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VERINT SYSTEMS INC (VRNT) Stock Fundamental Analysis

NASDAQ:VRNT - Nasdaq - US92343X1000 - Common Stock - Currency: USD

25.38  -0.29 (-1.13%)

After market: 25.4 +0.02 (+0.08%)

Fundamental Rating

5

Taking everything into account, VRNT scores 5 out of 10 in our fundamental rating. VRNT was compared to 286 industry peers in the Software industry. VRNT has an average financial health and profitability rating. VRNT is valued quite cheap, while showing a decent growth score. This is a good combination!


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

VRNT had positive earnings in the past year.
In the past year VRNT had a positive cash flow from operations.
In multiple years VRNT reported negative net income over the last 5 years.
Each year in the past 5 years VRNT had a positive operating cash flow.
VRNT Yearly Net Income VS EBIT VS OCF VS FCFVRNT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M 250M

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 69.18% of the companies in the same industry.
The Return On Equity of VRNT (4.54%) is better than 70.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.91%, VRNT is in the better half of the industry, outperforming 72.40% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VRNT is significantly below the industry average of 12.10%.
The last Return On Invested Capital (3.91%) for VRNT is above the 3 year average (2.85%), which is a sign of increasing profitability.
Industry RankSector 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%
VRNT Yearly ROA, ROE, ROICVRNT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2 -2 4

1.3 Margins

VRNT has a better Profit Margin (6.49%) than 72.40% of its industry peers.
In the last couple of years the Profit Margin of VRNT has declined.
VRNT's Operating Margin of 10.01% is fine compared to the rest of the industry. VRNT outperforms 77.42% of its industry peers.
In the last couple of years the Operating Margin of VRNT has declined.
VRNT has a Gross Margin (70.85%) which is in line with its industry peers.
In the last couple of years the Gross Margin of VRNT has grown nicely.
Industry RankSector 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%
VRNT Yearly Profit, Operating, Gross MarginsVRNT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

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4

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 a worse debt to assets ratio.
VRNT Yearly Shares OutstandingVRNT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
VRNT Yearly Total Debt VS Total AssetsVRNT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

VRNT has an Altman-Z score of 1.66. This is a bad value and indicates that VRNT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.66, VRNT is doing worse than 61.29% 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.
Looking at the Debt to FCF ratio, with a value of 2.94, VRNT is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that VRNT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.31, VRNT is doing worse than 62.01% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.31
Debt/FCF 2.94
Altman-Z 1.66
ROIC/WACC0.39
WACC10.1%
VRNT Yearly LT Debt VS Equity VS FCFVRNT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B

2.3 Liquidity

A Current Ratio of 1.32 indicates that VRNT should not have too much problems paying its short term obligations.
VRNT's Current ratio of 1.32 is in line compared to the rest of the industry. VRNT outperforms 41.22% of its industry peers.
VRNT has a Quick Ratio of 1.28. This is a normal value and indicates that VRNT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.28, VRNT is in line with its industry, outperforming 40.50% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 1.28
VRNT Yearly Current Assets VS Current LiabilitesVRNT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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4

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.
The Earnings Per Share has been decreasing by -3.25% on average over the past years.
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.
Based on estimates for the next years, VRNT will show a small growth in Revenue. The Revenue will grow by 7.95% on average per year.
EPS Next Y8.46%
EPS Next 2Y6.82%
EPS Next 3Y7.87%
EPS Next 5Y8.06%
Revenue Next Year2.06%
Revenue Next 2Y3.25%
Revenue Next 3Y4.28%
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.
VRNT Yearly Revenue VS EstimatesVRNT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
VRNT Yearly EPS VS EstimatesVRNT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3

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8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 9.43 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 93.55% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.46, VRNT is valued rather cheaply.
VRNT is valuated reasonably with a Price/Forward Earnings ratio of 8.15.
Based on the Price/Forward Earnings ratio, VRNT is valued cheaper than 96.06% of the companies in the same industry.
VRNT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.56.
Industry RankSector Rank
PE 9.43
Fwd PE 8.15
VRNT Price Earnings VS Forward Price EarningsVRNT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VRNT is valued cheaper than 91.04% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VRNT is valued cheaply inside the industry as 94.62% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 11.28
EV/EBITDA 12.94
VRNT Per share dataVRNT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

VRNT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of VRNT may justify a higher PE ratio.
PEG (NY)1.12
PEG (5Y)N/A
EPS Next 2Y6.82%
EPS Next 3Y7.87%

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0

5. Dividend

5.1 Amount

No dividends for VRNT!.
Industry RankSector Rank
Dividend Yield N/A

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VERINT SYSTEMS INC

NASDAQ:VRNT (1/31/2025, 8:00:02 PM)

After market: 25.4 +0.02 (+0.08%)

25.38

-0.29 (-1.13%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-04 2024-12-04/amc
Earnings (Next)N/A N/A
Inst Owners102.77%
Inst Owner Change-0.24%
Ins Owners0.96%
Ins Owner Change-7.44%
Market Cap1.58B
Analysts78.46
Price Target36.72 (44.68%)
Short Float %5.68%
Short Ratio3.93
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.32
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)3.85%
PT rev (3m)3.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.62%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.03%
Valuation
Industry RankSector Rank
PE 9.43
Fwd PE 8.15
P/S 1.72
P/FCF 11.28
P/OCF 9.45
P/B 1.2
P/tB N/A
EV/EBITDA 12.94
EPS(TTM)2.69
EY10.6%
EPS(NY)3.11
Fwd EY12.27%
FCF(TTM)2.25
FCFY8.87%
OCF(TTM)2.68
OCFY10.58%
SpS14.78
BVpS21.12
TBVpS-2.8
PEG (NY)1.12
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 1.66
F-Score7
WACC10.1%
ROIC/WACC0.39
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 Year2.06%
Revenue Next 2Y3.25%
Revenue Next 3Y4.28%
Revenue Next 5Y7.95%
EBIT growth 1Y18.29%
EBIT growth 3Y8.31%
EBIT growth 5Y-8.56%
EBIT Next Year21.61%
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%