VERINT SYSTEMS INC (VRNT) Stock Fundamental Analysis
USA - NASDAQ:VRNT - US92343X1000 - Common Stock
20.29 USD
-0.02 (-0.1%)
20.29 USD
0 (0%)
Overall VRNT gets a fundamental rating of 6 out of 10. We evaluated VRNT against 280 industry peers in the Software industry. While VRNT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VRNT may be a bit undervalued, certainly considering the very reasonable score on growth This makes VRNT very considerable 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.
In the past 5 years VRNT always reported a positive cash flow from operatings.
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.
VRNT's Return On Invested Capital of 4.02% is fine compared to the rest of the industry. VRNT outperforms 71.79% 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 11.76%.
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 has a Profit Margin of 5.08%. This is in the better half of the industry: VRNT outperforms 67.86% of its industry peers.
In the last couple of years the Profit Margin of VRNT has grown nicely.
The Operating Margin of VRNT (8.80%) is better than 73.57% of its industry peers.
In the last couple of years the Operating Margin of VRNT has grown nicely.
VRNT has a Gross Margin (69.91%) 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 | 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
VRNT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VRNT has less shares outstanding than it did 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
VRNT has an Altman-Z score of 1.22. This is a bad value and indicates that VRNT is not financially healthy and even has some risk of bankruptcy.
VRNT has a worse Altman-Z score (1.22) than 63.57% 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 | 1.22 |
ROIC/WACC0.41
WACC9.9%
2.3 Liquidity
A Current Ratio of 0.65 indicates that VRNT may have some problems paying its short term obligations.
With a Current ratio value of 0.65, VRNT is not doing good in the industry: 86.43% of the companies in the same industry are doing better.
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.
The Quick ratio of VRNT (0.63) is worse than 86.43% 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%.
VRNT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.23% yearly.
Looking at the last year, VRNT shows a decrease in Revenue. The Revenue has decreased by -2.32% in the last year.
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
VRNT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.80% yearly.
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
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 9.44, which indicates a very decent valuation of VRNT.
Compared to the rest of the industry, the Price/Earnings ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 90.36% of the companies listed in the same industry.
VRNT is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.20, 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 96.79% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, VRNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 6.2 |
4.2 Price Multiples
VRNT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VRNT is cheaper than 90.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VRNT is valued cheaper than 94.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.86 | ||
| EV/EBITDA | 11.34 |
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)0.65
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 |
20.29
-0.02 (-0.1%)
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 (18.04%)
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 | 9.44 | ||
| Fwd PE | 6.2 | ||
| P/S | 1.37 | ||
| P/FCF | 10.86 | ||
| P/OCF | 8.85 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.34 |
EPS(TTM)2.15
EY10.6%
EPS(NY)3.27
Fwd EY16.12%
FCF(TTM)1.87
FCFY9.21%
OCF(TTM)2.29
OCFY11.3%
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
WACC9.9%
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 Y14.43%
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%