VERINT SYSTEMS INC (VRNT) Stock Fundamental Analysis
USA - NASDAQ:VRNT - US92343X1000 - Common Stock
20.28 USD
-0.01 (-0.05%)
20.28 USD
0 (0%)
Taking everything into account, VRNT scores 6 out of 10 in our fundamental rating. VRNT was compared to 280 industry peers in the Software industry. VRNT has an excellent profitability rating, but 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! With these ratings, VRNT could be worth investigating further for value investing!.
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.
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
VRNT has a Return On Assets of 2.04%. This is in the better half of the industry: VRNT outperforms 65.00% of its industry peers.
VRNT has a Return On Equity of 3.41%. This is in the better half of the industry: VRNT outperforms 66.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.02%, VRNT is in the better half of the industry, outperforming 71.79% 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 11.76%.
The last Return On Invested Capital (4.02%) for VRNT is above the 3 year average (3.56%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 5.08%, VRNT is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
In the last couple of years the Profit Margin of VRNT has grown nicely.
VRNT has a better Operating Margin (8.80%) than 73.57% of its industry peers.
VRNT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 69.91%, VRNT perfoms like the industry average, outperforming 51.79% 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
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.
The number of shares outstanding for VRNT has been reduced compared to 5 years ago.
The debt/assets ratio for VRNT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.22, we must say that VRNT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.22, VRNT is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
VRNT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 3.67 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.4
WACC9.95%
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.
VRNT's Current ratio of 0.65 is on the low side compared to the rest of the industry. VRNT is outperformed by 86.43% of its industry peers.
VRNT has a Quick 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.
Looking at the Quick ratio, with a value of 0.63, VRNT is doing worse than 86.43% 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%.
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 -2.32% 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)-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
Based on estimates for the next years, VRNT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.80% on average per year.
Based on estimates for the next years, VRNT will show a small growth in Revenue. The Revenue will grow by 6.08% on average per year.
EPS Next Y14.43%
EPS Next 2Y11.94%
EPS Next 3Y11.48%
EPS Next 5Y11.8%
Revenue Next Year2.95%
Revenue Next 2Y4.3%
Revenue Next 3Y4.48%
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.
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
With a Price/Earnings ratio of 9.43, the valuation of VRNT can be described as very reasonable.
Based on the Price/Earnings ratio, VRNT is valued cheaply inside the industry as 91.07% of the companies are valued more expensively.
VRNT is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.20, 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 97.14% of the companies listed in the same industry.
VRNT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 6.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRNT is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 94.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.86 | ||
| EV/EBITDA | 11.33 |
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)0.65
PEG (5Y)N/A
EPS Next 2Y11.94%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
No dividends for VRNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.28
-0.01 (-0.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.08%
Inst Owner Change-3.58%
Ins Owners1.31%
Ins Owner Change13%
Market Cap1.22B
Analysts72.86
Price Target23.95 (18.1%)
Short Float %8.07%
Short Ratio2.51
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)-20.86%
PT rev (3m)-14.09%
EPS NQ rev (1m)-2.48%
EPS NQ rev (3m)-2.65%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.49%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 6.2 | ||
| P/S | 1.37 | ||
| P/FCF | 10.86 | ||
| P/OCF | 8.84 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.33 |
EPS(TTM)2.15
EY10.6%
EPS(NY)3.27
Fwd EY16.13%
FCF(TTM)1.87
FCFY9.21%
OCF(TTM)2.29
OCFY11.31%
SpS14.82
BVpS22.1
TBVpS-2.51
PEG (NY)0.65
PEG (5Y)N/A
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%
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-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 | 1.22 |
F-Score6
WACC9.95%
ROIC/WACC0.4
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 Y14.43%
EPS Next 2Y11.94%
EPS Next 3Y11.48%
EPS Next 5Y11.8%
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 3Y4.48%
Revenue Next 5Y6.08%
EBIT growth 1Y-25.15%
EBIT growth 3Y29.26%
EBIT growth 5Y100.25%
EBIT Next Year6.95%
EBIT Next 3Y5.75%
EBIT Next 5Y7.32%
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%