Logo image of VRNS

VARONIS SYSTEMS INC (VRNS) Stock Fundamental Analysis

NASDAQ:VRNS - Nasdaq - US9222801022 - Common Stock - Currency: USD

54.73  -1.1 (-1.97%)

After market: 54.73 0 (0%)

Fundamental Rating

3

Taking everything into account, VRNS scores 3 out of 10 in our fundamental rating. VRNS was compared to 282 industry peers in the Software industry. VRNS may be in some trouble as it scores bad on both profitability and health. VRNS is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

2

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.
VRNS had a positive operating cash flow in 4 of the past 5 years.
VRNS Yearly Net Income VS EBIT VS OCF VS FCFVRNS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M

1.2 Ratios

Looking at the Return On Assets, with a value of -6.37%, VRNS is in line with its industry, outperforming 46.10% of the companies in the same industry.
The Return On Equity of VRNS (-30.14%) is worse than 60.99% of its industry peers.
Industry RankSector 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
VRNS Yearly ROA, ROE, ROICVRNS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 -20 -40 -60 -80

1.3 Margins

Looking at the Gross Margin, with a value of 81.46%, VRNS belongs to the top of the industry, outperforming 85.82% 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 RankSector 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%
VRNS Yearly Profit, Operating, Gross MarginsVRNS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

More info and screens

3

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
VRNS has a worse debt/assets ratio than last year.
VRNS Yearly Shares OutstandingVRNS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
VRNS Yearly Total Debt VS Total AssetsVRNS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 2.52 indicates that VRNS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of VRNS (2.52) is comparable to the rest of the industry.
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.
VRNS's Debt to FCF ratio of 5.67 is in line compared to the rest of the industry. VRNS outperforms 57.09% of its industry peers.
A Debt/Equity ratio of 1.32 is on the high side and indicates that VRNS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.32, VRNS is not doing good in the industry: 77.66% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.32
Debt/FCF 5.67
Altman-Z 2.52
ROIC/WACCN/A
WACC9.89%
VRNS Yearly LT Debt VS Equity VS FCFVRNS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M

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's Current ratio of 1.38 is in line compared to the rest of the industry. VRNS outperforms 43.62% of its industry peers.
A Quick Ratio of 1.38 indicates that VRNS should not have too much problems paying its short term obligations.
VRNS has a Quick ratio (1.38) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.38
Quick Ratio 1.38
VRNS Yearly Current Assets VS Current LiabilitesVRNS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

More info and screens

6

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.
VRNS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.29%.
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

Based on estimates for the next years, VRNS will show a very strong growth in Earnings Per Share. The EPS will grow by 40.32% on average per year.
The Revenue is expected to grow by 13.10% on average over the next years. This is quite good.
EPS Next Y-43.35%
EPS Next 2Y11.49%
EPS Next 3Y25.97%
EPS Next 5Y40.32%
Revenue Next Year11.19%
Revenue Next 2Y13.83%
Revenue Next 3Y14.47%
Revenue Next 5Y13.1%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
VRNS Yearly Revenue VS EstimatesVRNS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 500M 1B
VRNS Yearly EPS VS EstimatesVRNS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 1 2 3

More info and screens

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 171.03 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 26.82, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 146.76, which means the current valuation is very expensive for VRNS.
Based on the Price/Forward Earnings ratio, VRNS is valued a bit more expensive than 61.35% of the companies in the same industry.
VRNS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 36.21.
Industry RankSector Rank
PE 171.03
Fwd PE 146.76
VRNS Price Earnings VS Forward Price EarningsVRNS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

VRNS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VRNS is cheaper than 61.70% of the companies in the same industry.
Industry RankSector Rank
P/FCF 49.46
EV/EBITDA N/A
VRNS Per share dataVRNS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

4.3 Compensation for Growth

VRNS's earnings are expected to grow with 25.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.49%
EPS Next 3Y25.97%

More info and screens

0

5. Dividend

5.1 Amount

No dividends for VRNS!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

VARONIS SYSTEMS INC

NASDAQ:VRNS (8/1/2025, 8:09:47 PM)

After market: 54.73 0 (0%)

54.73

-1.1 (-1.97%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)07-29 2025-07-29/amc
Earnings (Next)10-27 2025-10-27/amc
Inst Owners108.57%
Inst Owner Change1%
Ins Owners2.58%
Ins Owner Change1.83%
Market Cap6.13B
Analysts80.71
Price Target54.27 (-0.84%)
Short Float %9.73%
Short Ratio7.65
Dividend
Industry RankSector 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)-1.29%
PT rev (3m)-1.11%
EPS NQ rev (1m)27.43%
EPS NQ rev (3m)11.29%
EPS NY rev (1m)1.1%
EPS NY rev (3m)-1.63%
Revenue NQ rev (1m)2.09%
Revenue NQ rev (3m)1.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
Industry RankSector Rank
PE 171.03
Fwd PE 146.76
P/S 10.29
P/FCF 49.46
P/OCF 45.01
P/B 17.94
P/tB 20.7
EV/EBITDA N/A
EPS(TTM)0.32
EY0.58%
EPS(NY)0.37
Fwd EY0.68%
FCF(TTM)1.11
FCFY2.02%
OCF(TTM)1.22
OCFY2.22%
SpS5.32
BVpS3.05
TBVpS2.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 2.52
F-Score4
WACC9.89%
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-43.35%
EPS Next 2Y11.49%
EPS Next 3Y25.97%
EPS Next 5Y40.32%
Revenue 1Y (TTM)14.29%
Revenue growth 3Y12.2%
Revenue growth 5Y16.73%
Sales Q2Q%16.74%
Revenue Next Year11.19%
Revenue Next 2Y13.83%
Revenue Next 3Y14.47%
Revenue Next 5Y13.1%
EBIT growth 1Y-9.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-26.29%
EBIT Next 3Y61.11%
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