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VARONIS SYSTEMS INC (VRNS) Stock Fundamental Analysis

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

50.26  -0.67 (-1.32%)

After market: 50.26 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to VRNS. VRNS was compared to 284 industry peers in the Software industry. VRNS has a bad profitability rating. Also its financial health evaluation is rather negative. 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

In the past year VRNS was profitable.
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 40.85% 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

VRNS has a Gross Margin of 82.29%. This is amongst the best in the industry. VRNS outperforms 89.44% 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 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.
The number of shares outstanding for VRNS has been increased compared to 1 year ago.
The number of shares outstanding for VRNS has been increased compared to 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

An Altman-Z score of 2.35 indicates that VRNS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.35, VRNS perfoms like the industry average, outperforming 53.17% of the companies in the same industry.
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's Debt to FCF ratio of 5.98 is in line compared to the rest of the industry. VRNS outperforms 56.69% of its industry peers.
A Debt/Equity ratio of 1.23 is on the high side and indicates that VRNS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.23, VRNS is not doing good in the industry: 76.06% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.23
Debt/FCF 5.98
Altman-Z 2.35
ROIC/WACCN/A
WACC8.28%
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 worse Current ratio (1.15) than 66.90% of its industry peers.
A Quick Ratio of 1.15 indicates that VRNS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.15, VRNS is doing worse than 66.20% 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.
VRNS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.35%.
Measured over the past years, VRNS shows a quite strong growth in Revenue. The Revenue has been growing by 16.73% on average per year.
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

The Earnings Per Share is expected to grow by 40.32% on average over the next years. This is a very strong growth
Based on estimates for the next years, VRNS will show a quite strong growth in Revenue. The Revenue will grow by 13.10% on average per year.
EPS Next Y-43.97%
EPS Next 2Y10.97%
EPS Next 3Y29.9%
EPS Next 5Y40.32%
Revenue Next Year11.19%
Revenue Next 2Y13.8%
Revenue Next 3Y14.5%
Revenue Next 5Y13.1%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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

The Price/Earnings ratio is 147.82, which means the current valuation is very expensive for VRNS.
The rest of the industry has a similar Price/Earnings ratio as VRNS.
Compared to an average S&P500 Price/Earnings ratio of 26.92, VRNS is valued quite expensively.
With a Price/Forward Earnings ratio of 136.04, VRNS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, VRNS is valued a bit more expensive than the industry average as 61.27% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 21.49. VRNS is valued rather expensively when compared to this.
Industry RankSector Rank
PE 147.82
Fwd PE 136.04
VRNS Price Earnings VS Forward Price EarningsVRNS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100

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 63.03% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 47.91
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 29.90% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.97%
EPS Next 3Y29.9%

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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 (6/27/2025, 8:00:02 PM)

After market: 50.26 0 (0%)

50.26

-0.67 (-1.32%)

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 Owners108.57%
Inst Owner Change0.78%
Ins Owners2.58%
Ins Owner Change5.03%
Market Cap5.63B
Analysts79.29
Price Target54.98 (9.39%)
Short Float %9.35%
Short Ratio7.38
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)-2.2%
PT rev (3m)-3.18%
EPS NQ rev (1m)-11.65%
EPS NQ rev (3m)-60.92%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-10.85%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.03%
Valuation
Industry RankSector Rank
PE 147.82
Fwd PE 136.04
P/S 9.81
P/FCF 47.91
P/OCF 44.48
P/B 15.3
P/tB 17.47
EV/EBITDA N/A
EPS(TTM)0.34
EY0.68%
EPS(NY)0.37
Fwd EY0.74%
FCF(TTM)1.05
FCFY2.09%
OCF(TTM)1.13
OCFY2.25%
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 2.35
F-Score4
WACC8.28%
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-43.97%
EPS Next 2Y10.97%
EPS Next 3Y29.9%
EPS Next 5Y40.32%
Revenue 1Y (TTM)13.35%
Revenue growth 3Y12.2%
Revenue growth 5Y16.73%
Sales Q2Q%19.65%
Revenue Next Year11.19%
Revenue Next 2Y13.8%
Revenue Next 3Y14.5%
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