VARONIS SYSTEMS INC (VRNS) Fundamental Analysis & Valuation

NASDAQ:VRNS • US9222801022

Current stock price

20.19 USD
-1.34 (-6.22%)
At close:
20.2 USD
+0.01 (+0.05%)
After Hours:

This VRNS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. VRNS Profitability Analysis

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.
  • Each year in the past 5 years VRNS had a positive operating cash flow.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M -100M

1.2 Ratios

  • VRNS has a Return On Assets of -7.22%. This is comparable to the rest of the industry: VRNS outperforms 41.09% of its industry peers.
  • VRNS's Return On Equity of -21.60% is on the low side compared to the rest of the industry. VRNS is outperformed by 61.82% of its industry peers.
Industry RankSector Rank
ROA -7.22%
ROE -21.6%
ROIC N/A
ROA(3y)-7.37%
ROA(5y)-8.92%
ROE(3y)-21.08%
ROE(5y)-21.52%
ROIC(3y)N/A
ROIC(5y)N/A
VRNS Yearly ROA, ROE, ROICVRNS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 -20 -40 -60 -80

1.3 Margins

  • Looking at the Gross Margin, with a value of 78.83%, VRNS is in the better half of the industry, outperforming 76.73% 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 78.83%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.58%
GM growth 5Y-1.46%
VRNS Yearly Profit, Operating, Gross MarginsVRNS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60 80

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4

2. VRNS Health Analysis

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.
  • Compared to 5 years ago, VRNS has more shares outstanding
  • Compared to 1 year ago, VRNS has an improved debt to assets ratio.
VRNS Yearly Shares OutstandingVRNS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
VRNS Yearly Total Debt VS Total AssetsVRNS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

  • VRNS has an Altman-Z score of 1.02. This is a bad value and indicates that VRNS is not financially healthy and even has some risk of bankruptcy.
  • VRNS has a Altman-Z score (1.02) which is in line with its industry peers.
  • VRNS has a debt to FCF ratio of 3.43. This is a good value and a sign of high solvency as VRNS would need 3.43 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 3.43, VRNS is doing good in the industry, outperforming 60.73% of the companies in the same industry.
  • VRNS has a Debt/Equity ratio of 0.76. This is a neutral value indicating VRNS is somewhat dependend on debt financing.
  • VRNS's Debt to Equity ratio of 0.76 is on the low side compared to the rest of the industry. VRNS is outperformed by 70.55% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 3.43
Altman-Z 1.02
ROIC/WACCN/A
WACC10.05%
VRNS Yearly LT Debt VS Equity VS FCFVRNS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M

2.3 Liquidity

  • A Current Ratio of 1.97 indicates that VRNS should not have too much problems paying its short term obligations.
  • The Current ratio of VRNS (1.97) is comparable to the rest of the industry.
  • A Quick Ratio of 1.97 indicates that VRNS should not have too much problems paying its short term obligations.
  • VRNS has a Quick ratio (1.97) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.97
Quick Ratio 1.97
VRNS Yearly Current Assets VS Current LiabilitesVRNS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. VRNS Growth Analysis

3.1 Past

  • The earnings per share for VRNS have decreased strongly by -40.00% in the last year.
  • Measured over the past 5 years, VRNS shows a small growth in Earnings Per Share. The EPS has been growing by 1.92% on average per year.
  • VRNS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.17%.
  • Measured over the past years, VRNS shows a quite strong growth in Revenue. The Revenue has been growing by 16.33% on average per year.
EPS 1Y (TTM)-40%
EPS 3Y1.92%
EPS 5YN/A
EPS Q2Q%-55.56%
Revenue 1Y (TTM)13.17%
Revenue growth 3Y9.6%
Revenue growth 5Y16.33%
Sales Q2Q%9.37%

3.2 Future

  • VRNS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 59.82% yearly.
  • The Revenue is expected to grow by 13.41% on average over the next years. This is quite good.
EPS Next Y-52.48%
EPS Next 2Y53.33%
EPS Next 3Y66.22%
EPS Next 5Y59.82%
Revenue Next Year17.45%
Revenue Next 2Y17.61%
Revenue Next 3Y17.05%
Revenue Next 5Y13.41%

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.
VRNS Yearly Revenue VS EstimatesVRNS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500M 1B 1.5B
VRNS Yearly EPS VS EstimatesVRNS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 1 2 3

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2

4. VRNS Valuation Analysis

4.1 Price/Earnings Ratio

  • VRNS is valuated quite expensively with a Price/Earnings ratio of 112.17.
  • The rest of the industry has a similar Price/Earnings ratio as VRNS.
  • Compared to an average S&P500 Price/Earnings ratio of 26.78, VRNS is valued quite expensively.
  • The Price/Forward Earnings ratio is 236.04, 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 60.73% of the companies in the same industry.
  • VRNS is valuated expensively when we compare the Price/Forward Earnings ratio to 23.54, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 112.17
Fwd PE 236.04
VRNS Price Earnings VS Forward Price EarningsVRNS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200

4.2 Price Multiples

  • 72.36% of the companies in the same industry are more expensive than VRNS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 17.98
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 66.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y53.33%
EPS Next 3Y66.22%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. VRNS Dividend Analysis

5.1 Amount

  • VRNS does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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VRNS Fundamentals: All Metrics, Ratios and Statistics

VARONIS SYSTEMS INC

NASDAQ:VRNS (4/10/2026, 8:00:01 PM)

After market: 20.2 +0.01 (+0.05%)

20.19

-1.34 (-6.22%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners101.05%
Inst Owner Change0%
Ins Owners2.85%
Ins Owner Change5.93%
Market Cap2.37B
Revenue(TTM)623.53M
Net Income(TTM)-129.32M
Analysts79.31
Price Target34.04 (68.6%)
Short Float %5.3%
Short Ratio1.77
Dividend
Industry RankSector 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)71.22%
Min EPS beat(2)0.9%
Max EPS beat(2)141.55%
EPS beat(4)4
Avg EPS beat(4)125.84%
Min EPS beat(4)0.9%
Max EPS beat(4)240.02%
EPS beat(8)8
Avg EPS beat(8)121.39%
EPS beat(12)11
Avg EPS beat(12)104.84%
EPS beat(16)14
Avg EPS beat(16)85.95%
Revenue beat(2)1
Avg Revenue beat(2)-1.9%
Min Revenue beat(2)-4.66%
Max Revenue beat(2)0.85%
Revenue beat(4)3
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-4.66%
Max Revenue beat(4)0.85%
Revenue beat(8)5
Avg Revenue beat(8)-0.67%
Revenue beat(12)5
Avg Revenue beat(12)-1.4%
Revenue beat(16)5
Avg Revenue beat(16)-1.48%
PT rev (1m)-3.71%
PT rev (3m)-35.58%
EPS NQ rev (1m)-6.69%
EPS NQ rev (3m)-233.96%
EPS NY rev (1m)-17.42%
EPS NY rev (3m)-75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.4%
Valuation
Industry RankSector Rank
PE 112.17
Fwd PE 236.04
P/S 3.8
P/FCF 17.98
P/OCF 16.08
P/B 3.96
P/tB 5.31
EV/EBITDA N/A
EPS(TTM)0.18
EY0.89%
EPS(NY)0.09
Fwd EY0.42%
FCF(TTM)1.12
FCFY5.56%
OCF(TTM)1.26
OCFY6.22%
SpS5.31
BVpS5.1
TBVpS3.8
PEG (NY)N/A
PEG (5Y)N/A
Graham Number4.54
Profitability
Industry RankSector Rank
ROA -7.22%
ROE -21.6%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 78.83%
FCFM 21.16%
ROA(3y)-7.37%
ROA(5y)-8.92%
ROE(3y)-21.08%
ROE(5y)-21.52%
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-2.58%
GM growth 5Y-1.46%
F-Score6
Asset Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 3.43
Debt/EBITDA N/A
Cap/Depr 126.1%
Cap/Sales 2.49%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.97
Quick Ratio 1.97
Altman-Z 1.02
F-Score6
WACC10.05%
ROIC/WACCN/A
Cap/Depr(3y)76.61%
Cap/Depr(5y)83.95%
Cap/Sales(3y)1.58%
Cap/Sales(5y)1.96%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40%
EPS 3Y1.92%
EPS 5YN/A
EPS Q2Q%-55.56%
EPS Next Y-52.48%
EPS Next 2Y53.33%
EPS Next 3Y66.22%
EPS Next 5Y59.82%
Revenue 1Y (TTM)13.17%
Revenue growth 3Y9.6%
Revenue growth 5Y16.33%
Sales Q2Q%9.37%
Revenue Next Year17.45%
Revenue Next 2Y17.61%
Revenue Next 3Y17.05%
Revenue Next 5Y13.41%
EBIT growth 1Y-24.53%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year396.51%
EBIT Next 3Y156.02%
EBIT Next 5Y106.5%
FCF growth 1Y21.57%
FCF growth 3Y554.73%
FCF growth 5YN/A
OCF growth 1Y27.98%
OCF growth 3Y131.59%
OCF growth 5YN/A

VARONIS SYSTEMS INC / VRNS Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for VARONIS SYSTEMS INC?

ChartMill assigns a fundamental rating of 3 / 10 to VRNS.


Can you provide the valuation status for VARONIS SYSTEMS INC?

ChartMill assigns a valuation rating of 2 / 10 to VARONIS SYSTEMS INC (VRNS). This can be considered as Overvalued.


Can you provide the profitability details for VARONIS SYSTEMS INC?

VARONIS SYSTEMS INC (VRNS) has a profitability rating of 2 / 10.


How financially healthy is VARONIS SYSTEMS INC?

The financial health rating of VARONIS SYSTEMS INC (VRNS) is 4 / 10.