NASDAQ:VRNT is an undervalued gem with solid fundamentals.

Last update: Dec 9, 2024

Our stock screening tool has pinpointed VERINT SYSTEMS INC (NASDAQ:VRNT) as an undervalued stock. NASDAQ:VRNT maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Evaluating Valuation: NASDAQ:VRNT

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:VRNT, the assigned 8 reflects its valuation:

The Price/Earnings ratio is 11.39, 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 93.88% of the companies in the same industry.
When comparing the Price/Earnings ratio of VRNT to the average of the S&P500 Index (29.48), we can say VRNT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.61, the valuation of VRNT can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 94.24% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.95, VRNT is valued rather cheaply.
89.57% of the companies in the same industry are more expensive than VRNT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VRNT is valued cheaper than 92.81% 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 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 has a Return On Assets of 1.94%. This is in the better half of the industry: VRNT outperforms 67.27% of its industry peers.
VRNT has a Return On Equity of 3.33%. This is in the better half of the industry: VRNT outperforms 69.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.56%, VRNT is in the better half of the industry, outperforming 73.02% of the companies in the same industry.
The last Return On Invested Capital (4.56%) for VRNT is above the 3 year average (2.85%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 4.63%, VRNT is in the better half of the industry, outperforming 70.14% of the companies in the same industry.
VRNT has a better Operating Margin (11.49%) than 78.78% of its industry peers.
VRNT's Gross Margin has improved in the last couple of years.

Assessing Health Metrics for NASDAQ:VRNT

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:

VRNT has a debt to FCF ratio of 3.28. This is a good value and a sign of high solvency as VRNT would need 3.28 years to pay back of all of its debts.
VRNT has a better Debt to FCF ratio (3.28) than 62.59% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that VRNT is not too dependend on debt financing.

How We Gauge Growth for NASDAQ:VRNT

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:VRNT, the assigned 4 reflects its growth potential:

VRNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.62%, which is quite good.
The Earnings Per Share is expected to grow by 8.06% on average over the next years. This is quite good.
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.

For an up to date full fundamental analysis you can check the fundamental report of VRNT

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.