VERINT SYSTEMS INC (VRNT)
US92343X1000 - Common Stock
Overall VRNT gets a fundamental rating of 5 out of 10. We evaluated VRNT against 277 industry peers in the Software industry. VRNT has only an average score on both its financial health and profitability. VRNT may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make VRNT a good candidate for value investing.
1. Profitability
1.1 Basic Checks
VRNT had positive earnings in the past year.
In the past year VRNT had a positive cash flow from operations.
In multiple years VRNT reported negative net income over the last 5 years.
Each year in the past 5 years VRNT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.80%, VRNT is in the better half of the industry, outperforming 70.44% of the companies in the same industry.
VRNT has a better Return On Equity (1.41%) than 71.90% of its industry peers.
With a decent Return On Invested Capital value of 3.26%, VRNT is doing good in the industry, outperforming 74.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VRNT is significantly below the industry average of 10.37%.
The 3 year average ROIC (2.85%) for VRNT is below the current ROIC(3.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 1.41% | ||
| ROIC | 3.26% |
ROA(3y)0.12%
ROA(5y)0.17%
ROE(3y)0.21%
ROE(5y)0.39%
ROIC(3y)2.85%
ROIC(5y)2.18%
1.3 Margins
VRNT has a Profit Margin of 1.96%. This is in the better half of the industry: VRNT outperforms 70.44% of its industry peers.
VRNT's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 8.20%, VRNT is doing good in the industry, outperforming 79.20% of the companies in the same industry.
VRNT's Operating Margin has declined in the last couple of years.
VRNT has a Gross Margin of 69.56%. This is comparable to the rest of the industry: VRNT outperforms 56.93% of its industry peers.
VRNT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.2% | ||
| PM (TTM) | 1.96% | ||
| GM | 69.56% |
OM growth 3Y5.03%
OM growth 5Y-2.9%
PM growth 3YN/A
PM growth 5Y-18.28%
GM growth 3Y2.09%
GM growth 5Y1.85%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VRNT is destroying value.
VRNT has less shares outstanding than it did 1 year ago.
VRNT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, VRNT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.82 indicates that VRNT is not a great score, but indicates only limited risk for bankruptcy at the moment.
VRNT has a Altman-Z score (1.82) which is comparable to the rest of the industry.
VRNT has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as VRNT would need 3.29 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.29, VRNT is doing good in the industry, outperforming 66.06% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that VRNT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, VRNT is in line with its industry, outperforming 41.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.35
WACC9.33%
2.3 Liquidity
VRNT has a Current Ratio of 1.37. This is a normal value and indicates that VRNT is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.37, VRNT perfoms like the industry average, outperforming 41.97% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that VRNT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.34, VRNT perfoms like the industry average, outperforming 41.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.33% over the past year.
The Earnings Per Share has been decreasing by -3.25% on average over the past years.
The Revenue has been growing slightly by 0.92% in the past year.
The Revenue has been decreasing by -5.84% on average over the past years.
EPS 1Y (TTM)8.33%
EPS 3Y-8.64%
EPS 5Y-3.25%
EPS growth Q2Q42.67%
Revenue 1Y (TTM)0.92%
Revenue growth 3Y3.12%
Revenue growth 5Y-5.84%
Revenue growth Q2Q12.24%
3.2 Future
The Earnings Per Share is expected to grow by 13.30% on average over the next years. This is quite good.
VRNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.76% yearly.
EPS Next Y7.64%
EPS Next 2Y7.55%
EPS Next 3Y8.75%
EPS Next 5Y13.3%
Revenue Next Year2.35%
Revenue Next 2Y3.94%
Revenue Next 3Y4.77%
Revenue Next 5Y7.76%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.45, which indicates a very decent valuation of VRNT.
Based on the Price/Earnings ratio, VRNT is valued cheaply inside the industry as 93.07% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VRNT to the average of the S&P500 Index (27.73), we can say VRNT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.63, the valuation of VRNT can be described as reasonable.
94.16% of the companies in the same industry are more expensive than VRNT, based on the Price/Forward Earnings ratio.
VRNT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 10.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRNT is valued cheaply inside the industry as 89.42% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VRNT is valued cheaper than 89.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.61 | ||
| EV/EBITDA | 14.49 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VRNT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.5
PEG (5Y)N/A
EPS Next 2Y7.55%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
No dividends for VRNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERINT SYSTEMS INC
NASDAQ:VRNT (5/3/2024, 7:25:18 PM)
After market: 31.25 0 (0%)31.25
+0.47 (+1.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 10.63 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 1.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.2% | ||
| PM (TTM) | 1.96% | ||
| GM | 69.56% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.33%
EPS 3Y-8.64%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.92%
Revenue growth 3Y3.12%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
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EBIT Next Year
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