20.21 USD
+0.04 (+0.2%)
20.21 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to VRNT. VRNT was compared to 281 industry peers in the Software industry. While VRNT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VRNT is valued quite cheap, while showing a decent growth score. This is a good combination! This makes VRNT very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year VRNT was profitable.
VRNT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: VRNT reported negative net income in multiple years.
Each year in the past 5 years VRNT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.04%, VRNT is in the better half of the industry, outperforming 63.70% of the companies in the same industry.
VRNT has a better Return On Equity (3.41%) than 65.48% of its industry peers.
VRNT has a Return On Invested Capital of 4.02%. This is in the better half of the industry: VRNT outperforms 71.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VRNT is significantly below the industry average of 12.04%.
The 3 year average ROIC (3.56%) for VRNT is below the current ROIC(4.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 3.41% | ||
| ROIC | 4.02% |
ROA(3y)1.13%
ROA(5y)0.55%
ROE(3y)1.95%
ROE(5y)0.91%
ROIC(3y)3.56%
ROIC(5y)2.96%
1.3 Margins
The Profit Margin of VRNT (5.08%) is better than 65.48% of its industry peers.
VRNT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.80%, VRNT is in the better half of the industry, outperforming 74.02% of the companies in the same industry.
VRNT's Operating Margin has improved in the last couple of years.
VRNT's Gross Margin of 69.91% is in line compared to the rest of the industry. VRNT outperforms 51.96% of its industry peers.
In the last couple of years the Gross Margin of VRNT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.8% | ||
| PM (TTM) | 5.08% | ||
| GM | 69.91% |
OM growth 3Y27.59%
OM growth 5Y97.41%
PM growth 3YN/A
PM growth 5Y16.09%
GM growth 3Y2.67%
GM growth 5Y2.15%
2. Health
2.1 Basic Checks
VRNT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, VRNT has less shares outstanding
The number of shares outstanding for VRNT has been reduced compared to 5 years ago.
Compared to 1 year ago, VRNT has an improved debt to assets ratio.
2.2 Solvency
VRNT has an Altman-Z score of 1.21. This is a bad value and indicates that VRNT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VRNT (1.21) is comparable to the rest of the industry.
There is no outstanding debt for VRNT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 3.67 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.41
WACC9.85%
2.3 Liquidity
VRNT has a Current Ratio of 0.65. This is a bad value and indicates that VRNT is not financially healthy enough and could expect problems in meeting its short term obligations.
VRNT has a worse Current ratio (0.65) than 90.04% of its industry peers.
VRNT has a Quick Ratio of 0.65. This is a bad value and indicates that VRNT is not financially healthy enough and could expect problems in meeting its short term obligations.
VRNT's Quick ratio of 0.63 is on the low side compared to the rest of the industry. VRNT is outperformed by 90.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The earnings per share for VRNT have decreased strongly by -23.21% in the last year.
The Earnings Per Share has been decreasing by -6.23% on average over the past years.
The Revenue has decreased by -2.32% in the past year.
The Revenue has been growing slightly by 1.44% on average over the past years.
EPS 1Y (TTM)-23.21%
EPS 3Y4.61%
EPS 5Y-6.23%
EPS Q2Q%-32.65%
Revenue 1Y (TTM)-2.32%
Revenue growth 3Y1.31%
Revenue growth 5Y1.44%
Sales Q2Q%-1.03%
3.2 Future
VRNT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.05% yearly.
VRNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.30% yearly.
EPS Next Y14.41%
EPS Next 2Y12.08%
EPS Next 3Y11.53%
EPS Next 5Y12.05%
Revenue Next Year2.95%
Revenue Next 2Y4.3%
Revenue Next 3Y4.51%
Revenue Next 5Y6.3%
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
VRNT is valuated reasonably with a Price/Earnings ratio of 9.40.
VRNT's Price/Earnings ratio is rather cheap when compared to the industry. VRNT is cheaper than 88.26% of the companies in the same industry.
When comparing the Price/Earnings ratio of VRNT to the average of the S&P500 Index (25.45), we can say VRNT is valued rather cheaply.
The Price/Forward Earnings ratio is 6.16, which indicates a rather cheap valuation of VRNT.
Based on the Price/Forward Earnings ratio, VRNT is valued cheaply inside the industry as 93.24% of the companies are valued more expensively.
VRNT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 6.16 |
4.2 Price Multiples
86.48% of the companies in the same industry are more expensive than VRNT, based on the Enterprise Value to EBITDA ratio.
91.10% of the companies in the same industry are more expensive than VRNT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.82 | ||
| EV/EBITDA | 11.3 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VRNT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y12.08%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
VRNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.21
+0.04 (+0.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.57%
Inst Owner Change-1.28%
Ins Owners1.35%
Ins Owner Change3.26%
Market Cap1.22B
Revenue(TTM)893.84M
Net Income(TTM)45.43M
Analysts72.86
Price Target23.95 (18.51%)
Short Float %9.95%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.32
Dividend Growth(5Y)N/A
DP35.22%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.67%
Min EPS beat(2)23.69%
Max EPS beat(2)27.66%
EPS beat(4)3
Avg EPS beat(4)12.63%
Min EPS beat(4)-23.66%
Max EPS beat(4)27.66%
EPS beat(8)6
Avg EPS beat(8)8.42%
EPS beat(12)9
Avg EPS beat(12)6.45%
EPS beat(16)13
Avg EPS beat(16)7.28%
Revenue beat(2)2
Avg Revenue beat(2)3.26%
Min Revenue beat(2)1.7%
Max Revenue beat(2)4.81%
Revenue beat(4)3
Avg Revenue beat(4)0.21%
Min Revenue beat(4)-10.26%
Max Revenue beat(4)4.81%
Revenue beat(8)4
Avg Revenue beat(8)-0.39%
Revenue beat(12)4
Avg Revenue beat(12)-1.39%
Revenue beat(16)5
Avg Revenue beat(16)-1.27%
PT rev (1m)0%
PT rev (3m)-20.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 6.16 | ||
| P/S | 1.36 | ||
| P/FCF | 10.82 | ||
| P/OCF | 8.81 | ||
| P/B | 0.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.3 |
EPS(TTM)2.15
EY10.64%
EPS(NY)3.28
Fwd EY16.22%
FCF(TTM)1.87
FCFY9.24%
OCF(TTM)2.29
OCFY11.35%
SpS14.82
BVpS22.1
TBVpS-2.51
PEG (NY)0.65
PEG (5Y)N/A
Graham Number32.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 3.41% | ||
| ROCE | 5.39% | ||
| ROIC | 4.02% | ||
| ROICexc | 4.57% | ||
| ROICexgc | N/A | ||
| OM | 8.8% | ||
| PM (TTM) | 5.08% | ||
| GM | 69.91% | ||
| FCFM | 12.6% |
ROA(3y)1.13%
ROA(5y)0.55%
ROE(3y)1.95%
ROE(5y)0.91%
ROIC(3y)3.56%
ROIC(5y)2.96%
ROICexc(3y)4.12%
ROICexc(5y)3.6%
ROICexgc(3y)78.15%
ROICexgc(5y)N/A
ROCE(3y)4.77%
ROCE(5y)3.96%
ROICexgc growth 3Y0.75%
ROICexgc growth 5Y160.59%
ROICexc growth 3Y28.35%
ROICexc growth 5Y108.76%
OM growth 3Y27.59%
OM growth 5Y97.41%
PM growth 3YN/A
PM growth 5Y16.09%
GM growth 3Y2.67%
GM growth 5Y2.15%
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 3.67 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 51.05% | ||
| Cap/Sales | 2.87% | ||
| Interest Coverage | 11.19 | ||
| Cash Conversion | 107.26% | ||
| Profit Quality | 247.96% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.21 |
F-Score6
WACC9.85%
ROIC/WACC0.41
Cap/Depr(3y)48.9%
Cap/Depr(5y)43.87%
Cap/Sales(3y)3.26%
Cap/Sales(5y)3.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-23.21%
EPS 3Y4.61%
EPS 5Y-6.23%
EPS Q2Q%-32.65%
EPS Next Y14.41%
EPS Next 2Y12.08%
EPS Next 3Y11.53%
EPS Next 5Y12.05%
Revenue 1Y (TTM)-2.32%
Revenue growth 3Y1.31%
Revenue growth 5Y1.44%
Sales Q2Q%-1.03%
Revenue Next Year2.95%
Revenue Next 2Y4.3%
Revenue Next 3Y4.51%
Revenue Next 5Y6.3%
EBIT growth 1Y-25.15%
EBIT growth 3Y29.26%
EBIT growth 5Y100.25%
EBIT Next Year8.22%
EBIT Next 3Y6.03%
EBIT Next 5Y7.52%
FCF growth 1Y-7.67%
FCF growth 3Y8.71%
FCF growth 5Y-6.89%
OCF growth 1Y-11.57%
OCF growth 3Y7.82%
OCF growth 5Y-7.92%
VERINT SYSTEMS INC / VRNT FAQ
What is the fundamental rating for VRNT stock?
ChartMill assigns a fundamental rating of 6 / 10 to VRNT.
What is the valuation status for VRNT stock?
ChartMill assigns a valuation rating of 9 / 10 to VERINT SYSTEMS INC (VRNT). This can be considered as Undervalued.
Can you provide the profitability details for VERINT SYSTEMS INC?
VERINT SYSTEMS INC (VRNT) has a profitability rating of 7 / 10.
What are the PE and PB ratios of VERINT SYSTEMS INC (VRNT) stock?
The Price/Earnings (PE) ratio for VERINT SYSTEMS INC (VRNT) is 9.4 and the Price/Book (PB) ratio is 0.91.
What is the expected EPS growth for VERINT SYSTEMS INC (VRNT) stock?
The Earnings per Share (EPS) of VERINT SYSTEMS INC (VRNT) is expected to grow by 14.41% in the next year.