VERINT SYSTEMS INC (VRNT)
US92343X1000 - Common Stock
Taking everything into account, VRNT scores 5 out of 10 in our fundamental rating. VRNT was compared to 279 industry peers in the Software industry. VRNT has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on VRNT.
1. Profitability
1.1 Basic Checks
In the past year VRNT was profitable.
VRNT had a positive operating cash flow in the past year.
In multiple years VRNT reported negative net income over the last 5 years.
VRNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.66%, VRNT is in the better half of the industry, outperforming 69.89% of the companies in the same industry.
VRNT's Return On Equity of 4.54% is fine compared to the rest of the industry. VRNT outperforms 71.68% of its industry peers.
The Return On Invested Capital of VRNT (3.91%) is better than 72.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRNT is significantly below the industry average of 12.23%.
The 3 year average ROIC (2.85%) for VRNT is below the current ROIC(3.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 4.54% | ||
| ROIC | 3.91% |
ROA(3y)0.12%
ROA(5y)0.17%
ROE(3y)0.21%
ROE(5y)0.39%
ROIC(3y)2.85%
ROIC(5y)2.18%
1.3 Margins
VRNT has a Profit Margin of 6.49%. This is in the better half of the industry: VRNT outperforms 73.12% of its industry peers.
VRNT's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 10.01%, VRNT is doing good in the industry, outperforming 77.42% of the companies in the same industry.
In the last couple of years the Operating Margin of VRNT has declined.
With a Gross Margin value of 70.85%, VRNT perfoms like the industry average, outperforming 57.35% of the companies in the same industry.
VRNT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.01% | ||
| PM (TTM) | 6.49% | ||
| GM | 70.85% |
OM growth 3Y5.03%
OM growth 5Y-2.9%
PM growth 3YN/A
PM growth 5Y-18.28%
GM growth 3Y2.09%
GM growth 5Y1.85%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VRNT is destroying value.
The number of shares outstanding for VRNT has been reduced compared to 1 year ago.
Compared to 5 years ago, VRNT has less shares outstanding
The debt/assets ratio for VRNT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that VRNT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.71, VRNT is doing worse than 60.57% of the companies in the same industry.
VRNT has a debt to FCF ratio of 2.94. This is a good value and a sign of high solvency as VRNT would need 2.94 years to pay back of all of its debts.
VRNT has a better Debt to FCF ratio (2.94) than 63.44% of its industry peers.
VRNT has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.31, VRNT is doing worse than 62.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.36
WACC10.89%
2.3 Liquidity
A Current Ratio of 1.32 indicates that VRNT should not have too much problems paying its short term obligations.
VRNT has a Current ratio of 1.32. This is comparable to the rest of the industry: VRNT outperforms 40.50% of its industry peers.
A Quick Ratio of 1.28 indicates that VRNT should not have too much problems paying its short term obligations.
VRNT has a Quick ratio of 1.28. This is in the lower half of the industry: VRNT underperforms 60.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
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.
VRNT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.25% yearly.
The Revenue has been growing slightly by 4.45% in the past year.
The Revenue has been decreasing by -5.84% on average over the past years.
EPS 1Y (TTM)11.62%
EPS 3Y-8.64%
EPS 5Y-3.25%
EPS Q2Q%-16.92%
Revenue 1Y (TTM)4.45%
Revenue growth 3Y3.12%
Revenue growth 5Y-5.84%
Sales Q2Q%2.53%
3.2 Future
Based on estimates for the next years, VRNT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.06% on average per year.
The Revenue is expected to grow by 7.95% on average over the next years.
EPS Next Y8.46%
EPS Next 2Y6.82%
EPS Next 3Y7.87%
EPS Next 5Y8.06%
Revenue Next Year2.1%
Revenue Next 2Y3.3%
Revenue Next 3Y4.64%
Revenue Next 5Y7.95%
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.99, which indicates a very decent valuation of VRNT.
93.91% of the companies in the same industry are more expensive than VRNT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.73. VRNT is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.63 indicates a reasonable valuation of VRNT.
VRNT's Price/Forward Earnings ratio is rather cheap when compared to the industry. VRNT is cheaper than 95.70% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, VRNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 8.63 |
4.2 Price Multiples
88.89% of the companies in the same industry are more expensive than VRNT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 93.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.94 | ||
| EV/EBITDA | 13.47 |
4.3 Compensation for Growth
VRNT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VRNT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.18
PEG (5Y)N/A
EPS Next 2Y6.82%
EPS Next 3Y7.87%
5. Dividend
5.1 Amount
VRNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERINT SYSTEMS INC
NASDAQ:VRNT (12/20/2024, 8:00:01 PM)
After market: 26.87 0 (0%)26.87
-0.42 (-1.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners102.77%
Inst Owner Change-1.02%
Ins Owners0.96%
Ins Owner Change-3.7%
Market Cap1.67B
Analysts78.46
Price Target35.36 (31.6%)
Short Float %6.1%
Short Ratio4.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DP33.63%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.77%
Min EPS beat(2)-9.29%
Max EPS beat(2)22.83%
EPS beat(4)3
Avg EPS beat(4)7.06%
Min EPS beat(4)-9.29%
Max EPS beat(4)22.83%
EPS beat(8)6
Avg EPS beat(8)4.44%
EPS beat(12)10
Avg EPS beat(12)5.12%
EPS beat(16)14
Avg EPS beat(16)10.49%
Revenue beat(2)1
Avg Revenue beat(2)0.7%
Min Revenue beat(2)-3.19%
Max Revenue beat(2)4.6%
Revenue beat(4)2
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-3.19%
Max Revenue beat(4)4.6%
Revenue beat(8)2
Avg Revenue beat(8)-1.27%
Revenue beat(12)2
Avg Revenue beat(12)-1.48%
Revenue beat(16)5
Avg Revenue beat(16)-3.19%
PT rev (1m)0%
PT rev (3m)-7.14%
EPS NQ rev (1m)19.88%
EPS NQ rev (3m)19.88%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)2.62%
Revenue NQ rev (3m)2.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 8.63 | ||
| P/S | 1.82 | ||
| P/FCF | 11.94 | ||
| P/OCF | 10.01 | ||
| P/B | 1.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.47 |
EPS(TTM)2.69
EY10.01%
EPS(NY)3.11
Fwd EY11.59%
FCF(TTM)2.25
FCFY8.38%
OCF(TTM)2.68
OCFY9.99%
SpS14.78
BVpS21.12
TBVpS-2.8
PEG (NY)1.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 4.54% | ||
| ROCE | 4.95% | ||
| ROIC | 3.91% | ||
| ROICexc | 4.34% | ||
| ROICexgc | 38.78% | ||
| OM | 10.01% | ||
| PM (TTM) | 6.49% | ||
| GM | 70.85% | ||
| FCFM | 15.22% |
ROA(3y)0.12%
ROA(5y)0.17%
ROE(3y)0.21%
ROE(5y)0.39%
ROIC(3y)2.85%
ROIC(5y)2.18%
ROICexc(3y)3.38%
ROICexc(5y)2.73%
ROICexgc(3y)81.68%
ROICexgc(5y)N/A
ROCE(3y)3.61%
ROCE(5y)2.76%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-6.4%
ROICexc growth 3Y3.91%
ROICexc growth 5Y-5.95%
OM growth 3Y5.03%
OM growth 5Y-2.9%
PM growth 3YN/A
PM growth 5Y-18.28%
GM growth 3Y2.09%
GM growth 5Y1.85%
F-Score7
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.94 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 55.16% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 11.75 | ||
| Cash Conversion | 118.45% | ||
| Profit Quality | 234.75% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 1.71 |
F-Score7
WACC10.89%
ROIC/WACC0.36
Cap/Depr(3y)40.23%
Cap/Depr(5y)43.6%
Cap/Sales(3y)3.19%
Cap/Sales(5y)4.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.62%
EPS 3Y-8.64%
EPS 5Y-3.25%
EPS Q2Q%-16.92%
EPS Next Y8.46%
EPS Next 2Y6.82%
EPS Next 3Y7.87%
EPS Next 5Y8.06%
Revenue 1Y (TTM)4.45%
Revenue growth 3Y3.12%
Revenue growth 5Y-5.84%
Sales Q2Q%2.53%
Revenue Next Year2.1%
Revenue Next 2Y3.3%
Revenue Next 3Y4.64%
Revenue Next 5Y7.95%
EBIT growth 1Y18.29%
EBIT growth 3Y8.31%
EBIT growth 5Y-8.56%
EBIT Next Year21.89%
EBIT Next 3Y10.41%
EBIT Next 5Y9.08%
FCF growth 1Y36.89%
FCF growth 3Y-16.36%
FCF growth 5Y-6.66%
OCF growth 1Y25.71%
OCF growth 3Y-15.96%
OCF growth 5Y-6.89%