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%)
VRNT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. VRNT has an excellent profitability rating, but 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
VRNT had positive earnings in the past year.
In the past year VRNT had a positive cash flow from operations.
In multiple years VRNT reported negative net income over the last 5 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 64.08% of its industry peers.
With a decent Return On Equity value of 3.41%, VRNT is doing good in the industry, outperforming 65.85% of the companies in the same industry.
VRNT has a better Return On Invested Capital (4.02%) than 71.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRNT is significantly below the industry average of 11.85%.
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
The Profit Margin of VRNT (5.08%) is better than 66.20% of its industry peers.
VRNT's Profit Margin has improved in the last couple of years.
VRNT's Operating Margin of 8.80% is fine compared to the rest of the industry. VRNT outperforms 73.24% of its industry peers.
VRNT's Operating Margin has improved in the last couple of years.
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
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 1.22. 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 61.62% of its industry peers.
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/WACC0.41
WACC9.86%
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 has a worse Current ratio (0.65) than 87.32% 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 87.32% 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%.
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.
The Revenue is expected to grow by 6.30% on average over the next years.
EPS Next Y14.41%
EPS Next 2Y12.08%
EPS Next 3Y11.56%
EPS Next 5Y12.05%
Revenue Next Year2.95%
Revenue Next 2Y4.3%
Revenue Next 3Y4.48%
Revenue Next 5Y6.3%
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
VRNT is valuated reasonably with a Price/Earnings ratio of 9.44.
VRNT's Price/Earnings ratio is rather cheap when compared to the industry. VRNT is cheaper than 90.14% of the companies in the same industry.
VRNT is valuated cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.19, 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 95.42% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. VRNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 6.19 |
4.2 Price Multiples
87.68% of the companies in the same industry are more expensive than VRNT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 93.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.86 | ||
| EV/EBITDA | 11.32 |
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)0.65
PEG (5Y)N/A
EPS Next 2Y12.08%
EPS Next 3Y11.56%
5. Dividend
5.1 Amount
VRNT does not give a dividend.
| 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 Owners100.57%
Inst Owner Change-3.73%
Ins Owners1.35%
Ins Owner Change3.26%
Market Cap1.22B
Revenue(TTM)893.84M
Net Income(TTM)45.43M
Analysts72.86
Price Target23.95 (18.04%)
Short Float %8.16%
Short Ratio2.16
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)-16.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 6.19 | ||
| P/S | 1.37 | ||
| P/FCF | 10.86 | ||
| P/OCF | 8.85 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.32 |
EPS(TTM)2.15
EY10.6%
EPS(NY)3.28
Fwd EY16.16%
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
Graham Number32.69
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 | 1.22 |
F-Score6
WACC9.86%
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 Y14.41%
EPS Next 2Y12.08%
EPS Next 3Y11.56%
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 2Y4.3%
Revenue Next 3Y4.48%
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 9.44 and the Price/Book (PB) ratio is 0.92.
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 14.41% in the next year.