VERINT SYSTEMS INC (VRNT) Stock Fundamental Analysis
NASDAQ:VRNT - Nasdaq - US92343X1000 - Common Stock - Currency: USD
Overall VRNT gets a fundamental rating of 5 out of 10. We evaluated VRNT against 283 industry peers in the Software industry. Both the profitability and the financial health of VRNT get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on VRNT.
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.
Each year in the past 5 years VRNT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VRNT (2.66%) is better than 69.09% of its industry peers.
Looking at the Return On Equity, with a value of 4.54%, VRNT is in the better half of the industry, outperforming 71.27% of the companies in the same industry.
VRNT has a Return On Invested Capital of 3.91%. This is in the better half of the industry: VRNT outperforms 73.09% of its industry peers.
VRNT had an Average Return On Invested Capital over the past 3 years of 2.85%. This is significantly below the industry average of 11.71%.
The last Return On Invested Capital (3.91%) for VRNT is above the 3 year average (2.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 4.54% | ||
| ROIC | 3.91% |
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 Profit Margin of 6.49%. This is in the better half of the industry: VRNT outperforms 71.27% of its industry peers.
In the last couple of years the Profit Margin of VRNT has declined.
VRNT has a better Operating Margin (10.01%) than 77.45% of its industry peers.
In the last couple of years the Operating Margin of VRNT has declined.
VRNT's Gross Margin of 70.85% is in line compared to the rest of the industry. VRNT outperforms 56.00% of its industry peers.
VRNT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.01% | ||
| PM (TTM) | 6.49% | ||
| GM | 70.85% |
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.
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 is higher compared to a year ago.
2.2 Solvency
VRNT has an Altman-Z score of 1.54. This is a bad value and indicates that VRNT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.54, VRNT is in line with its industry, outperforming 41.45% of the companies in the same industry.
The Debt to FCF ratio of VRNT is 2.94, which is a good value as it means it would take VRNT, 2.94 years of fcf income to pay off all of its debts.
VRNT has a Debt to FCF ratio of 2.94. This is in the better half of the industry: VRNT outperforms 61.45% of its industry peers.
VRNT has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
VRNT's Debt to Equity ratio of 0.31 is on the low side compared to the rest of the industry. VRNT is outperformed by 61.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.31
WACC12.6%
2.3 Liquidity
VRNT has a Current Ratio of 1.32. 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 (1.32) which is in line with its industry peers.
VRNT has a Quick Ratio of 1.28. 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 Quick ratio of 1.28. This is comparable to the rest of the industry: VRNT outperforms 40.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
VRNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.62%, 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.
Looking at the last year, VRNT shows a small growth in Revenue. The Revenue has grown by 4.45% in the last year.
The Revenue has been decreasing by -5.84% on average over the past years.
EPS 1Y (TTM)11.62%
EPS 3Y-8.64%
EPS 5Y-3.25%
EPS Q2Q%-16.92%
Revenue 1Y (TTM)4.45%
Revenue growth 3Y3.12%
Revenue growth 5Y-5.84%
Sales Q2Q%2.53%
3.2 Future
Based on estimates for the next years, VRNT will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.52% on average per year.
Based on estimates for the next years, VRNT will show a small growth in Revenue. The Revenue will grow by 6.34% on average per year.
EPS Next Y8.3%
EPS Next 2Y7.9%
EPS Next 3Y8.32%
EPS Next 5Y12.52%
Revenue Next Year2.06%
Revenue Next 2Y3.27%
Revenue Next 3Y4.28%
Revenue Next 5Y6.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 8.29, which indicates a very decent valuation of VRNT.
Based on the Price/Earnings ratio, VRNT is valued cheaply inside the industry as 94.18% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.75. VRNT is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.01, the valuation of VRNT can be described as very cheap.
Based on the Price/Forward Earnings ratio, VRNT is valued cheaply inside the industry as 96.00% of the companies are valued more expensively.
VRNT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.29 | ||
| Fwd PE | 7.01 |
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 91.27% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VRNT is valued cheaper than 94.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.9 | ||
| EV/EBITDA | 11.57 |
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)1
PEG (5Y)N/A
EPS Next 2Y7.9%
EPS Next 3Y8.32%
5. Dividend
5.1 Amount
No dividends for VRNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.29
-0.28 (-1.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.62%
Inst Owner Change3.19%
Ins Owners0.86%
Ins Owner Change-7.44%
Market Cap1.39B
Analysts78.46
Price Target36.72 (64.74%)
Short Float %5.16%
Short Ratio3.8
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)6.77%
Min EPS beat(2)-9.29%
Max EPS beat(2)22.83%
EPS beat(4)3
Avg EPS beat(4)7.06%
Min EPS beat(4)-9.29%
Max EPS beat(4)22.83%
EPS beat(8)6
Avg EPS beat(8)4.44%
EPS beat(12)10
Avg EPS beat(12)5.12%
EPS beat(16)14
Avg EPS beat(16)10.49%
Revenue beat(2)1
Avg Revenue beat(2)0.7%
Min Revenue beat(2)-3.19%
Max Revenue beat(2)4.6%
Revenue beat(4)2
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-3.19%
Max Revenue beat(4)4.6%
Revenue beat(8)2
Avg Revenue beat(8)-1.27%
Revenue beat(12)2
Avg Revenue beat(12)-1.48%
Revenue beat(16)5
Avg Revenue beat(16)-3.19%
PT rev (1m)0%
PT rev (3m)3.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.29 | ||
| Fwd PE | 7.01 | ||
| P/S | 1.51 | ||
| P/FCF | 9.9 | ||
| P/OCF | 8.3 | ||
| P/B | 1.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.57 |
EPS(TTM)2.69
EY12.07%
EPS(NY)3.18
Fwd EY14.26%
FCF(TTM)2.25
FCFY10.1%
OCF(TTM)2.68
OCFY12.04%
SpS14.78
BVpS21.12
TBVpS-2.8
PEG (NY)1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 4.54% | ||
| ROCE | 4.95% | ||
| ROIC | 3.91% | ||
| ROICexc | 4.34% | ||
| ROICexgc | 38.78% | ||
| OM | 10.01% | ||
| PM (TTM) | 6.49% | ||
| GM | 70.85% | ||
| FCFM | 15.22% |
ROA(3y)0.12%
ROA(5y)0.17%
ROE(3y)0.21%
ROE(5y)0.39%
ROIC(3y)2.85%
ROIC(5y)2.18%
ROICexc(3y)3.38%
ROICexc(5y)2.73%
ROICexgc(3y)81.68%
ROICexgc(5y)N/A
ROCE(3y)3.61%
ROCE(5y)2.76%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-6.4%
ROICexc growth 3Y3.91%
ROICexc growth 5Y-5.95%
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%
F-Score7
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.94 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 55.16% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 11.75 | ||
| Cash Conversion | 118.45% | ||
| Profit Quality | 234.75% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 1.54 |
F-Score7
WACC12.6%
ROIC/WACC0.31
Cap/Depr(3y)40.23%
Cap/Depr(5y)43.6%
Cap/Sales(3y)3.19%
Cap/Sales(5y)4.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.62%
EPS 3Y-8.64%
EPS 5Y-3.25%
EPS Q2Q%-16.92%
EPS Next Y8.3%
EPS Next 2Y7.9%
EPS Next 3Y8.32%
EPS Next 5Y12.52%
Revenue 1Y (TTM)4.45%
Revenue growth 3Y3.12%
Revenue growth 5Y-5.84%
Sales Q2Q%2.53%
Revenue Next Year2.06%
Revenue Next 2Y3.27%
Revenue Next 3Y4.28%
Revenue Next 5Y6.34%
EBIT growth 1Y18.29%
EBIT growth 3Y8.31%
EBIT growth 5Y-8.56%
EBIT Next Year21.46%
EBIT Next 3Y11.03%
EBIT Next 5Y12.85%
FCF growth 1Y36.89%
FCF growth 3Y-16.36%
FCF growth 5Y-6.66%
OCF growth 1Y25.71%
OCF growth 3Y-15.96%
OCF growth 5Y-6.89%