VERINT SYSTEMS INC (VRNT) Stock Fundamental Analysis
NASDAQ:VRNT - Nasdaq - US92343X1000 - Common Stock - Currency: USD
VRNT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 285 industry peers in the Software industry. VRNT scores excellent on profitability, but 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
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.
1.2 Ratios
The Return On Assets of VRNT (2.84%) is better than 69.82% of its industry peers.
The Return On Equity of VRNT (4.91%) is better than 70.53% of its industry peers.
VRNT has a better Return On Invested Capital (4.48%) than 74.74% of its industry peers.
VRNT had an Average Return On Invested Capital over the past 3 years of 3.56%. This is significantly below the industry average of 11.25%.
The last Return On Invested Capital (4.48%) for VRNT is above the 3 year average (3.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 4.91% | ||
| ROIC | 4.48% |
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
VRNT has a better Profit Margin (7.15%) than 72.63% of its industry peers.
VRNT's Profit Margin has improved in the last couple of years.
VRNT's Operating Margin of 11.70% is fine compared to the rest of the industry. VRNT outperforms 80.00% of its industry peers.
VRNT's Operating Margin has improved in the last couple of years.
VRNT has a Gross Margin (71.28%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of VRNT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.7% | ||
| PM (TTM) | 7.15% | ||
| GM | 71.28% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VRNT is destroying value.
VRNT has less shares outstanding than it did 1 year ago.
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 1.23. This is a bad value and indicates that VRNT is not financially healthy and even has some risk of bankruptcy.
VRNT's Altman-Z score of 1.23 is in line compared to the rest of the industry. VRNT outperforms 43.51% of its industry peers.
VRNT has a debt to FCF ratio of 3.18. This is a good value and a sign of high solvency as VRNT would need 3.18 years to pay back of all of its debts.
VRNT has a Debt to FCF ratio of 3.18. This is in the better half of the industry: VRNT outperforms 62.81% of its industry peers.
VRNT has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
VRNT has a Debt to Equity ratio (0.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.18 | ||
| Altman-Z | 1.23 |
ROIC/WACC0.47
WACC9.53%
2.3 Liquidity
A Current Ratio of 1.12 indicates that VRNT should not have too much problems paying its short term obligations.
VRNT has a Current ratio of 1.12. This is in the lower half of the industry: VRNT underperforms 70.53% of its industry peers.
A Quick Ratio of 1.09 indicates that VRNT should not have too much problems paying its short term obligations.
VRNT has a worse Quick ratio (1.09) than 70.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
VRNT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.40%.
Measured over the past years, VRNT shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.23% on average per year.
VRNT shows a decrease in Revenue. In the last year, the revenue decreased by -0.14%.
VRNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.44% yearly.
EPS 1Y (TTM)-4.4%
EPS 3Y4.61%
EPS 5Y-6.23%
EPS Q2Q%-7.48%
Revenue 1Y (TTM)-0.14%
Revenue growth 3Y1.31%
Revenue growth 5Y1.44%
Sales Q2Q%-4.36%
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 10.79% yearly.
The Revenue is expected to grow by 5.43% on average over the next years.
EPS Next Y14.32%
EPS Next 2Y11.32%
EPS Next 3Y10.79%
EPS Next 5YN/A
Revenue Next Year2.75%
Revenue Next 2Y4.2%
Revenue Next 3Y5.43%
Revenue Next 5YN/A
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.
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 cheaply with a Price/Earnings ratio of 6.13.
Based on the Price/Earnings ratio, VRNT is valued cheaper than 95.09% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. VRNT is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 5.36 indicates a rather cheap valuation of VRNT.
Based on the Price/Forward Earnings ratio, VRNT is valued cheaper than 96.84% 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 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.13 | ||
| Fwd PE | 5.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 92.98% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VRNT is valued cheaply inside the industry as 96.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.65 | ||
| EV/EBITDA | 7.74 |
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)0.43
PEG (5Y)N/A
EPS Next 2Y11.32%
EPS Next 3Y10.79%
5. Dividend
5.1 Amount
VRNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.99
+0.03 (+0.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.62%
Inst Owner Change-0.15%
Ins Owners0.86%
Ins Owner Change5.64%
Market Cap993.62M
Analysts78.46
Price Target30.09 (88.18%)
Short Float %5.66%
Short Ratio6.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.32
Dividend Growth(5Y)N/A
DP30.9%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.41%
Min EPS beat(2)-23.66%
Max EPS beat(2)22.83%
EPS beat(4)2
Avg EPS beat(4)-0.88%
Min EPS beat(4)-23.66%
Max EPS beat(4)22.83%
EPS beat(8)5
Avg EPS beat(8)1.17%
EPS beat(12)9
Avg EPS beat(12)3.11%
EPS beat(16)13
Avg EPS beat(16)7.66%
Revenue beat(2)1
Avg Revenue beat(2)-2.83%
Min Revenue beat(2)-10.26%
Max Revenue beat(2)4.6%
Revenue beat(4)2
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-10.26%
Max Revenue beat(4)4.6%
Revenue beat(8)2
Avg Revenue beat(8)-2.44%
Revenue beat(12)2
Avg Revenue beat(12)-2.26%
Revenue beat(16)5
Avg Revenue beat(16)-1.59%
PT rev (1m)-18.06%
PT rev (3m)-18.06%
EPS NQ rev (1m)-45.91%
EPS NQ rev (3m)-44.93%
EPS NY rev (1m)-6.13%
EPS NY rev (3m)-4.21%
Revenue NQ rev (1m)-15.03%
Revenue NQ rev (3m)-14.96%
Revenue NY rev (1m)-1.67%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.13 | ||
| Fwd PE | 5.36 | ||
| P/S | 1.09 | ||
| P/FCF | 7.65 | ||
| P/OCF | 6.31 | ||
| P/B | 0.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.74 |
EPS(TTM)2.61
EY16.32%
EPS(NY)2.98
Fwd EY18.66%
FCF(TTM)2.09
FCFY13.07%
OCF(TTM)2.53
OCFY15.85%
SpS14.63
BVpS21.29
TBVpS-2.32
PEG (NY)0.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 4.91% | ||
| ROCE | 6.01% | ||
| ROIC | 4.48% | ||
| ROICexc | 5.11% | ||
| ROICexgc | 91.17% | ||
| OM | 11.7% | ||
| PM (TTM) | 7.15% | ||
| GM | 71.28% | ||
| FCFM | 14.29% |
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%
ROICexcg growth 3Y0.75%
ROICexcg 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-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.18 | ||
| Debt/EBITDA | 2.04 | ||
| Cap/Depr | 58.49% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 14 | ||
| Cash Conversion | 102.56% | ||
| Profit Quality | 199.86% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.23 |
F-Score7
WACC9.53%
ROIC/WACC0.47
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)-4.4%
EPS 3Y4.61%
EPS 5Y-6.23%
EPS Q2Q%-7.48%
EPS Next Y14.32%
EPS Next 2Y11.32%
EPS Next 3Y10.79%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.14%
Revenue growth 3Y1.31%
Revenue growth 5Y1.44%
Sales Q2Q%-4.36%
Revenue Next Year2.75%
Revenue Next 2Y4.2%
Revenue Next 3Y5.43%
Revenue Next 5YN/A
EBIT growth 1Y42.56%
EBIT growth 3Y29.26%
EBIT growth 5Y100.25%
EBIT Next Year15.04%
EBIT Next 3Y9.12%
EBIT Next 5YN/A
FCF growth 1Y3.98%
FCF growth 3Y8.71%
FCF growth 5Y-6.89%
OCF growth 1Y4.52%
OCF growth 3Y7.82%
OCF growth 5Y-7.92%