20.51 USD
+0.27 (+1.33%)
20.51 USD
0 (0%)
Taking everything into account, VRNT scores 6 out of 10 in our fundamental rating. VRNT was compared to 276 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. VRNT may be a bit undervalued, certainly considering the very reasonable score on growth This makes VRNT very considerable for value investing!
1. Profitability
1.1 Basic Checks
VRNT had positive earnings in the past year.
VRNT had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 2.04%, VRNT is in the better half of the industry, outperforming 63.12% of the companies in the same industry.
VRNT's Return On Equity of 3.41% is fine compared to the rest of the industry. VRNT outperforms 64.89% of its industry peers.
With a decent Return On Invested Capital value of 4.02%, VRNT is doing good in the industry, outperforming 70.92% 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 10.78%.
The 3 year average ROIC (3.56%) for VRNT is below the current ROIC(4.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 3.41% | ||
| ROIC | 4.02% |
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
With a decent Profit Margin value of 5.08%, VRNT is doing good in the industry, outperforming 64.54% of the companies in the same industry.
VRNT's Profit Margin has improved in the last couple of years.
The Operating Margin of VRNT (8.80%) is better than 73.76% of its industry peers.
VRNT's Operating Margin has improved in the last couple of years.
VRNT's Gross Margin of 69.91% is in line compared to the rest of the industry. VRNT outperforms 52.48% of its industry peers.
In the last couple of years the Gross Margin of VRNT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.8% | ||
| PM (TTM) | 5.08% | ||
| GM | 69.91% |
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
VRNT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, VRNT has less shares outstanding
The number of shares outstanding for VRNT has been reduced compared to 5 years ago.
The debt/assets ratio for VRNT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.23, we must say that VRNT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.23, VRNT is doing worse than 61.35% 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 | 3.67 | ||
| Altman-Z | 1.23 |
ROIC/WACC0.41
WACC9.79%
2.3 Liquidity
A Current Ratio of 0.65 indicates that VRNT may have some problems paying its short term obligations.
VRNT has a Current ratio of 0.65. This is amonst the worse of the industry: VRNT underperforms 90.07% of its industry peers.
A Quick Ratio of 0.63 indicates that VRNT may have some problems paying its short term obligations.
The Quick ratio of VRNT (0.63) is worse than 90.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
VRNT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.21%.
VRNT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.23% yearly.
Looking at the last year, VRNT shows a decrease in Revenue. The Revenue has decreased by -2.32% in the last year.
The Revenue has been growing slightly by 1.44% on average over the past years.
EPS 1Y (TTM)-23.21%
EPS 3Y4.61%
EPS 5Y-6.23%
EPS Q2Q%-32.65%
Revenue 1Y (TTM)-2.32%
Revenue growth 3Y1.31%
Revenue growth 5Y1.44%
Sales Q2Q%-1.03%
3.2 Future
The Earnings Per Share is expected to grow by 12.05% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.30% on average over the next years.
EPS Next Y14.4%
EPS Next 2Y12.11%
EPS Next 3Y10.74%
EPS Next 5Y12.05%
Revenue Next Year2.95%
Revenue Next 2Y4.2%
Revenue Next 3Y3.93%
Revenue Next 5Y6.3%
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
VRNT is valuated reasonably with a Price/Earnings ratio of 9.54.
88.30% of the companies in the same industry are more expensive than VRNT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of VRNT to the average of the S&P500 Index (27.19), we can say VRNT is valued rather cheaply.
The Price/Forward Earnings ratio is 6.25, which indicates a rather cheap valuation of VRNT.
Based on the Price/Forward Earnings ratio, VRNT is valued cheaper than 93.26% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.92. VRNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.54 | ||
| Fwd PE | 6.25 |
4.2 Price Multiples
86.52% of the companies in the same industry are more expensive than VRNT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VRNT is valued cheaper than 91.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.03 | ||
| EV/EBITDA | 11.48 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of VRNT may justify a higher PE ratio.
PEG (NY)0.66
PEG (5Y)N/A
EPS Next 2Y12.11%
EPS Next 3Y10.74%
5. Dividend
5.1 Amount
VRNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.51
+0.27 (+1.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.34%
Inst Owner Change-0.08%
Ins OwnersN/A
Ins Owner Change-144.62%
Market Cap1.24B
Revenue(TTM)893.84M
Net Income(TTM)45.43M
Analysts75
Price Target23.95 (16.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.32
Dividend Growth(5Y)N/A
DP35.22%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.67%
Min EPS beat(2)23.69%
Max EPS beat(2)27.66%
EPS beat(4)3
Avg EPS beat(4)12.63%
Min EPS beat(4)-23.66%
Max EPS beat(4)27.66%
EPS beat(8)6
Avg EPS beat(8)8.42%
EPS beat(12)9
Avg EPS beat(12)6.45%
EPS beat(16)13
Avg EPS beat(16)7.28%
Revenue beat(2)2
Avg Revenue beat(2)3.26%
Min Revenue beat(2)1.7%
Max Revenue beat(2)4.81%
Revenue beat(4)3
Avg Revenue beat(4)0.21%
Min Revenue beat(4)-10.26%
Max Revenue beat(4)4.81%
Revenue beat(8)4
Avg Revenue beat(8)-0.39%
Revenue beat(12)4
Avg Revenue beat(12)-1.39%
Revenue beat(16)5
Avg Revenue beat(16)-1.27%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.68%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.54 | ||
| Fwd PE | 6.25 | ||
| P/S | 1.39 | ||
| P/FCF | 11.03 | ||
| P/OCF | 8.99 | ||
| P/B | 0.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.48 |
EPS(TTM)2.15
EY10.48%
EPS(NY)3.28
Fwd EY15.99%
FCF(TTM)1.86
FCFY9.06%
OCF(TTM)2.28
OCFY11.13%
SpS14.75
BVpS21.99
TBVpS-2.5
PEG (NY)0.66
PEG (5Y)N/A
Graham Number32.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 3.41% | ||
| ROCE | 5.39% | ||
| ROIC | 4.02% | ||
| ROICexc | 4.57% | ||
| ROICexgc | N/A | ||
| OM | 8.8% | ||
| PM (TTM) | 5.08% | ||
| GM | 69.91% | ||
| FCFM | 12.6% |
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%
ROICexgc growth 3Y0.75%
ROICexgc 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-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 3.67 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 51.05% | ||
| Cap/Sales | 2.87% | ||
| Interest Coverage | 11.19 | ||
| Cash Conversion | 107.26% | ||
| Profit Quality | 247.96% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.23 |
F-Score6
WACC9.79%
ROIC/WACC0.41
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)-23.21%
EPS 3Y4.61%
EPS 5Y-6.23%
EPS Q2Q%-32.65%
EPS Next Y14.4%
EPS Next 2Y12.11%
EPS Next 3Y10.74%
EPS Next 5Y12.05%
Revenue 1Y (TTM)-2.32%
Revenue growth 3Y1.31%
Revenue growth 5Y1.44%
Sales Q2Q%-1.03%
Revenue Next Year2.95%
Revenue Next 2Y4.2%
Revenue Next 3Y3.93%
Revenue Next 5Y6.3%
EBIT growth 1Y-25.15%
EBIT growth 3Y29.26%
EBIT growth 5Y100.25%
EBIT Next Year8.22%
EBIT Next 3Y6.03%
EBIT Next 5Y7.52%
FCF growth 1Y-7.67%
FCF growth 3Y8.71%
FCF growth 5Y-6.89%
OCF growth 1Y-11.57%
OCF growth 3Y7.82%
OCF growth 5Y-7.92%
VERINT SYSTEMS INC / VRNT FAQ
What is the fundamental rating for VRNT stock?
ChartMill assigns a fundamental rating of 6 / 10 to VRNT.
Can you provide the valuation status for VERINT SYSTEMS INC?
ChartMill assigns a valuation rating of 9 / 10 to VERINT SYSTEMS INC (VRNT). This can be considered as Undervalued.
Can you provide the profitability details for VERINT SYSTEMS INC?
VERINT SYSTEMS INC (VRNT) has a profitability rating of 7 / 10.
What is the earnings growth outlook for VERINT SYSTEMS INC?
The Earnings per Share (EPS) of VERINT SYSTEMS INC (VRNT) is expected to grow by 14.4% in the next year.
Is the dividend of VERINT SYSTEMS INC sustainable?
The dividend rating of VERINT SYSTEMS INC (VRNT) is 0 / 10 and the dividend payout ratio is 35.22%.