VARONIS SYSTEMS INC (VRNS) Stock Fundamental Analysis
USA - NASDAQ:VRNS - US9222801022 - Common Stock
58.92 USD
-0.54 (-0.91%)
VRNS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. Both the profitability and financial health of VRNS have multiple concerns. 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
Looking at the Return On Assets, with a value of -6.37%, VRNS is in line with its industry, outperforming 41.99% of the companies in the same industry.
VRNS has a Return On Equity of -30.14%. This is in the lower half of the industry: VRNS underperforms 62.28% 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 86.48% of the companies in the same industry.
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.
Compared to 1 year ago, VRNS has more shares outstanding
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 2.78. 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 (2.78) which is comparable to the rest of the industry.
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.
The Debt to FCF ratio of VRNS (5.67) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.32 is on the high side and indicates that VRNS has dependencies on debt financing.
VRNS has a worse Debt to Equity ratio (1.32) than 77.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 5.67 | ||
| Altman-Z | 2.78 |
ROIC/WACCN/A
WACC10.99%
2.3 Liquidity
VRNS has a Current 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.
VRNS has a Current ratio of 1.38. This is comparable to the rest of the industry: VRNS outperforms 46.26% of its industry peers.
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 46.62% 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.
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 14.29% 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)-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.
VRNS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.40% yearly.
EPS Next Y-47.86%
EPS Next 2Y12.74%
EPS Next 3Y30.08%
EPS Next 5Y47.88%
Revenue Next Year12.11%
Revenue Next 2Y14.84%
Revenue Next 3Y15.8%
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
Based on the Price/Earnings ratio of 184.13, the valuation of VRNS can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as VRNS.
The average S&P500 Price/Earnings ratio is at 27.86. VRNS is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 154.53, the valuation of VRNS can be described as expensive.
Based on the Price/Forward Earnings ratio, VRNS is valued a bit more expensive than 62.99% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.29. VRNS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 184.13 | ||
| Fwd PE | 154.53 |
4.2 Price Multiples
VRNS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.31 | ||
| 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 30.08% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.74%
EPS Next 3Y30.08%
5. Dividend
5.1 Amount
VRNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:VRNS (10/3/2025, 3:34:05 PM)
58.92
-0.54 (-0.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.73%
Inst Owner Change21.55%
Ins Owners2.48%
Ins Owner Change-1.15%
Market Cap6.60B
Analysts81.38
Price Target61.64 (4.62%)
Short Float %5.28%
Short Ratio3.75
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)2.25%
PT rev (3m)12.12%
EPS NQ rev (1m)-15.66%
EPS NQ rev (3m)18.03%
EPS NY rev (1m)-13.66%
EPS NY rev (3m)-6.94%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)2.8%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 184.13 | ||
| Fwd PE | 154.53 | ||
| P/S | 11.09 | ||
| P/FCF | 53.31 | ||
| P/OCF | 48.51 | ||
| P/B | 19.33 | ||
| P/tB | 22.31 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.32
EY0.54%
EPS(NY)0.38
Fwd EY0.65%
FCF(TTM)1.11
FCFY1.88%
OCF(TTM)1.21
OCFY2.06%
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 | 2.78 |
F-Score4
WACC10.99%
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-47.86%
EPS Next 2Y12.74%
EPS Next 3Y30.08%
EPS Next 5Y47.88%
Revenue 1Y (TTM)14.29%
Revenue growth 3Y12.2%
Revenue growth 5Y16.73%
Sales Q2Q%16.74%
Revenue Next Year12.11%
Revenue Next 2Y14.84%
Revenue Next 3Y15.8%
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