VERINT SYSTEMS INC (VRNT) Stock Fundamental Analysis
NASDAQ:VRNT - Nasdaq - US92343X1000 - Common Stock - Currency: USD
Overall VRNT gets a fundamental rating of 6 out of 10. We evaluated VRNT against 282 industry peers in the Software industry. VRNT scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on VRNT. These ratings would make VRNT suitable 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.
VRNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of VRNT (2.33%) is better than 70.21% of its industry peers.
Looking at the Return On Equity, with a value of 3.95%, VRNT is in the better half of the industry, outperforming 71.63% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.54%, VRNT is doing good in the industry, outperforming 74.47% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VRNT is significantly below the industry average of 12.28%.
The last Return On Invested Capital (4.54%) for VRNT is above the 3 year average (3.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 3.95% | ||
| ROIC | 4.54% |
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 (5.87%) than 73.05% of its industry peers.
In the last couple of years the Profit Margin of VRNT has grown nicely.
Looking at the Operating Margin, with a value of 9.88%, VRNT is in the better half of the industry, outperforming 75.53% of the companies in the same industry.
In the last couple of years the Operating Margin of VRNT has grown nicely.
Looking at the Gross Margin, with a value of 70.27%, VRNT is in line with its industry, outperforming 53.55% of the companies in the same industry.
VRNT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.88% | ||
| PM (TTM) | 5.87% | ||
| GM | 70.27% |
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
Compared to 5 years ago, VRNT has less shares outstanding
VRNT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that VRNT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.26, VRNT is not doing good in the industry: 62.06% of the companies in the same industry are doing better.
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 | 4.32 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.47
WACC9.71%
2.3 Liquidity
A Current Ratio of 0.64 indicates that VRNT may have some problems paying its short term obligations.
With a Current ratio value of 0.64, VRNT is not doing good in the industry: 87.23% of the companies in the same industry are doing better.
A Quick Ratio of 0.62 indicates that VRNT may have some problems paying its short term obligations.
VRNT's Quick ratio of 0.62 is on the low side compared to the rest of the industry. VRNT is outperformed by 87.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The earnings per share for VRNT have decreased strongly by -17.20% in the last year.
VRNT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.23% yearly.
The Revenue has decreased by -2.09% in the past year.
Measured over the past years, VRNT shows a small growth in Revenue. The Revenue has been growing by 1.44% on average per year.
EPS 1Y (TTM)-17.2%
EPS 3Y4.61%
EPS 5Y-6.23%
EPS Q2Q%-50.85%
Revenue 1Y (TTM)-2.09%
Revenue growth 3Y1.31%
Revenue growth 5Y1.44%
Sales Q2Q%-5.96%
3.2 Future
The Earnings Per Share is expected to grow by 11.80% on average over the next years. This is quite good.
VRNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.08% yearly.
EPS Next Y14.48%
EPS Next 2Y11.83%
EPS Next 3Y11.48%
EPS Next 5Y11.8%
Revenue Next Year2.88%
Revenue Next 2Y4.2%
Revenue Next 3Y4.38%
Revenue Next 5Y6.08%
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.
4. Valuation
4.1 Price/Earnings Ratio
VRNT is valuated reasonably with a Price/Earnings ratio of 8.97.
Compared to the rest of the industry, the Price/Earnings ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 93.26% of the companies listed in the same industry.
VRNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 6.35 indicates a rather cheap valuation of VRNT.
96.45% of the companies in the same industry are more expensive than VRNT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, VRNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.97 | ||
| Fwd PE | 6.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRNT is valued cheaply inside the industry as 90.43% of the companies are valued more expensively.
91.13% 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 | 13.06 | ||
| EV/EBITDA | 11.24 |
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.
The decent profitability rating of VRNT may justify a higher PE ratio.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y11.83%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
No dividends for VRNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.73
-1.05 (-4.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.12%
Inst Owner Change0%
Ins Owners1.29%
Ins Owner Change13%
Market Cap1.25B
Analysts78.46
Price Target28.56 (37.77%)
Short Float %6.55%
Short Ratio3.41
Dividend
| Industry Rank | Sector 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)2%
Min EPS beat(2)-23.66%
Max EPS beat(2)27.66%
EPS beat(4)2
Avg EPS beat(4)4.39%
Min EPS beat(4)-23.66%
Max EPS beat(4)27.66%
EPS beat(8)5
Avg EPS beat(8)3.22%
EPS beat(12)9
Avg EPS beat(12)4.78%
EPS beat(16)13
Avg EPS beat(16)8.01%
Revenue beat(2)1
Avg Revenue beat(2)-2.72%
Min Revenue beat(2)-10.26%
Max Revenue beat(2)4.81%
Revenue beat(4)2
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-10.26%
Max Revenue beat(4)4.81%
Revenue beat(8)3
Avg Revenue beat(8)-1.65%
Revenue beat(12)3
Avg Revenue beat(12)-1.79%
Revenue beat(16)5
Avg Revenue beat(16)-1.3%
PT rev (1m)2.44%
PT rev (3m)-5.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-57.71%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-5.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.97%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.97 | ||
| Fwd PE | 6.35 | ||
| P/S | 1.39 | ||
| P/FCF | 13.06 | ||
| P/OCF | 10.14 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.24 |
EPS(TTM)2.31
EY11.14%
EPS(NY)3.26
Fwd EY15.75%
FCF(TTM)1.59
FCFY7.66%
OCF(TTM)2.04
OCFY9.86%
SpS14.88
BVpS22.1
TBVpS-2.71
PEG (NY)0.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 3.95% | ||
| ROCE | 6.09% | ||
| ROIC | 4.54% | ||
| ROICexc | 5.19% | ||
| ROICexgc | N/A | ||
| OM | 9.88% | ||
| PM (TTM) | 5.87% | ||
| GM | 70.27% | ||
| FCFM | 10.67% |
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 | ||
| Debt/FCF | 4.32 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 56.35% | ||
| Cap/Sales | 3.06% | ||
| Interest Coverage | 16.42 | ||
| Cash Conversion | 89.66% | ||
| Profit Quality | 181.84% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 1.26 |
F-Score7
WACC9.71%
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)-17.2%
EPS 3Y4.61%
EPS 5Y-6.23%
EPS Q2Q%-50.85%
EPS Next Y14.48%
EPS Next 2Y11.83%
EPS Next 3Y11.48%
EPS Next 5Y11.8%
Revenue 1Y (TTM)-2.09%
Revenue growth 3Y1.31%
Revenue growth 5Y1.44%
Sales Q2Q%-5.96%
Revenue Next Year2.88%
Revenue Next 2Y4.2%
Revenue Next 3Y4.38%
Revenue Next 5Y6.08%
EBIT growth 1Y-1.29%
EBIT growth 3Y29.26%
EBIT growth 5Y100.25%
EBIT Next Year13.26%
EBIT Next 3Y5.75%
EBIT Next 5Y7.32%
FCF growth 1Y-13.73%
FCF growth 3Y8.71%
FCF growth 5Y-6.89%
OCF growth 1Y-15.66%
OCF growth 3Y7.82%
OCF growth 5Y-7.92%