its industry peers.
VRNT has a better Operating Margin (9.80%) than 80.21% of its industry peers.
In the last couple of years the Gross Margin of VRNT has grown nicely.

Unpacking NASDAQ:VRNT's Health Rating

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 4 out of 10:

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.
The Debt to FCF ratio of VRNT (3.26) is better than 63.25% 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.

ChartMill's Evaluation of Growth

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 5 out of 10:

The Earnings Per Share has grown by an nice 14.29% over the past year.
Based on estimates for the next years, VRNT will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.19% on average per year.
VRNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.17% yearly.
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.

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.

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.