VERINT SYSTEMS INC (VRNT) Stock Fundamental Analysis
NASDAQ:VRNT - US92343X1000 - Common Stock
20.34 USD
+0.14 (+0.69%)
20.25 USD
-0.09 (-0.44%)
VRNT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 282 industry peers in the Software industry. While VRNT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on VRNT. With these ratings, VRNT could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year VRNT was profitable.
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.
In the past 5 years VRNT always reported a positive cash flow from operatings.
1.2 Ratios
VRNT's Return On Assets of 2.33% is fine compared to the rest of the industry. VRNT outperforms 67.73% of its industry peers.
VRNT's Return On Equity of 3.95% is fine compared to the rest of the industry. VRNT outperforms 68.79% of its industry peers.
VRNT has a better Return On Invested Capital (4.54%) than 72.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VRNT is significantly below the industry average of 11.98%.
The last Return On Invested Capital (4.54%) for VRNT is above the 3 year average (3.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 3.95% | ||
| ROIC | 4.54% |
ROA(3y)1.13%
ROA(5y)0.55%
ROE(3y)1.95%
ROE(5y)0.91%
ROIC(3y)3.56%
ROIC(5y)2.96%
1.3 Margins
The Profit Margin of VRNT (5.87%) is better than 69.50% of its industry peers.
VRNT's Profit Margin has improved in the last couple of years.
VRNT's Operating Margin of 9.88% is fine compared to the rest of the industry. VRNT outperforms 74.82% of its industry peers.
In the last couple of years the Operating Margin of VRNT has grown nicely.
The Gross Margin of VRNT (70.27%) is comparable to the rest of the industry.
VRNT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.88% | ||
| PM (TTM) | 5.87% | ||
| GM | 70.27% |
OM growth 3Y27.59%
OM growth 5Y97.41%
PM growth 3YN/A
PM growth 5Y16.09%
GM growth 3Y2.67%
GM growth 5Y2.15%
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.
The number of shares outstanding for VRNT has been reduced compared to 5 years ago.
VRNT has a better debt/assets ratio than last year.
2.2 Solvency
VRNT has an Altman-Z score of 1.20. This is a bad value and indicates that VRNT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.20, VRNT is doing worse than 62.41% of the companies in the same industry.
There is no outstanding debt for VRNT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 4.32 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.45
WACC10.08%
2.3 Liquidity
VRNT has a Current Ratio of 0.64. This is a bad value and indicates that VRNT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.64, VRNT is doing worse than 86.52% of the companies in the same industry.
A Quick Ratio of 0.62 indicates that VRNT may have some problems paying its short term obligations.
VRNT has a Quick ratio of 0.62. This is amonst the worse of the industry: VRNT underperforms 86.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
VRNT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.20%.
VRNT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.23% yearly.
The Revenue has decreased by -2.09% in the past year.
The Revenue has been growing slightly by 1.44% on average over the past years.
EPS 1Y (TTM)-17.2%
EPS 3Y4.61%
EPS 5Y-6.23%
EPS Q2Q%-50.85%
Revenue 1Y (TTM)-2.09%
Revenue growth 3Y1.31%
Revenue growth 5Y1.44%
Sales Q2Q%-5.96%
3.2 Future
The Earnings Per Share is expected to grow by 11.80% 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 6.08% yearly.
EPS Next Y14.43%
EPS Next 2Y11.94%
EPS Next 3Y11.5%
EPS Next 5Y11.8%
Revenue Next Year2.96%
Revenue Next 2Y4.25%
Revenue Next 3Y4.38%
Revenue Next 5Y6.08%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.81 indicates a reasonable valuation of VRNT.
Compared to the rest of the industry, the Price/Earnings ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 91.49% of the companies listed in the same industry.
VRNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.08.
A Price/Forward Earnings ratio of 6.22 indicates a rather cheap valuation of VRNT.
96.10% of the companies in the same industry are more expensive than VRNT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VRNT to the average of the S&P500 Index (22.67), we can say VRNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.81 | ||
| Fwd PE | 6.22 |
4.2 Price Multiples
89.36% of the companies in the same industry are more expensive than VRNT, based on the Enterprise Value to EBITDA ratio.
VRNT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VRNT is cheaper than 92.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.8 | ||
| EV/EBITDA | 10.6 |
4.3 Compensation for Growth
VRNT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VRNT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y11.94%
EPS Next 3Y11.5%
5. Dividend
5.1 Amount
No dividends for VRNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.34
+0.14 (+0.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.08%
Inst Owner Change-3.58%
Ins Owners1.31%
Ins Owner Change13%
Market Cap1.22B
Analysts80
Price Target30.26 (48.77%)
Short Float %9.14%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.32
Dividend Growth(5Y)N/A
DP33.63%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2%
Min EPS beat(2)-23.66%
Max EPS beat(2)27.66%
EPS beat(4)2
Avg EPS beat(4)4.39%
Min EPS beat(4)-23.66%
Max EPS beat(4)27.66%
EPS beat(8)5
Avg EPS beat(8)3.22%
EPS beat(12)9
Avg EPS beat(12)4.78%
EPS beat(16)13
Avg EPS beat(16)8.01%
Revenue beat(2)1
Avg Revenue beat(2)-2.72%
Min Revenue beat(2)-10.26%
Max Revenue beat(2)4.81%
Revenue beat(4)2
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-10.26%
Max Revenue beat(4)4.81%
Revenue beat(8)3
Avg Revenue beat(8)-1.65%
Revenue beat(12)3
Avg Revenue beat(12)-1.79%
Revenue beat(16)5
Avg Revenue beat(16)-1.3%
PT rev (1m)5.23%
PT rev (3m)0.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-58.93%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.82%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.81 | ||
| Fwd PE | 6.22 | ||
| P/S | 1.37 | ||
| P/FCF | 12.8 | ||
| P/OCF | 9.94 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.6 |
EPS(TTM)2.31
EY11.36%
EPS(NY)3.27
Fwd EY16.08%
FCF(TTM)1.59
FCFY7.81%
OCF(TTM)2.05
OCFY10.06%
SpS14.89
BVpS22.11
TBVpS-2.72
PEG (NY)0.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 3.95% | ||
| ROCE | 6.09% | ||
| ROIC | 4.54% | ||
| ROICexc | 5.19% | ||
| ROICexgc | N/A | ||
| OM | 9.88% | ||
| PM (TTM) | 5.87% | ||
| GM | 70.27% | ||
| FCFM | 10.67% |
ROA(3y)1.13%
ROA(5y)0.55%
ROE(3y)1.95%
ROE(5y)0.91%
ROIC(3y)3.56%
ROIC(5y)2.96%
ROICexc(3y)4.12%
ROICexc(5y)3.6%
ROICexgc(3y)78.15%
ROICexgc(5y)N/A
ROCE(3y)4.77%
ROCE(5y)3.96%
ROICexcg growth 3Y0.75%
ROICexcg growth 5Y160.59%
ROICexc growth 3Y28.35%
ROICexc growth 5Y108.76%
OM growth 3Y27.59%
OM growth 5Y97.41%
PM growth 3YN/A
PM growth 5Y16.09%
GM growth 3Y2.67%
GM growth 5Y2.15%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 4.32 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 56.35% | ||
| Cap/Sales | 3.06% | ||
| Interest Coverage | 16.42 | ||
| Cash Conversion | 89.66% | ||
| Profit Quality | 181.84% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 1.2 |
F-Score7
WACC10.08%
ROIC/WACC0.45
Cap/Depr(3y)48.9%
Cap/Depr(5y)43.87%
Cap/Sales(3y)3.26%
Cap/Sales(5y)3.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.2%
EPS 3Y4.61%
EPS 5Y-6.23%
EPS Q2Q%-50.85%
EPS Next Y14.43%
EPS Next 2Y11.94%
EPS Next 3Y11.5%
EPS Next 5Y11.8%
Revenue 1Y (TTM)-2.09%
Revenue growth 3Y1.31%
Revenue growth 5Y1.44%
Sales Q2Q%-5.96%
Revenue Next Year2.96%
Revenue Next 2Y4.25%
Revenue Next 3Y4.38%
Revenue Next 5Y6.08%
EBIT growth 1Y-1.29%
EBIT growth 3Y29.26%
EBIT growth 5Y100.25%
EBIT Next Year6.95%
EBIT Next 3Y5.75%
EBIT Next 5Y7.32%
FCF growth 1Y-13.73%
FCF growth 3Y8.71%
FCF growth 5Y-6.89%
OCF growth 1Y-15.66%
OCF growth 3Y7.82%
OCF growth 5Y-7.92%