VARONIS SYSTEMS INC (VRNS) Stock Fundamental Analysis

NASDAQ:VRNS • US9222801022

23.1 USD
+0.01 (+0.04%)
At close: Feb 27, 2026
23.1 USD
0 (0%)
After Hours: 2/27/2026, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to VRNS. VRNS was compared to 276 industry peers in the Software industry. VRNS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. VRNS is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

  • VRNS had positive earnings in the past year.
  • 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 each 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M -100M

1.2 Ratios

  • With a Return On Assets value of -7.22%, VRNS perfoms like the industry average, outperforming 40.58% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of -21.60%, VRNS is doing worse than 61.96% of the companies in the same industry.
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

  • VRNS has a Gross Margin of 78.83%. This is in the better half of the industry: VRNS outperforms 76.09% of its industry peers.
  • 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 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. 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
  • Compared to 5 years ago, VRNS has more shares outstanding
  • The debt/assets ratio for VRNS has been reduced compared to a year ago.
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 1.19. 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 (1.19) 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.
  • Looking at the Debt to FCF ratio, with a value of 3.43, VRNS is in the better half of the industry, outperforming 61.59% 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 71.01% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 3.43
Altman-Z 1.19
ROIC/WACCN/A
WACC10.14%
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

  • VRNS has a Current Ratio of 1.97. This is a normal value and indicates that VRNS is financially healthy and should not expect problems in meeting 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. Growth

3.1 Past

  • VRNS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.00%.
  • 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

  • The Earnings Per Share is expected to grow by 59.82% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 13.41% on average over the next years. This is quite good.
EPS Next Y92.95%
EPS Next 2Y81.3%
EPS Next 3Y105.88%
EPS Next 5Y59.82%
Revenue Next Year17.46%
Revenue Next 2Y17.48%
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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3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 128.33, 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.
  • The average S&P500 Price/Earnings ratio is at 27.07. VRNS is valued rather expensively when compared to this.
  • With a Price/Forward Earnings ratio of 66.51, VRNS can be considered very expensive at the moment.
  • VRNS's Price/Forward Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.05, VRNS is valued quite expensively.
Industry RankSector Rank
PE 128.33
Fwd PE 66.51
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

  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRNS indicates a somewhat cheap valuation: VRNS is cheaper than 72.10% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 20.57
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

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • VRNS's earnings are expected to grow with 105.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)N/A
EPS Next 2Y81.3%
EPS Next 3Y105.88%

More info and screens

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

0

5. Dividend

5.1 Amount

  • No dividends for VRNS!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

VARONIS SYSTEMS INC

NASDAQ:VRNS (2/27/2026, 8:00:02 PM)

After market: 23.1 0 (0%)

23.1

+0.01 (+0.04%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners102.79%
Inst Owner Change-0.7%
Ins Owners2.31%
Ins Owner Change8.86%
Market Cap2.71B
Revenue(TTM)623.53M
Net Income(TTM)-129.32M
Analysts80
Price Target35.35 (53.03%)
Short Float %6.12%
Short Ratio2.14
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)-31.24%
PT rev (3m)-33.74%
EPS NQ rev (1m)-224.31%
EPS NQ rev (3m)-227.88%
EPS NY rev (1m)1.49%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)1.01%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)1.2%
Revenue NY rev (3m)0.97%
Valuation
Industry RankSector Rank
PE 128.33
Fwd PE 66.51
P/S 4.35
P/FCF 20.57
P/OCF 18.4
P/B 4.53
P/tB 6.07
EV/EBITDA N/A
EPS(TTM)0.18
EY0.78%
EPS(NY)0.35
Fwd EY1.5%
FCF(TTM)1.12
FCFY4.86%
OCF(TTM)1.26
OCFY5.43%
SpS5.31
BVpS5.1
TBVpS3.8
PEG (NY)1.38
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 1.19
F-Score6
WACC10.14%
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 5Y59.82%
Revenue 1Y (TTM)13.17%
Revenue growth 3Y9.6%
Revenue growth 5Y16.33%
Sales Q2Q%9.37%
Revenue Next Year17.46%
Revenue Next 2Y17.48%
Revenue Next 3Y17.05%
Revenue Next 5Y13.41%
EBIT growth 1Y-24.53%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year400.34%
EBIT Next 3Y155.26%
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 128.33 and the Price/Book (PB) ratio is 4.53.