22.65 USD
+0.44 (+1.98%)
At close: Feb 6, 2026
22.65 USD
0 (0%)
After Hours: 2/6/2026, 8:10:49 PM
We assign a fundamental rating of 3 out of 10 to VRNS. VRNS was compared to 278 industry peers in the Software industry. While VRNS seems to be doing ok healthwise, there are quite some concerns on its profitability. VRNS is valied quite expensively at the moment, while it does show a decent growth rate.
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.
- In the past 5 years VRNS always reported a positive cash flow from operatings.
1.2 Ratios
- VRNS's Return On Assets of -7.22% is on the low side compared to the rest of the industry. VRNS is outperformed by 60.07% 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 62.23% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
- Looking at the Gross Margin, with a value of 78.83%, VRNS is in the better half of the industry, outperforming 76.98% of the companies in the same industry.
- VRNS's Gross Margin has been stable in the last couple of years.
- 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 | 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%
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
- The debt/assets ratio for VRNS has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.17, we must say that VRNS is in the distress zone and has some risk of bankruptcy.
- VRNS has a Altman-Z score (1.17) which is comparable to the rest of the industry.
- 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 62.23% of the companies in the same industry.
- A Debt/Equity ratio of 0.76 indicates that VRNS is somewhat dependend on debt financing.
- The Debt to Equity ratio of VRNS (0.76) is worse than 71.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 3.43 | ||
| Altman-Z | 1.17 |
ROIC/WACCN/A
WACC10.71%
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.
- The Quick ratio of VRNS (1.97) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
- The earnings per share for VRNS have decreased strongly by -40.00% in the last year.
- The Earnings Per Share has been growing slightly by 1.92% on average over the past years.
- The Revenue has grown by 13.17% 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 16.33% yearly.
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 72.69% yearly.
- Based on estimates for the next years, VRNS will show a quite strong growth in Revenue. The Revenue will grow by 15.52% on average per year.
EPS Next Y92.95%
EPS Next 2Y81.3%
EPS Next 3Y105.88%
EPS Next 5Y72.69%
Revenue Next Year16.24%
Revenue Next 2Y17.36%
Revenue Next 3Y16.53%
Revenue Next 5Y15.52%
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 125.83, the valuation of VRNS can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as VRNS.
- Compared to an average S&P500 Price/Earnings ratio of 27.92, VRNS is valued quite expensively.
- A Price/Forward Earnings ratio of 65.22 indicates a quite expensive valuation of VRNS.
- The rest of the industry has a similar Price/Forward Earnings ratio as VRNS.
- VRNS is valuated expensively when we compare the Price/Forward Earnings ratio to 27.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 125.83 | ||
| Fwd PE | 65.22 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRNS indicates a somewhat cheap valuation: VRNS is cheaper than 74.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.24 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- VRNS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as VRNS's earnings are expected to grow with 105.88% in the coming years.
PEG (NY)1.35
PEG (5Y)N/A
EPS Next 2Y81.3%
EPS Next 3Y105.88%
5. Dividend
5.1 Amount
- No dividends for VRNS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
22.65
+0.44 (+1.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-03 2026-02-03/amc
Earnings (Next)05-04 2026-05-04/amc
Inst Owners102.79%
Inst Owner Change-0.39%
Ins Owners2.31%
Ins Owner Change-0.87%
Market Cap2.67B
Revenue(TTM)623.53M
Net Income(TTM)-129.32M
Analysts80.74
Price Target48.66 (114.83%)
Short Float %5.81%
Short Ratio3.06
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)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)0.86%
Revenue beat(4)3
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-4.66%
Max Revenue beat(4)0.86%
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)-7.91%
PT rev (3m)-25.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.43%
EPS NY rev (1m)1.49%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 125.83 | ||
| Fwd PE | 65.22 | ||
| P/S | 4.28 | ||
| P/FCF | 20.24 | ||
| P/OCF | 18.11 | ||
| P/B | 4.46 | ||
| P/tB | 5.98 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.18
EY0.79%
EPS(NY)0.35
Fwd EY1.53%
FCF(TTM)1.12
FCFY4.94%
OCF(TTM)1.25
OCFY5.52%
SpS5.29
BVpS5.08
TBVpS3.79
PEG (NY)1.35
PEG (5Y)N/A
Graham Number4.53
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.17 |
F-Score6
WACC10.71%
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 Y92.95%
EPS Next 2Y81.3%
EPS Next 3Y105.88%
EPS Next 5Y72.69%
Revenue 1Y (TTM)13.17%
Revenue growth 3Y9.6%
Revenue growth 5Y16.33%
Sales Q2Q%9.37%
Revenue Next Year16.24%
Revenue Next 2Y17.36%
Revenue Next 3Y16.53%
Revenue Next 5Y15.52%
EBIT growth 1Y-24.53%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year682.92%
EBIT Next 3Y130.3%
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 FAQ
Can you provide the ChartMill fundamental rating for VARONIS SYSTEMS INC?
ChartMill assigns a fundamental rating of 3 / 10 to VRNS.
What is the valuation status for VRNS stock?
ChartMill assigns a valuation rating of 3 / 10 to VARONIS SYSTEMS INC (VRNS). This can be considered as Overvalued.
What is the profitability of VRNS stock?
VARONIS SYSTEMS INC (VRNS) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for VRNS stock?
The Price/Earnings (PE) ratio for VARONIS SYSTEMS INC (VRNS) is 125.83 and the Price/Book (PB) ratio is 4.46.