Don't overlook NASDAQ:VRNT—it's a hidden gem with strong fundamentals and an attractive price tag.

VERINT SYSTEMS INC (NASDAQ:VRNT) was identified as a decent value stock by our stock screener. NASDAQ:VRNT scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Valuation Assessment of NASDAQ:VRNT

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:VRNT has earned a 8 for valuation:

• The Price/Earnings ratio is 11.33, which indicates a very decent valuation of VRNT.
• VRNT's Price/Earnings ratio is rather cheap when compared to the industry. VRNT is cheaper than 93.07% of the companies in the same industry.
• VRNT is valuated cheaply when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
• VRNT is valuated reasonably with a Price/Forward Earnings ratio of 10.53.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 94.16% 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 21.35.
• Based on the Enterprise Value to EBITDA ratio, VRNT is valued cheaply inside the industry as 89.05% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, VRNT is valued cheaply inside the industry as 89.05% of the companies are valued more expensively.
• The decent profitability rating of VRNT may justify a higher PE ratio.

Profitability Analysis for NASDAQ:VRNT

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:VRNT scores a 6 out of 10:

• The Return On Assets of VRNT (0.80%) is better than 71.53% of its industry peers.
• With a decent Return On Equity value of 1.41%, VRNT is doing good in the industry, outperforming 72.99% of the companies in the same industry.
• VRNT has a Return On Invested Capital of 3.26%. This is in the better half of the industry: VRNT outperforms 75.55% of its industry peers.
• The last Return On Invested Capital (3.26%) for VRNT is above the 3 year average (2.85%), which is a sign of increasing profitability.
• VRNT has a better Profit Margin (1.96%) than 71.53% of its industry peers.
• Looking at the Operating Margin, with a value of 8.20%, VRNT is in the better half of the industry, outperforming 79.93% of the companies in the same industry.
• VRNT's Gross Margin has improved in the last couple of years.

Understanding NASDAQ:VRNT's Health Score

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:VRNT has achieved a 5 out of 10:

• VRNT has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as VRNT would need 3.29 years to pay back of all of its debts.
• VRNT has a Debt to FCF ratio of 3.29. This is in the better half of the industry: VRNT outperforms 66.06% of its industry peers.
• A Debt/Equity ratio of 0.32 indicates that VRNT is not too dependend on debt financing.

ChartMill's Evaluation of Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:VRNT was assigned a score of 4 for growth:

• VRNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.33%, which is quite good.
• 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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of VRNT contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.