VARONIS SYSTEMS INC (VRNS) Stock Fundamental Analysis
USA - NASDAQ:VRNS - US9222801022 - Common Stock
33.92 USD
-29.08 (-46.16%)
VRNS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 285 industry peers in the Software industry. Both the profitability and financial health of VRNS have multiple concerns. VRNS is valued quite expensively, but it does show have an excellent growth rating.
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.
VRNS had negative earnings in each of the past 5 years.
Of the past 5 years VRNS 4 years had a positive operating cash flow.
1.2 Ratios
VRNS has a Return On Assets of -6.37%. This is comparable to the rest of the industry: VRNS outperforms 42.81% of its industry peers.
VRNS has a worse Return On Equity (-30.14%) than 61.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.37% | ||
| ROE | -30.14% | ||
| 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 Gross Margin of 81.46%. This is amongst the best in the industry. VRNS outperforms 87.02% of its industry peers.
VRNS's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for VRNS so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 81.46% |
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.
VRNS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for VRNS has been increased compared to 5 years ago.
VRNS has a worse debt/assets ratio than last year.
2.2 Solvency
VRNS has an Altman-Z score of 2.96. This is not the best score and indicates that VRNS is in the grey zone with still only limited risk for bankruptcy at the moment.
VRNS has a Altman-Z score of 2.96. This is comparable to the rest of the industry: VRNS outperforms 56.14% of its industry peers.
The Debt to FCF ratio of VRNS is 5.67, which is a neutral value as it means it would take VRNS, 5.67 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.67, VRNS perfoms like the industry average, outperforming 57.54% of the companies in the same industry.
VRNS has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
VRNS has a Debt to Equity ratio of 1.32. This is in the lower half of the industry: VRNS underperforms 77.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 5.67 | ||
| Altman-Z | 2.96 |
ROIC/WACCN/A
WACC10.67%
2.3 Liquidity
A Current Ratio of 1.38 indicates that VRNS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.38, VRNS perfoms like the industry average, outperforming 45.96% of the companies in the same industry.
VRNS has a Quick Ratio of 1.38. This is a normal value and indicates that VRNS is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.38, VRNS perfoms like the industry average, outperforming 46.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
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 10.38%.
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)10.38%
Revenue growth 3Y12.2%
Revenue growth 5Y16.73%
Sales Q2Q%9.13%
3.2 Future
Based on estimates for the next years, VRNS will show a very strong growth in Earnings Per Share. The EPS will grow by 47.88% on average per year.
The Revenue is expected to grow by 14.40% on average over the next years. This is quite good.
EPS Next Y-52.38%
EPS Next 2Y10.59%
EPS Next 3Y29.3%
EPS Next 5Y47.88%
Revenue Next Year12.07%
Revenue Next 2Y14.82%
Revenue Next 3Y15.81%
Revenue Next 5Y14.4%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 121.14, which means the current valuation is very expensive for VRNS.
VRNS's Price/Earnings is on the same level as the industry average.
VRNS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.00.
A Price/Forward Earnings ratio of 92.44 indicates a quite expensive valuation of VRNS.
Based on the Price/Forward Earnings ratio, VRNS is valued a bit more expensive than the industry average as 62.11% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.87. VRNS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 121.14 | ||
| Fwd PE | 92.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRNS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.69 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
VRNS's earnings are expected to grow with 29.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.59%
EPS Next 3Y29.3%
5. Dividend
5.1 Amount
No dividends for VRNS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:VRNS (10/29/2025, 2:24:08 PM)
33.92
-29.08 (-46.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.73%
Inst Owner Change0.76%
Ins Owners2.48%
Ins Owner Change-1.15%
Market Cap3.80B
Revenue(TTM)550.95M
Net Income(TTM)-102934000
Analysts82.07
Price Target65 (91.63%)
Short Float %5.12%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)180.45%
Min EPS beat(2)120.88%
Max EPS beat(2)240.02%
EPS beat(4)4
Avg EPS beat(4)105.46%
Min EPS beat(4)27.78%
Max EPS beat(4)240.02%
EPS beat(8)8
Avg EPS beat(8)133.22%
EPS beat(12)10
Avg EPS beat(12)93.35%
EPS beat(16)14
Avg EPS beat(16)88.64%
Revenue beat(2)2
Avg Revenue beat(2)0.66%
Min Revenue beat(2)0.52%
Max Revenue beat(2)0.8%
Revenue beat(4)3
Avg Revenue beat(4)-0.58%
Min Revenue beat(4)-6.13%
Max Revenue beat(4)2.48%
Revenue beat(8)4
Avg Revenue beat(8)-0.8%
Revenue beat(12)4
Avg Revenue beat(12)-1.37%
Revenue beat(16)6
Avg Revenue beat(16)-1.06%
PT rev (1m)0.72%
PT rev (3m)14.4%
EPS NQ rev (1m)-8.72%
EPS NQ rev (3m)9.92%
EPS NY rev (1m)-8.68%
EPS NY rev (3m)-15.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.99%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 121.14 | ||
| Fwd PE | 92.44 | ||
| P/S | 6.39 | ||
| P/FCF | 30.69 | ||
| P/OCF | 27.93 | ||
| P/B | 11.13 | ||
| P/tB | 12.84 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.28
EY0.83%
EPS(NY)0.37
Fwd EY1.08%
FCF(TTM)1.11
FCFY3.26%
OCF(TTM)1.21
OCFY3.58%
SpS5.31
BVpS3.05
TBVpS2.64
PEG (NY)N/A
PEG (5Y)N/A
Graham Number4.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.37% | ||
| ROE | -30.14% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 81.46% | ||
| FCFM | 20.81% |
ROA(3y)-8.94%
ROA(5y)-10.86%
ROE(3y)-22.14%
ROE(5y)-37.18%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score4
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 5.67 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 118.58% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 2.96 |
F-Score4
WACC10.67%
ROIC/WACCN/A
Cap/Depr(3y)65.78%
Cap/Depr(5y)79.18%
Cap/Sales(3y)1.55%
Cap/Sales(5y)2.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-28.21%
EPS 3Y35.72%
EPS 5YN/A
EPS Q2Q%-40%
EPS Next Y-52.38%
EPS Next 2Y10.59%
EPS Next 3Y29.3%
EPS Next 5Y47.88%
Revenue 1Y (TTM)10.38%
Revenue growth 3Y12.2%
Revenue growth 5Y16.73%
Sales Q2Q%9.13%
Revenue Next Year12.07%
Revenue Next 2Y14.82%
Revenue Next 3Y15.81%
Revenue Next 5Y14.4%
EBIT growth 1Y-9.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-40.01%
EBIT Next 3Y63.43%
EBIT Next 5Y50.6%
FCF growth 1Y238.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y206.33%
OCF growth 3Y152.22%
OCF growth 5YN/A
VARONIS SYSTEMS INC / VRNS FAQ
Can you provide the ChartMill fundamental rating for VARONIS SYSTEMS INC?
ChartMill assigns a fundamental rating of 3 / 10 to VRNS.
What is the valuation status of VARONIS SYSTEMS INC (VRNS) stock?
ChartMill assigns a valuation rating of 1 / 10 to VARONIS SYSTEMS INC (VRNS). This can be considered as Overvalued.
How profitable is VARONIS SYSTEMS INC (VRNS) stock?
VARONIS SYSTEMS INC (VRNS) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for VRNS stock?
The Price/Earnings (PE) ratio for VARONIS SYSTEMS INC (VRNS) is 121.14 and the Price/Book (PB) ratio is 11.13.
What is the expected EPS growth for VARONIS SYSTEMS INC (VRNS) stock?
The Earnings per Share (EPS) of VARONIS SYSTEMS INC (VRNS) is expected to decline by -52.38% in the next year.