20.51 USD
+0.27 (+1.33%)
20.51 USD
0 (0%)
Overall VRNT gets a fundamental rating of 6 out of 10. We evaluated VRNT against 278 industry peers in the Software industry. While VRNT has a great profitability rating, 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! These ratings would make VRNT suitable for value investing!
1. Profitability
1.1 Basic Checks
VRNT had positive earnings in the past year.
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.
In the past 5 years VRNT always reported a positive cash flow from operatings.
1.2 Ratios
VRNT's Return On Assets of 2.04% is fine compared to the rest of the industry. VRNT outperforms 63.12% of its industry peers.
With a decent Return On Equity value of 3.41%, VRNT is doing good in the industry, outperforming 64.89% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.02%, VRNT is in the better half of the industry, outperforming 70.92% of the companies in the same industry.
VRNT had an Average Return On Invested Capital over the past 3 years of 3.56%. This is significantly below the industry average of 10.78%.
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's Profit Margin of 5.08% is fine compared to the rest of the industry. VRNT outperforms 64.54% of its industry peers.
In the last couple of years the Profit Margin of VRNT has grown nicely.
VRNT has a Operating Margin of 8.80%. This is in the better half of the industry: VRNT outperforms 73.76% of its industry peers.
VRNT's Operating Margin has improved in the last couple of years.
VRNT has a Gross Margin of 69.91%. This is comparable to the rest of the industry: VRNT outperforms 52.48% of its industry peers.
In the last couple of years the Gross Margin of VRNT has grown nicely.
| 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
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.
VRNT has less shares outstanding than it did 5 years ago.
VRNT has a better debt/assets ratio than last year.
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 has a Altman-Z score of 1.23. This is in the lower half of the industry: VRNT underperforms 61.35% 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
WACC9.79%
2.3 Liquidity
A Current Ratio of 0.65 indicates that VRNT may have some problems paying its short term obligations.
The Current ratio of VRNT (0.65) is worse than 90.07% of its industry peers.
A Quick Ratio of 0.63 indicates that VRNT may have some problems paying its short term obligations.
VRNT has a worse Quick ratio (0.63) than 90.07% of its industry peers.
| 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%.
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 -2.32%.
The Revenue has been growing slightly by 1.44% on average over the past years.
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
The Earnings Per Share is expected to grow by 12.05% on average over the next years. This is quite good.
Based on estimates for the next years, VRNT will show a small growth in Revenue. The Revenue will grow by 6.30% on average per year.
EPS Next Y14.4%
EPS Next 2Y12.11%
EPS Next 3Y10.74%
EPS Next 5Y12.05%
Revenue Next Year2.95%
Revenue Next 2Y4.2%
Revenue Next 3Y3.93%
Revenue Next 5Y6.3%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 9.54.
Based on the Price/Earnings ratio, VRNT is valued cheaply inside the industry as 88.30% of the companies are valued more expensively.
VRNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.61.
VRNT is valuated cheaply with a Price/Forward Earnings ratio of 6.25.
93.26% of the companies in the same industry are more expensive than VRNT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.01. VRNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.54 | ||
| Fwd PE | 6.25 |
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 86.52% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 91.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.03 | ||
| EV/EBITDA | 11.48 |
4.3 Compensation for Growth
VRNT's 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)0.66
PEG (5Y)N/A
EPS Next 2Y12.11%
EPS Next 3Y10.74%
5. Dividend
5.1 Amount
No dividends for VRNT!.
| 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 Owners103.34%
Inst Owner Change-1.05%
Ins OwnersN/A
Ins Owner Change-144.62%
Market Cap1.24B
Revenue(TTM)893.84M
Net Income(TTM)45.43M
Analysts75
Price Target23.95 (16.77%)
Short Float %N/A
Short RatioN/A
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.68%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.03%
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 | 6.25 | ||
| 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
WACC9.79%
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 Y14.4%
EPS Next 2Y12.11%
EPS Next 3Y10.74%
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 2Y4.2%
Revenue Next 3Y3.93%
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 14.4% in the next year.