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VARONIS SYSTEMS INC (VRNS) Stock Fundamental Analysis

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

47.25  +0.06 (+0.13%)

After market: 47.25 0 (0%)

Fundamental Rating

3

VRNS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 282 industry peers in the Software industry. VRNS may be in some trouble as it scores bad on both profitability and health. VRNS shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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3

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.
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.
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

The Return On Assets of VRNS (-5.77%) is comparable to the rest of the industry.
With a Return On Equity value of -24.76%, VRNS perfoms like the industry average, outperforming 41.49% of the companies in the same industry.
Industry RankSector Rank
ROA -5.77%
ROE -24.76%
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 82.29%, VRNS belongs to the top of the industry, outperforming 88.65% 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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 82.29%
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

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2

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
VRNS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VRNS has a worse debt to assets ratio.
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

VRNS has an Altman-Z score of 2.14. 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 of 2.14. This is comparable to the rest of the industry: VRNS outperforms 50.35% of its industry peers.
The Debt to FCF ratio of VRNS is 5.98, which is a neutral value as it means it would take VRNS, 5.98 years of fcf income to pay off all of its debts.
VRNS has a Debt to FCF ratio (5.98) which is in line with its industry peers.
A Debt/Equity ratio of 1.23 is on the high side and indicates that VRNS has dependencies on debt financing.
The Debt to Equity ratio of VRNS (1.23) is worse than 76.60% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF 5.98
Altman-Z 2.14
ROIC/WACCN/A
WACC10.6%
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

A Current Ratio of 1.15 indicates that VRNS should not have too much problems paying its short term obligations.
VRNS has a Current ratio of 1.15. This is in the lower half of the industry: VRNS underperforms 66.31% of its industry peers.
VRNS has a Quick Ratio of 1.15. 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 1.15, VRNS is doing worse than 65.96% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.15
Quick Ratio 1.15
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

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7

3. Growth

3.1 Past

VRNS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.03%.
Measured over the past years, VRNS shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.72% on average per year.
Looking at the last year, VRNS shows a quite strong growth in Revenue. The Revenue has grown by 13.35% 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)3.03%
EPS 3Y35.72%
EPS 5YN/A
EPS Q2Q%133.33%
Revenue 1Y (TTM)13.35%
Revenue growth 3Y12.2%
Revenue growth 5Y16.73%
Sales Q2Q%19.65%

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 44.45% 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-44.09%
EPS Next 2Y11.23%
EPS Next 3Y30.55%
EPS Next 5Y44.45%
Revenue Next Year11.11%
Revenue Next 2Y13.79%
Revenue Next 3Y14.47%
Revenue Next 5Y13.1%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better 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

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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 138.97, the valuation of VRNS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of VRNS is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.20, VRNS is valued quite expensively.
With a Price/Forward Earnings ratio of 127.30, VRNS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRNS indicates a slightly more expensive valuation: VRNS is more expensive than 62.41% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VRNS to the average of the S&P500 Index (22.13), we can say VRNS is valued expensively.
Industry RankSector Rank
PE 138.97
Fwd PE 127.3
VRNS Price Earnings VS Forward Price EarningsVRNS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, VRNS is valued a bit cheaper than the industry average as 63.48% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 45.04
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

A more expensive valuation may be justified as VRNS's earnings are expected to grow with 30.55% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.23%
EPS Next 3Y30.55%

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0

5. Dividend

5.1 Amount

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

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VARONIS SYSTEMS INC

NASDAQ:VRNS (5/29/2025, 8:20:36 PM)

After market: 47.25 0 (0%)

47.25

+0.06 (+0.13%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-06 2025-05-06/amc
Earnings (Next)07-28 2025-07-28/amc
Inst Owners104.75%
Inst Owner Change0.81%
Ins Owners3%
Ins Owner Change5.21%
Market Cap5.29B
Analysts79.29
Price Target56.21 (18.96%)
Short Float %9.54%
Short Ratio7.03
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)74.33%
Min EPS beat(2)27.78%
Max EPS beat(2)120.88%
EPS beat(4)4
Avg EPS beat(4)130.47%
Min EPS beat(4)27.78%
Max EPS beat(4)340.06%
EPS beat(8)7
Avg EPS beat(8)96.95%
EPS beat(12)10
Avg EPS beat(12)81.68%
EPS beat(16)14
Avg EPS beat(16)77.96%
Revenue beat(2)1
Avg Revenue beat(2)-2.81%
Min Revenue beat(2)-6.13%
Max Revenue beat(2)0.52%
Revenue beat(4)3
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-6.13%
Max Revenue beat(4)2.48%
Revenue beat(8)3
Avg Revenue beat(8)-1.53%
Revenue beat(12)3
Avg Revenue beat(12)-1.59%
Revenue beat(16)6
Avg Revenue beat(16)-0.89%
PT rev (1m)0%
PT rev (3m)-1.01%
EPS NQ rev (1m)-56.93%
EPS NQ rev (3m)-59.73%
EPS NY rev (1m)-2.92%
EPS NY rev (3m)-11.04%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
Industry RankSector Rank
PE 138.97
Fwd PE 127.3
P/S 9.22
P/FCF 45.04
P/OCF 41.81
P/B 14.38
P/tB 16.42
EV/EBITDA N/A
EPS(TTM)0.34
EY0.72%
EPS(NY)0.37
Fwd EY0.79%
FCF(TTM)1.05
FCFY2.22%
OCF(TTM)1.13
OCFY2.39%
SpS5.12
BVpS3.29
TBVpS2.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -5.77%
ROE -24.76%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 82.29%
FCFM 20.48%
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 Turnover0.36
Health
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF 5.98
Debt/EBITDA N/A
Cap/Depr 85.19%
Cap/Sales 1.58%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.15
Quick Ratio 1.15
Altman-Z 2.14
F-Score4
WACC10.6%
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)3.03%
EPS 3Y35.72%
EPS 5YN/A
EPS Q2Q%133.33%
EPS Next Y-44.09%
EPS Next 2Y11.23%
EPS Next 3Y30.55%
EPS Next 5Y44.45%
Revenue 1Y (TTM)13.35%
Revenue growth 3Y12.2%
Revenue growth 5Y16.73%
Sales Q2Q%19.65%
Revenue Next Year11.11%
Revenue Next 2Y13.79%
Revenue Next 3Y14.47%
Revenue Next 5Y13.1%
EBIT growth 1Y6.49%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-26.29%
EBIT Next 3Y61.11%
EBIT Next 5Y50.6%
FCF growth 1Y675.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y423.5%
OCF growth 3Y152.22%
OCF growth 5YN/A