VARONIS SYSTEMS INC (VRNS) Stock Fundamental Analysis
NASDAQ:VRNS - US9222801022 - Common Stock
57.36 USD
+0.73 (+1.28%)
57.28 USD
-0.08 (-0.14%)
Taking everything into account, VRNS scores 3 out of 10 in our fundamental rating. VRNS was compared to 280 industry peers in the Software industry. VRNS may be in some trouble as it scores bad on both profitability and health. VRNS is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
VRNS had positive earnings in the past year.
In the past year VRNS had a positive cash flow from operations.
In the past 5 years VRNS always reported negative net income.
Of the past 5 years VRNS 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -6.37%, VRNS perfoms like the industry average, outperforming 41.43% of the companies in the same industry.
VRNS's Return On Equity of -30.14% is on the low side compared to the rest of the industry. VRNS is outperformed by 62.50% 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
Looking at the Gross Margin, with a value of 81.46%, VRNS belongs to the top of the industry, outperforming 86.43% of the companies in the same industry.
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 | 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.
The number of shares outstanding for VRNS has been increased compared to 1 year ago.
The number of shares outstanding for VRNS has been increased compared to 5 years ago.
Compared to 1 year ago, VRNS has a worse debt to assets ratio.
2.2 Solvency
VRNS has an Altman-Z score of 2.67. 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 (2.67) which is in line with its industry peers.
VRNS has a debt to FCF ratio of 5.67. This is a neutral value as VRNS would need 5.67 years to pay back of all of its debts.
The Debt to FCF ratio of VRNS (5.67) is comparable to the rest of the industry.
VRNS has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
VRNS's Debt to Equity ratio of 1.32 is on the low side compared to the rest of the industry. VRNS is outperformed by 77.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 5.67 | ||
| Altman-Z | 2.67 |
ROIC/WACCN/A
WACC10.81%
2.3 Liquidity
A Current Ratio of 1.38 indicates that VRNS should not have too much problems paying its short term obligations.
VRNS has a Current ratio (1.38) which is comparable to the rest of the 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.
Looking at the Quick ratio, with a value of 1.38, VRNS is in line with its industry, outperforming 46.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for VRNS have decreased strongly by -13.51% in the last year.
VRNS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.72% yearly.
The Revenue has grown by 14.29% in the past year. This is quite good.
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)-13.51%
EPS 3Y35.72%
EPS 5YN/A
EPS Q2Q%-40%
Revenue 1Y (TTM)14.29%
Revenue growth 3Y12.2%
Revenue growth 5Y16.73%
Sales Q2Q%16.74%
3.2 Future
VRNS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.88% yearly.
Based on estimates for the next years, VRNS will show a quite strong growth in Revenue. The Revenue will grow by 14.40% on average per year.
EPS Next Y-39.61%
EPS Next 2Y16.9%
EPS Next 3Y30.58%
EPS Next 5Y47.88%
Revenue Next Year12.01%
Revenue Next 2Y14.71%
Revenue Next 3Y15.68%
Revenue Next 5Y14.4%
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
Based on the Price/Earnings ratio of 179.25, the valuation of VRNS can be described as expensive.
VRNS's Price/Earnings ratio is in line with the industry average.
VRNS is valuated expensively when we compare the Price/Earnings ratio to 27.07, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 139.91 indicates a quite expensive valuation of VRNS.
VRNS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. VRNS is more expensive than 61.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.59, VRNS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 179.25 | ||
| Fwd PE | 139.91 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, VRNS is valued a bit cheaper than the industry average as 60.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.9 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as VRNS's earnings are expected to grow with 30.58% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.9%
EPS Next 3Y30.58%
5. Dividend
5.1 Amount
VRNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
57.36
+0.73 (+1.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners109.98%
Inst Owner Change21.55%
Ins Owners2.58%
Ins Owner Change-0.73%
Market Cap6.43B
Analysts81.38
Price Target61.3 (6.87%)
Short Float %8.77%
Short Ratio6.21
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)3.97%
PT rev (3m)8.08%
EPS NQ rev (1m)13.09%
EPS NQ rev (3m)25.86%
EPS NY rev (1m)6.6%
EPS NY rev (3m)8.02%
Revenue NQ rev (1m)0.75%
Revenue NQ rev (3m)2.27%
Revenue NY rev (1m)0.74%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 179.25 | ||
| Fwd PE | 139.91 | ||
| P/S | 10.8 | ||
| P/FCF | 51.9 | ||
| P/OCF | 47.22 | ||
| P/B | 18.82 | ||
| P/tB | 21.72 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.32
EY0.56%
EPS(NY)0.41
Fwd EY0.71%
FCF(TTM)1.11
FCFY1.93%
OCF(TTM)1.21
OCFY2.12%
SpS5.31
BVpS3.05
TBVpS2.64
PEG (NY)N/A
PEG (5Y)N/A
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
ROICexcg growth 3YN/A
ROICexcg 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 | 2.67 |
F-Score4
WACC10.81%
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)-13.51%
EPS 3Y35.72%
EPS 5YN/A
EPS Q2Q%-40%
EPS Next Y-39.61%
EPS Next 2Y16.9%
EPS Next 3Y30.58%
EPS Next 5Y47.88%
Revenue 1Y (TTM)14.29%
Revenue growth 3Y12.2%
Revenue growth 5Y16.73%
Sales Q2Q%16.74%
Revenue Next Year12.01%
Revenue Next 2Y14.71%
Revenue Next 3Y15.68%
Revenue Next 5Y14.4%
EBIT growth 1Y-9.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-35.06%
EBIT Next 3Y59.64%
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