20.51 USD
+0.27 (+1.33%)
20.51 USD
0 (0%)
VRNT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 280 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make VRNT suitable 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
VRNT's Return On Assets of 2.04% is fine compared to the rest of the industry. VRNT outperforms 63.70% of its industry peers.
The Return On Equity of VRNT (3.41%) is better than 65.48% of its industry peers.
VRNT's Return On Invested Capital of 4.02% is fine compared to the rest 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 12.00%.
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
VRNT has a Profit Margin of 5.08%. This is in the better half of the industry: VRNT outperforms 65.48% of its industry peers.
In the last couple of years the Profit Margin of VRNT has grown nicely.
VRNT's Operating Margin of 8.80% is fine compared to the rest of the industry. VRNT outperforms 74.02% of its industry peers.
In the last couple of years the Operating Margin of VRNT has grown nicely.
Looking at the Gross Margin, with a value of 69.91%, VRNT is in line with its industry, outperforming 51.96% of the companies in the same industry.
VRNT's Gross Margin has improved in the last couple of years.
| 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.
VRNT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VRNT has less shares outstanding
The debt/assets ratio for VRNT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.23, we must say that VRNT is in the distress zone and has some risk of bankruptcy.
VRNT has a Altman-Z score of 1.23. This is comparable to the rest of the industry: VRNT outperforms 40.21% of its industry peers.
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 | 1.23 |
ROIC/WACC0.41
WACC9.89%
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.
The Current ratio of VRNT (0.65) is worse than 90.04% of its industry peers.
A Quick Ratio of 0.63 indicates that VRNT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.63, VRNT is doing worse than 90.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
VRNT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.21%.
The Earnings Per Share has been decreasing by -6.23% on average over the past years.
VRNT shows a decrease in Revenue. In the last year, the revenue decreased by -2.32%.
VRNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.44% yearly.
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.
The Revenue is expected to grow by 6.30% on average over the next years.
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
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 reasonably with a Price/Earnings ratio of 9.54.
88.26% of the companies in the same industry are more expensive than VRNT, based on the Price/Earnings ratio.
VRNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
VRNT is valuated cheaply with a Price/Forward Earnings ratio of 6.26.
Based on the Price/Forward Earnings ratio, VRNT is valued cheaply inside the industry as 93.59% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, VRNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.54 | ||
| Fwd PE | 6.26 |
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.
VRNT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VRNT is cheaper than 90.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.03 | ||
| EV/EBITDA | 11.48 |
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)0.66
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 |
20.51
+0.27 (+1.33%)
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 Change-141.84%
Market Cap1.24B
Revenue(TTM)893.84M
Net Income(TTM)45.43M
Analysts72.86
Price Target23.95 (16.77%)
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)-0.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.54 | ||
| Fwd PE | 6.26 | ||
| P/S | 1.39 | ||
| P/FCF | 11.03 | ||
| P/OCF | 8.99 | ||
| P/B | 0.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.48 |
EPS(TTM)2.15
EY10.48%
EPS(NY)3.28
Fwd EY15.99%
FCF(TTM)1.86
FCFY9.06%
OCF(TTM)2.28
OCFY11.13%
SpS14.75
BVpS21.99
TBVpS-2.5
PEG (NY)0.66
PEG (5Y)N/A
Graham Number32.62
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 | 1.23 |
F-Score6
WACC9.89%
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 9.54 and the Price/Book (PB) ratio is 0.93.
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.