34.95 USD
+0.16 (+0.46%)
34.95 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to VRNS. VRNS was compared to 277 industry peers in the Software industry. The financial health of VRNS is average, but there are quite some concerns on its profitability. VRNS shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
- In the past year VRNS was profitable.
- In the past year VRNS had a positive cash flow from operations.
- In the past 5 years VRNS always reported negative net income.
- VRNS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- VRNS has a Return On Assets (-6.88%) which is comparable to the rest of the industry.
- With a Return On Equity value of -18.94%, VRNS perfoms like the industry average, outperforming 40.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.88% | ||
| ROE | -18.94% | ||
| ROIC | N/A |
ROA(3y)-8.94%
ROA(5y)-10.86%
ROE(3y)-22.14%
ROE(5y)-37.18%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- VRNS has a better Gross Margin (80.04%) than 81.59% of its industry peers.
- In the last couple of years the Gross Margin of VRNS has remained more or less at the same level.
- VRNS does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 80.04% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.72%
GM growth 5Y-0.75%
2. Health
2.1 Basic Checks
- VRNS does not have a ROIC to compare to the WACC, probably because it is not profitable.
- Compared to 1 year ago, VRNS has more shares outstanding
- VRNS has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for VRNS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.02 indicates that VRNS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- VRNS's Altman-Z score of 2.02 is in line compared to the rest of the industry. VRNS outperforms 50.90% of its industry peers.
- VRNS has a debt to FCF ratio of 3.44. This is a good value and a sign of high solvency as VRNS would need 3.44 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 3.44, VRNS is doing good in the industry, outperforming 62.82% of the companies in the same industry.
- VRNS has a Debt/Equity ratio of 0.75. This is a neutral value indicating VRNS is somewhat dependend on debt financing.
- The Debt to Equity ratio of VRNS (0.75) is worse than 71.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 2.02 |
ROIC/WACCN/A
WACC10.57%
2.3 Liquidity
- A Current Ratio of 1.81 indicates that VRNS should not have too much problems paying its short term obligations.
- VRNS's Current ratio of 1.81 is in line compared to the rest of the industry. VRNS outperforms 53.43% of its industry peers.
- A Quick Ratio of 1.81 indicates that VRNS should not have too much problems paying its short term obligations.
- The Quick ratio of VRNS (1.81) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
- VRNS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.21%.
- The Earnings Per Share has been growing by 35.72% on average over the past years. This is a very strong growth
- VRNS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.37%.
- VRNS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.73% yearly.
EPS 1Y (TTM)-28.21%
EPS 3Y35.72%
EPS 5YN/A
EPS Q2Q%-40%
Revenue 1Y (TTM)11.37%
Revenue growth 3Y12.2%
Revenue growth 5Y16.73%
Sales Q2Q%9.12%
3.2 Future
- The Earnings Per Share is expected to grow by 45.53% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 14.95% on average over the next years. This is quite good.
EPS Next Y-55.44%
EPS Next 2Y6.8%
EPS Next 3Y23.5%
EPS Next 5Y45.53%
Revenue Next Year10.85%
Revenue Next 2Y13.3%
Revenue Next 3Y15.08%
Revenue Next 5Y14.95%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 124.82 indicates a quite expensive valuation of VRNS.
- The rest of the industry has a similar Price/Earnings ratio as VRNS.
- VRNS is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 102.13 indicates a quite expensive valuation of VRNS.
- Based on the Price/Forward Earnings ratio, VRNS is valued a bit more expensive than 60.29% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, VRNS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 124.82 | ||
| Fwd PE | 102.13 |
4.2 Price Multiples
- VRNS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VRNS is cheaper than 67.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.34 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- VRNS's earnings are expected to grow with 23.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.8%
EPS Next 3Y23.5%
5. Dividend
5.1 Amount
- VRNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
VARONIS SYSTEMS INC / VRNS FAQ
Can you provide the ChartMill fundamental rating for VARONIS SYSTEMS INC?
ChartMill assigns a fundamental rating of 4 / 10 to VRNS.
What is the valuation status for VRNS stock?
ChartMill assigns a valuation rating of 2 / 10 to VARONIS SYSTEMS INC (VRNS). This can be considered as Overvalued.
What is the profitability of VRNS stock?
VARONIS SYSTEMS INC (VRNS) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for VRNS stock?
The Price/Earnings (PE) ratio for VARONIS SYSTEMS INC (VRNS) is 124.82 and the Price/Book (PB) ratio is 6.81.