VERINT SYSTEMS INC (VRNT)
US92343X1000 - Common Stock
Overall VRNT gets a fundamental rating of 5 out of 10. We evaluated VRNT against 279 industry peers in the Software industry. VRNT has only an average score on both its financial health and profitability. VRNT may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year VRNT was profitable.
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.
In the past 5 years VRNT always reported a positive cash flow from operatings.
1.2 Ratios
VRNT's Return On Assets of 1.94% is fine compared to the rest of the industry. VRNT outperforms 67.03% of its industry peers.
VRNT's Return On Equity of 3.33% is fine compared to the rest of the industry. VRNT outperforms 69.18% of its industry peers.
VRNT's Return On Invested Capital of 4.56% is fine compared to the rest of the industry. VRNT outperforms 73.48% 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 11.54%.
The last Return On Invested Capital (4.56%) for VRNT is above the 3 year average (2.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 3.33% | ||
| ROIC | 4.56% |
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 better Profit Margin (4.63%) than 69.89% of its industry peers.
In the last couple of years the Profit Margin of VRNT has declined.
With an excellent Operating Margin value of 11.49%, VRNT belongs to the best of the industry, outperforming 80.29% of the companies in the same industry.
In the last couple of years the Operating Margin of VRNT has declined.
VRNT has a Gross Margin (70.68%) 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 | 11.49% | ||
| PM (TTM) | 4.63% | ||
| GM | 70.68% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VRNT is destroying value.
The number of shares outstanding for VRNT has been reduced compared to 1 year ago.
VRNT has less shares outstanding than it did 5 years ago.
VRNT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that VRNT is in the distress zone and has some risk of bankruptcy.
VRNT has a Altman-Z score (1.64) which is in line with its industry peers.
VRNT has a debt to FCF ratio of 3.28. This is a good value and a sign of high solvency as VRNT would need 3.28 years to pay back of all of its debts.
VRNT's Debt to FCF ratio of 3.28 is fine compared to the rest of the industry. VRNT outperforms 63.08% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that VRNT is not too dependend on debt financing.
VRNT has a worse Debt to Equity ratio (0.32) than 62.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.42
WACC10.93%
2.3 Liquidity
VRNT has a Current Ratio of 1.41. This is a normal value and indicates that VRNT is financially healthy and should not expect problems in meeting its short term obligations.
VRNT has a Current ratio (1.41) which is in line with its industry peers.
A Quick Ratio of 1.36 indicates that VRNT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.36, VRNT perfoms like the industry average, outperforming 41.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
VRNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.29%, which is quite good.
Measured over the past years, VRNT shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.25% on average per year.
The Revenue has been growing slightly by 3.03% in the past year.
Measured over the past years, VRNT shows a decrease in Revenue. The Revenue has been decreasing by -5.84% on average per year.
EPS 1Y (TTM)14.29%
EPS 3Y-8.64%
EPS 5Y-3.25%
EPS Q2Q%2.08%
Revenue 1Y (TTM)3.03%
Revenue growth 3Y3.12%
Revenue growth 5Y-5.84%
Sales Q2Q%-0.11%
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 14.19% yearly.
Based on estimates for the next years, VRNT will show a quite strong growth in Revenue. The Revenue will grow by 8.17% on average per year.
EPS Next Y8.85%
EPS Next 2Y8.04%
EPS Next 3Y8.69%
EPS Next 5Y14.19%
Revenue Next Year2.09%
Revenue Next 2Y3.25%
Revenue Next 3Y4.51%
Revenue Next 5Y8.17%
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
The Price/Earnings ratio is 8.51, which indicates a very decent valuation of VRNT.
94.98% 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 28.96.
With a Price/Forward Earnings ratio of 7.48, the valuation of VRNT can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 96.06% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. VRNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 7.48 |
4.2 Price Multiples
VRNT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VRNT is cheaper than 92.83% of the companies in the same industry.
VRNT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VRNT is cheaper than 93.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.78 | ||
| EV/EBITDA | 10.72 |
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)0.96
PEG (5Y)N/A
EPS Next 2Y8.04%
EPS Next 3Y8.69%
5. Dividend
5.1 Amount
No dividends for VRNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERINT SYSTEMS INC
NASDAQ:VRNT (11/21/2024, 8:00:27 PM)
After market: 23.84 0 (0%)23.84
+0.55 (+2.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.48B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 7.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.96
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 3.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.49% | ||
| PM (TTM) | 4.63% | ||
| GM | 70.68% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.29%
EPS 3Y-8.64%
EPS 5Y
EPS Q2Q%
EPS Next Y8.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.03%
Revenue growth 3Y3.12%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
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