33.58 USD
+0.14 (+0.42%)
33.58 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to VRNS. VRNS was compared to 276 industry peers in the Software industry. VRNS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. VRNS shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
VRNS had positive earnings in the past year.
VRNS had a positive operating cash flow in the past year.
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
With a Return On Assets value of -6.88%, VRNS perfoms like the industry average, outperforming 40.65% of the companies in the same industry.
The Return On Equity of VRNS (-18.94%) is comparable to the rest of the 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's Gross Margin of 80.04% is amongst the best of the industry. VRNS outperforms 81.65% 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.
The number of shares outstanding for VRNS has been increased compared to 1 year ago.
Compared to 5 years ago, VRNS has more shares outstanding
Compared to 1 year ago, VRNS has a worse debt to assets ratio.
2.2 Solvency
VRNS has an Altman-Z score of 1.94. 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.
With a Altman-Z score value of 1.94, VRNS perfoms like the industry average, outperforming 48.56% of the companies in the same industry.
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 62.59% of the companies in the same industry.
A Debt/Equity ratio of 0.75 indicates that VRNS is somewhat dependend on debt financing.
VRNS's Debt to Equity ratio of 0.75 is on the low side compared to the rest of the industry. VRNS is outperformed by 71.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 1.94 |
ROIC/WACCN/A
WACC10.45%
2.3 Liquidity
VRNS has a Current Ratio of 1.81. This is a normal value and indicates that VRNS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.81, VRNS is in line with its industry, outperforming 53.60% of the companies in the same industry.
VRNS has a Quick Ratio of 1.81. This is a normal value and indicates that VRNS is financially healthy and should not expect problems in meeting 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
Looking at the last year, VRNS shows a quite strong growth in Revenue. The Revenue has grown by 11.37% in the last year.
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
VRNS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.53% yearly.
VRNS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.95% yearly.
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
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 119.93, which means the current valuation is very expensive for VRNS.
The rest of the industry has a similar Price/Earnings ratio as VRNS.
The average S&P500 Price/Earnings ratio is at 26.92. VRNS is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 98.13 indicates a quite expensive valuation of VRNS.
Based on the Price/Forward Earnings ratio, VRNS is valued a bit more expensive than 60.07% of the companies in the same industry.
VRNS is valuated expensively when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 119.93 | ||
| Fwd PE | 98.13 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, VRNS is valued a bit cheaper than the industry average as 70.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.11 | ||
| 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% |
33.58
+0.14 (+0.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.26%
Inst Owner Change-19.73%
Ins Owners2.31%
Ins Owner Change-1.29%
Market Cap3.96B
Revenue(TTM)608.68M
Net Income(TTM)-114.54M
Analysts80.74
Price Target52.85 (57.39%)
Short Float %5.13%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)120.46%
Min EPS beat(2)0.9%
Max EPS beat(2)240.02%
EPS beat(4)4
Avg EPS beat(4)97.39%
Min EPS beat(4)0.9%
Max EPS beat(4)240.02%
EPS beat(8)8
Avg EPS beat(8)105.66%
EPS beat(12)11
Avg EPS beat(12)94.73%
EPS beat(16)14
Avg EPS beat(16)78.5%
Revenue beat(2)1
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-4.66%
Max Revenue beat(2)0.8%
Revenue beat(4)2
Avg Revenue beat(4)-2.37%
Min Revenue beat(4)-6.13%
Max Revenue beat(4)0.8%
Revenue beat(8)4
Avg Revenue beat(8)-0.84%
Revenue beat(12)4
Avg Revenue beat(12)-1.52%
Revenue beat(16)5
Avg Revenue beat(16)-1.42%
PT rev (1m)-0.96%
PT rev (3m)-14.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.68%
EPS NY rev (1m)-1.8%
EPS NY rev (3m)-14.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 119.93 | ||
| Fwd PE | 98.13 | ||
| P/S | 6.5 | ||
| P/FCF | 30.11 | ||
| P/OCF | 26.93 | ||
| P/B | 6.55 | ||
| P/tB | 8.75 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.28
EY0.83%
EPS(NY)0.34
Fwd EY1.02%
FCF(TTM)1.12
FCFY3.32%
OCF(TTM)1.25
OCFY3.71%
SpS5.16
BVpS5.13
TBVpS3.84
PEG (NY)N/A
PEG (5Y)N/A
Graham Number5.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.88% | ||
| ROE | -18.94% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 80.04% | ||
| FCFM | 21.6% |
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-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.44 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 147.42% | ||
| Cap/Sales | 2.55% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 1.94 |
F-Score5
WACC10.45%
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-55.44%
EPS Next 2Y6.8%
EPS Next 3Y23.5%
EPS Next 5Y45.53%
Revenue 1Y (TTM)11.37%
Revenue growth 3Y12.2%
Revenue growth 5Y16.73%
Sales Q2Q%9.12%
Revenue Next Year10.85%
Revenue Next 2Y13.3%
Revenue Next 3Y15.08%
Revenue Next 5Y14.95%
EBIT growth 1Y-27.02%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-90.17%
EBIT Next 3Y49.6%
EBIT Next 5Y50.6%
FCF growth 1Y187.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y180.57%
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 4 / 10 to VRNS.
What is the valuation status of VARONIS SYSTEMS INC (VRNS) stock?
ChartMill assigns a valuation rating of 2 / 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 3 / 10.
Can you provide the PE and PB ratios for VRNS stock?
The Price/Earnings (PE) ratio for VARONIS SYSTEMS INC (VRNS) is 119.93 and the Price/Book (PB) ratio is 6.55.
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 -55.44% in the next year.